Latest news with #MinnesotaPower
Reuters
4 days ago
- Business
- Reuters
Allete quarterly profit drops on higher operating, interest expense
Aug 7 (Reuters) - U.S. utility Allete (ALE.N), opens new tab posted a fall in second-quarter profit on Thursday, weighed down by lower industrial margins along with higher operating and interest expenses. Higher-for-longer interest rates can weigh on utilities as it makes investing in the construction and maintenance of critical infrastructure such as electrical grids more expensive. The company reported interest expenses of $23.1 million in the reported quarter, up almost 15% from a year ago, while total operating expenses were up 5% at $342.3 million. The quarterly results "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 CFO Jeff Scissons. "Minnesota Power would be filing a rate case to account for reduced revenue, increased depreciation from capital investments and inflationary pressures," he added. U.S. utilities have been constantly looking to raise customer power bills to upgrade infrastructure, as the country's electrical grids face extreme weather and growing demand from industry electrification and data center expansions. Regulated utilities use rate case proceedings to determine the amount that customers need to pay for electricity, natural gas, private water and steam services. Minnesota Power, a utility division of Allete, also said earlier this month it plans to build the 200-megawatt Longspur Wind project in North Dakota as part of its EnergyForward transition toward a carbon-free energy future. Allete's regulated operations segment fell 31% to $23 million. The company's net income fell 3% to $31.9 million, or 55 cents per share, in the quarter ended June 30.
Business Wire
4 days ago
- Business
- Business Wire
ALLETE, Inc. Reports Second Quarter 2025 Earnings
DULUTH, Minn.--(BUSINESS WIRE)--ALLETE, Inc. (NYSE: ALE) today reported second quarter 2025 earnings of 55 cents per share on net income of $31.9 million. Last year's second quarter results were 57 cents per share on net income of $33.0 million. Net income in the second quarter of 2025 includes transaction expenses of $3.4 million after-tax, or 6 cents per share, related to the announced merger. Net income in the second quarter of 2024 included transaction expenses of $14.5 million after-tax, or 25 cents per share. '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 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 Expand Consolidated Balance Sheet Millions - Unaudited 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 Expand 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 Expand 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 Expand 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 Expand 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 Expand
Fox News
29-07-2025
- Business
- Fox News
Wall Street utility takeovers may mean higher bills ahead
As data centers multiply across the United States, energy demand is increasing at a rapid pace. This has not escaped the notice of large investment firms from Wall Street. The likes of BlackRock and Blackstone are trying their very best to acquire utility companies in hopes of capitalizing on lucrative grid upgrades. On the other side of things, consumer advocates and regulators are raising alarms, worried that these moves prioritize profits over public service. For your information, BlackRock and Blackstone are two of the biggest investment management firms in the world. They have trillions of dollars' worth of global assets and have become the go-to option for companies that need money. They have enormous influence across various industries and make money by investing in many different types of businesses. Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts, and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide - free when you join my In a bold move last year, BlackRock's Global Infrastructure Partners, along with the Canada Pension Plan Investment Board, proposed acquiring Minnesota Power, a utility serving 150,000 customers. The acquisition, which could support tech companies with energy access for new data centers, received initial support from state agencies after negotiation. Even the Minnesota Department of Commerce dropped its opposition after reaching an agreement. However, Administrative Law Judge Megan J. McKenzie delivered a surprising recommendation on July 15th, urging regulators to deny the deal. She cited troubling signs that profit was the driving force behind the acquisition. "The nonpublic evidence reveals the partners' intent to do what private equity is expected to do — pursue profit in excess of public markets through company control," Judge McKenzie wrote. "The partners themselves have carefully committed to do very little." It's important to note that the judge's recommendation is not final; state regulators will make the ultimate decision on whether the acquisition goes through. Opposition is mounting from climate advocates and watchdogs. Nichole Heil from the Private Equity Stakeholder Project voiced concerns over financial burdens and rate hikes: "No one in northern Minnesota wants higher utility bills solely to line the pockets of Wall Street-based private equity firms." Electricity bills are already climbing nationwide. According to the Energy Information Administration, the average monthly household bill rose nearly 4% in April to $175 a month. This is the average for a single household using 1,000 kilowatt-hours of electricity. To address these concerns, the Minnesota Department of Commerce brokered a deal that includes key protections. These measures prohibit passing acquisition costs onto customers and preserve programs for low-income households. "These commitments include a substantial array of additional public interest benefits, risk-mitigation tools and customer protections beyond those originally proposed," the agency noted. If Wall Street giants like BlackRock and Blackstone acquire your local utility, rates could increase as they strive to maximize returns for their shareholders. Sure, they might improve the infrastructure and service, but history shows that when these types of companies come in, customers often end up paying more. They need to be kept in check to balance infrastructure investment while making energy affordable for regular Americans. The rapid increase in demand for tech has made utility ownership a battleground between profit-driven investors and consumer advocates. While firms like BlackRock and Blackstone argue that their resources can modernize aging grids, critics warn of a future where reliability and affordability take a backseat. With regulators now at a crossroads, the outcome in Minnesota may set the tone for utility ownership nationwide. Do you think companies like BlackRock and Blackstone owning utilities is a good thing? How long do you think consumer protection agencies can hold them off from hiking prices? Let us know by writing us at Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts, and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide - free when you join my Copyright 2025 All rights reserved.
