MGE Energy (MGEE) Q1 2026 earnings summary

Executive summary

• Serves approximately 170,000 electric and 180,000 gas customers in Wisconsin, with a diversified revenue stream and over 99% of assets dedicated to regulated and quasi-regulated utility operations.

• Net income for Q1 2026 was $48.5 million ($1.32 per share), up from $41.6 million ($1.14 per share) year-over-year, driven by higher electric investments and approved rate increases.

• Earnings growth supported by increased rate base, new large-scale renewable projects, and higher gas and electric rates effective January 2026.

• 50 consecutive years of dividend increases and a 5-year EPS CAGR of 7.4%.

• Service territory is economically resilient, with population growth and unemployment below the U.S. average.

Financial highlights

• Q1 2026 diluted EPS was $1.32, up from $1.14 in Q1 2025; net income margin for Q1 2026 was approximately 20%.

• Operating revenues rose to $242.7 million from $219.0 million year-over-year, with electric revenues at $131.4 million and gas revenues at $111.3 million.

• Full-year 2025 diluted EPS reached $3.72, up from $3.33 in 2024.

• 5-year EPS CAGR of 7.4% and dividend CAGR of 5.0% from 2021 to 2025.

• Net PP&E + CWIP grew at a 10-year CAGR of 7.6%.

Outlook and guidance

• Forecasted capital investment of $1.9 billion from 2026 through 2030, focused on reliability, sustainability, and grid modernization.

• Targeting net-zero carbon electricity by 2050 and net-zero methane emissions from natural gas distribution by 2035.

• Approved rate increases for 2026: electric rates up 0.15%, gas rates up 2.77%; further increases approved for 2027.

• Ongoing transition away from coal, with Elm Road units expected to be fully transitioned by end of 2032.

• Management expects adequate liquidity for future operations and capital expenditures, with $140 million in remaining regulatory authority for long-term debt issuance.