Utility WEC Energy beats profit on stronger power demand

Oct 30 (Reuters) - WEC Energy Group on Thursday beat Wall Street expectations for third-quarter profit and posted a 13% rise in net income, as the utility benefited from increased electricity demand across customer segments.

Power demand in the United States is expected to hit record highs in 2025 and 2026, the U.S. Energy Information Administration says, citing growth from AI and cryptocurrency data centers and broader electrification.

Electricity consumption by small commercial and industrial customers was 1.1% higher, while large commercial and industrial customers' usage increased 2.5%.

Residential electricity use rose by 2.1% and retail deliveries of electricity excluding the iron ore mine in Michigan's Upper Peninsula increased by 1.8%, WEC Energy said.

WEC's third-quarter operating revenue rose 12.7% to $2.10 billion, compared with analysts' average estimate of $1.89 billion, according to data compiled by LSEG.

The company - which provides electricity and gas to nearly 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota - reaffirmed its 2025 earnings guidance of $5.17 to $5.27 per share.

Milwaukee-based WEC Energy's net income rose to $271.3 million, or 83 cents per share, during the third quarter, compared with $240.1 million, or 76 cents per share, a year ago. Analysts on average expected the company to report a profit of 81 cents per share.

Last year's third quarter had included a 6-cent-per-share charge WEC incurred after regulators disallowed the company to recover certain expenses in Illinois. Excluding that item, adjusted earnings in the prior-year quarter would have been 82 cents per share.