WEC Energy Group (WEC) Margin Slippage Tests Steady Utility Earnings Narrative

WEC Energy Group (WEC) closed out FY 2025 with fourth quarter revenue of US$2.5b and basic EPS of US$0.97, supported by net income of US$316.6m. The trailing twelve months show revenue of US$9.8b and EPS of US$4.84 on net income of US$1.56b. Over the past few quarters, the company has reported revenue in a range from US$2.0b to US$3.1b, and quarterly EPS between US$0.77 and US$2.28. Trailing twelve month revenue increased from US$8.6b in late 2024 to US$9.8b in late 2025. Taken together, the latest results highlight an earnings profile where headline profits are holding up, while margins remain a key lens for how investors may interpret this report.

See our full analysis for WEC Energy Group.

With the numbers on the table, the next step is to see how this earnings profile compares with the widely followed narratives around WEC’s growth, risk and income potential, and to consider where those narratives may need updating.

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NYSE:WEC Earnings & Revenue History as at Feb 2026 TTM profit growth slows to 2% Over the last twelve months, net income was US$1.6b on revenue of US$9.8b, with earnings growth of 2% compared with the 5.1% per year pace over five years, and profit margins at 15.9% versus 17.8% a year earlier. Consensus narrative notes WEC as a steady, regulated utility, and the slower 2% trailing earnings growth alongside a margin step down to 15.9% tests that view by showing profits are still positive but not matching the longer term 5.1% annual growth. This may matter to anyone expecting the multi year trend to continue without interruptions.
The TTM net income of US$1.6b compares with US$1.5b a year earlier, so profits are higher in absolute dollars even as the growth rate cooled. Quarterly EPS between US$0.77 and US$2.28 across FY 2025 underlines that seasonality and margins both play a role in how smooth that earnings path looks across the year.

The short term wobble in growth with margins easing to 15.9% is the kind of detail long term holders often watch closely.

📊 Read the full WEC Energy Group Consensus Narrative. Premium 23.3x P/E and DCF gap WEC trades on a P/E of 23.3x, above the peer average of 20.9x and the Global Integrated Utilities industry at 19.3x, while the DCF fair value of US$118.09 sits a little above the current US$111.42 share price. For the bullish angle, the stock is on a higher multiple than peers, yet the DCF fair value being about 5.6% above the market price still gives bulls a valuation talking point, even as trailing earnings only grew 2% and profit margins slipped from 17.8% to 15.9%.
The premium to peers suggests investors are willing to pay more per dollar of earnings, which bulls might connect to the 5.1% per year five year earnings growth record. At the same time, revenue growth forecasts of 5.4% per year and earnings growth forecasts of 10.7% per year are both below the US market forecasts provided, so the high P/E is being compared against that relatively slower growth profile. Dividend yield vs weak coverage The dividend yield sits at 3.42%, while interest expense is flagged as not well covered by earnings and the dividend is not strongly covered by free cash flow on the trailing twelve month view. Bears argue that weaker coverage is a key risk for an income focused utility, and the data supports that concern because the same period that delivered a 3.42% yield and US$1.6b of net income also came with interest payments not well covered by those earnings and free cash flow that did not fully support the dividend.
This sits alongside forecast earnings growth of 10.7% per year and revenue growth of 5.4% per year, so the company is not being flagged for lack of growth in the data, only for how that growth converts into cash and servicing obligations. For anyone treating WEC as a core income position, the combination of a premium 23.3x P/E and flagged coverage issues makes the cash flow profile just as important to watch as the 3.42% headline yield. Next Steps

Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on WEC Energy Group’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.

See What Else Is Out There

WEC is juggling a premium 23.3x P/E, softer 15.9% profit margins, and dividend and interest coverage that look less robust than some income investors may prefer.

If that mix of weaker coverage and higher valuation makes you cautious about relying on one utility for income, check out our 14 dividend fortresses to find companies where yields come with sturdier support.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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