WEC Earnings Call Summary (Q1 2026)

1Key Financial Results and Metrics

Earnings Per Share (EPS): Q1 2026 EPS was $2.45, an increase of $0.18 from Q1 2025.

Utility Operations: Contributed $0.17 to EPS growth, with weather negatively impacting earnings by approximately $0.02.

Rate-Based Growth: Added $0.17 to earnings, including $0.09 from AFUDC equity related to projects under construction.

Operating and Maintenance (O&M) Costs: Day-to-day O&M was favorable by $0.05, aided by a planned asset sale in Illinois.

Common Equity Issuance: Approximately $455 million raised in Q1, accounting for nearly half of the expected $1.1 billion equity needs for 2026.

2Strategic Updates and Business Highlights

Capital Investment: A five-year capital plan totaling $37.5 billion is focused on low-risk, executable projects, with a significant portion aimed at large customers.

Vantage Site Development: Expected to invest $15 billion to complete the Vantage site by 2028, with initial facilities projected to come online in late 2027.

Solar and Gas Projects: Recently approved projects include three solar facilities and a battery storage project, totaling an investment of approximately $730 million.

Regulatory Developments: The Wisconsin Public Service Commission approved a new VLC tariff structure, enhancing predictability for large customers and supporting economic growth.

3Forward Guidance and Outlook

Earnings Guidance: Reaffirmed 2026 EPS guidance of $5.51 to $5.61, assuming normal weather conditions for the remainder of the year.

Long-term Growth: Projected EPS growth of 7% to 8% annually from 2026 to 2030, with expectations of acceleration in growth rates starting in 2028.

4Challenges and Points of Concern

Weather Impact: Mild weather negatively affected natural gas deliveries, with a year-over-year decline of 2.1% in Q1.

Regulatory Risks: Ongoing regulatory reviews in Wisconsin and Illinois could impact future rate cases and capital plans.

Local Opposition: Some local opposition to data center developments may pose challenges for future expansions, although current projects remain unaffected.

Economic Development Risks: Potential referendums and moratoriums in certain areas could hinder broader economic development, although specific impacts on current projects are not anticipated.

5Notable Q&A Insights

Data Center Demand: There is strong interest from hyperscale customers, with potential for additional capacity beyond the planned 3.9 gigawatts.

Point Beach Generation: Discussions are ongoing about replacing aging generation capacity, with a focus on affordability and reliability for customers.

VLC Tariff Feedback: Initial feedback from existing and potential customers regarding the VLC tariff has been positive, with expectations for increased transparency.

Illinois Rate Case: The company is optimistic about settling ongoing regulatory issues, although historical trends suggest challenges in reaching settlements. This summary encapsulates the key financial metrics, strategic initiatives, forward-looking guidance, and notable challenges faced by WEC, providing a balanced view of the company's current position and future outlook.