WEC — WEC Energy Group, Inc.

WEC Energy Group Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Q2 2026 earnings per share (EPS) were reported at $0.91, a $0.15 increase from Q2 2025.
• Utility operations contributed $0.06 to earnings, impacted negatively by weather by approximately $0.05.
• Grid-based growth added $0.13 to earnings, primarily from projects supporting very large customers (VLCs).
• Total weather-normalized retail electric sales grew by 4.2% year-over-year, with a 1.2% increase excluding VLCs and an iron ore mine.
• The company reaffirmed its 2026 EPS guidance of $5.51 to $5.61, assuming normal weather for the remainder of the year.

2. Strategic Updates and Business Highlights:

• Significant economic growth in the region, with ongoing construction at major data center sites for Microsoft and Vantage Data Centers.
• WEC’s 5-year capital plan includes projected investments of $37.5 billion, focusing on low-risk, highly executable projects.
• Long-term EPS growth is projected at 7% to 8% annually from 2026 to 2030, with acceleration expected in 2028.
• The company is actively working on regulatory matters, including a rate request for 2027 and 2028, and has made progress on the very large customer tariff (VLC).

3. Forward Guidance and Outlook:

• For Q3 2026, EPS is expected to range from $0.92 to $0.98, accounting for July weather.
• The company plans to update its capital and financing plans in the third quarter.
• WEC aims to continue its growth trajectory, supported by strong demand from data centers and a robust capital investment strategy.

4. Bad News, Challenges, or Points of Concern:

• Weather conditions negatively impacted earnings, with a noted $0.05 hit in Q2.
• Ongoing legal challenges related to Oracle's Port Washington project could pose risks, though management expressed confidence in Oracle's commitment and project timeline.
• Labor shortages are affecting the ramp-up of the pipe retirement program in Illinois, potentially slowing progress.
• There is political uncertainty regarding potential moratoriums on data centers and the overall regulatory environment in Wisconsin.

5. Notable Q&A Insights:

• Management remains confident in Oracle's ability to meet credit support requirements for the Port Washington project, with construction proceeding on schedule.
• Discussions with potential new customers are ongoing, with expectations for additional data center contracts in the 400 to 500-megawatt range.
• The company is exploring various funding strategies, including reliance on its ATM program and potential cash return options to manage funding needs.
• The political landscape in Wisconsin is being monitored closely, with management emphasizing the importance of educating candidates on the economic benefits of data centers.
• Concerns about future gas usage and regulatory discussions around it continue, but management believes gas remains a valuable resource amidst rising electricity demand.

Overall, WEC Energy Group reported solid financial results and remains optimistic about growth opportunities, despite some challenges and uncertainties in the regulatory and political landscape.