WEC Energy Group, Inc. (WEC): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of WEC Energy Group, Inc.'s business portfolio through the BCG Matrix lens, and honestly, the company's recent $36.5 billion capital plan for 2026-2030 makes the segmentation pretty defintely sharp. We see core regulated distribution acting as the rock-solid Cash Cow, generating over 99% of earnings to fund ambitious Stars like Regulated Electric Infrastructure for Data Centers, which forecasts 6% to 7% sales growth, and $11.6 billion earmarked for Utility-Owned Renewable Generation. Meanwhile, the Dogs-that legacy coal fleet-are on a clear retirement track by 2032, while the Question Marks, like the small Unregulated Renewable Business, wait for their big break. Dive in to see exactly where WEC Energy Group, Inc. is placing its bets for the next half-decade.

Background of WEC Energy Group, Inc. (WEC)

You're looking at one of the biggest players in the Midwest energy space, WEC Energy Group, Inc. (WEC). This Fortune 500 company is an energy holding company, and it's defintely rooted in Milwaukee, Wisconsin. The current structure you see today really kicked off back in 2015 when Wisconsin Energy Corporation merged with Integrys Energy Group, creating this larger entity.

WEC Energy Group, Inc. provides regulated electricity generation, transmission, and distribution, alongside natural gas delivery, to a massive customer base. As of recent data, they serve approximately 4.7 million customers across four key states: Wisconsin, Illinois, Michigan, and Minnesota. For context on its size, trailing twelve-month revenue as of September 30, 2025, clocked in at about $9.5B.

To understand where the money comes from, you need to look at the asset mix, which gives you a clear picture of their regulated focus. Their assets break down roughly into 49% for electric generation and distribution, 32% for gas distribution, and 10% dedicated to electric transmission. Plus, they hold a 60% stake in American Transmission Co., which is an important piece of infrastructure.

The operational muscle comes through a family of principal energy companies. You'll see names like We Energies and Wisconsin Public Service handling a lot of the electric and gas service in Wisconsin, while Peoples Gas serves Chicago, for example. On the strategic front, WEC Energy Group, Inc. is pushing hard into cleaner energy; they have a stated goal to reduce carbon dioxide emissions by 60% by the end of 2025 compared to 2005 levels, and they plan to invest $7 billion in new renewable capacity between 2024 and 2028.

WEC Energy Group, Inc. (WEC) - BCG Matrix: Stars

WEC Energy Group, Inc. operates in high-growth segments driven by massive industrial load, particularly data centers, positioning these areas as Stars within the portfolio.

Regulated Electric Infrastructure for Data Centers

• Electric demand growth forecast: 3.4 gigawatts (GW) between 2026 and 2030.
• Projected annual electric sales growth for 2028 through 2030: 6% to 7%.
• Proposed Very Large Customer (VLC) tariff terms include a Return on Equity range of 10.48% to 10.98%.
• The company serves 4.7 million retail customers across Wisconsin, Illinois, Michigan, and Minnesota.

The overall 2026-2030 capital plan totals $36.5 billion, an increase of $8.5 billion over the previous five-year plan, reflecting the investment needed to support this high-growth load.

Utility-Owned Renewable Generation and New Generation Capacity

WEC Energy Group is making substantial investments to meet both growth and decarbonization goals. Between 2025 and 2029, the plan calls for building and owning approximately 4,300 MW of additional renewable energy capacity for regulated utilities, with an investment of $9.1 billion.

The investment in modern, efficient natural gas generation and related infrastructure between 2025 and 2029 includes adding more than 1,900 MW of new combustion turbines and reciprocating internal combustion engines (RICE). Specifically, this includes 1,100 MW of simple-cycle combustion turbines at Oak Creek Power Plant site, with an expected investment of $1.2 billion. For LNG capacity, the company expects to invest approximately $1.4 billion for 6 Bcf of LNG storage between 2025 and 2029.

The breakdown of the $36.5 billion capital plan for 2026-2030 highlights these focus areas:

Grid Modernization and Transmission Upgrades

The capital plan includes a $900 million increase for electric transmission projects between 2026 and 2030. This supports the grid to handle the massive new industrial load growth, which is expected to drive an asset base growth of approximately 11.3% annually.

