WPS Q3 Earnings Surge 19.6% on Strong Revenue Growth

TL;DR

**WPS is crushing it with nearly 20% net income growth, signaling a solid, regulated utility play for stable returns.**

AI Summary

Wisconsin Public Service Corporation reported a robust financial performance for the three and nine months ended September 30, 2025. Operating revenues increased significantly, reaching $466.3 million for the three-month period, up from $401.3 million in 2024, representing a 16.2% increase. For the nine-month period, operating revenues climbed to $1,375.5 million from $1,165.5 million in 2024, a 18.0% rise. Net income also saw substantial growth, hitting $96.3 million for the three months ended September 30, 2025, compared to $80.5 million in the prior year, an increase of 19.6%. Year-to-date net income was $227.3 million, up from $191.6 million in 2024, a 18.6% improvement. The company's capital expenditures surged to $533.5 million for the nine months ended September 30, 2025, a significant increase from $336.3 million in the same period of 2024, indicating substantial investment in infrastructure. Total assets grew to $7,747.4 million as of September 30, 2025, from $7,495.7 million at December 31, 2024. Key risks include the impact of federal, state, and local legislative and regulatory changes, particularly those affecting rate-setting policies and environmental regulations, as well as supply chain disruptions and inflation. The strategic outlook appears focused on continued capital investment and managing regulatory environments.

Why It Matters

This strong performance by Wisconsin Public Service Corporation, a subsidiary of WEC Energy Group, signals healthy demand and effective cost management within the regulated utility sector. For investors, the significant increase in net income and operating revenues, coupled with substantial capital expenditures, suggests a growing asset base and potential for stable, regulated returns. Employees may see increased job security and opportunities as the company invests heavily in infrastructure. Customers could experience improved service reliability due to these capital investments, though rate adjustments to recover costs remain a factor. In the broader market, this filing highlights the resilience of regulated utilities amidst economic fluctuations and provides competitive context for other regional energy providers like Madison Gas and Electric Company (MG&E) and Wisconsin Power and Light Company (WPL).

Risk Assessment

Risk Level: medium — The risk level is medium due to significant exposure to regulatory changes and substantial capital expenditure requirements. The filing explicitly mentions risks from 'federal, state, and local legislative and/or regulatory changes, including changes in rate-setting policies or procedures' and 'environmental regulations impacting generation facilities.' Furthermore, capital expenditures increased to $533.5 million for the nine months ended September 30, 2025, up from $336.3 million in 2024, indicating a high reliance on timely project completion and cost recovery through rates.

Analyst Insight

Investors should consider Wisconsin Public Service Corporation's parent company, WEC Energy Group, as a stable investment given the strong financial performance and significant capital investments. Monitor regulatory developments in Wisconsin, particularly regarding rate cases and environmental policies, as these will directly impact future profitability and the ability to recover the $533.5 million in capital expenditures.

Financial Highlights

debt To Equity

X.X

revenue

$1,375.5M

operating Margin

X%

total Assets

$7,747.4M

total Debt

$2,358.9M

net Income

$227.3M

eps

$X

gross Margin

X%

cash Position

$2.3M

revenue Growth

+18.0%

Revenue Breakdown

Key Numbers

• $466.3M — Operating Revenues (Q3 2025) (Increased 16.2% from $401.3M in Q3 2024)
• $1,375.5M — Operating Revenues (YTD 2025) (Increased 18.0% from $1,165.5M in YTD 2024)
• $96.3M — Net Income (Q3 2025) (Increased 19.6% from $80.5M in Q3 2024)
• $227.3M — Net Income (YTD 2025) (Increased 18.6% from $191.6M in YTD 2024)
• $533.5M — Capital Expenditures (YTD 2025) (Increased from $336.3M in YTD 2024, reflecting significant investment)
• $7,747.4M — Total Assets (Sept 30, 2025) (Increased from $7,495.7M at Dec 31, 2024)
• 473,000 — Electric Customers (Number of electric customers served)
• 348,000 — Natural Gas Customers (Number of natural gas customers served)
• $140.0M — Equity Contribution from Parent (YTD 2025) (Indicates parent company support for capital needs)
• $2,989.3M — Common Shareholder's Equity (Sept 30, 2025) (Increased from $2,711.8M at Dec 31, 2024)

