ALLETE (ALE) investor relations material

Executive summary

• Net income attributable to shareholders for Q3 2025 was $27.1 million ($0.46 per diluted share), down from $45.0 million ($0.78 per share) in Q3 2024, primarily due to lower industrial sales, inflationary pressures, and transaction-related expenses.

• The company is awaiting a written order from the Minnesota Public Utilities Commission to complete its sale to Canada Pension Plan Investment Board and Global Infrastructure Partners.

• Regulated Operations contributed $32.5 million in Q3 2025, down from $34.0 million in Q3 2024, reflecting lower industrial margins and higher operating expenses.

• ALLETE Clean Energy posted a net loss of $3.6 million in Q3 2025, compared to net income of $3.9 million in Q3 2024, due to lower production and tax credits.

• New Energy Equity reported net income of $1.3 million, down from $11.7 million, due to lower project sales.

Financial highlights

• Q3 2025 operating revenue was $375.0 million, down from $407.2 million in Q3 2024.

• Net income attributable to shareholders for the nine months ended September 30, 2025, was $115.1 million, compared to $128.7 million in 2024.

• Operating income for Q3 2025 was $29.6 million, down from $45.3 million in Q3 2024.

• Dividends per share for Q3 2025 were $0.73, up from $0.705 in Q3 2024.

• Book value per share at quarter-end was $49.09, up from $48.97 a year ago.

Outlook and guidance

• The company targets long-term consolidated EPS growth of 5–7%.

• Net income from Regulated Operations is expected to be about 75% of total consolidated net income in 2025.

• Industrial sales, especially to taconite customers, are expected to remain lower for the remainder of 2025.

• The company is focused on compliance with Minnesota's carbon-free energy standard and plans significant investments in renewables and transmission.

• A rate case stay-out provision will impact 2026 financials but provides material benefits to customers.