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WEC Q3 Earnings Beat Estimates on Strong Demand, Revenues Rise Y/Y

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Key Takeaways

  • WEC's Q3 earnings rose 42.2% to $1.18 per share, beating estimates by 20.41%, while revenues grew 8.9%.
  • Retail electricity deliveries rose 3.3%, led by a 5.1% rise in residential demand.
  • WEC's operating income rose 25.4% to $563.7 million, lifting its 2026 EPS outlook.

WEC Energy Group (WEC - Free Report) reported third-quarter 2026 earnings of $1.18 per share, which surpassed the Zacks Consensus Estimate of 98 cents by 20.41%. The bottom line also increased 42.2% from the year-ago quarter's 83 cents, driven by favorable weather, capital investments and operating efficiency.

WEC’s Revenues

Operating revenues of $2.29 billion beat the Zacks Consensus Estimate of $2.23 billion by 2.72%. The top line increased 8.9% from $2.10 billion recorded in the year-ago quarter.

WEC Energy Group, Inc. Price, Consensus and EPS Surprise

WEC Energy Group, Inc. Price, Consensus and EPS Surprise

WEC Energy Group, Inc. price-consensus-eps-surprise-chart | WEC Energy Group, Inc. Quote

WEC's Electric Sales and Load Trends

Retail electricity deliveries, excluding the iron ore mine in Michigan's Upper Peninsula and VLCs in Wisconsin, increased 3.3% during the third quarter of 2026. Residential electricity consumption rose 5.1%, reflecting stronger demand amid warmer-than-normal weather.

Electricity consumption by small commercial and industrial customers increased 3.5%, while large commercial and industrial use, excluding the iron ore mine and VLCs, improved 1%.

On a weather-normalized basis, retail electricity deliveries, excluding the iron ore mine and VLCs, increased 0.4% year over year. The modest underlying growth indicates that favorable weather contributed meaningfully to the reported increase in electricity demand.

WEC's Costs and Operating Results

Total operating expenses increased 4.4% year over year to $1.73 billion. This increase was primarily due to higher cost of sales, increased other operation and maintenance expenses, and a rise in property and revenue taxes.

Total operating income increased 25.4% year over year to $563.7 million from $449.6 million in the prior-year quarter. Operating income growth outpaced revenue growth, reflecting improved operating profitability during the third quarter.

Equity earnings from transmission affiliates increased 20.1% to $65.8 million from $54.8 million in the year-ago quarter. 

Interest expenses increased 8.1% year over year to $241.7 million, reflecting an additional expense burden.

WEC Energy's Balance Sheet and Cash Flow

As of Sept. 30, 2026, WEC had cash and cash equivalents of $58.8 million compared with $27.6 million as of Dec. 31, 2025.

As of Sept. 30, 2026, long-term debt increased to $19.72 billion from $18.50 billion as of Dec. 31, 2025.

Net cash provided by operating activities increased 15.5% year over year to $3.41 billion during the first nine months of 2026 compared with $2.95 billion in the corresponding period of 2025.

For the nine months ended Sept. 30, 2026, capital expenditures, including allowance for funds used during construction related to debt, increased 6.4% year over year to $3.32 billion from $3.12 billion.

WEC Energy's Updated Earnings Outlook

WEC Energy raised its 2026 earnings guidance to $5.60-$5.64 per share. The Zacks Consensus Estimate for 2026 earnings is pegged at $5.60 per share, which is at the lower end of the company's guided range.

WEC’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Entergy (ETR - Free Report) is set to report third-quarter 2026 results on Nov. 2, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, which implies year-over-year growth of 11.76%.

ETR’s long-term (three to five years) earnings growth rate is 10.16%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $4.16 billion, which implies a year-over-year improvement of 9%.

Evergy (EVRG - Free Report) is scheduled to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.

EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.

PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.

PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.
 

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