WEC Energy Group, Inc. (WEC) is listed on NYSE and operates in the Regulated Electric industry (Utilities sector).
WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, solar, and biomass sources; provides electric transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam. As of December 31, 2021, it operated approximately 35,800 miles of overhead distribution lines and 35,600 miles of underground distribution cables, as well as 440 electric distribution substations and 510,500 line transformers; 50,900 miles of natural gas distribution mains; 1,200 miles of natural gas transmission mains; 2.3 million natural gas lateral services; 500 natural gas distribution and transmission gate stations; and 68.2 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was incorporated in 1981 and is headquartered in Milwaukee, Wisconsin.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 10 |
| Hold | 21 |
| Sell | 3 |
| Strong Sell | 1 |
Over the past three fiscal years, the company has experienced a mixed performance across various financial metrics. Revenue grew at a compound annual growth rate (CAGR) of 5.0%, increasing from $8.89 billion in 2023 to $9.80 billion in 2025, despite an inconsistent trajectory. This revenue growth was accompanied by a notable improvement in gross margin, which expanded consistently by 10.1 percentage points from 40.5% to 50.5%, indicating enhanced cost efficiency or pricing power. However, operating and net margins showed inconsistent trends, with operating margin increasing by 2.8 percentage points to 24.2% and net margin rising slightly by 0.9 percentage points to 15.9% over the same period. The company's earnings per share (EPS) also demonstrated an inconsistent pattern, growing at a 7.0% CAGR from $4.22 to $4.83.
On the cash flow front, operating cash flow (OCF) consistently increased, reaching $3.38 billion in 2025, but free cash flow (FCF) deteriorated significantly, turning negative at -$1.02 billion in 2025 from $525.5 million in 2023. This decline in FCF, reflected in a negative FCF margin of -10.4% by 2025, suggests increased capital expenditures or other cash outflows that outpaced cash generation. The company's net debt position worsened, increasing from $18.76 billion to $22.29 billion, indicating higher leverage. Despite these challenges, the cash conversion ratio (CCR) remained relatively stable at 2.17, suggesting that earnings are still largely backed by cash. However, liquidity remains a concern with a current ratio of 0.47 and a quick ratio of 0.34, both below 1, highlighting potential short-term financial constraints. Additionally, the interest coverage ratio fell below 3x, indicating thin coverage of interest obligations, which could pose risks if earnings do not improve.