WEC Earnings Recap
Beat 6 of last 7 quarters
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WEC's results underscore the accelerating AI infrastructure buildout in Wisconsin, with data center demand driving significant grid investment and earnings growth. The company's VLC tariff framework and ongoing capital plan refresh position it to capture additional hyperscale and enterprise data center load, supporting the broader AI infrastructure ecosystem.
WEC reported Q2 2026 EPS of $0.91, up $0.15 from Q2 2025, driven by grid-based growth and favorable items in the Energy Infrastructure segment, partially offset by weather and higher depreciation/O&M. Construction continues at the Microsoft and Vantage/Oracle data center sites, with the first Microsoft facility operational and Vantage's first facility potentially online in late 2027. The company reaffirmed its 2026 guidance and provided Q3 guidance. Management discussed the VLC tariff, Oracle credit support, and ongoing rate cases in Wisconsin and Illinois.
Management reaffirmed 2026 EPS guidance of $5.51-$5.61, assuming normal weather, and provided Q3 guidance of $0.92-$0.98. They expect long-term EPS growth of 7%-8% CAGR through 2030, accelerating to the upper half of the range starting in 2028. The company is updating its 5-year capital plan, with details expected on the Q3 call, and highlighted upside drivers including additional data center customers (400-500 MW each), transmission growth, and potential Point Beach replacement generation. They continue to expect ~$1.1B of common equity issuance this year and incremental capital funded with 50% equity content. Management expressed confidence in the VLC tariff framework and ongoing regulatory progress in Wisconsin and Illinois.
“We are preparing to serve a forecasted demand increase of 2.6 gigawatts in this region through 2030 and an opportunity for further expansion.”
on Data center demand
“We believe our VLC tariff provides a strong framework for data center growth in the region.”
on VLC tariff
“We're on track to deliver results in line with our 2026 earnings guidance of $5.51 to $5.61 a share.”
on Guidance
Any risk to the Port Washington project timeline or expansion opportunities given the Oracle lawsuit and collateral issues? Could the site be redeployed to another hyperscaler?
Scott Lauber said they are working with Oracle to provide credit support per the updated tariff, construction is on time and on budget, and there is no indication of a change. He noted the site could be redeployed if needed, but he feels good about continued expansion.
How are discussions going with potential other hyperscalers or data center parties?
Scott Lauber said they are having good discussions with potential new very large customers, likely in the 400-500 MW range, and the VLC tariff's transparency helps. More details expected on the Q3 call.
Can you provide an update on the ATC line to serve the Vantage opportunity and how it's reflected in the capital plan?
Scott Lauber said the line is in the current ATC plan and proceeding through the commission, with a decision expected by year-end. He noted transmission could be a growth area in the Q3 capital plan refresh.