NSP-Wisconsin Boosts Q3 Net Income 4.9% Amid Revenue Growth

TL;DR

NSP-Wisconsin is steadily growing its bottom line and investing heavily in infrastructure, making it a reliable, albeit slow-moving, utility play.

AI Summary

Northern States Power Company (NSP-Wisconsin) reported a net income of $43 million for the three months ended September 30, 2025, an increase of 4.9% from $41 million in the same period of 2024. For the nine months ended September 30, 2025, net income rose to $111 million, up 3.7% from $107 million in 2024. Total operating revenues for the three months ended September 30, 2025, increased by 5.1% to $310 million, compared to $295 million in 2024, driven by higher electric revenues from non-affiliates ($232 million vs. $225 million) and affiliates ($59 million vs. $53 million), and natural gas revenues ($18 million vs. $17 million). Total operating expenses also increased to $244 million from $232 million, primarily due to higher purchased power from affiliates ($114 million vs. $109 million) and operating and maintenance expenses ($58 million vs. $55 million). The company's capital/construction expenditures for the nine months ended September 30, 2025, were $418 million, up from $394 million in 2024, reflecting ongoing infrastructure investments. Long-term debt increased to $1,647 million as of September 30, 2025, from $1,406 million at December 31, 2024, partly due to the issuance of $250 million in 5.65% First Mortgage Bonds. The company also amended its five-year revolving credit agreement, extending its maturity to December 2029.

Why It Matters

NSP-Wisconsin's consistent revenue and net income growth, coupled with significant capital expenditures, signals a stable utility operation for investors. The increase in long-term debt and capital contributions from its parent, Xcel Energy Inc., indicates ongoing investment in its electric and natural gas infrastructure, which is crucial for maintaining service reliability and meeting future demand. This financial health and strategic investment could translate to stable dividends for Xcel Energy shareholders and continued job security for employees. In a competitive energy landscape, these investments are vital for NSP-Wisconsin to remain a reliable energy provider for its customers and to adapt to evolving regulatory and environmental standards.

Risk Assessment

Risk Level: medium — While net income and revenues are growing, the company's capital/construction expenditures increased to $418 million for the nine months ended September 30, 2025, up from $394 million in 2024. This significant capital outlay, combined with an increase in long-term debt to $1,647 million from $1,406 million, indicates substantial financial commitments that could be sensitive to interest rate fluctuations and regulatory cost recovery challenges.

Analyst Insight

Investors should monitor NSP-Wisconsin's ability to recover its increasing capital expenditures through rate cases, as this will directly impact future profitability. Given the stable but moderate growth, this stock is likely suitable for long-term, dividend-focused portfolios rather than growth-oriented ones.

Financial Highlights

revenue

$914M

operating Margin

19.0%

total Debt

$1.65B

net Income

$111M

cash Position

$232M

revenue Growth

+4.8%

Revenue Breakdown

Key Numbers

• $43M — Net Income (Q3 2025) (Increased 4.9% from $41M in Q3 2024.)
• $111M — Net Income (YTD Q3 2025) (Increased 3.7% from $107M in YTD Q3 2024.)
• $310M — Total Operating Revenues (Q3 2025) (Increased 5.1% from $295M in Q3 2024.)
• $914M — Total Operating Revenues (YTD Q3 2025) (Increased 4.8% from $872M in YTD Q3 2024.)
• $418M — Capital/Construction Expenditures (YTD Q3 2025) (Increased from $394M in YTD Q3 2024.)
• $1.65B — Long-Term Debt (Sept. 30, 2025) (Increased from $1.41B at Dec. 31, 2024.)
• $250M — First Mortgage Bonds Issued (Issued during the nine months ended Sept. 30, 2025, with a 5.65% interest rate.)
• 933,000 — Common Stock Shares Outstanding (Consistent at Sept. 30, 2025, and Dec. 31, 2024.)
• $232M — Cash and Cash Equivalents (Sept. 30, 2025) (Significantly increased from $8M at Dec. 31, 2024.)
• $153M — Capital Contributions from Parent (YTD Q3 2025) (Reflects ongoing support from Xcel Energy Inc.)

