MGE Energy (MGEE) Q1 2025 earnings summary

Executive summary

• Serves approximately 167,000 electric and 178,000 gas customers, with a diversified and resilient revenue stream primarily from regulated operations.

• Net income for Q1 2025 was $41.6M ($1.14/share), up from $33.8M ($0.93/share) year-over-year, driven by higher electric and gas sales, favorable weather, and increased rate base investment.

• Service territory in Madison and Dane County is experiencing strong population and economic growth, supporting customer and revenue expansion.

• Focused on sustainability, targeting net-zero carbon electricity by 2050 and net-zero methane emissions from gas distribution by 2035, with coal phase-out and new solar/wind projects underway.

• Maintains a strong balance sheet, stable earnings growth, and a history of 49 consecutive years of dividend increases.

Financial highlights

• Operating revenues rose to $218.97M in Q1 2025 from $191.34M in Q1 2024, a 14% increase year-over-year.

• Diluted EPS for Q1 2025 was $1.14, up from $0.93 in Q1 2024, reflecting growth across electric, gas, and nonregulated energy segments.

• Net property, plant, and equipment plus CWIP grew at a 6.6% CAGR over the past decade.

• Dividend per share increased to $0.450 from $0.428 year-over-year.

• Cash provided by operating activities was $77.9M, up from $65.8M year-over-year.

Outlook and guidance

• Forecasted capital investment of approximately $1.4 billion from 2025 through 2029, with significant allocations to clean energy and grid reliability.

• Pending PSCW approval, proposed 2026/2027 rate increases are 4.89%/4.33% for electric and 2.33%/2.16% for gas, with an authorized ROE of 10.0%.

• Anticipates material transmission investment opportunities through ATC, with $5.4 billion in projected ATC investments from 2025–2029.

• MGE expects to maintain adequate liquidity for operations and capital expenditures over the next 12 months.

• Ongoing focus on carbon reduction, renewable generation expansion, and grid modernization.