MGE Energy (MGEE) Q3 2025 earnings summary

Executive summary

• Provides electric service to 167,000 customers and natural gas to 178,000 customers in south-central and western Wisconsin, with a diversified and resilient revenue stream.

• Net income for the nine months ended September 30, 2025, was $118.6 million, up from $98.5 million year-over-year; EPS rose to $3.08 from $2.72.

• Third-quarter 2025 GAAP earnings reached $44.5 million ($1.22 per share), up from $40.9 million ($1.13 per share) year-over-year.

• Service territory is economically robust, with Madison and Dane County leading state population growth and low unemployment rates.

• Focused on clean energy transition, targeting net-zero carbon electricity by 2050 and net-zero methane emissions from natural gas distribution by 2035.

Financial highlights

• Operating revenues for the nine months ended September 30, 2025, were $554.1 million, up from $505.5 million year-over-year.

• Operating income for the same period was $138.2 million, up from $118.6 million.

• Diluted EPS for Q3 2025 was $1.22, up from $1.13 in Q3 2024; year-to-date EPS was $3.08, up from $2.72 for the same period last year.

• Five-year EPS CAGR is 5.8%; dividends per share have grown at a 5.0% CAGR over the same period, with 50 consecutive years of dividend increases.

• Regulated asset base has grown at a 7.2% CAGR over the past decade.

Outlook and guidance

• Forecasted capital investment of $1.7 billion from 2026 through 2030, focused on sustainability and reliability.

• Capital expenditures are forecasted at $330 million for 2025, with continued investment in renewables, storage, and grid modernization through 2030.

• Anticipates material transmission investment opportunities through ATC, with projected $6.9 billion in ATC capital expenditures from 2026-2030.

• Pending regulatory approval, rate increases of 0.04% (electric) and 2.77% (gas) are proposed for 2026, and 3.76% (electric) and 2.04% (gas) for 2027.

• Rate case settlement for 2026 and 2027 filed, with PSCW decision expected by end of 2025 and new rates effective January 1, 2026.