The expected outcome of these investments is an accelerated long-term Earnings Per Share (EPS) growth rate of 7% to 8% CAGR through 2030.

WEC Energy Group, Inc. (WEC) - BCG Matrix: Cash Cows

The core of WEC Energy Group, Inc.'s stability rests within its regulated utility operations. You can view this segment as the quintessential Cash Cow because it operates in a mature, highly regulated market where the company has established a dominant market share across its service territories in Wisconsin, Illinois, Michigan, and Minnesota. This segment is the primary engine for predictable earnings, which is why management reaffirms its 2025 earnings guidance in the range of $5.17 to $5.27 per share. For the nine months ended September 30, 2025, the company already posted GAAP earnings of $3.85 per share, showing consistent progress toward that target.

The regulated nature of the business-electric and natural gas distribution-means cash flows are stable and less susceptible to economic volatility than unregulated ventures. This predictability allows WEC Energy Group, Inc. to confidently plan for shareholder returns and infrastructure investment. The company serves 4.7 million retail customers and manages assets valued at over $49.8 billion.

The business structure heavily favors these stable assets, which generate the cash necessary to fund corporate needs and shareholder distributions. Here's a look at the asset composition, which clearly shows where the bulk of the value and cash generation resides:

The ownership in American Transmission Company (ATC) is a prime example of milking a high-share, regulated asset. WEC Energy Group, Inc. holds a 60% equity ownership in ATC, which functions as a regulated transmission asset. This investment provides a steady stream of income, directly supporting the overall cash position without requiring the heavy promotional spending associated with high-growth products.

The financial discipline centers on returning a significant portion of this reliable cash flow to you, the shareholder. WEC Energy Group, Inc. maintains a clear policy targeting a dividend payout ratio between 65% to 70% of earnings. This commitment is evident in their recent actions:

• The company recently paid a quarterly dividend of $0.8925 per share, equating to an annualized rate of $3.57.
• The board has already announced plans to increase the quarterly dividend to $0.9525 per share in the first quarter of 2026.
• This planned increase represents a 6.7% raise and results in a projected annualized dividend of $3.81 per share for 2026.
• The projected 2026 dividend aligns with the company's objective to grow the dividend at a 6.5% to 7% compound annual rate.

These cash cows generate the necessary capital to fund the company's extensive infrastructure needs, such as the $28 billion five-year capital plan announced in late 2024, and to support the projected EPS growth of 7% to 8% through 2030. The focus here is maintenance and efficiency; you invest just enough to keep the infrastructure reliable and compliant, maximizing the cash extracted for dividends and funding other business units. The reaffirmed 2025 EPS guidance of $5.17 to $5.27 and the 2026 guidance of $5.510 to $5.610 per share underscore the highly predictable nature of this segment.

WEC Energy Group, Inc. (WEC) - BCG Matrix: Dogs

You're looking at the assets within WEC Energy Group, Inc. (WEC) that require strategic pruning, the ones that tie up capital without offering meaningful future growth. These are the Dogs in the portfolio, primarily represented by the legacy coal-fired generation fleet.

The Legacy Coal-Fired Generation Fleet is definitively slated for complete elimination as an energy source by the end of 2032. This aggressive timeline signals that management views these assets as having low future market share and high regulatory/operational risk. The plan involves cutting nearly 1,800MW of coal capacity from the portfolio by that final date. Furthermore, WEC Energy Group expects to use coal only as a backup fuel source starting in 2030, effectively sidelining these units well before their final retirement date. This strategic pivot means that capital tied up in these assets is not generating sufficient return relative to the massive investments being made elsewhere in the portfolio, such as the new 5-year capital plan totaling $28 billion over the 2025-2029 period, which prioritizes renewables and gas infrastructure.

Here is the specific, near-term retirement schedule for these high-draw, low-return assets:

That extension for Oak Creek units 7 and 8 to 2026 is a direct response to tightening power supply and reliability concerns in the Midcontinent Independent System Operator (MISO) region, showing the immediate operational pressure these aging assets are under.

