MGE Energy Reports Third-Quarter 2026 Earnings

Electric segment earnings increased $11.6 million year over year, while investment gains added approximately $2.2 million.

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MADISON, Wis.--(BUSINESS WIRE)-- MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the third quarter of 2026.

MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the third quarter of 2026 were $56.4 million, or $1.48 per diluted share, compared to $44.5 million, or $1.22 per diluted share, for the same period in the prior year.

Electric segment earnings increased $11.6 million for 2026 compared to 2025, reflecting strategic capital investments that grew rate base, largely driven by the successful deployment of key renewable energy projects. The increase also reflected higher allowance for funds used during construction (AFUDC) equity associated with the construction of Koshkonong, High Noon, Sunnyside, and other early development projects. AFUDC equity from these projects increased $3.3 million compared to the same period in the prior year. Gas net income remained stable compared to the third quarter of 2025. In addition, earnings benefited from an approximately $2.2 million increase in investment gains compared to the third quarter of 2025, including returns from venture capital funds focused on technologies and innovations relevant to the evolving energy industry.

MGE Energy, Inc. (In thousands, except per-share amounts) (Unaudited)
Three Months Ended September 30,		2026				2025
Operating revenues		$	190,397			$	175,679
Operating income		$	58,083			$	51,075
Net income		$	56,358			$	44,497
Earnings per share - basic		$	1.49			$	1.22
Earnings per share - diluted		$	1.48			$	1.22
Weighted average shares outstanding - basic			37,791				36,542
Weighted average shares outstanding - diluted			38,018				36,576
Nine Months Ended September 30,		2026				2025
Operating revenues		$	594,295			$	554,101
Operating income		$	143,869			$	138,163
Net income		$	138,192			$	112,587
Earnings per share - basic		$	3.71			$	3.08
Earnings per share - diluted		$	3.70			$	3.08
Weighted average shares outstanding - basic			37,248				36,531
Weighted average shares outstanding - diluted			37,373				36,565

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the “Risk Factors” sections in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104229916/en/

Steve B. Schultz
Media Relations
608-252-7219 | sbschultz@mge.com

Ken Frassetto
Investor Relations
608-252-4723 | kfrassetto@mge.com

Source: MGE Energy, Inc.

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

afudc financial

Allowance for Funds Used During Construction (AFUDC) is an accounting method that adds the cost of financing — typically interest and sometimes a return — to the value of a long-term project while it’s being built, rather than charging that cost immediately as an expense. Think of it like capitalizing the loan interest on a house while it’s under construction so the cost becomes part of the asset; this raises reported asset value and delays expense recognition, which can make current earnings look stronger and affect future regulated rates and investor returns.

rate base financial

Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.

weighted average shares outstanding financial

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.