• Adjusted Earnings Per Share (EPS) 2024: $4.88, an increase of $0.25 over 2023.
• 2025 Earnings Guidance: $5.17 to $5.27 per share.
• First Quarter 2025 Earnings Guidance: $2.13 to $2.23 per share.
• Capital Plan: $28 billion five-year plan, largest in company history.
• Renewable Investment: $9.1 billion planned for 4,300 megawatts over five years.
• Dividend Increase: 6.9% to an annualized $3.57 per share.
• Common Equity Financing 2025: $700 million to $800 million expected issuance.
• Long-term EPS Growth CAGR: 6.5% to 7%.
• Weather Impact 2024: Estimated $0.25 per share headwind.
• O&M Increase 2024: 2% over 2023, lower than original guidance of 6% to 7%.
• American Transmission Company Earnings Increase: $0.07 compared to 2023.
• Energy Infrastructure Segment Earnings Growth: $0.13 in 2024 compared to 2023.

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Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• WEC Energy Group Inc (NYSE:WEC) reported full-year 2024 adjusted earnings of $4.88 per share, an increase of $0.25 per share over 2023.
• The company has a robust $28 billion five-year capital plan, the largest in its history, focusing on renewable energy and infrastructure.
• WEC Energy Group Inc (NYSE:WEC) is experiencing strong economic growth in its region, with significant developments like Eli Lilly's $3 billion expansion and Microsoft's data center projects.
• The company successfully executed over $4.5 billion of external funding in 2024, including nearly $200 million of common equity.
• WEC Energy Group Inc (NYSE:WEC) increased its dividend by 6.9% to an annualized $3.57 per share, marking the 22nd consecutive year of dividend increases.

Negative Points

• The warmest winter on record in 2024 resulted in a weather headwind of $0.25 per share, impacting earnings.
• The company faces potential challenges with local pushback on the Cloverleaf data center project in Port Washington.
• There are ongoing regulatory proceedings in Illinois, including a review of the Safety Modernization Program and the future of natural gas, which could impact operations.
• WEC Energy Group Inc (NYSE:WEC) anticipates needing additional generation investments to support incremental demand from new projects like Cloverleaf and Microsoft expansions.
• The company is closely monitoring potential impacts from tariffs, particularly those affecting solar projects and gas costs.

Q & A Highlights

Q: Can you provide an update on the Cloverleaf data center project in Port Washington and its impact on your current plans? A: Scott Lauber, President and CEO, explained that the Cloverleaf project is in early stages, with plans for a 1,700-acre development. The initial announcement indicated a gigawatt of additional capacity, which would be incremental to WEC's current plan. The city of Port Washington has been supportive, and the project presents a significant opportunity for growth.

Q: How is the Microsoft data center project progressing, and are there any impacts from recent developments? A: Scott Lauber noted that Microsoft is acquiring more land in Wisconsin, indicating continued commitment. While there was a pause on one area of the project for design evaluations, work has resumed. The potential design changes have not affected WEC's capital plan or demand growth projections. Tariff negotiations with Microsoft are ongoing, with expectations for filing within six months.

Q: With the incremental demand from projects like Cloverleaf and Microsoft, how will this affect your generation capacity and capital plans? A: Scott Lauber stated that the current five-year plan includes 1,800 megawatts for Southeastern Wisconsin, which aligns with MISO rules and economic development needs. Any additional projects like Cloverleaf would require further generation investments, which will be reflected in future capital plans.

Q: What is the status of the system modernization program hearings, and how might the decision impact your gas CapEx outlook? A: Scott Lauber mentioned that the decision is expected in February or March. The current plan includes $90 million annually for facility relocates and reliability issues. If the decision allows, ramping up to $300 million in capital could be necessary, but it will take time to implement due to the need for contracts, permitting, and engineering.

Q: Are there any updates on the Point Beach nuclear facility and its future contracts? A: Scott Lauber indicated that there are no significant updates at this time. The current contracts extend to 2030 and 2033, so there is no immediate urgency. More information is expected in the first half of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.