AI Takeaway
WEC Energy Group delivered solid Q1 2026 revenue growth of 9.0% to $3.43B, driven by higher utility revenues, though rising costs and expanding long-term debt of $19.4B warrant close monitoring.
Revenue
$3.43B
++9.04% YoY
Operating Income
$980M
++4.53% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue increased 9.0% year-over-year to $3.43B in Q1 2026 from $3.15B in Q1 2025, reflecting stronger utility demand and likely rate adjustments across WEC's regulated service territories.
Source: Source: 10-Q Income Statement, Q1 2026
Cost of revenue surged 19.3% YoY to $1.39B, outpacing revenue growth of 9.0%, which compressed the operating margin from 29.8% to 28.5% — a decline of approximately 120 basis points.
Source: Source: 10-Q Income Statement, Q1 2026
Operating income grew 4.5% YoY to $980M from $937.5M, indicating that WEC maintained profitability growth despite cost headwinds, though the pace of earnings expansion lagged revenue growth.
Source: Source: 10-Q Income Statement, Q1 2026
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Upgrade to unlockLong-term debt increased nearly 20% YoY to $19.4B, significantly increasing WEC's financial leverage. In a rising or sustained high interest rate environment, refinancing costs could pressure earnings and reduce financial flexibility for future capital projects.
Source: Source: 10-Q Balance Sheet, Q1 2026
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Upgrade to unlockReported EPS of $2.45 versus the $2.30 analyst consensus — a +6.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.43B | $3.15B | +9.04% |
Cost of Revenue | $1.39B | $1.17B | +19.33% |
Operating Income | $980M | $937.5M | +4.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $51.73B | $48.23B | +7.26% |
Current Assets | $2.98B | $2.94B | +1.28% |
Current Liabilities | $4.39B | $5.86B | -25.13% |
Cash & Equivalents | $45.6M | $82.2M | -44.53% |
Long-Term Debt | $19.38B | $16.16B | +19.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.22B | $1.16B | +4.80% |
Investing Cash Flow | $-886.4M | $-1.1B | +19.55% |
Financing Cash Flow | $-295.6M | $40.4M | -831.68% |
D&A | $379.8M | $359.9M | +5.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 28.5% | 29.8% | -1.23% |
Current Ratio | $0.679 | — | — |
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WEC Energy Group reported Q1 2026 revenue of $3.43B, up 9.0% year-over-year, and operating income of $980M, up 4.5% YoY. However, cost of revenue grew faster at 19.3%, compressing the operating margin from 29.8% to 28.5%.
The key takeaways from WEC's Q1 2026 report are strong revenue growth of 9.0% to $3.43B, robust operating cash flow of $1.22B, but notable cost pressures and a significant 19.9% increase in long-term debt to $19.4B. The current ratio of 0.68 also highlights limited short-term liquidity.
As of Q1 2026, WEC Energy Group carries $19.4B in long-term debt, a 19.9% increase from $16.2B in Q1 2025. This substantial debt load reflects ongoing capital investment in regulated utility infrastructure but also increases financial leverage risk.
Based on the financial data, key risks include rapidly rising long-term debt (up 19.9% to $19.4B), cost of revenue growing faster than revenue (19.3% vs. 9.0%), and a low current ratio of 0.68 indicating limited short-term liquidity. Cash and equivalents also fell sharply by 44.5% to just $45.6M.
Yes, WEC generated $1.22B in operating cash flow in Q1 2026, up 4.8% from $1.16B in Q1 2025, demonstrating strong and consistent cash generation from its regulated utility operations. Estimated free cash flow was approximately $332M after capital expenditures reflected in investing activities.