Loading...
•
Jun 30
ALLETE Q2 2025 Earnings Report
ALLETE reported second quarter 2025 earnings with a decrease in net income and EPS compared to the previous year, primarily due to lower industrial margins and higher operating expenses, partially offset by lower merger-related expenses.
Key Takeaways
ALLETE, Inc. reported second quarter 2025 earnings of $0.55 per share on net income of $31.9 million, down from $0.57 per share and $33.0 million in the prior year. The decline was mainly driven by lower margins from industrial customers at Minnesota Power and increased operating and depreciation expenses, although these were partially offset by significantly lower merger-related expenses compared to 2024.
Net income for Q2 2025 was $31.9 million, a decrease from $33.0 million in Q2 2024.
Diluted EPS for Q2 2025 was $0.55, down from $0.57 in Q2 2024.
Regulated Operations segment net income decreased to $23.0 million from $33.7 million in the prior year, primarily due to lower industrial margins.
Merger-related expenses significantly decreased to $3.4 million after-tax in Q2 2025 from $14.5 million in Q2 2024.
ALLETE
ALLETE
ALLETE Revenue by Segment
Revenue by Segment
Regulated Operations Revenue
CapyFin.comNon-utility Contracts Revenue
CapyFin.comNon-utility Other Revenue
CapyFin.com Forward Guidance
ALLETE continues to expect its proposed transaction to close in 2025, subject to Minnesota Public Utilities Commission approval. The company highlights a settlement agreement that provides customer savings and benefits stakeholders, despite anticipated continued lower industrial margins.
Positive Outlook
- Proposed transaction with CPP Investments and GIP is expected to close in 2025.
- Settlement agreement reached with Minnesota Department of Commerce, Minnesota Power, and transaction partners.
- Settlement agreement will deliver enhanced benefits for customers, employees, and communities.
- Rate case stay-out provision in the settlement agreement provides immediate customer savings.
- Required approvals for the transaction have been received from all other parties.
Challenges Ahead
- Lower industrial margins at Minnesota Power are expected to continue through 2025.
- Absent the transaction, Minnesota Power would need to file a rate case due to reduced revenue, increased depreciation, and inflationary pressures.
- The proposed transaction is still subject to approval by the Minnesota Public Utilities Commission.
- Lower production and unfavorable pricing at most wind sites impacted ALLETE Clean Energy's net income.
- Lower sales of renewable energy projects due to timing of project closings impacted New Energy Equity's net income.