Key Players & Entities

• WISCONSIN PUBLIC SERVICE CORPORATION (company) — registrant
• WEC Energy Group, Inc. (company) — parent company
• Integrys Holding, Inc. (company) — wholly owned subsidiary of WEC Energy Group, Inc. and holder of common stock
• Public Service Commission of Wisconsin (regulator) — state regulatory agency
• United States Securities and Exchange Commission (regulator) — federal regulatory agency
• Madison Gas and Electric Company (company) — competitor/peer
• Wisconsin Power and Light Company (company) — competitor/peer
• $466.3 million (dollar_amount) — operating revenues for three months ended September 30, 2025
• $96.3 million (dollar_amount) — net income for three months ended September 30, 2025
• $533.5 million (dollar_amount) — capital expenditures for nine months ended September 30, 2025

FAQ

Risk Factors

• Legislative and Regulatory Changes [high — regulatory]: Changes in federal, state, and local laws and regulations can significantly impact the company's operations, particularly concerning rate-setting policies and environmental standards. The Public Service Commission of Wisconsin (PSCW) and the EPA are key agencies influencing these changes.
• Supply Chain Disruptions [medium — operational]: Disruptions in the supply chain for essential materials and equipment can lead to project delays and increased costs. This is a general risk affecting many industries, including utilities that rely on a steady flow of components for maintenance and new infrastructure.
• Inflationary Pressures [medium — financial]: Rising inflation can increase the cost of fuel, materials, and labor, impacting operating expenses and potentially requiring adjustments to customer rates. This is a broad economic risk that utilities must manage through operational efficiencies and rate filings.
• Environmental Regulations [high — regulatory]: Stricter environmental regulations, such as those related to emissions (e.g., Mercury and Air Toxics Standards - MATS) and coal combustion residuals (CCR), require significant capital investment for compliance and can lead to operational changes or asset retirements.

Industry Context

Wisconsin Public Service Corporation operates in the regulated utility sector, providing essential electric and natural gas services. The industry is characterized by significant capital intensity, long asset lives, and heavy regulation. Key trends include the transition to cleaner energy sources, investments in grid modernization, and the management of aging infrastructure, all while navigating evolving environmental regulations and customer demand.

Regulatory Implications

The company is subject to extensive regulation by the Public Service Commission of Wisconsin (PSCW) and federal agencies like the EPA. Changes in rate-setting policies, environmental standards (e.g., GHG emissions, air toxics), and energy policy can materially affect financial performance and require substantial capital expenditures for compliance.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Assess the impact of capital expenditure program on future cash flows and debt levels.
3. Evaluate the company's strategy for managing environmental compliance costs.

Key Dates

• 2025-09-30: End of Third Quarter and Nine-Month Period — Reporting period for the financial results, showing significant revenue and net income growth, and substantial capital expenditures.
• 2024-12-31: End of Fiscal Year 2024 — Prior year-end balance sheet figures used for comparison, showing total assets of $7,495.7 million.
• 2025-09-30: Total Assets Reported — Total assets reached $7,747.4 million, an increase from the prior year-end, reflecting investments in property, plant, and equipment.
• 2025-09-30: Common Shareholder's Equity Reported — Equity stood at $2,989.3 million, an increase from $2,711.8 million at December 31, 2024, indicating retained earnings growth and potentially parent company support.

Glossary

AFUDC

Allowance for Funds Used During Construction (This is an accounting concept that allows utilities to capitalize interest and other costs incurred on funds used to finance the construction of new assets, which are then recovered over the life of the asset.)

