MGE Energy (MGEE) investor relations material

Executive summary

• Net income for the quarter ended March 31, 2026, was $48.5 million ($1.32 per share), up from $41.6 million ($1.14 per share) year-over-year, driven by higher electric investments and approved rate increases.

• Earnings growth was supported by increased rate base, new large-scale renewable projects, and higher gas and electric rates effective January 2026.

• The company continues to focus on expanding renewable generation, grid modernization, and maintaining strong credit ratings.

Financial highlights

• Operating revenues rose to $242.7 million from $219.0 million year-over-year, with electric revenues at $131.4 million and gas revenues at $111.3 million.

• Operating income increased to $53.2 million from $52.9 million year-over-year.

• Net income attributable to the main utility was $40.1 million, up from $34.2 million year-over-year.

• Weighted average shares outstanding remained stable at approximately 36.6 million.

• Dividends per share rose to $0.475 from $0.450 year-over-year.

Outlook and guidance

• Approved rate increases for 2026: electric rates up 0.15%, gas rates up 2.77%; further increases approved for 2027.

• Capital expenditures are focused on renewable energy, battery storage, and grid modernization, with significant projects underway or planned.

• The company targets net-zero carbon electricity by 2050 and net-zero methane emissions from its gas distribution system by 2035.

• Management expects adequate liquidity for future operations and capital expenditures, with $140 million in remaining regulatory authority for long-term debt issuance.

• Forward-looking statements caution about uncertainties and risks, referencing the latest annual report for details.