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SEC filingStrong quarter driven by Wisconsin rate orders and lower Illinois operating expenses, with net income up 11.1% and operating cash flow growth supporting increased capital investment.
Revenue increased 9.0% to $3.4 billion in the first quarter of 2026, compared to $3.1 billion in the same period last year. The growth was primarily driven by higher margins from the Wisconsin rate orders approved by the Public Service Commission of Wisconsin (PSCW), effective January 1, 2026. These rate orders allowed the company to earn higher allowed rates of return, reflecting continued capital investment in infrastructure.
Net cash provided by operating activities increased to $1.22 billion from $1.16 billion in the prior year, supported by higher customer collections from rate increases. Capital expenditures rose to $817.9 million from $701.1 million, reflecting continued investment in combustion turbines, LNG facilities, and renewable projects in Wisconsin. Free cash flow was $400.5 million, after funding these capital investments.
The Illinois segment benefited from lower operating expenses, primarily due to a gain on the sale of certain real estate at PGL and a decrease in natural gas distribution and maintenance costs. These factors contributed to the overall earnings growth, although specific segment-level financials are not separately disclosed in the authoritative packet.
The company continues to execute its capital plan, with a focus on infrastructure growth and reliability. The PSCW approved WE's request to construct an LNG facility with a storage capacity of two Bcf, which will be located on the OCPP site. Management expects these efforts to continue to drive operational efficiency and support future growth.
Management remains focused on cost control and strategic investment to earn allowed rates of return. While significant regulatory guidance is expected on tax provisions in the Inflation Reduction Act, the company currently believes the provisions on alternative minimum tax and stock repurchases will not have a material impact. The company monitors global supply chain disruptions to ensure procurement of necessary materials for safe and reliable energy services.