WEC Energy Group (WEC) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 adjusted EPS of $0.82, excluding a $0.06 charge from Illinois capital disallowance, and reaffirmed full-year adjusted EPS guidance of $4.80–$4.90.

• Q3 2024 net income attributed to common shareholders was $240.1 million ($0.76 per share), down from $316.0 million ($1.00 per share) in Q3 2023.

• Year-to-date net income attributed to common shareholders was $1,073.7 million ($3.40 per share), down from $1,113.2 million ($3.52 per share) in 2023.

• Announced a record $28 billion five-year capital plan (2025–2029), up $4.3 billion (18%) from the prior plan, focused on regulated electric generation, transmission, and distribution.

• The company continues to execute its ESG Progress Plan, focusing on retiring fossil-fueled generation, investing in renewables, and enhancing reliability and efficiency.

Financial highlights

• Q3 2024 adjusted EPS decreased $0.18 year-over-year, mainly due to Illinois rate design changes and higher O&M, depreciation, and interest expense.

• Q3 2024 operating revenues were $1.86 billion, down from $1.96 billion in Q3 2023; operating income was $383.7 million, down from $472.0 million.

• Retail electric deliveries in Wisconsin rose 0.4% year-over-year; energy infrastructure segment earnings improved $0.06, driven by higher production tax credits and renewable output.

• Corporate and other segment earnings fell $0.07 due to tax timing and higher interest expense.

• Cash provided by operating activities for the nine months ended September 30, 2024, was $2,630.0 million, up from $2,538.4 million in the prior year period.

Outlook and guidance

• 2024 adjusted EPS guidance reaffirmed at $4.80–$4.90, assuming normal weather for the remainder of the year.

• Long-term EPS growth projected at 6.5%–7% CAGR, using 2023 as the base year.

• Dividend payout ratio targeted at 65%–70% of earnings, with growth expected to align with EPS growth.

• The company expects its 2024 annual effective tax rate to be between 12.5% and 13.5%.

• Major rate cases are pending, with decisions expected in Q4 2024 for Wisconsin utilities and new rates effective January 1, 2025 and 2026.