WEC Energy Group, Inc.

What they do

WEC Energy Group operates six reportable segments, including electric and natural gas utilities in Wisconsin, Illinois, Michigan, and Minnesota. The Wisconsin segment includes WE, WPS, and UMERC, serving electric and gas customers; other states segment includes natural gas utilities MERC and MGU. Nonregulated activities include renewable generation through WECI and We Power, which owns generating plants. The company holds an approximately 60% equity interest in ATC, an electric transmission company.

Revenue drivers

• Wisconsin electric utility operations — Retail electric revenues are the largest driver, accounting for 92.3% of total electric operating revenues in 2025, with resale at 4.8% and wholesale at 1.9%.
• Wisconsin natural gas utility operations — Natural gas sales to residential and commercial/industrial customers across Wisconsin are weather-sensitive and higher in winter.
• Illinois segment — Natural gas utilities PGL and NSG serve customers in the Chicago area; revenues are driven by gas deliveries and regulated rates.
• Other states segment (Minnesota and Michigan) — Natural gas utilities MERC and MGU provide gas service and transportation, with 444.1 thousand customers at end of 2025 and an approved 9.5 million therms design peak-day throughput.

Recent performance

For Q2 2026, WEC reported net income of $299.2 million ($0.91 per share), up from $245.4 million ($0.76 per share) in Q2 2025. First-half 2026 net income was $1.1 billion ($3.36 EPS) versus $969.6 million ($3.02 EPS) in the prior year. Consolidated revenues for the first half of 2026 totaled $5.5 billion, up $337.3 million from the same period in 2025. Annual 2025 revenue was $9.80 billion and net income was $1.56 billion (diluted EPS $4.81). As of June 30, 2026, total assets were $52.75 billion, with long-term debt of $19.22 billion.

Strategy

Management emphasizes customer service, financial discipline, and operating efficiency while executing a capital plan. The company is investing in renewable generation through WECI, with facilities from South Dakota to Texas, and continues to upgrade electric distribution systems, including substations, transformers, and lines. It also invests in renewable projects such as Delilah I Solar, Hardin III, and Tatanka Ridge, alongside We Power's generating plants. The company aims to grow its regulated asset base and maintain a reliable dividend.

Risks

• Regulatory and rate risk — Rates and authorized returns are set by state commissions (e.g., PSCW, MPSC, ICC), and changes could impact cost recovery and profitability.
• Weather and seasonality — Natural gas sales are weather-sensitive; warmer winters reduce demand, and electric sales are higher in summer, creating earnings volatility.
• Environmental regulation — Compliance with EPA rules such as GHG power plant rule, MATS, ELG, and CCR could impose significant costs and affect coal plant operations.
• Large customer concentration — A single iron ore mine (Tilden) in Michigan's Upper Peninsula is a notable load; changes in its operations could affect electric revenues.

Outlook

Management reaffirmed 2026 earnings guidance of $5.51–$5.61 per share, assuming normal weather for the remainder of the year. Forward-looking statements mention expectations on earnings growth and dividend payments, though specific capital expenditure targets were not disclosed in the provided excerpts. The company continues to execute its capital plan while focusing on customer service and efficiency.