ALLETE, Inc. Reports Second Quarter 2025 Earnings
'Our entire ALLETE team continues to work diligently to execute our Sustainability-in-Action strategy. On July 11, 2025, we were pleased to announce a settlement agreement reached between the Minnesota Department of Commerce, Minnesota Power and its transaction partners Canada Pension Plan Investment Board ('CPP Investments') and Global Infrastructure Partners ('GIP') that will deliver enhanced benefits for our customers, our employees and the communities we serve,' said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. 'The settlement agreement is a strong, positive step forward in ALLETE's planned partnership with experienced infrastructure investors, CPP Investments and GIP and demonstrates our commitment to listening and working collaboratively with our stakeholders.'
ALLETE continues to expect the proposed transaction to close in 2025, subject to approval by the Minnesota Public Utilities Commission and other customary closing conditions. Required approvals have been received from all other parties.
ALLETE also announced Superior Water, Light and Power's ('SWLP') leadership advanced legislation to help their customers replace lead service lines by working with state and local leaders to support a change in Wisconsin law that will allow SWLP to access federal grants to help offset costs for SWLP customers. The change has been passed by the legislature and signed into law by Governor Evers.
ALLETE's Regulated Operations segment, which includes Minnesota Power, SWLP and the Company's investment in the American Transmission Company, recorded second quarter 2025 net income of $23.0 million, compared to $33.7 million in the second quarter a year ago. Net income at Minnesota Power was lower than 2024 reflecting lower margins from industrial customers, higher operating and maintenance expense, higher depreciation expense due to the impact of estimated compliance costs related to an EPA Rule finalized in May 2024 and lower transmission margins. Net income at SWLP was higher than 2024 reflecting new rates implemented in 2025. After-tax equity earnings in the American Transmission Company were higher than 2024 primarily due to additional equity investments.
ALLETE Clean Energy recorded second quarter 2025 net income of $900 thousand compared to $2.4 million in 2024. Net income in 2025 reflects lower production and unfavorable pricing at most wind sites, partially offset by higher production at ALLETE Clean Energy's Caddo wind energy facility. Earnings in 2024 reflected negative impacts from a forced network outage near its Caddo wind energy facility.
New Energy Equity recorded 2025 second quarter net income of $4.7 million, compared to net income of $7.7 million for the same period in 2024. Net income in 2025 includes lower sales of renewable energy projects due to timing of project closings. These decreases were partially offset by higher earnings from tax equity financed solar energy facilities.
Corporate and Other businesses, which include BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded net income of $3.3 million in the second quarter of 2025, compared to a net loss of $10.8 million in 2024. Net income in 2025 reflects lower merger-related expenses compared to 2024, and lower income tax expense. Merger-related expenses were $3.4 million after-tax in 2025 compared to $14.5 million in 2024.
'Results for the second quarter of 2025 were impacted primarily by lower industrial margins as a result of lower sales to taconite customers at Minnesota Power which are expected to continue through 2025," said ALLETE Vice President – Chief Financial Officer and Corporate Treasurer Jeff Scissons. 'Absent the closing of the transaction and the rate case stay-out provision in the settlement agreement with the Minnesota Department of Commerce, Minnesota Power would be filing a rate case to account for reduced revenue, increased depreciation from capital investments and inflationary pressures. The rate case stay-out provision in the settlement agreement provides immediate customer savings on top of numerous other commitments that benefit ALLETE stakeholders, customers and communities.'
ALLETE is an energy company headquartered in Duluth, Minn. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, BNI Energy in Bismarck, N.D., New Energy Equity in Annapolis, MD, and has an eight percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
ALLETE's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company's operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company's ongoing financial performance over the periods presented.