ARO

Asset Retirement Obligation (Represents the fair value of a liability associated with the retirement of tangible long-lived assets, such as power plants, which is recognized when the asset is acquired or constructed.)

GHG

Greenhouse Gas (Refers to gases that trap heat in the atmosphere, such as carbon dioxide (CO2). Increasing regulatory focus on GHG emissions impacts utility operations and investment decisions.)

MATS

Mercury and Air Toxics Standards (Federal regulations setting limits on mercury, acid gases, and other toxic pollutants from power plants. Compliance often requires significant capital investment in pollution control technology.)

PSCW

Public Service Commission of Wisconsin (The primary state regulatory body that oversees utility rates, service standards, and other aspects of Wisconsin Public Service Corporation's operations.)

WEC Energy Group

WEC Energy Group, Inc. (The parent company of Wisconsin Public Service Corporation, indicating the corporate structure and potential for inter-company transactions or support.)

Year-Over-Year Comparison

Wisconsin Public Service Corporation demonstrated strong year-over-year performance in the nine months ended September 30, 2025. Operating revenues increased by 18.0% to $1,375.5 million, and net income grew by 18.6% to $227.3 million, indicating robust demand and effective cost management. Total assets grew to $7,747.4 million from $7,495.7 million at year-end 2024, driven by significant capital investments of $533.5 million, up from $336.3 million in the prior year period. No new material risks were highlighted, but existing risks related to regulatory changes, supply chain, and inflation remain pertinent.

Key Financial Figures

• $4 — atest practicable date: Common Stock, $4 par value, 23,896,962 shares outstandi

Filing Documents

• wps-20250930.htm (10-Q) — 1675KB
• a2025q3wps10qexhibit311.htm (EX-31.1) — 11KB
• a2025q3wps10qexhibit312.htm (EX-31.2) — 11KB
• a2025q3wps10qexhibit321.htm (EX-32.1) — 4KB
• a2025q3wps10qexhibit322.htm (EX-32.2) — 4KB
• 0000107833-25-000009.txt ( ) — 8508KB
• wps-20250930.xsd (EX-101.SCH) — 50KB
• wps-20250930_cal.xml (EX-101.CAL) — 74KB
• wps-20250930_def.xml (EX-101.DEF) — 259KB
• wps-20250930_lab.xml (EX-101.LAB) — 647KB
• wps-20250930_pre.xml (EX-101.PRE) — 453KB
• wps-20250930_htm.xml (XML) — 1507KB

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) 4 Condensed Income Statements 4 Condensed Balance Sheets 5 Condensed Statements of Cash Flows 6 Condensed Statements of Equity 7 Notes to Condensed Financial Statements 8 Page Note 1 General Information 8 Note 2 Operating Revenues 8 Note 3 Credit Losses 9 Note 4 Regulatory Assets and Liabilities 11 Note 5 Property, Plant, and Equipment 11 Note 6 Common Equity 12 Note 7 Short-Term Debt and Lines of Credit 12 Note 8 Leases 12 Note 9 Materials, Supplies, and Inventories 13 Note 10 Income Taxes 13 Note 11 Fair Value Measurements 14 Note 12 Derivative Instruments 15 Note 13 Guarantees 17 Note 14 Employee Benefits 17 Note 15 Goodwill and Intangible Assets 17 Note 16 Segment Information 18 Note 17 Commitments and Contingencies 20 Note 18 Supplemental Cash Flow Information 25 Note 19 New Accounting Pronouncements 26 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 27 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 46 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 46 PART II. OTHER INFORMATION 47 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 47 ITEM 1A.

