Earnings analysis · 10-Q
MGEE earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
MGE Energy's Q1 2026 results show a strong year-over-year performance, with net income increasing to $48.5 million, or $1.32 EPS, reflecting a significant rise primarily in electric utility earnings driven by higher…
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MGE Energy's Q1 2026 results show a strong year-over-year performance, with net income increasing to $48.5 million, or $1.32 EPS, reflecting a significant rise primarily in electric utility earnings driven by higher rates and increased demand. The balance sheet remains robust with improved operating cash flows despite notable capital expenditures on renewable projects.
Reported figures
- Earnings per share
- $1.32
- Segment
- Electric Utility
- Segment
- Gas Utility
- Segment
- Nonregulated Energy
- Segment
- Transmission Investments
- Segment
- All Other
What stood out
-
Revenue Growth
Revenue for Q1 2026 reached $131.4 million, up 4.7% from $125.5 million in Q1 2025.
-
Net Income Increase
Net income rose to $48.5 million from $41.6 million, translating to EPS of $1.32, up from $1.14 last year.
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Electric Utility Earnings Rise
Electric utility earnings increased to $25.7 million, up from $20.2 million year-over-year.
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Strong Gas Utility Performance
Gas utility operations contributed $13.8 million, slightly up from $13.6 million in the prior year.
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Improved Operating Cash Flow
Operating cash provided was $80.7 million, an increase from $77.9 million in Q1 2025.
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Capital Investment in Renewables
MGE plans significant capital expenditures with solar and wind projects costing over $544.9 million and $73 million, respectively.
What to watch
-
Rising Commodity Prices
Average costs of purchased power increased significantly, with a 53% decline in internal generation costs.
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Regulatory Risk with Tariffs
Potential impacts from new solar tariffs could raise costs and delay projects, thus affecting financial performance.
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Weather Dependency
Electricity and gas demand remain sensitive to weather fluctuations, evidenced by a 3% drop in gas therms delivered.
Management's outlook
Management anticipates growth in electric sales due to new projects and rate adjustments.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.