MGE Energy (MGEE) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $26.5 million ($0.73/share), up from $23.8 million ($0.66/share) year-over-year; six-month net income was $68.1 million ($1.86/share), up from $57.6 million ($1.59/share) year-over-year.

• Earnings growth driven by increased electric investments, favorable weather boosting residential sales, and higher gas retail sales due to colder weather.

• Major capital projects include new solar and battery storage facilities, with significant investments in renewable generation and grid modernization.

• Regulatory approval for 2025 rate increases: 2.63% for electric and 1.32% for gas; pending 2026/2027 rate increases under review.

• Rate base investment growth and favorable weather conditions contributed to improved results.

Financial highlights

• Q2 2025 operating revenues were $159.5 million, up from $145.7 million year-over-year; six-month revenues were $378.4 million, up from $337.0 million year-over-year.

• Operating income for Q2 2025 was $34.2 million, up from $29.7 million year-over-year; six-month operating income was $87.1 million, up from $70.5 million year-over-year.

• Q2 2025 EPS was $0.73 (diluted), up from $0.66; six-month EPS was $1.86, up from $1.59.

• Cash provided by operating activities for the six months ended June 30, 2025, was $134.0 million, up from $130.4 million year-over-year.

• Capital expenditures for the six months ended June 30, 2025, totaled $111.8 million, primarily for utility projects.

Outlook and guidance

• Pending PSCW approval for 2026/2027 rate increases: proposed 4.89% electric and 2.33% gas for 2026, and 4.33% electric and 2.16% gas for 2027.

• Ongoing focus on renewable generation, battery storage, and grid modernization to achieve 80% carbon reduction by 2030.

• Continued investment in renewable generation and energy storage expected to support ongoing asset and earnings growth.

• Monitoring regulatory and trade policy developments that may impact solar project costs and timelines.

• Liquidity expected to be adequate for future operations and capital expenditures, with access to credit facilities and capital markets.