WEC Energy Group Powers Ahead with Strong Q1 2025 Results
WEC Energy Group has kicked off the year with a solid performance, as evident from their first-quarter 2025 earnings of $2.27 a share. The company's President and Chief Executive Officer, Scott Lauber, expressed confidence in their ability to deliver another year of strong results, aligning with their 2025 earnings guidance of $5.17 to $5.27 a share.
One key driver behind WEC Energy Group's success is their focus on reliability, financial discipline, and customer satisfaction. As Lauber noted during the conference call, 'We remain laser-focused on these core priorities.' This approach has enabled them to navigate past periods of uncertainty and challenges with ease, making it likely that they will continue to thrive in today's market.
Economic growth in WEC Energy Group's region remains a significant contributor to their success. In Wisconsin, the unemployment rate stands at 3.2%, consistently below the national average. This robust economic environment is also evident in the large-scale projects being developed along the I-94 corridor between Milwaukee and Chicago. Microsoft's data center complex, for instance, is making good progress, with work ongoing on the first phase of the project. As a result, WEC Energy Group has forecast 1.8 gigawatts of demand growth in Southeastern Wisconsin over the next five years.
The company has also been monitoring significant developments in their region, such as the plans announced by Cloverleaf to develop a large data center campus north of Milwaukee. This project is projected to generate at least 1 gigawatt of electric demand, though WEC Energy Group has not yet incorporated this investment into their capital plan. Other notable growth in Wisconsin includes Eli Lilly's $3 billion expansion of its manufacturing facility and Uline's plans to build a massive warehouse and distribution facility.
A strong start has also been made on the company's current five-year capital plan, which totals an impressive $28 billion dedicated to economic growth and reliability. This investment is based on projects that are low-risk and highly executable, making it well-positioned for success in today's market. The company estimates their tariff exposure at approximately 2% to 3% overall but is actively engaged in mitigating the effects through contracts and suppliers.
WEC Energy Group has also made significant strides in renewable energy generation. Their Darien Solar project went into service in early March, adding 225 megawatts of renewable generation to their regulated portfolio with an investment of approximately $427 million. Two other solar projects are currently under construction: koshkonong and Renegade. The company expects these projects to be placed into service next year.
The company is also closely monitoring federal developments related to the Inflation Reduction Act, actively seeking to safe harbor the projects in their capital plan. With this solid foundation and a focus on reliability, financial discipline, and customer satisfaction, WEC Energy Group appears well-positioned for continued success throughout 2025.
