Utility WEC Energy beats profits on higher power demand

WEC Energy Group beat Wall Street's expectations for the third quarter profit, and posted an 13% increase in net income. The utility also benefited from higher electricity demand among all customer segments.

The U.S. Energy Information Administration predicts that power demand in the United States will reach record levels in 2025-2026. This is due to the growth of AI and cryptocurrency datacenters, as well as broader electrification.

The consumption of electricity by large commercial and industry customers increased 2.5%, while the consumption of electricity by small commercial customers and industrial customers increased 1.1%.

WEC Energy reported that residential electricity consumption increased by 2.1%, and retail electricity deliveries excluding iron ore mines in Michigan's Upper Peninsula grew by 1.8%.

WEC's operating revenue for the third quarter rose 12.7%, to $2.10billion, compared to analysts' estimates of $1.89billion, according to LSEG data.

The company, which supplies electricity and gas for nearly 4.7 millions customers in Wisconsin and Illinois, Michigan, and Minnesota, reaffirmed their 2025 earnings guidance range of $5.17-$5.27 per share.

WEC Energy, based in Milwaukee, increased its net income to $271.3 millions, or $83 per share during the third quarter. This compares with $240.1million, or $76 per share a year earlier. Analysts expected that the company would report a profit per share of 81 cents.

WEC had to pay 6 cents per share in the third quarter of last year after Illinois regulators denied it reimbursement for certain expenses. If this item was excluded, the adjusted earnings for the third quarter of last year would have been 82c per share.

(source: Reuters)