WEC Energy Group delivered solid top-line growth and margin expansion in Q4 2024, underpinned by its regulated utility franchise. Revenue for QQ4 2024 totaled $2.284 billion, up 3.0% year-over-year, with net income of $453.8 million and diluted earnings per share (EPS) of $1.43, up 107% YoY and 88% QoQ. Operating income rose 13.6% YoY and 54% QoQ to $590.9 million, reflecting favorable operating leverage and ongoing rate-base support. The company posted an EBITDA of $1.077 billion, with an EBITDAR ratio of approximately 0.471, and a net profit margin near 19.9%.
Margins and profitability indicate solid operating leverage in a regulated framework: gross margin 44.6%, operating margin 25.9%, net margin 19.9%. Leverage remains elevated consistent with capital-intensive utilities, with debt-to-capitalization at 0.621 and debt-to-equity at 1.639; however, interest coverage is a modest 2.87x. Cash flow from operations was $581.8M, while capital expenditures were $846.4M, leading to a negative free cash flow of $264.6M for the quarter. Free cash flow per share is negative $0.95, underscoring the ongoing capital program to support grid modernization and reliability investments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.28B
3.01%
22.58%
Gross Profit
1.02B
-9.99%
31.31%
Operating Income
590.90M
13.57%
54.00%
Net Income
453.80M
107.40%
88.77%
EPS
1.43
107.25%
88.16%
Key Financial Ratios
Gross Profit Margin
Fair
29.70%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Excellent
26.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
19.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
0.94%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.65%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.60
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.64
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
16.50x
P/E ratio in line with market averages
Price to Book
Fair Value
2.41x
Price-to-book ratio reasonable for profitable companies
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WEC Energy Group Inc (0LSL.L) QQ3 2024 Results Analysis – Regulated Utilities Strength with High Capital Intensity and disciplined Cash Flow Managem...