June 30,
June 30,
2025
2024
2025
2024
Operating Revenue
Contracts with Customers – Utility
$305.1
$279.8
$637.9
$618.1
Contracts with Customers – Non-utility
53.8
73.5
119.7
137.2
Other – Non-utility
1.4
1.2
2.9
2.5
Total Operating Revenue
360.3
354.5
760.5
757.8
Operating Expenses
Fuel, Purchased Power and Gas – Utility
113.3
107.3
236.3
240.8
Transmission Services – Utility
19.3
1.6
38.3
24.3
Cost of Sales – Non-utility
24.3
31.8
49.2
56.2
Operating and Maintenance
96.6
102.1
189.6
193.8
Depreciation and Amortization
73.2
66.0
142.9
131.0
Taxes Other than Income Taxes
15.6
16.3
33.2
35.0
Total Operating Expenses
342.3
325.1
689.5
681.1
Operating Income
18.0
29.4
71.0
76.7
Other Income (Expense)
Interest Expense
(23.1)
(20.1)
(44.5)
(40.5)
Equity Earnings
5.9
5.9
11.9
11.4
Other
5.2
5.9
9.8
14.5
Total Other Expense
(12.0)
(8.3)
(22.8)
(14.6)
Income Before Income Taxes
6.0
21.1
48.2
62.1
Income Tax Expense (Benefit)
(0.6)
1.4
6.9
5.4
Net Income
6.6
19.7
41.3
56.7
Net Loss Attributable to Non-Controlling Interest
(25.3)
(13.3)
(46.7)
(27.0)
Net Income Attributable to ALLETE
$31.9
$33.0
$88.0
$83.7
Average Shares of Common Stock
Basic
58.0
57.7
58.0
57.7
Diluted
58.1
57.8
58.0
57.7
Basic Earnings Per Share of Common Stock
$0.55
$0.57
$1.52
$1.45
Diluted Earnings Per Share of Common Stock
$0.55
$0.57
$1.52
$1.45
Dividends Per Share of Common Stock
$0.73
$0.705
$1.46
$1.41
Consolidated Balance Sheet
Millions - Unaudited
Jun. 30,
Dec. 31,
Jun. 30,
Dec. 31,
2025
2024
2025
2024
Assets
Liabilities and Equity
Cash and Cash Equivalents
$55.4
$32.8
Current Liabilities
$337.9
$404.2
Other Current Assets
397.5
402.4
Long-Term Debt
1,931.8
1,704.7
Property, Plant and Equipment – Net
5,324.0
5,181.5
Deferred Income Taxes
278.9
253.4
Regulatory Assets
363.0
371.7
Regulatory Liabilities
586.7
570.5
Equity Investments
350.5
340.1
Defined Benefit Pension and Other Postretirement Benefit Plans
99.4
118.2
Goodwill and Intangibles – Net
155.3
155.3
Other Non-Current Liabilities
311.4
312.8
Other Non-Current Assets
267.5
270.5
Redeemable Non-Controlling Interest
0.8
0.4
Equity
3,366.3
3,390.1
Total Assets
$6,913.2
$6,754.3
Total Liabilities, Redeemable Non-Controlling Interest and Equity
$6,913.2
$6,754.3
Quarter Ended
Six Months Ended
ALLETE, Inc.
June 30,
June 30,
Income (Loss)
2025
2024
2025
2024
Millions
Regulated Operations
$23.0
$33.7
$61.4
$77.9
ALLETE Clean Energy
0.9
2.4
8.3
6.2
New Energy
4.7
7.7
13.9
11.7
Corporate and Other
3.3
(10.8)
4.4
(12.1)
Net Income Attributable to ALLETE
$31.9
$33.0
$88.0
$83.7
Diluted Earnings Per Share
$0.55
$0.57
$1.52
$1.45
Statistical Data
Corporate
Common Stock
High
$66.40
$65.86
$66.40
$65.86
Low
$63.27
$56.66
$63.27
$55.86
Close
$64.07
$62.35
$64.07
$62.35
Book Value
$49.31
$48.86
$49.31
$48.86
Kilowatt-hours Sold
Millions
Regulated Utility
Retail and Municipal
Residential
231
225
563
531
Commercial
304
307
658
645
Industrial
1,530
1,729
3,104
3,527
Municipal
108
105
240
230
Total Retail and Municipal
2,173
2,366
4,565
4,933
Other Power Suppliers
981
579
1,907
1,336
Total Regulated Utility Kilowatt-hours Sold
3,154
2,945
6,472
6,269
Regulated Utility Revenue
Millions
Regulated Utility Revenue
Retail and Municipal Electric Revenue
Residential
$36.9
$34.4
$86.2
$81.1
Commercial
44.1
42.9
92.4
90.3
Industrial
136.5
146.3
274.9
304.8
Municipal
8.2
7.4
17.8
16.4
Total Retail and Municipal Electric Revenue
225.7
231.0
471.3
492.6
Other Power Suppliers
47.3
30.4
94.4
70.4
Other (Includes Water and Gas Revenue)
32.1
18.4
72.2
55.1
Total Regulated Utility Revenue
$305.1
$279.8
$637.9
$618.1
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
26 minutes ago
- Globe and Mail
Here Are Billionaire Bill Ackman's 5 Biggest Stock Holdings
