- Adjusted Earnings Full-year 2025 adjusted earnings were $5.27/share, up $0.39/share from 2024, excluding a 46¢/share one-time Illinois settlement charge.
- Capital Plan Expansion A $37.5 billion five-year capital plan includes $1 billion for Microsoft’s data center project and 6,500 MW of renewable generation by 2030.
- Electric Demand Growth Forecasted 3.9 gigawatts of electric demand growth by 2030, driven by Microsoft (500 MW added) and other major industrial investments.
- Earnings Growth Outlook Long-term EPS growth of 7–8% CAGR (2026–2030), accelerating to the upper half by 2028, supported by rate base expansion and operational efficiency.
- Regulatory Resolutions Proposed Illinois settlement resolves 12 pending cases, while Wisconsin’s rate review filings for 2027–2028 aim to address affordability and growth funding.
Growth Drivers and Capital Plan
The company is seeing significant growth from large businesses, including Microsoft, Foxconn, Rockwell Automation, and Uline, resulting in an estimated $1 billion of additional incremental capital to the capital plan. WEC Energy Group is projecting 3.9 gigawatts of electric demand growth in its five-year plan, with a focus on executing its updated $37.5 billion capital plan over the next five years. The company expects to invest $7.4 billion in modern, efficient natural gas generation and LNG storage, and $12.6 billion to add 6,500 megawatts of renewable generation.
Regulatory Updates and Outlook
WEC Energy Group has made progress on regulatory matters, including a proposed settlement in Illinois that would resolve all issues related to 12 pending cases. The company is also expecting a commission order in early May for customers to take service under the proposed very large customer tariff in June. For the full year 2026, the company is reaffirming its annual guidance of $5.51 to $5.61 per share, with analysts estimating revenue growth at 6.4%.
Valuation and Metrics
With a P/E Ratio of 23.38, the stock appears to be reasonably valued. The Dividend Yield is 3.19%, providing a relatively stable income stream. The ROE is 7.77%, indicating a decent return on equity. As Xia Liu, CFO, mentioned, "We're projecting weather-normal retail electric sales in Wisconsin to grow 1.6% from 2025 levels," highlighting the company's growth prospects. Overall, WEC Energy Group's strong financial performance, growth outlook, and reasonable valuation make it an attractive investment opportunity.