Key Players & Entities

• NORTHERN STATES POWER CO /WI/ (company) — Registrant and wholly owned subsidiary of Xcel Energy Inc.
• Xcel Energy Inc. (company) — Parent company of NSP-Wisconsin
• SEC (regulator) — Securities and Exchange Commission
• $43 million (dollar_amount) — Net income for three months ended Sept. 30, 2025
• $41 million (dollar_amount) — Net income for three months ended Sept. 30, 2024
• $111 million (dollar_amount) — Net income for nine months ended Sept. 30, 2025
• $107 million (dollar_amount) — Net income for nine months ended Sept. 30, 2024
• $310 million (dollar_amount) — Total operating revenues for three months ended Sept. 30, 2025
• $295 million (dollar_amount) — Total operating revenues for three months ended Sept. 30, 2024
• $418 million (dollar_amount) — Capital/construction expenditures for nine months ended Sept. 30, 2025
• $1,647 million (dollar_amount) — Long-term debt as of Sept. 30, 2025

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company's operations are subject to extensive regulation by state and federal agencies, including the Public Service Commission of Wisconsin and the Federal Energy Regulatory Commission. Changes in regulations, rate structures, or environmental standards could materially impact financial results and operational flexibility. For instance, the company's ability to recover costs and earn a fair rate of return is dependent on regulatory approvals.
• Infrastructure Reliability and Modernization [high — operational]: NSP-Wisconsin relies on its physical infrastructure to deliver electricity and natural gas. Aging infrastructure, extreme weather events, or cyberattacks could lead to service disruptions, increased maintenance costs, and significant capital expenditures for upgrades. The company reported capital/construction expenditures of $418 million for the nine months ended September 30, 2025, up from $394 million in the prior year, indicating ongoing investment in infrastructure.
• Interest Rate and Debt Management [medium — financial]: The company's financial leverage has increased, with long-term debt rising to $1,647 million as of September 30, 2025, from $1,406 million at December 31, 2024. This increase was partly due to the issuance of $250 million in 5.65% First Mortgage Bonds. Rising interest rates could increase financing costs, impacting profitability, especially given the substantial debt load.
• Energy Commodity Price Volatility [medium — market]: The cost of purchased power and natural gas can be volatile, directly impacting operating expenses. While the company has mechanisms to pass through some of these costs, significant price swings can affect margins and cash flow. Purchased power from affiliates increased to $114 million in Q3 2025 from $109 million in Q3 2024.
• Cybersecurity Threats [medium — operational]: As a utility provider, NSP-Wisconsin is a critical infrastructure entity and a potential target for cyberattacks. A successful cyberattack could disrupt operations, compromise sensitive data, and lead to significant financial and reputational damage. The company's reliance on interconnected systems makes it vulnerable.
• Access to Capital and Liquidity [low — financial]: The company amended its five-year revolving credit agreement, extending its maturity to December 2029, which enhances its liquidity. However, continued access to capital markets is crucial for funding ongoing capital expenditures and managing debt obligations. Any disruption in access could hinder growth and operational stability.

Industry Context

The utility sector is characterized by significant capital investment in infrastructure, heavy regulation, and a transition towards cleaner energy sources. NSP-Wisconsin operates in a competitive landscape where reliability, cost management, and regulatory compliance are paramount. Industry trends include increasing demand for electricity driven by electrification, and the need to modernize aging grids to enhance resilience and integrate renewable energy.

Regulatory Implications

NSP-Wisconsin's operations are heavily influenced by the Public Service Commission of Wisconsin and federal regulations. Changes in rate-setting methodologies, environmental compliance costs, or renewable energy mandates can significantly impact profitability and strategic planning. The company's ability to recover capital investments through rates is a key factor.

What Investors Should Do

1. Monitor regulatory filings and decisions
2. Analyze capital expenditure plans and their impact on debt
3. Evaluate the impact of energy commodity price volatility
4. Assess the company's liquidity and access to financing

Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reporting period for the 10-Q, showing increased revenues and net income compared to the prior year.
• 2025-12-31: End of Fiscal Year 2024 — Baseline for balance sheet comparisons, showing $1.41 billion in long-term debt prior to the Q3 2025 increase.
• 2025-02-27: Filing of 2024 Annual Report (10-K) — Provides audited financial statements and detailed notes referenced in the current 10-Q.
• 2029-12-01: Amended Revolving Credit Agreement Maturity — Extended maturity date provides continued access to liquidity for the company.

