MGE Energy, Inc. Reports Strong Financial Performance for 2025, Driven by Renewable Energy Projects and Gas Segment Growth
MGE Energy, Inc, a prominent public utility holding company headquartered in Madison, Wisconsin, announced its financial results for the fourth quarter and full year ended December 31, 2025. The results highlight continued growth across both its electric and gas business segments, reflecting the company’s ongoing strategic investments in renewable energy and infrastructure, as well as favorable market and weather conditions that contributed to higher customer demand.
For the full year of 2025, MGE Energy reported GAAP (Generally Accepted Accounting Principles) net income of $135.9 million, equivalent to earnings of $3.72 per share. This represents an increase of $15.3 million, or roughly 12.7%, compared with the previous year’s net income of $120.6 million, or $3.33 per share. The year-over-year growth underscores the company’s ability to deliver value to shareholders while expanding its operational footprint and pursuing clean energy initiatives.
The fourth quarter of 2025 also saw a positive performance, with MGE Energy generating net income of $23.3 million, or $0.64 per share, compared with $22.0 million, or $0.61 per share, in the fourth quarter of 2024. Operating revenues for the quarter increased to $189.6 million, up from $171.4 million during the same period last year. Correspondingly, operating income for the quarter reached $32.5 million, representing an increase of $4.8 million over the fourth quarter of 2024.
Electric Segment Growth Fueled by Renewable Energy Expansion
The electric segment of MGE Energy was a significant driver of the company’s growth in 2025, with segment earnings increasing by $11.3 million compared to 2024. This growth was primarily attributed to the successful deployment and operation of key renewable energy projects, demonstrating MGE Energy’s commitment to sustainable and reliable electricity generation.
A cornerstone of the company’s renewable strategy was the Darien Solar Project, which became operational in March 2025. Located across Rock and Walworth counties in Wisconsin, the Darien Solar Project contributes 25 MW of solar energy capacity to MGE Energy’s electricity portfolio. The project reflects the company’s broader initiative to diversify energy sources and reduce reliance on fossil fuels, aligning with regional and national goals for clean energy adoption.
In addition, MGE Energy commissioned the Paris Battery Energy Storage System (BESS) in June 2025. The 11 MW battery system enhances grid reliability by storing renewable energy during periods of low demand and discharging it during peak consumption periods. The integration of battery storage solutions allows the company to optimize the use of intermittent renewable sources such as solar energy, providing a more stable and efficient energy supply for customers in Dane County and surrounding areas.
Together, the Darien Solar Project and the Paris BESS exemplify MGE Energy’s strategic approach to renewable energy, emphasizing the importance of combining generation capacity with advanced energy storage to meet both environmental goals and customer needs.
Gas Segment Earnings Supported by Higher Retail Deliveries
MGE Energy’s gas segment also contributed to the company’s strong financial results, with earnings increasing by $2.5 million in 2025 compared to 2024. The growth in this segment was largely driven by higher retail thermal deliveries, which increased approximately 14% year-over-year. This uptick in demand was primarily influenced by warmer-than-normal weather in 2024, which temporarily reduced energy usage, leading to a rebound in 2025 as weather conditions normalized.
The gas business remains a critical component of MGE Energy’s integrated utility model, supplying natural gas to 180,000 customers across seven south-central and western Wisconsin counties. The segment’s performance highlights the resilience of the company’s gas operations, which continue to provide steady cash flow and support the company’s overall financial stability.
Detailed Financial Overview
For the three months ended December 31, 2025, MGE Energy reported the following key financial metrics:
- Operating Revenues: $189.6 million, up from $171.4 million in Q4 2024.
- Operating Income: $32.5 million, an increase of $4.8 million compared to $27.6 million in the same quarter of the prior year.
- Net Income: $23.3 million, up from $22.0 million in Q4 2024.
- Earnings Per Share (EPS) – Basic and Diluted: $0.64, compared to $0.61 in Q4 2024.
- Weighted Average Shares Outstanding: Approximately 36.5 million shares.
For the full year ended December 31, 2025, MGE Energy reported:
- Operating Revenues: $743.7 million, up from $676.9 million in 2024.
- Operating Income: $170.7 million, up from $146.3 million the prior year.
- Net Income: $135.9 million, compared to $120.6 million in 2024.
- Earnings Per Share – Basic and Diluted: $3.72, versus $3.33 in 2024.
- Weighted Average Shares Outstanding: Approximately 36.5 million shares.
These financial results reflect MGE Energy’s consistent ability to grow revenues and profits across both business segments, demonstrating operational efficiency and a proactive approach to strategic investments.
About MGE Energy
MGE Energy is a public utility holding company with a long-standing history in the Madison, Wisconsin region spanning more than 150 years. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to approximately 170,000 customers in Dane County and purchases and distributes natural gas to roughly 180,000 customers in seven south-central and western Wisconsin counties.
The company’s commitment to sustainable energy solutions, combined with its operational expertise in both electric and gas markets, positions MGE Energy as a reliable and forward-looking utility provider. By integrating renewable energy projects with traditional energy delivery, MGE Energy continues to meet the evolving energy needs of its customers while contributing to broader environmental goals.
Outlook and Strategic Priorities
Looking ahead, MGE Energy is expected to continue its focus on renewable energy deployment, energy storage solutions, and infrastructure modernization. These initiatives are designed not only to enhance operational performance but also to ensure long-term sustainability and resilience in the face of evolving energy demands and regulatory requirements. With a track record of successful project execution and a solid financial foundation, MGE Energy is well-positioned to maintain growth and deliver value to shareholders in 2026 and beyond.
In summary, MGE Energy’s 2025 financial results underscore the effectiveness of the company’s strategic initiatives, the resilience of its business segments, and its commitment to delivering clean, reliable, and efficient energy solutions to its customers. With continued investment in renewable energy and energy storage, combined with strong operational execution, MGE Energy stands poised for sustained growth and success in the years ahead.