Key Points Bill Ackman buys shares in companies for the long term. The billionaire owns only 10 stocks, with a heavy concentration in five of them. Ackman even owns a 46.9% stake in one of his top five stocks. 10 stocks we like better than Uber Technologies › Billionaire Bill Ackman founded Pershing Square Capital Management with $54 million in 2004. Today, Ackman's net worth exceeds $9 billion, while the hedge fund's assets under management exceed $18 billion. Pershing Square holds shares in only 10 publicly traded companies, but 70.1% of its portfolio is concentrated in five stocks as per the latest 13-F filing. Here are Ackman's five biggest stock holdings. 1. Uber Technologies (18.5%) Uber Technologies (NYSE: UBER) is the world's largest ride-sharing company and also offers food delivery and freight transport services. Uber enjoys the benefits of network effects and a large global footprint and sees huge potential in autonomous vehicles. Ackman believes Uber stock could even double over the next three to four years. 2. Brookfield Corp (18.01%) Brookfield Corp (NYSE: BN) owns a 73% stake in Brookfield Asset Management. The alternative asset manager invests in renewable energy, real estate, infrastructure, and business and industrial services. Ackman is excited about Brookfield's goals to grow annual earnings per share by 20% and generate $47 billion in free cash flow over the next five years. 3. Restaurant Brands International (12.85%) Restaurant Brands (NYSE: QSR) owns Burger King, Tim Hortons, Popeyes, and Firehouse Subs. It operates over 32,000 restaurants worldwide, primarily through franchisees. Ackman sees strong long-term growth potential in Restaurant Brands, which aims to grow same-store sales and systemwide sales by over 3% and 8%, respectively, between 2024 and 2028. UBER data by YCharts. 4. Howard Hughes Holdings (11.71%) Ackman has been involved with Howard Hughes (NYSE: HHH) since its formation in 2010 after a spin-off and now owns a 46.9% stake in the real estate developer. Ackman now wants to convert Howard Hughes into a diversified holding company akin to Warren Buffett's Berkshire Hathaway. 5. Chipotle Mexican Grill (9.07%) Chipotle Mexican Grill (NYSE: CMG), known for its burritos and tacos, owns over 3,800 restaurants. Chipotle is now expanding globally and rolling out new technologies. Although Brian Niccol, who was monumental in Chipotle's growth, quit as the CEO in 2024, Ackman believes the present management under new CEO Scott Boatwright will continue to deliver. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Brookfield, Brookfield Corporation, Chipotle Mexican Grill, Howard Hughes, and Uber Technologies. The Motley Fool recommends Brookfield Asset Management and Restaurant Brands International and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
CBC
an hour ago
- CBC
Alberta government changes expense disclosure policy, removes eight years of records
Social Sharing While many Albertans were preparing for a long weekend last Friday, the provincial government published changes to its rules for disclosing expense claims made by senior officials. The new policy, published Aug. 1, removes a requirement that the premier, ministers, deputy ministers and senior staff must publicly disclose receipts for expenses over $100. In keeping with a new provision introduced in the policy that published expense reports be available for five years, the government also removed eight years of expense reports that were previously available on its website. Marisa Breeze, press secretary to Finance Minister Nate Horner, said in a statement that the changes were made to "improve government operations and reduce red tape," and to bring Alberta's policies into alignment with other provinces. "Our government remains committed to the highest transparency and accountability standards." Not everyone agrees. "All of these changes diminish transparency," said a statement from Information and Privacy Commissioner Diane McLeod. "Our office has no knowledge of the rationale for the changes." James Turk, executive director of Toronto Metropolitan University's Centre for Free Expression, said the new policy was clearly "lowering" existing standards. "There should be very limited restrictions on what the public has a right to know." Years of expense reports no longer available The previous policy, dated April 30, 2020, applied to a wide range of government positions, from cabinet members to executive managers. Public disclosure of receipts was required only for the premier, ministers, associate ministers and political staff. According to Treasury Board and Finance, receipts are still required to be provided when claiming expenses, but they will no longer be made public. Before being published, receipts and invoices were required to be