The category of Older, less efficient thermal generation units being retired or converted to natural gas highlights the transition cost. While the company is investing over $2 billion in gas generation and LNG upgrades to bridge the gap, these older coal units represent the liability being shed. For example, the process of converting coal units to natural gas is expected to be less expensive than keeping them running on coal due to upcoming regulations. WEC Energy Group is exploring conversion for at least one unit at the Weston Plant (Unit 4). This conversion effort itself is a significant, non-growth related capital deployment simply to manage the exit of a Dog asset.

These assets inherently carry high maintenance costs and a declining long-term market share. The financial manifestation of this liability is visible in the balance sheet. As of the third quarter of 2025, WEC Energy Group reported Asset Retirement Obligations totaling $623.2 million. This figure represents the estimated future cost to decommission these facilities, a clear cash drain that offers no future revenue stream. The market share of coal in the energy mix is shrinking as the company pushes forward with its 2025-2029 plan, which includes investing about $9.1 billion in regulated renewables to quadruple its carbon-free generation.

• Total planned coal capacity reduction by 2032: Nearly 1,800MW.
• Asset Retirement Obligations (Q3 2025): $623.2 million.
• Coal use expected to cease as primary fuel by: 2030.
• Investment in replacement (Renewables/BESS 2025-2029): $9.1 billion.

Honestly, these are the units you want to see divested or shut down quickly, but the regulatory and reliability environment dictates a phased, expensive exit. Finance: draft 13-week cash view by Friday.

WEC Energy Group, Inc. (WEC) - BCG Matrix: Question Marks

You're analyzing the parts of WEC Energy Group, Inc. that are demanding capital now for uncertain future payoffs. These are the Question Marks-high potential, but currently low market penetration or unproven returns.

The Unregulated Renewable Energy Business is one such area, representing about 7% of WEC Energy Group's total asset mix. While this segment is growing, its net income saw only a 2.3% increase in the third quarter of 2025, which was partially offset by impairment losses and lower performance payments, suggesting low immediate returns relative to the investment required to keep pace with the broader energy transition. This unit needs significant market share gains to move out of this quadrant.

New technology pilot projects, particularly in energy storage, consume cash with long lead times before they generate reliable returns. WEC Energy Group's overall capital plan for 2026-2030 is now set at $36.5 billion, an increase of $8.5 billion over the previous plan. A significant portion of this is earmarked for future-facing tech. Specifically, between 2025 and 2029, WEC plans to invest over $9.1 billion in new renewable investments, including battery storage across its utilities and WEC Infrastructure business. This includes as much as 565 MW of Battery Energy Storage Systems (BESS), costing approximately $900 million over that five-year window.

Expansion into new, non-contiguous service areas, largely driven by securing massive data center load, is a high-growth market where WEC Energy Group is aggressively trying to establish dominance. The company is working to meet unprecedented electric demand growth, projecting an electric demand growth of 3.4 GW by 2030 from these large customers. However, the payoff isn't immediate. For one major data center campus announced, energy production is not likely to start increasing until 2028 or 2029. To secure this growth, WEC is proposing specific Very Large Customer (VLC) tariffs with a Return on Equity (ROE) range of 10.48% to 10.98% and an Equity Ratio of approximately 57%.

These Question Marks require a clear decision: invest heavily to capture the market or divest. WEC Energy Group is clearly choosing to invest, as evidenced by its reaffirmed 2025 EPS guidance of $5.17-$5.27 per share while simultaneously planning for a $36.5 billion capital spend through 2030. The strategy appears to be heavy investment to convert these high-growth opportunities into Stars.

Here are the key investment figures associated with these high-growth, high-investment areas:

The capital allocation reflects the commitment to these growth areas:

• Investments in regulated renewables are projected to increase by $2.5 billion in the new five-year plan compared to the former plan.
• The company is planning to build and own 4,300 MW of carbon-free generation under the 2025-2029 plan.
• The 2025 EPS guidance midpoint was estimated at $5.22 per share.
• The proposed ROE range for securing large industrial load tariffs is 10.48% to 10.98%.