WEC Energy Group, Inc. Q2 FY26 Earnings Analysis

- Electric sales expected to grow around 1.5% for the full year 2026, in line with Q1 2026 growth of 1.3%, led by large commercial and industrial customers (3% growth). - Continued growth in the region supported by significant capital investments, including $37.5 billion over 5 years for increased capacity and reliability. - Anticipated 7% to 8% compound annual growth rate (CAGR) in long-term earnings per share between 2026 and 2030, with acceleration to the upper half starting in 2028. - Approximately 15% of the asset base attributable to very large customers by 2030, driven by data center expansions and other economic developments. - Ongoing investment in renewables and natural gas facilities to support growth and reliability. - Final orders on rate requests expected by the end of 2026 to help fund infrastructure and maintain affordability.

- Long-term earnings per share (EPS) growth is projected at 7% to 8% annually on a compound basis between 2026 and 2030, based on the midpoint of 2025 adjusted guidance. - Growth rate is expected to accelerate to the upper half of that range starting in 2028. - First quarter 2026 earnings were $2.45 per share, an increase of $0.18 compared to Q1 2025. - Full year 2026 earnings guidance is reaffirmed at $5.51 to $5.61 per share, assuming normal weather. - Expected electric sales growth for 2026 is around 1.5%. - Capital investment plans totaling $37.5 billion over five years support the growth trajectory. - Rate-based growth contributed $0.17 to Q1 earnings, from investments including projects under construction. - Dividend increased by 6.7% in January 2026, marking the 23rd consecutive year of dividend growth aligned with earnings growth expectations.

- $37.5 billion projected capital investments over the next 5 years focused on low-risk, highly executable projects, with a significant portion dedicated to very large customers. - $730 million planned investment in newly approved solar and battery storage projects. - Construction ongoing for new natural gas facilities at Paris and Oak Creek, Wisconsin; Paris Race units and Oak Creek combustion turbines expected online late 2027. - Extension of operating lives for Oak Creek units 7 and 8 through 2027 for reliability and affordability, instead of retiring them this year. - Vantage site with 1.3 GW demand forecasted over five years and potential to grow to 3.5 GW, with $15 billion expected investment to complete its phase by 2028. - Planning underway to potentially replace Point Beach nuclear units with about $2 to $2.5 billion capital investment for approximately 1 GW replacement by 2030-2033, likely gas combined cycle. - Equity financing planned up to $1.1 billion in 2026 with about half already issued.

- In Q1 2026, WEC Energy Group locked in approximately $455 million in common equity, including $25 million issued under the employee benefit plan and $430 million via the ATM program under forward contracts to be settled in the future. - The company expects to issue up to $1.1 billion of common equity in 2026, with nearly half already accounted for in Q1. - Any incremental capital beyond the current plan is expected to be funded with 50% equity content. - No specific mention of new debt issuance was provided in the excerpts, but WEC continues to execute its $37.5 billion 5-year capital plan, suggesting ongoing capital needs.

- The company has approximately 3.9 gigawatts in its 5-year plan related to data center capacity. - Available and permitted acreage sites could support an additional 4 to 5 gigawatts of capacity. - Construction activity at the Vantage site has started, and execution is tracking well with no expected slippage. - Discussions are ongoing with hyperscale customers; more information and potential announcements are expected on the third quarter call. - The final VLC tariff approval is seen as a positive enabler for economic development and customer interest. - Replacement capacity plans include about 1 gigawatt for Point Beach, estimated to cost $2 billion to $2.5 billion, potentially split between renewables and gas. - No indication of significant delays or cancellations in the orderbook; planning and execution are proceeding as expected.