RISK FACTORS

RISK FACTORS 47 ITEM 5. OTHER INFORMATION 47 ITEM 6. EXHIBITS 48 SIGNATURE 49 09/30/2025 Form 10-Q i Wisconsin Public Service Corporation Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: Affiliates ATC American Transmission Company LLC Integrys Integrys Holding, Inc. WE Wisconsin Electric Power Company WEC Energy Group WEC Energy Group, Inc. Federal and State Regulatory Agencies CBP United States Customs and Border Protection Agency DOC United States Department of Commerce EPA United States Environmental Protection Agency IRS United States Internal Revenue Service PSCW Public Service Commission of Wisconsin SEC United States Securities and Exchange Commission USITC United States International Trade Commission WDNR Wisconsin Department of Natural Resources Accounting Terms AFUDC Allowance for Funds Used During Construction ARO Asset Retirement Obligation ASU Accounting Standards Update FASB Financial Accounting Standards Board GAAP United States Generally Accepted Accounting Principles OPEB Other Postretirement Employee Benefits Environmental Terms BATW Bottom Ash Transport Water BTA Best Technology Available CAA Clean Air Act CASAC Clean Air Scientific Advisory Committee CCR Coal Combustion Residuals CO 2 Carbon Dioxide CRL Combustion Residual Leachate CWA Clean Water Act ELG Steam Electric Effluent Limitation Guidelines GHG Greenhouse Gas GHG Power Plant Rule 2024 Greenhouse Gas Power Plant Rule MATS Mercury and Air Toxics Standards NAAQS National Ambient Air Quality Standards NOV Notice of Violation NOx Nitrogen Oxide PM Particulate Matter WPDES Wisconsin Pollutant Discharge Elimination System Measurements Bcf Billion Cubic Feet Dth Dekatherm lb/MMBtu Pound Per Million British Thermal Unit MW Megawatt MWh Megawatt-hours g/m3 Micrograms Per Cubic Meter 09/30/2025 Fo

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS WISCONSIN PUBLIC SERVICE CORPORATION CONDENSED INCOME STATEMENTS (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 (in millions) 2025 2024 2025 2024 Operating revenues $ 466.3 $ 401.3 $ 1,375.5 $ 1,165.5 Operating expenses Cost of sales 126.6 102.9 440.3 347.5 Other operation and maintenance 123.3 115.2 364.4 331.1 Depreciation and amortization 67.4 59.7 199.9 178.0 Property and revenue taxes 11.1 11.7 33.5 35.2 Total operating expenses 328.4 289.5 1,038.1 891.8 Operating income 137.9 111.8 337.4 273.7 Other income, net 5.3 12.1 13.8 36.1 Interest expense 24.4 23.7 72.6 71.6 Other expense ( 19.1 ) ( 11.6 ) ( 58.8 ) ( 35.5 ) Income before income taxes 118.8 100.2 278.6 238.2 Income tax expense 22.5 19.7 51.3 46.6 Net income $ 96.3 $ 80.5 $ 227.3 $ 191.6 The accompanying Notes to Condensed Financial Statements are an integral part of these financial statements. 09/30/2025 Form 10-Q 4 Wisconsin Public Service Corporation Table of Contents WISCONSIN PUBLIC SERVICE CORPORATION CONDENSED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 2.3 $ 1.5 Accounts receivable and unbilled revenues, net of reserves of $ 7.4 and $ 8.6 , respectively 177.1 225.1 Accounts receivable from related parties 20.7 29.6 Materials, supplies, and inventories 168.1 167.1 Prepaid taxes 31.8 57.4 Other prepayments 5.1 8.2 Other 19.4 13.8 Current assets 424.5 502.7 Long-term assets Property, plant, and equipment, net of accumulated depreciation and amortization of $ 2,303.6 and $ 2,190.8 , respectively 6,471.0 6,139.2 Regulatory assets 428.2 449.7 Goodwill 36.4 36.4 Pension and OPEB assets 346.6 328.9 Other 40.7 38.8 Long-term assets 7,322.9 6,993.0 Total assets $ 7,747.4 $ 7,495.7 Liabilities and Equity Current liabilities Short-term debt $ 42.0 $ 62.0 Current portion o

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