NYSE:WEC
WEC ENERGY GROUP, INC.
Florida and Texas-based diversified energy provider delivering regulated electric and gas utilities with a growing competitive generation portfolio.
Key Metrics
Investment Thesis
Bull Case
WEC Energy offers a compelling value play for income-focused investors seeking stable dividend yields backed by regulated utility assets with predictable cash flows. The company's strategic expansion in competitive generation and renewable energy projects positions it to capture growth opportunities beyond traditional utility constraints while maintaining a robust balance sheet.
Bear Case
High debt levels totaling $18.50B create refinancing risks in a rising interest rate environment that could compress free cash flow available for shareholders. Recent revenue declines from 2022 through 2024 suggest potential demand-side challenges or regulatory headwinds that may persist despite the recent recovery.
About WEC ENERGY GROUP, INC.
WEC Energy Group is a diversified energy provider serving residential, commercial, and industrial customers across Florida and Texas. The company generates revenue through regulated utility operations in electric distribution and gas distribution, as well as competitive generation markets. Key products include reliable electricity supply, natural gas delivery, and advanced grid solutions supporting renewable integration.
Analysis
Management Discussion
The company reported $1.56B net profit in 2025, reversing a slight decline seen in prior years with revenue rebounding to $9.80B after two consecutive years of contraction. Strong operational cash flow of $3.38B funded significant debt issuance and share issuances while maintaining a healthy current asset position relative to liabilities.
Industry Overview
The North American utility sector is undergoing significant transformation driven by decarbonization mandates and grid modernization requirements, creating opportunities for companies with diversified portfolios. WEC Energy operates in a competitive landscape where regulated utilities provide stability while competitive markets offer growth potential amid evolving energy policies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $9.60B | $8.89B | $8.60B | $9.80B |
| Cost of Revenue | $4.36B | $3.19B | $2.66B | $3.27B |
| Gross Profit | $5.24B | $5.70B | $5.94B | $6.53B |
| Operating Expenses | $3.31B | $3.79B | $3.79B | $4.29B |
| Operating Income | $1.92B | $1.91B | $2.15B | $2.24B |
| Stock-Based Comp | $34.8M | $9.7M | $39.3M | $48.2M |
| D&A | $1.12B | $1.26B | $1.35B | $1.48B |
| Non-Operating Income | $-191.6M | $-371.7M | $-406.5M | $-571.4M |
| Interest Expense | $515.1M | $726.9M | — | — |
| Interest Income | — | — | $17.2M | $5.9M |
| Pre-Tax Income | $1.73B | $1.54B | $1.75B | $1.67B |
| Income Tax | $322.9M | $204.6M | $222.0M | $118.0M |
| Continuing Ops | $1.41B | $1.33B | $1.52B | $1.56B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.41B | $1.33B | $1.52B | $1.56B |
| Minority Interest | $400.0K | $-1.2M | $-4.1M | $-3.2M |
| Net to Common | $1.41B | $1.33B | $1.53B | $1.56B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.19B | $2.80B | $2.91B | $3.28B |
| Cash & Equivalents | $28.9M | $42.9M | $9.8M | $27.6M |
| Accounts Receivable | $1.82B | $1.50B | $1.67B | $2.06B |
| Other Current Assets | $1.34B | $1.25B | $1.23B | $1.19B |
| Long-Term Assets | $38.68B | $41.14B | $44.45B | $48.23B |
| PP&E (Net) | $29.11B | $31.58B | $34.65B | $38.28B |
| Goodwill | $3.05B | $3.05B | $3.05B | $3.05B |
| Operating Leases | $15.7M | $32.0M | $32.1M | $69.5M |
| Other LT Assets | $6.50B | $6.48B | $4.53B | $4.48B |
| Total Assets | $41.87B | $43.94B | $47.36B | $51.52B |
| Current Liabilities | $4.61B | $5.11B | $4.84B | $5.59B |
| Accounts Payable | $1.20B | $896.6M | $1.14B | $1.14B |
| Current Debt | $808.5M | $1.26B | $1.73B | $1.52B |
| Current Leases | $4.0M | $4.7M | $4.3M | $3.1M |
| Other Current Liab | $2.60B | $2.95B | $1.97B | $2.93B |
| Long-Term Liabilities | $25.64B | $26.75B | $29.72B | $31.87B |
| Long-Term Debt | $14.66B | $15.37B | $17.18B | $18.50B |
| LT Operating Leases | $25.4M | $38.8M | $37.5M | $73.0M |
| Other LT Liab | $10.96B | $11.35B | $12.50B | $13.30B |
| Total Liabilities | $30.26B | $31.87B | $34.56B | $37.47B |
| Shareholders' Equity | $11.62B | $12.07B | $12.80B | $14.05B |
| Retained Earnings | $7.27B | $7.61B | $8.08B | $8.49B |
| AOCI | $-6.8M | $-7.7M | $-7.8M | $-7.6M |
| Total L&E | $41.87B | $43.94B | $47.36B | $51.52B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.41B | $1.33B | $1.52B | $1.56B |
| Non-Cash Adjustments | $-309.5M | $2.32B | $1.39B | $1.31B |
| Working Capital Changes | $960.5M | $-630.0M | $301.9M | $512.8M |
| Cash from Operations | $2.06B | $3.02B | $3.21B | $3.38B |
| Capital Expenditures | $2.70B | — | — | — |
| Cash from Investing | $-2.64B | $-3.56B | $-3.80B | $-4.87B |
| Debt Issuances | $2.00B | $2.17B | $4.46B | $2.84B |
| Debt Repayments | $92.1M | $1.01B | $2.14B | $1.73B |
| Share Buybacks | $69.2M | $16.6M | $3.2M | $1.3M |
| Dividends Paid | $917.9M | $984.2M | $1.06B | $1.15B |
| Cash from Financing | $676.4M | $522.8M | $467.7M | $1.52B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $94.7M | $-17.0M | $-123.0M | $28.7M |
| Beginning Cash | $87.5M | $182.2M | $165.2M | $42.2M |
| Ending Cash | $182.2M | $165.2M | $42.2M | $70.9M |
Frequently Asked Questions
How does WEC ENERGY GROUP, INC. make money?
Regulated Electric Distribution serving Florida and Texas customers; Regulated Gas Distribution providing natural gas heating and cooling; Competitive Generation selling power in deregulated markets; Energy Services offering storage, transmission solutions, and renewable energy development.
What are the main risks for WEC?
Regulatory rate case delays or unfavorable outcomes impacting tariff revenues; Climate change risks including severe weather events damaging infrastructure in Florida and Texas; Natural gas price volatility affecting cost of revenue margins in both distribution and generation segments; Stranded asset risks from accelerating energy transition policies and renewable mandates.
What is WEC's competitive advantage?
Dominant market positions in Florida and Texas with high regulatory barriers to entry for utility distribution; Diversified revenue streams between regulated assets and competitive generation reduce cyclicality; Strong credit profile supported by consistent cash flows from regulated operations enabling strategic growth investments.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.