In This Article:
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Earnings Per Share (EPS): $2.27 for Q1 2025, a $0.30 increase from Q1 2024.
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2025 Earnings Guidance: Reaffirmed at $5.17 to $5.27 per share.
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Long-term EPS CAGR: Targeting 6.5% to 7% growth.
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Revenue Growth: Weather-normal retail electric deliveries grew by 0.7% compared to last Q1.
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Capital Plan: Largest five-year investment plan totaling $28 billion.
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Tariff Exposure: Estimated at approximately 2% to 3% of the capital plan.
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Dividend Increase: 6.9% increase, marking the 22nd consecutive year of higher dividends.
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Common Equity Issuance: $700 million to $800 million expected in 2025.
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Weather Impact: Positive $0.18 impact on earnings compared to Q1 2024.
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O&M Expense Growth: Expected to grow 8% to 10% compared to 2024.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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WEC Energy Group Inc (NYSE:WEC) reported strong first quarter 2025 earnings of $2.27 per share, a $0.30 increase compared to the first quarter of 2024.
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The company is on track to meet its 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather conditions.
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WEC Energy Group Inc (NYSE:WEC) is executing the largest five-year investment plan in its history, totaling $28 billion, aimed at economic growth and reliability.
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The company has successfully navigated past periods of uncertainty and challenges, and is actively engaged in mitigating tariff impacts through its diverse business mix and supply chain.
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WEC Energy Group Inc (NYSE:WEC) has made significant progress on renewable energy projects, including the Darien solar project and two other solar projects under construction, contributing to its regulated portfolio.
Negative Points
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The company's capital plan faces a tariff exposure of approximately 2% to 3%, which could impact supply chain and project costs.
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WEC Energy Group Inc (NYSE:WEC) expects its day-to-day O&M expenses to grow 8% to 10% compared to 2024, driven by vegetation management and new assets.
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The company has not yet incorporated potential investments related to the Cloverleaf data center development into its capital plan, indicating uncertainty in future capital allocation.
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Higher interest expenses have negatively impacted earnings from the Corporate and Other segment by $0.03.
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The company plans to issue a significant amount of common equity, $700 million to $800 million in 2025, which could dilute existing shareholders.
Q & A Highlights
Q: Can you provide insights on the recent MISO capacity auction results and any potential impact on your base generation CapEx, especially concerning data centers? A: Scott Lauber, President and CEO, explained that the MISO auction was tight, but they are well-positioned with plans to build new generation capacity. They are awaiting commission decisions on additional gas generation needs to support large customer loads and regional economic development. They are also exploring converting coal units to gas by 2029 to meet capacity needs.