WEC Energy Group (WEC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $211.3 million ($0.67 per share), down from $289.7 million ($0.92 per share) in Q2 2023, mainly due to higher O&M, depreciation, and storm costs.

• Six-month net income rose to $833.6 million ($2.64 per share) from $797.2 million ($2.52 per share) year-over-year.

• Strong regional economic growth, with major investments from WestRock and Microsoft, is supporting demand and capital plans.

• Company continues to execute its ESG Progress Plan, focusing on retiring fossil-fueled generation and investing in renewables and clean natural gas.

• Retail electricity deliveries (excluding the iron ore mine) increased 0.5% in Q2 2024; residential use rose 1.4%.

Financial highlights

• Q2 2024 operating revenues were $1,772.0 million, down from $1,830.0 million in Q2 2023; six-month revenues were $4,452.2 million, down from $4,718.1 million.

• Q2 operating income was $364.8 million, down from $425.3 million; six-month operating income was $1,178.2 million, up from $1,094.6 million.

• Q2 diluted EPS was $0.67, down from $0.92; six-month diluted EPS was $2.64, up from $2.52.

• Q2 operating cash flow for the first six months was $1,901.0 million, up from $1,754.3 million year-over-year.

• Dividends per share increased to $0.8350 in Q2 2024 from $0.7800 in Q2 2023.

Outlook and guidance

• 2024 EPS guidance reaffirmed at $4.80-$4.90, assuming normal weather for the remainder of the year.

• Q3 2024 EPS guidance set at $0.68-$0.70, reflecting revenue recognition shifts and weather assumptions.

• Long-term earnings growth rate projected at 6.5%-7% CAGR.

• 2024 annual effective tax rate expected between 12.5% and 13.5%.

• Company expects to maintain adequate liquidity through internal cash generation and capital market access.