redacted to protect personal information. The expense reports can be viewed on the government's website, and are also available for download as a dataset. In the first five months of 2025, there are more than two dozen expense claims over $100 for Premier Danielle Smith personally, as well as more than 200 for ministers and nearly 300 for chiefs of staff. Under the new policy, those receipts will no longer be publicly disclosed. A newly added provision in the policy states that published expense reports "must remain publicly accessible online for five years after its publication." The previous policy did not have any minimum time frame. According to a copy of the dataset downloaded by CBC News prior to the changes, the available records previously went back to 2012. However, the data now begins in 2020, with eight years of expense reports having been removed from public view. The dataset that was available until recently had about 600,000 entries, with each entry being an expense claim by a government employee or official. The current dataset has approximately 100,000 entries. In other words, roughly half a million expense claims spanning eight years have been removed. "It sounds like they're assuring they'll be there for five years, but in fact they've been there historically longer," said Turk. "The net result is that the five years is a maximum. So there's going to be much less access to records than there was under the previous [policy]." According to Breeze, the data was removed to enhance "system performance, as the volume of data hosted on the public site currently exceeds the tools capacity to efficiently download and process it," as well as "to be consistent with the public disclosure of salary and severance under Public Sector Compensation Transparency Act." However, the regulations for that legislation describe the five-year disclosure period as a minimum, not a maximum. Breeze did not answer questions to clarify how the changes relate to that legislation. Reaction from opposition, auditor general "It's absolutely shameful," said Christina Gray, house leader of the Alberta NDP. "No longer requiring [disclosure of] receipts is a way of obfuscating or hiding. It's a way to hide what's actually being spent and what's happening in a way that I know Albertans would not support. "At the same time, the government scrubbing eight years of records limits the ability to compare this government spending to previous governments." Gray drew a contrast between Premier Danielle Smith's expressions of support for increased government transparency while in opposition and actions taken by her government, including a recent rewrite of access to information legislation that many experts — including McLeod and Turk — viewed as reducing transparency. "Here we see these changes being made on a Friday before a long weekend with absolutely no notice, no disclosure — and these rules are not something that change often, so a deliberate choice was made," said Gray. The Office of the Auditor General provided a statement saying they aren't able "to provide any context for the changes, as our officer was not consulted or informed about the rationale behind them." Policies vary across Canada The Alberta legislature has its own disclosure rules that apply to all MLAs, separate from expenses while performing government business. Members' expenses are posted online within 30 days of the end of each quarter. Those public disclosures include receipts, except for expense categories that are capped or are counted by a non-financial unit, such as kilometres or days. Outside Alberta, the rules around government expense disclosures vary by province. Ontario requires disclosure within 90 days of approval of an expense claim, and the information must remain publicly available for at least two years. However, receipts are not published. In British Columbia, travel expenses are published quarterly for ministers and monthly for deputy ministers, and receipts of ministers are publicly disclosed. Turk said Alberta should seek to be a leader in transparency standards rather than weakening its rules to match those of other jurisdictions. "In other words, we don't want provinces going to the lowest common denominator," he said.
