MGE Energy (MGEE) Q2 2025 earnings summary

Executive summary

• Provides electric service to ~167,000 and natural gas to ~178,000 customers in south-central and western Wisconsin, with a diversified and resilient revenue stream.

• Reported GAAP net income of $26.5 million ($0.73 per share) for Q2 2025, up from $23.8 million ($0.66 per share) year-over-year, driven by rate base investment growth and favorable weather.

• Service territory is economically robust, with Madison and Dane County leading state population growth and low unemployment.

• Focused on sustainability, targeting net-zero carbon electricity by 2050 and net-zero methane emissions from natural gas distribution by 2035.

• Maintains strong credit ratings (S&P AA-, Moody's Aa2/A1) and a constructive regulatory environment.

Financial highlights

• Q2 2025 diluted EPS was $0.73, up from $0.66 in Q2 2024; six-month EPS was $1.86, up from $1.59; operating revenues for Q2 2025 were $159.5 million, up from $145.7 million year-over-year.

• Six-month net income reached $68.1 million, up from $57.6 million for the same period last year.

• Five-year EPS CAGR is 5.8%; dividends per share CAGR is 5.0% over the same period.

• Regulated asset base (Net PP&E + CWIP) grew at a 6.7% CAGR over the past decade.

• 49 consecutive years of dividend increases.

Outlook and guidance

• Forecasted capital investment of ~$1.4B from 2025 through 2029, with significant focus on clean energy and grid reliability.

• 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.

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

• Anticipates material transmission investment opportunities through ATC, with $5.4B projected ATC investment (2025-2029).