WEC Energy Group (WEC) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted earnings were $0.82 per share, excluding a $0.06 per share charge related to Illinois capital expenditures disallowance; reported net income was $240.1 million ($0.76 per share), down from $316.0 million ($1.00 per share) in Q3 2023.

• Year-to-date net income attributed to common shareholders was $1,073.7 million ($3.40 per share), down from $1,113.2 million ($3.52 per share) in 2023.

• Lower earnings were primarily driven by decreased Illinois segment margins due to rate order impacts, higher operating expenses, and increased interest expense, partially offset by higher production tax credits and improved results in the non-utility energy infrastructure segment.

• The company reaffirmed 2024 adjusted EPS guidance of $4.80–$4.90, assuming normal weather for the remainder of the year.

• Announced a record $28 billion five-year capital plan (2025–2029), up $4.3 billion (18%) from the prior plan, focused on regulated growth, renewables, and transmission.

Financial highlights

• Q3 2024 operating revenues were $1.86 billion, down from $1.96 billion in Q3 2023; nine-month revenues were $6.32 billion, down from $6.68 billion.

• Q3 2024 operating income was $383.7 million, down from $472.0 million; nine-month operating income was $1,561.9 million, nearly flat year-over-year.

• Q3 2024 net income attributed to common shareholders was $240.1 million; diluted EPS was $0.76; adjusted EPS was $0.82.

• Cash provided by operating activities for the nine months ended September 30, 2024, was $2.63 billion, up from $2.54 billion in the prior year period.

• Dividends per share increased to $0.8350 in Q3 2024 from $0.7800 in Q3 2023.

Outlook and guidance

• 2024 adjusted EPS guidance reaffirmed at $4.80–$4.90, with GAAP EPS guidance at $4.74–$4.84, assuming normal weather.

• Long-term EPS growth projected at 6.5%–7% CAGR, using 2023 base of $4.60.

• Dividend payout ratio targeted at 65%–70% of earnings, with growth in line with EPS.

• The 2024 annual effective tax rate is expected to be between 12.5% and 13.5%.

• Major rate cases are pending, with decisions expected in Q4 2024 for Wisconsin utilities and new rates effective January 1, 2025 and 2026.