Globe and Mail
2 hours ago
- Globe and Mail
2 Surefire Stocks to Invest $1,000 in for the Long Haul
Key Points Alphabet can overcome an antitrust challenge thanks to strong growth prospects and substantial cash flow. Intuitive Surgical leads its niche of the medical device market and still has ample whitespace ahead. 10 stocks we like better than Alphabet › Investing in stocks is both accessible to the general public and likely to yield strong returns over the long term. That's what makes it one of the best ways to increase your wealth. However, putting your money in the right stocks is crucial. Some companies may turn out to be terrible investments, as they significantly lag behind the market and may even cease to exist. Investors can avoid that fate by investing in ETFs that track major indexes or by selecting stocks that have the potential to outperform broader equities over extended periods. These are typically well-established, highly profitable companies with solid businesses, excellent prospects, and strong competitive edges. Here are two brilliant examples: Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Intuitive Surgical (NASDAQ: ISRG). Here's why putting $1,000 into either of those stocks would be a great move. 1. Alphabet Alphabet has been one of the more undervalued among the trillion-dollar tech leaders of late. In fairness, that's because it faces some potential headwinds related to antitrust lawsuits in the U.S. Regulators want the company to relinquish its Chrome browser, a key component of its advertising business. While that's worth keeping an eye on, Alphabet continues to impress with its financial results. The company's second-quarter earnings were no different. The tech giant grew its revenue by 14% year over year to $96.4 billion, while its net earnings per share (EPS) of $2.31 were up 22.2% compared to the year-ago period. Some of Alphabet's current growth drivers, including cloud computing and artificial intelligence (AI), should remain so for many years to come. The company pointed out that its cloud division, Google Cloud, now has a revenue run rate of more than $50 billion. Though Alphabet's advertising business remains its main cash cow, cloud and AI could take over in the next decade. Investors should be excited about that since it will mean that the company will become far less reliant on its advertising business, which would take the biggest hit if Alphabet loses Chrome. So, the more diversified the business becomes, the less of a risk this potential worst-case scenario of losing Chrome is. Furthermore, Alphabet is exploring other potential opportunities, including streaming through YouTube, a leader in that niche, and self-driving cars through its subsidiary, Waymo. Lastly, Alphabet has a strong competitive edge from multiple sources, including Google's network effect and strong brand name, as well as the switching costs associated with its cloud solutions. Alphabet is firing on all cylinders, and the company's long-term prospects remain bright. Even if regulators in the U.S. succeed in forcing the company to relinquish its Chrome browser, Alphabet should recover due to having multiple lucrative opportunities and significant amounts of free cash flow -- to the tune of $5.3 billion as of the end of the second quarter. That's significantly lower than the $13.5 billion it had as of the end of Q2 2024, but that's partly because Alphabet is reinvesting substantial amounts, including a projected $85 billion this year, into capital expenditures to support various growth opportunities. This investment could pay for itself several times over in the long run as the company makes further progress in cloud, AI, and other areas. Alphabet remains well-positioned to outperform the market over the next decade. Investors can get five of the company's shares for $1,000. 2. Intuitive Surgical Intuitive Surgical, the leader in the robotic-assisted surgery (RAS) market, has struggled this year. Trump's aggressive tariffs could take a bite out of the company's earnings, which is why many investors are choosing to stay away from the stock. However, the medical device specialist's outlook is still strong, at least for investors willing to be patient. For one, Intuitive Surgical continues to record excellent financial results. The company's second-quarter revenue was $2.44 billion, 21% higher than the year-ago period, thanks to a 17% year-over-year increase in the number of procedures performed with its crown jewel, the Da Vinci System. Intuitive Surgical's adjusted EPS came in at $2.19, 23% higher than Q2 2024. The company has had little competition in the RAS field, and although that's about to change, several factors should allow it to perform well over the next decade. First, it will be challenging for newcomers to catch up, as Intuitive Surgical has been earning indications for the Da Vinci System for years. It is approved for use in general surgeries, bariatric procedures, urologic procedures, gynecologic procedures, and more. Second, since the Da Vinci System is expensive and requires a learning curve, after putting considerable time and money into acquiring one and training medical staff on it, healthcare facilities will need a lot of convincing to switch to a competitor. In other words, Intuitive Surgical benefits from high switching costs. Third, the company is an innovator. It earned clearance for the fifth generation of its crown jewel last year and will undoubtedly continue to improve the device. Lastly, there is significant whitespace in the RAS market. Intuitive Surgical will benefit from the world's aging population, as older individuals are more likely to require many of the procedures performed with its Da Vinci system. Even with the current volume of surgeries, RAS procedures have captured only 5% of those eligible for robotic surgery. That points to a massive opportunity, and as a leader in the market, Intuitive Surgical should benefit. The stock may be down this year, but it could deliver superior returns over the long run. With $1,000, investors can purchase two shares. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
