WEC earnings analysis
What we found in WEC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
WEC posted Q2 revenue of $2.062 billion and EPS of $0.91, with EPS up from $0.76 in the prior-year quarter, driven principally by Wisconsin rate relief and materially stronger non-utility infrastructure results. Earnings growth was broad across Wisconsin, transmission, and non-utility infrastructure, but Illinois and other-states contributions declined by $3.1 million and $2.3 million, respectively. Cash generation improved to $2.211 billion for the first six months, but the $2.080 billion capital-spending program, $22.564 billion debt balance, and regulatory/collateral obligations keep the risk-reward profile balanced.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS rose 19.7% year over year
- Q2 net income attributable to common shareholders increased $53.8 million year over year to $299.2 million, and diluted EPS rose $0.15 to $0.91 from $0.76. Six-month EPS increased $0.34 to $3.36.
- Core Wisconsin and infrastructure earnings grew
- Wisconsin contribution increased $25.8 million to $208.2 million, while non-utility energy infrastructure rose $36.4 million to $118.7 million and electric transmission rose $8.6 million to $44.2 million. Wisconsin benefited from $44.2 million of rate-order margin and $10.8 million of current returns on bespoke-resource construction.
- Wisconsin margins rose despite cost pressure
- Wisconsin GAAP gross margin increased $7.9 million to $470.1 million on $1.622 billion of revenue, while utility margin increased $56.4 million to $1.123 billion. The gap reflects $17.9 million higher depreciation, $16.0 million higher transmission expense, and $4.0 million higher property and revenue taxes.
- Operating cash flow improved; capex absorbed cash
- Six-month operating cash flow increased $194.8 million year over year to $2.211 billion, but capital expenditures increased $549.4 million to $2.080 billion. The implied six-month operating cash flow less capex was about $130.8 million, versus about $485.4 million a year earlier.
- Large-load demand supports investment pipeline
- Management expects up to 2.6 GW of Milwaukee-to-Chicago load growth through 2030 from Microsoft-related development, while Vantage's Port Washington site is forecast to add 1.3 GW through 2030 and could reach 3.5 GW over time. The 2026-2030 plan totals $37.5 billion, including $33.4 billion for regulated utilities and $4.1 billion for WEC's share of ATC capital spending.
- Liquidity supported, but leverage is elevated
- At June 30, total debt was $22.564 billion and the debt-to-total-capitalization ratio was 61.4%. Current liabilities exceeded current assets by $2.427 billion, although management states existing revolvers, operating cash generation, and capital-market access are adequate.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Very-large-customer collateral exposure
- Item 1A states there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Nevertheless, Oracle America Cloud Services-related projects have a peak collateral requirement currently expected to be approximately $7.0 billion following the recent credit-rating downgrade of its parent.
- Illinois regulatory settlement and rate-base reduction
- PGL agreed to permanently remove $130.0 million of qualified infrastructure costs from rate base starting in 2027 and refund $75.0 million to customers during 2026-2028. The associated rate-base reduction and customer-refund obligation was $205.0 million at June 30, 2026.
- Solar tariffs threaten cost and timing
- Solar-project costs and timing remain exposed to trade policy: preliminary duties apply to Laos, Indonesia, and India, with final AD/CVD rates scheduled for fall 2026. The company also plans $1.694 billion of solar spending in 2027, heightening sensitivity to panel costs and availability.
- Funding costs and rating sensitivity
- Interest expense at the corporate-and-other segment increased $6.5 million year over year in Q2 to $95.0 million because of higher average short-term debt balances. A sub-investment-grade rating for WE could require up to $109 million of additional collateral under a PPA.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.91
- Segment
- Wisconsin: $1.622 billion operating revenue, up $34.3 million year over year; net income contribution was $208.2 million, up $25.8 million.
- Segment
- Illinois: $262.2 million operating revenue, down $8.4 million year over year; net income contribution was $19.5 million, down $3.1 million.
- Segment
- Other states: $84.3 million operating revenue, up $2.0 million year over year; net income contribution was $1.2 million, down $2.3 million.
- Segment
- Electric transmission: net income contribution was $44.2 million, up $8.6 million, on $62.6 million of equity earnings from transmission affiliates.
- Segment
- Non-utility energy infrastructure: net income contribution was $118.7 million, up $36.4 million; operating income was $120.9 million, up $49.4 million.
What they said about what is next.
The 10-Q does not provide quantitative EPS or revenue guidance. Management expects a 2026 annual effective tax rate of 6.5% to 7.5% and disclosed planned 2026 capital expenditures of $5.018 billion.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- WEC Energy Group reported strong Q1 2026 results, with revenue up to $3.4 billion, exceeding analyst expectations. The company's earnings per share hit $2.45, surpassing estimates by approximately 6%, driven by growth…
- 10-K · February 20, 2026
- WEC Energy Group's 2025 results show revenue expansion while earnings per share were essentially flat and free cash flow swung materially negative. Quarterly data show 2025 total revenue of about $9.80 billion (sum of…
- 10-Q · October 31, 2025
- WEC reported a beat in the quarter: operating revenues of $2,104.0 million and diluted EPS of $0.83 (vs $1,863.5 million and $0.76 in 2024Q3). Operating income rose to $449.6 million and equity earnings from…
- 10-K · February 21, 2025
- WEC Energy Group presents itself as a diversified regulated utility holding company focused on stable, rate-regulated electric and natural gas operations with growing non‑utility renewable investments and an…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing WEC makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever