WEC

WEC is a high-quality regulated electric-and-gas utility, and the numbers show the dependable profile you'd expect: FY2025 revenue of $9.80B, a 22.9% operating margin, 11.1% ROE, and $3.38B of operating cash flow, with net income compounding steadily from $1.30B (FY2021) to $1.56B (FY2025). The business runs under ASC 980 rate regulation, which lets it defer costs as regulatory assets for future recovery and earn an authorized return — the source of its predictability.

The catch is that FY2025's headline growth barely reached shareholders. Revenue jumped +14.0%, but net income rose just +2.0% and diluted EPS actually slipped -0.4%. Net margin fell to 15.9% from roughly 17.7% the prior year (FY2024 $1.52B/$8.60B), confirming that much of the revenue spike is pass-through (fuel/commodity) rather than earnings. Meanwhile the share count grew +2.4% — equity issued to help fund a capital-heavy model — diluting per-share progress. The balance sheet carries ~$20B of debt ($18.5B long-term, +7.7%, plus $1.52B current) against $14.1B equity (~1.4x D/E) and just $27.6M of cash, with current liabilities ($5.59B) well above current assets ($3.28B). That leverage is normal for a utility but leaves the equity sensitive to rates.