WEC Energy 2025 Q1 Earnings Strong Performance as Net Income Rises 16.5%

WEC Energy reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company surpassed earnings expectations, with reported EPS of $2.27, beating the anticipated $2.18. WEC Energy reaffirmed its full-year 2025 earnings guidance, projecting EPS between $5.17 and $5.27 per share. Notably, the company is on track with its ambitious $28 billion capital expenditure plan, aimed at supporting long-term growth and reliability. These developments underscore WEC's commitment to operational excellence and financial discipline, positioning the company for another strong year.

Revenue
The total revenue of WEC Energy rose by 17.5% to $3.15 billion in 2025 Q1, compared to $2.68 billion in 2024 Q1. Within its segments, Total Utility Operations contributed $3.08 billion, driven largely by Wisconsin, which brought in $2.06 billion. Illinois added $788.30 million, while revenues from other states totaled $227.10 million. Non-Utility Energy Infrastructure reported $194.30 million, and Reconciling Eliminations accounted for a negative $120.10 million, culminating in a consolidated revenue of $3.15 billion for WEC Energy Group.

Earnings/Net Income
WEC Energy's EPS climbed by 15.7% to $2.28 in 2025 Q1, up from $1.97 in 2024 Q1, reflecting consistent earnings growth. The company's net income improved to $725.50 million in 2025 Q1, marking a 16.5% increase from $622.60 million in 2024 Q1. These results highlight the firm's solid profitability and resilience.

Price Action
The stock price of WEC Energy edged up 0.28% during the latest trading day, increased by 0.09% over the most recent full trading week, and climbed 5.04% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing WEC Energy shares following a quarter-over-quarter revenue drop and holding them for 30 days has yielded poor performance over the past five years. This approach resulted in a return of -0.03%, significantly trailing the benchmark return of 84.08%. The strategy's excess return was -84.11%, with a CAGR of -0.01%, indicating substantial negative returns. Furthermore, the strategy experienced a maximum drawdown of -9.61% and a Sharpe ratio of 0.00, highlighting its high risk and lack of returns. These figures underscore the challenges faced by this particular investment strategy in delivering positive outcomes for investors.

CEO Commentary
Scott Lauber, President and CEO of WEC Energy Group, highlighted a solid start to 2025 with earnings per share of $2.27, driven by economic growth and operational excellence. He emphasized the company’s focus on reliability, financial discipline, and customer satisfaction, positioning WEC for another strong year. Lauber noted significant developments in Wisconsin, including ongoing projects with Microsoft and Eli Lilly, which are expected to enhance demand for electricity. He expressed confidence in their robust $28 billion capital plan aimed at economic growth and reliability, while acknowledging challenges from tariffs affecting supply chain costs.

Guidance
WEC Energy Group reaffirmed its 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather conditions. The company projects capital expenditures of approximately $28 billion over five years, supporting a long-term compound annual growth rate of 5% to 7%. For Q2 2025, the expected earnings per share range is $0.63 to $0.69, reflecting ongoing operational stability and growth initiatives.

Additional News
Recently, WEC Energy Group announced that it will increase its quarterly dividend by 6.9% to $0.8925 per share, effective from the first quarter of 2025. This marks the 22nd consecutive year of dividend growth, demonstrating the company's commitment to rewarding shareholders. Additionally, WEC Energy Group has made strategic moves to bolster its renewable energy portfolio, including the acquisition of a 90% interest in Hardin Solar III Energy Center, adding 250 megawatts of capacity. Furthermore, the company has launched new initiatives to address tariff impacts on its supply chain, ensuring diverse sourcing to mitigate potential disruptions. These developments underscore WEC Energy Group’s proactive approach in navigating current market challenges while focusing on long-term growth.