Glossary

Allowance for funds used during construction (AFUDC)

A component of construction work in progress that represents the cost of borrowed funds and equity used to finance construction. It is capitalized into the cost of utility plant and recovered through depreciation over the life of the asset. (AFUDC (equity) is reported as other income, and AFUDC (debt) reduces interest charges, impacting net income. The equity portion increased to $17 million in YTD Q3 2025 from $11 million in YTD Q3 2024.)

Utility money pool arrangement

A short-term borrowing and lending arrangement among affiliated utilities to manage liquidity needs efficiently. (The company had significant activity in this arrangement, with $159 million borrowed and repaid in YTD Q3 2025, and $128 million invested in the pool during investing activities.)

First Mortgage Bonds

A type of secured bond typically issued by utility companies, backed by a lien on their physical assets. (NSP-Wisconsin issued $250 million of these bonds with a 5.65% interest rate, contributing to the increase in long-term debt.)

Operating revenues

The total income generated from the company's primary business activities, including the sale of electricity and natural gas. (Total operating revenues increased by 5.1% to $310 million in Q3 2025, driven by higher electric and natural gas sales.)

Operating expenses

Costs incurred in the normal course of running the business, such as fuel, purchased power, and maintenance. (Total operating expenses increased to $244 million in Q3 2025, primarily due to higher purchased power and operating and maintenance costs.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, NSP-Wisconsin has demonstrated modest growth, with total operating revenues increasing by 4.8% to $914 million and net income rising by 3.7% to $111 million. Operating expenses also saw an increase, growing by 5.1% to $740 million, leading to a slight compression in operating margin. Capital expenditures have increased to $418 million, reflecting ongoing investments in infrastructure, and long-term debt has risen to $1.65 billion, indicating a higher leverage position.

Key Financial Figures

• $100 — ding at October 30, 2025 Common Stock, $100 par value 933,000 shares Northern Sta

Filing Documents

• nspw-20250930.htm (10-Q) — 869KB
• nspwex3101q32025.htm (EX-31.01) — 10KB
• nspwex3102q32025.htm (EX-31.02) — 10KB
• nspwex3201q32025.htm (EX-32.01) — 9KB
• 0000072909-25-000016.txt ( ) — 4958KB
• nspw-20250930.xsd (EX-101.SCH) — 30KB
• nspw-20250930_cal.xml (EX-101.CAL) — 66KB
• nspw-20250930_def.xml (EX-101.DEF) — 149KB
• nspw-20250930_lab.xml (EX-101.LAB) — 457KB
• nspw-20250930_pre.xml (EX-101.PRE) — 289KB
• nspw-20250930_htm.xml (XML) — 763KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

— Financial Statements (unaudited)

Item 1 — Financial Statements (unaudited) 4 Consolidated Statements of Income 4 Consolidated Statements of Cash Flows 5 Consolidated Balance Sheets 6 Consolidated Statements of Common Stockholder's Equity 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

— Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations 13

— Controls and Procedures

Item 4 — Controls and Procedures 15

OTHER INFORMATION

PART II OTHER INFORMATION

— Legal Proceedings

Item 1 — Legal Proceedings 15

— Risk Factors

Item 1A — Risk Factors 16

— Other Information

Item 5 — Other Information 16

— Exhibits

Item 6 — Exhibits 16

SIGNATURES

SIGNATURES 17 This Form 10-Q is filed by NSP-Wisconsin. NSP-Wisconsin is a wholly owned subsidiary of Xcel Energy Inc. Additional information on Xcel Energy is available in various filings with the SEC. This report should be read in its entirety. Definitions of Abbreviations Xcel Energy Inc.'s Subsidiaries and Affiliates (current and former) e prime e prime inc. NSP-Minnesota Northern States Power Company, a Minnesota corporation NSP System The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota NSP-Wisconsin Northern States Power Company, a Wisconsin corporation PSCo Public Service Company of Colorado SPS Southwestern Public Service Company Utility subsidiaries NSP-Minnesota, NSP-Wisconsin, PSCo and SPS Xcel Energy Xcel Energy Inc. and its subsidiaries Federal and State Regulatory Agencies EPA United States Environmental Protection Agency FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission IRS Internal Revenue Service MPSC Michigan Public Service Commission MPUC Minnesota Public Utilities Commission PSCW Public Service Commission of Wisconsin SEC Securities and Exchange Commission Other ARO Asset retirement obligation ASU Accounting standards update C&I Commercial and Industrial CEO Chief executive officer CERCLA Comprehensive Environmental Response, Compensation, and Liability Act CFO Chief financial officer CO 2 Carbon dioxide DSM Demand side management ETR Effective tax rate GAAP United States generally accepted accounting principles GHG Greenhouse gas LRTP Long Range Transmission Plan MGP Manufactured gas plant NOx Nitrogen Oxides PFAS Per- and Polyfluoroalkyl Substances O&M Operating and maintenance OBBB One Big Beautiful Bill Act RFP Request for proposal ROE Return on equity Measurements MW Megawatts

Forward-Looking Statements

Forward-Looking Statements Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in NSP-Wisconsin's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2024 and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditi

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— FINANCIAL STATEMENTS

ITEM 1 — FINANCIAL STATEMENTS NSP-WISCONSIN AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions) Three Months Ended Sept. 30 Nine Months Ended Sept. 30 2025 2024 2025 2024 Operating revenues Electric, non-affiliates $ 232 $ 225 $ 633 $ 620 Electric, affiliates 59 53 170 160 Natural gas 18 17 110 92 Other 1 — 1 — Total operating revenues 310 295 914 872 Operating expenses Electric fuel and purchased power, non-affiliates 4 3 11 10 Purchased power, affiliates 114 109 316 314 Cost of natural gas sold and transported 6 6 48 37 Operating and maintenance expenses 58 55 181 170 Conservation program expenses 3 3 9 9 Depreciation and amortization 51 47 150 138 Taxes (other than income taxes) 8 9 25 26 Total operating expenses 244 232 740 704 Operating income 66 63 174 168 Other income, net 2 3 2 4 Allowance for funds used during construction — equity 6 4 17 11 Interest charges and financing costs Interest charges and other financing costs 21 19 57 50 Allowance for funds used during construction — debt ( 2 ) ( 2 ) ( 7 ) ( 5 ) Total interest charges and financing costs 19 17 50 45 Income before income taxes 55 53 143 138 Income tax expense 12 12 32 31 Net income $ 43 $ 41 $ 111 $ 107 See Notes to Consolidated Financial Statements 4 Table of Contents NSP-WISCONSIN AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (amounts in millions) Nine Months Ended Sept. 30 2025 2024 Operating activities Net income $ 111 $ 107 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 151 140 Deferred income taxes 19 ( 2 ) Allowance for equity funds used during construction ( 17 ) ( 11 ) Provision for bad debts 1 2 Changes in operating assets and liabilities: Accounts receivable 44 10 Accrued unbilled revenues 17 4 Inventories ( 18 ) ( 9 ) Other current assets 15 8 Accounts payable 12 14 Net regulatory assets and liabilities ( 17 )

Notes to Consolidated Financial Statements (UNAUDITED)

Notes to Consolidated Financial Statements (UNAUDITED) In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Wisconsin and its subsidiaries as of Sept. 30, 2025 and Dec. 31, 2024; the results of NSP-Wisconsin's operations, including the components of net income and changes in stockholder's equity for the three and nine months ended Sept. 30, 2025 and 2024; and NSP-Wisconsin's cash flows for the nine months ended Sept. 30, 2025 and 2024. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2025 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2024 balance sheet information has been derived from the audited 2024 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2024. Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the SEC on Feb. 27, 2025. Due to the seasonality of NSP-Wisconsin's electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. 1. Summary of Significant Accounting Policies The significant accounting policies set forth in Note 1 to the consolidated

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