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Why Is WEC Energy (WEC) Down 3.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is WEC Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
WEC Q2 Earnings Surpass on Rate Base Growth, Revenues Rise Y/Y
WEC Energy Group reported second-quarter 2026 earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents by 13.75%. The bottom line also increased 19.74% from the year-ago quarter’s 76 cents, aided by rate base growth and stronger energy infrastructure results.
WEC’s Revenues
Operating revenues of $2.06 billion missed the Zacks Consensus Estimate of $2.11 billion by around 2.26%. The top line also increased 2.62% from $2.01 billion recorded in the year-ago quarter.
WEC's Sales and Load Trends
Retail electricity deliveries, excluding the iron ore mine and Very Large Customers, were essentially flat on a reported basis. Small commercial and industrial use declined 0.2%, while large commercial and industrial consumption increased 0.9%. Residential use fell 1.1%.
On a weather-normal basis, retail electricity deliveries, excluding the iron ore mine and Very Large Customers, increased 1.2% during second-quarter 2026. Management said volumes grew across all customer classes and came in slightly ahead of its forecast, though it still expects full-year 2026 weather-normalized sales on this basis to be relatively even with 2025. Total electric sales volume for the second quarter was 10,150 thousand megawatt-hours, down 4.7% year over year.
WEC's Costs and Operating Results
Total operating expenses increased 1.5% year over year to $1.63 billion, primarily reflecting a 3.5% rise in other operation and maintenance expenses to $617.1 million and a 4.3% increase in depreciation and amortization to $384.9 million.
Operating income totaled $432.8 million, up 6.9% from $404.9 million recorded in the year-ago quarter.
Equity earnings from transmission affiliates increased 20.6% to $62.6 million, while other income more than doubled to $61.5 million.
The company incurred interest expense of $228.9 million, up 3.7% from the prior-year level of $220.8 million.
WEC Energy's Balance Sheet and Cash Flow
As of June 30, 2026, WEC had cash and cash equivalents of $50 million compared with $27.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt increased to $19.22 billion from $18.50 billion as of Dec. 31, 2025, while total assets rose to $52.75 billion from $51.52 billion over the same period.
Net cash provided by operating activities increased 9.7% year over year to $2.21 billion in the first six months of 2026.
For the six months ended June 30, 2026, capital expenditures rose 35.9% year over year to $2.08 billion. WEC also expects to issue about $1.1 billion of common equity during 2026.
WEC Energy’s Growth Outlook and Capital Plan
WEC Energy reaffirmed its 2026 earnings guidance of $5.51-$5.61 per share, assuming normal weather conditions for the remainder of the year. For the third quarter, management expects earnings of 92-98 cents per share.
The company reaffirmed its long-term annual earnings growth target of 7-8% through 2030 and expects growth to trend toward the upper half of that range beginning in 2028.
WEC's five-year capital plan calls for $37.5 billion of investment through 2030. The program includes $20.3 billion for electric generation, $7.1 billion for gas distribution, $4.7 billion for electric distribution, $4.1 billion for transmission and $1.3 billion for Wisconsin liquefied natural gas capacity.
Data center demand remains central to the outlook. WEC forecasts 2.6 gigawatts of demand from Microsoft's regional development through 2030 and 1.3 gigawatts from the Vantage Data Centers over the next five years.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
Currently, WEC Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is WEC Energy (WEC) Down 3.4% Since Last Earnings Report?
It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is WEC Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
WEC Q2 Earnings Surpass on Rate Base Growth, Revenues Rise Y/Y
WEC Energy Group reported second-quarter 2026 earnings of 91 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents by 13.75%. The bottom line also increased 19.74% from the year-ago quarter’s 76 cents, aided by rate base growth and stronger energy infrastructure results.
WEC’s Revenues
Operating revenues of $2.06 billion missed the Zacks Consensus Estimate of $2.11 billion by around 2.26%. The top line also increased 2.62% from $2.01 billion recorded in the year-ago quarter.
WEC's Sales and Load Trends
Retail electricity deliveries, excluding the iron ore mine and Very Large Customers, were essentially flat on a reported basis. Small commercial and industrial use declined 0.2%, while large commercial and industrial consumption increased 0.9%. Residential use fell 1.1%.
On a weather-normal basis, retail electricity deliveries, excluding the iron ore mine and Very Large Customers, increased 1.2% during second-quarter 2026. Management said volumes grew across all customer classes and came in slightly ahead of its forecast, though it still expects full-year 2026 weather-normalized sales on this basis to be relatively even with 2025.
Total electric sales volume for the second quarter was 10,150 thousand megawatt-hours, down 4.7% year over year.
WEC's Costs and Operating Results
Total operating expenses increased 1.5% year over year to $1.63 billion, primarily reflecting a 3.5% rise in other operation and maintenance expenses to $617.1 million and a 4.3% increase in depreciation and amortization to $384.9 million.
Operating income totaled $432.8 million, up 6.9% from $404.9 million recorded in the year-ago quarter.
Equity earnings from transmission affiliates increased 20.6% to $62.6 million, while other income more than doubled to $61.5 million.
The company incurred interest expense of $228.9 million, up 3.7% from the prior-year level of $220.8 million.
WEC Energy's Balance Sheet and Cash Flow
As of June 30, 2026, WEC had cash and cash equivalents of $50 million compared with $27.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt increased to $19.22 billion from $18.50 billion as of Dec. 31, 2025, while total assets rose to $52.75 billion from $51.52 billion over the same period.
Net cash provided by operating activities increased 9.7% year over year to $2.21 billion in the first six months of 2026.
For the six months ended June 30, 2026, capital expenditures rose 35.9% year over year to $2.08 billion. WEC also expects to issue about $1.1 billion of common equity during 2026.
WEC Energy’s Growth Outlook and Capital Plan
WEC Energy reaffirmed its 2026 earnings guidance of $5.51-$5.61 per share, assuming normal weather conditions for the remainder of the year. For the third quarter, management expects earnings of 92-98 cents per share.
The company reaffirmed its long-term annual earnings growth target of 7-8% through 2030 and expects growth to trend toward the upper half of that range beginning in 2028.
WEC's five-year capital plan calls for $37.5 billion of investment through 2030. The program includes $20.3 billion for electric generation, $7.1 billion for gas distribution, $4.7 billion for electric distribution, $4.1 billion for transmission and $1.3 billion for Wisconsin liquefied natural gas capacity.
Data center demand remains central to the outlook. WEC forecasts 2.6 gigawatts of demand from Microsoft's regional development through 2030 and 1.3 gigawatts from the Vantage Data Centers over the next five years.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
Currently, WEC Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.