WEC · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

WEC ENERGY GROUP, INC. · 2026-08-04 · Importance 63 · Surprise 50 · No source text

Wisconsin GAAP gross margin increased $39.6 million to $1,208.7 million, while utility margin increased $130.8 million to $2,488.9 million for the six months ended June 30, 2026. Wisconsin rate orders effective January 1, 2026 increased margins by $117.7 million, and construction carrying costs for bespoke resources assigned to very large industrial customers added $15.1 million. Unfavorable weather reduced margins by $28.9 million, partly offset by $21.7 million from weather-normalized customer growth. Illinois GAAP gross margin decreased $22.6 million and utility margin decreased $37.0 million, while other states GAAP gross margin decreased $9.2 million and utility margin decreased $6.1 million.

Key facts

• Wisconsin segment utility margin (non-GAAP) for the three months ended June 30, 2026 was $1,123.4 million, compared with $1,067.0 million in the same quarter of 2025, an increase of $56.4 million. source
• Cost of sales at the Wisconsin segment was $1,470.9 million for the six months ended June 30, 2026. source
• Utility margin (non-GAAP) at the Wisconsin segment was $2,488.9 million for the six months ended June 30, 2026, an increase of $130.8 million versus 2025. source
• Gross margin (GAAP) at the Illinois segment was $435.2 million for the six months ended June 30, 2026, a decrease of $22.6 million versus 2025. source
• Utility margin (non-GAAP) at the Illinois segment was $704.2 million for the six months ended June 30, 2026, a decrease of $37.0 million versus 2025. source
• Gross margin (GAAP) at the Wisconsin segment for the three months ended June 30, 2026 was $470.1 million, compared with $462.2 million in the same quarter of 2025, an increase of $7.9 million. source

Impact estimates