WEC Energy Group, Inc. Q4 FY2025 earnings call

• Solid results across customer satisfaction, financial performance, and capital plan execution. - Economic growth in the region with Microsoft, Vantage data centers, Foxconn, Rockwell Automation, and Uline making investments. Microsoft has 2.6 gigawatts of demand forecast in the I-94 Corridor, Vantage has potential for 3.5 gigawatts, and Foxconn, Rockwell, Uline are also investing. - $37.5 billion capital plan over five years, with $7.4 billion in natural gas generation and LNG storage, $12.6 billion in renewables. - Regulatory updates: Wisconsin proposed very large customer tariff under review, Illinois settlement to resolve historical dockets, rate reviews in Wisconsin and Illinois ongoing.

Utility operations: Adjusted earnings were $0.63 higher in 2025 compared to 2024. Rate-based growth contributed $0.74 more to earnings, partially offset by higher depreciation, O&M, tax, and other items. Investment in American Transmission Company: Earnings increased 2¢ compared to 2024 driven by capital investment but partially offset by a one-time gain in 2024. Energy infrastructure segment: Earnings increased 10¢ in 2025 from higher production tax credits. Corporate and other segment: 24¢ variance driven by higher interest expense, gains from 2024 debt retirement, etc.

• First quarter 2026 earnings projected in range of $2.27 per share to $2.37 per share. - Full-year 2026 annual guidance reaffirmed at $5.51 to $5.61 per share. - 2026 debt funding expected in range of $4 billion to $5 billion, including refinancing $1.4 billion of senior notes. - Common equity issuance planned between $900 million and $1.1 billion via ATM program and other plans. - Microsoft's expansion adds $1 billion to the capital plan, with forecasted 3.9 gigawatts of electric demand growth in five-year plan.

• Regulatory uncertainties related to rate reviews and settlements. - Potential impacts of weather on earnings. - Uncertainties in executing capital projects as planned.

Q: Julien Dumoulin-Smith asked about the 500 megawatts added from Microsoft and further ramp of CapEx.

A: Scott Lauber said Microsoft is adding to the north of Highway 11, with more land to be developed and a multiyear delivery.

Q: Alex asked about additional data center interest and attracting customers despite headwinds.

A: Scott Lauber said there are other opportunities, discussions ongoing, and the large customer tariff protects other customers.

Q: Nicholas Campanella asked about regulatory on VLC tariff and rate case filing.

A: Scott Lauber said VLC tariff is under thorough vetting, rate case filing on track for April.

Q: Carly Davenport asked about affordability in rate case and Illinois progress.

A: Scott Lauber said affordability is considered, Illinois settlement is a step forward with forward-looking plans.

Q: Michael Sullivan asked about Illinois rate cases and offsetting headwinds.

A: Scott Lauber said early on settlements, but growth rate factored in, and Microsoft's spending benefits customers.

Q: Stephen D’Ambrisi asked about Point Beach replacement and interconnect.

A: Scott Lauber said generation team is confident in replacing power, balancing economics.

Q: Andrew Weisel asked about Illinois gap charge and VLC tariff interplay.

A: Scott Lauber said gap charge has rate-based and cash components, VLC tariff separates large customers.

Q: Paul Fremont asked about Microsoft replacing Caledonia and Point Beach pricing.

A: Scott Lauber said Microsoft has additional land, new build vs recontracting has upside.

Q: Paul Patterson asked about residential numbers and Illinois impairment.

A: Xia Liu said residential numbers are conservative due to forecast, Illinois impairment has specific accounting breakdown.