WEC Energy Group, Inc.
WEC · NYSE
Dec 2026
Next quarter
Expected to report Feb 4, 2027 — estimated from last year’s reporting date.
Consensus is $1.35 EPS for Dec 2026 across 3 estimates, ranging $1.27 to $1.48.
WEC Sep 2026
- 20.41%
- $0.98
- $1.18
- —
- $2.29B
Reported results
- $2.29B
- 71.57%
- $563.70M
- 24.61%
- $390.30M
Highlights
- Earnings beat: Q3 diluted EPS of $1.18 was 20.4% above the $0.98 consensus and up from $0.83 a year earlier; net income attributable to common shareholders rose to $389.3 million from $271.3 million.
- Capital plan reset: WEC increased its 2027–2031 investment plan by $10 billion, or more than 26%, to $47.5 billion, largely to serve very large customers (VLCs).
- Demand outlook: Forecast electric demand growth through 2031 rose by 1 gigawatt to 4.9 gigawatts; roughly 45% of the new capital plan is allocated to VLCs.
- Higher guidance: 2026 EPS guidance was raised and narrowed to $5.60–$5.64 from $5.51–$5.61, assuming normal weather for the rest of the year.
- Load growth: Third-quarter weather-normal electric sales rose 4.1%, led by VLC demand; excluding VLCs and the iron ore mine, they increased 0.4%.
- Long-term growth target: WEC expects 7%–9%+ annual EPS growth through 2031, based on the midpoint of its original 2026 guidance; management sees potential for growth above 9% in 2028–2029 if approvals and execution allow.
- Sequential improvement: Revenue was $2.29 billion, operating income $563.7 million and net income $390.3 million, respectively up 11%, 30% and 30% from Q2 FY2026.
- Funding plan: The five-year plan anticipates $26–$27 billion of operating cash flow, $19 billion of incremental debt and $5–$5.5 billion of common equity.
Analysis
WEC delivered a strong, weather-assisted third quarter, with diluted EPS of $1.18 beating the $0.98 consensus by 20.4% and rising 42% from $0.83 a year ago. Revenue grew 8.9% year over year to $2.29 billion, operating income increased 25% to $563.7 million, and net income was $390.3 million versus $270.2 million. Compared with Q2 FY2026, revenue rose from $2.06 billion, operating income from $432.8 million and net income from $301.0 million, reflecting the seasonal improvement typical of the third quarter.
The print’s larger story was the accelerating investment opportunity tied to Wisconsin’s data-center and other large-customer demand. WEC lifted its five-year capital plan to $47.5 billion, up $10 billion, alongside a 1-gigawatt increase in forecast demand growth through 2031. Management linked the quarter’s earnings improvement to warmer-than-normal weather, capital returns from construction and operating efficiency, and raised 2026 EPS guidance to $5.60–$5.64. The expanded plan supports a 7%–9%+ long-term EPS growth target, while WEC expects common-equity funding needs to remain broadly flat versus the prior plan because more projects generate cash returns during construction and operating cash flow is higher. Execution and regulatory approvals remain important to realizing that outlook.
Quarterly earnings drivers
- Utility contribution: Utility operations added $0.28 per share year over year. Rate-based growth contributed $0.19, including $0.15 from incremental returns on construction projects; $0.12 of those returns related to VLC-supported projects.
- Weather and efficiency: Weather added about $0.05 per share versus Q3 2025. Weather was estimated to contribute $0.08 above normal this quarter, compared with $0.03 a year ago. Favorable day-to-day O&M added $0.08, though management cautioned this could partly reflect timing.
- Other segments: American Transmission Company added $0.03 per share from investment growth, while energy infrastructure added $0.02. Corporate and other earnings increased $0.04, primarily from tax timing.
- Offsets: Higher depreciation and amortization, interest expense, and tax and other items partially offset the positive drivers. Consolidated interest expense was $241.7 million, up from $223.6 million a year earlier.
VLC demand and capital plan
- Investment envelope: WEC plans $47.5 billion of capital investment from 2027 through 2031, $10 billion more than in its previous plan. Management said more than $8 billion of the increase is related to VLCs; about 45% of the total plan is allocated to them.
- Forecast load: Expected electric demand growth through 2031 increased by 1 gigawatt to 4.9 gigawatts. The plan includes 3.2 gigawatts of demand in the I-94 corridor through 2031, including 600 megawatts more than the prior plan, and 1.3 gigawatts at Vantage’s Oracle site.
- Generation and transmission: The plan adds $6.8 billion of natural-gas generation investment versus the previous plan, increases battery-storage investment by $3 billion, and allocates about $5.3 billion to ATC projects, $1.2 billion above the prior plan. Planned solar and wind investment is down $1.9 billion, partly reflecting work completed in 2026.
- Customer safeguards: Management said the VLC tariff requires these customers to pay their full share of energy costs and provides financial security and credit support. WEC expects VLC-dedicated assets to represent about 29%–30% of total assets by 2031.
Sales and guidance
- Electric deliveries: Actual retail electric deliveries, excluding the iron ore mine and VLCs, rose 3.3% year over year. The call reported weather-normal electric sales growth of 4.1% overall, driven by VLCs, and 0.4% excluding the mine and VLCs.
- Customer trends: Residential electricity use increased 5.1%; small commercial and industrial use rose 3.5%; and large commercial and industrial use, excluding the mine and VLCs, rose 1.0%. WEC continues to expect weather-normal electric sales to be relatively flat for full-year 2026.
- 2026 outlook: The company raised and narrowed diluted EPS guidance to $5.60–$5.64 from $5.51–$5.61, assuming normal weather for the rest of the year. Management cited favorable weather and VLC-supported capital investment.
- Longer-term target: WEC expects 7%–9%+ annual EPS growth through 2031, calculated from the original 2026 guidance midpoint of $5.56. Management described the “plus” as most likely tied to 2028–2029 and dependent on regulatory approvals and the pace of project execution.
Funding the buildout
- Five-year sources: WEC expects to fund the plan with $26–$27 billion of operating cash flow, $19 billion of incremental debt including hybrid instruments, and $5–$5.5 billion of common equity.
- Equity needs: Despite the $10 billion increase in capital spending, management expects equity funding to stay relatively flat versus the prior plan, at roughly 10% of cash sources. More cash returns during construction, rather than AFUDC, are a key reason; management said future incremental capital could require around 40% equity content, down from its historical 50% assumption.
- Recent issuance: WEC said it had locked in about $1.16 billion of common equity during the first nine months of 2026, including approximately $1.1 billion through its at-the-market program. About $765 million remained under forward contracts to be settled later.
- Cash generation and investment: Nine-month operating cash flow increased to $3.41 billion from $2.95 billion a year earlier, while capital expenditures were $3.32 billion versus $3.12 billion.
Approvals and execution
- Wisconsin rates: WEC expects final orders by year-end on its Wisconsin rate request for 2027 and 2028, with new rates anticipated to take effect in January of each year.
- Illinois rates: In Peoples Gas and North Shore Gas’ 2027 rate cases, an administrative law judge proposed a 9.48% ROE and 50% equity ratio; WEC expects a final decision in December.
- Oracle transmission: ATC refiled its proposal to serve the Vantage/Oracle site, adding an eSTATCOM system for grid reliability. Management said the project remained on schedule and estimated construction would take 12–15 months after approval.
- Construction capacity: The Illinois pipe-retirement program is ramping more slowly than planned amid resource constraints; WEC expects annual spending to reach about $500 million from 2028 as staffing builds.