Yahoo
16-07-2025
- Business
- Yahoo
Law judge calls for Minnesota PUC to reject $6.2B Allete private equity deal
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Dive Brief: The $6.2 billion deal under which the Canada Pension Plan Investment Board and Blackrock's Global Infrastructure Partners would buy Allete, a Duluth, Minnesota-based utility company, should be rejected, an administrative law judge said Tuesday. The deal poses foreseeable risks to Minnesota's energy transition, Allete's long-term financial health and ratepayers, ALJ Megan McKenzie said in a recommended decision filed with the Minnesota Public Utilities Commission. 'On balance, the risks of the deal, as proposed, outweigh the possible benefits.' McKenzie said. Allete — parent to Minnesota Power and Superior Water, Light and Power — strongly disagreed with the non-binding recommendation, saying it failed to fully consider the benefits of a July 11 settlement agreement with the Minnesota Department of Commerce. 'The ALJ report mischaracterizes the parties, their agreements and plans, and the benefits and risks of the acquisition,' Allete said Tuesday. Dive Insight: The proposed Allete transaction, announced in May 2024, has cleared all required regulatory hurdles, except for approval by the Minnesota PUC. However, ALJ McKenzie agreed with entities opposing the deal — the Minnesota Office of the Attorney General, a consortium of Minnesota Power's large industrial customers, the Citizens Utility Board of Minnesota, the Sierra Club and CURE, an advocacy group — that it doesn't meet Minnesota's public interest standard. Allete and its buyers failed to adequately support key arguments for completing the deal, such as improving the utility company's access to capital and expertise, according to McKenzie. 'Petitioners have not shown that the acquisition will improve Allete's access to capital or even whether Allete needs improved access,' McKenzie said. Also, access to CPP Investments' and GIP's expertise appears to have limited value because of assurances that they intend to keep Allete's existing management, staff and business plan, she said. Further, the private equity model offered by CPP Investments and GIP isn't in the public interest, McKenzie said, pointing to the experience of Upper Peninsula Power Co., a utility in Michigan with similarities to Minnesota Power that was bought by private equity firms in 2014 and 2021. After a series of post-transaction rate increases, UPPCO's rates were 9 cents/kWh higher than the average rate for other investor-owned utilities in Michigan at the end of last year, according to McKenzie. In her recommended decision, McKenzie cited Federal Energy Regulatory Commission Chairman Mark Christie's warnings that asset managers such as Blackrock could hurt ratepayers by trying to maximize profits from the utilities they buy. 'Consistent with the strategies of private equity investors generally, the partners plan to become deeply involved in Allete's governance,' McKenzie said. CPP Investments and GIP expect to earn a return by buying Allete that 'significantly exceeds' the returns produced by publicly traded utilities, according to McKenzie. 'Petitioners are most likely to make up the difference between a plausible regulated return and the targeted return through financial engineering,' she said. After the deal was announced, S&P Global Ratings lowered Allete's outlook to 'negative' from 'stable' over concerns the transaction could lead to higher leverage and weaker financial measures at the company, McKenzie noted. Under private owners, Allete will no longer be required to make financial filings at the U.S. Securities and Exchange Commission, which could significantly reduce information available to the Minnesota PUC and ratepayers about the company, according to McKenzie. Despite the ALJ recommended decision, Allete expects the Minnesota PUC will approve the transaction this year, noting it is supported by the Minnesota Chamber of Commerce, the International Brotherhood of Electrical Workers Local 31, the Laborers' International Union of Minnesota & North Dakota and other organizations. Under the agreement with the Minnesota Department of Commerce, Minnesota Power would freeze its base rates for a year and reduce its return on equity from 9.78% to 9.65% until a future rate case, providing immediate ratepayer benefits, according to Allete. Also, CPP Investments and GIP agreed to fund Allete's five-year capital plan, ensuring that the company will have access to the capital needed to advance its transmission and renewable energy goals, Allete said. Besides its utility subsidiaries, Allete owns Allete Clean Energy, a renewable energy company, BNI Energy, a coal company, and New Energy Equity, a solar developer. It has an 8% stake in American Transmission Co. Recommended Reading Allete agrees to $6.2B sale to Canadian pension fund, New York private equity firm Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
ALLETE, Inc. Reports First Quarter 2025 Earnings
DULUTH, Minn.--(BUSINESS WIRE)--ALLETE, Inc. (NYSE: ALE) today reported first quarter 2025 earnings of 97 cents per share on net income of $56.1 million. Last year's first quarter results were 88 cents per share on net income of $50.7 million. Net income in 2025 includes transaction expenses of $2.1 million after-tax, or 4 cents per share, related to the announced merger. Net income in the first quarter of 2024 included transaction expenses of $1.2 million after-tax, or 2 cents per share. 'Our entire ALLETE team has been working diligently on many fronts to execute our Sustainability-in-Action strategy. Minnesota Power recently filed its latest Integrated Resource Plan, which outlines a path to achieve a portfolio that includes 90 percent renewable energy by 2035 by adding wind, solar, natural gas generation, and innovative energy storage as we work to cease coal on our system by 2035,' said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. 'Minnesota Power's Energy Forward strategy reflects our steadfast commitment to advancing a sustainable carbon-free future while ensuring we continue to provide the reliable and affordable energy our customers expect. 'ALLETE's planned partnership with experienced infrastructure investors, Canada Pension Plan Investment Board and Global Infrastructure Partners, remains on track. Key approvals from the Federal Energy Regulatory Commission, Public Service Commission of Wisconsin and overwhelming support from our shareholders have been received. We continue working through the regulatory process toward securing our final approval from the Minnesota Public Utilities Commission, which is expected in 2025. ALLETE, Minnesota Power and all our companies, employees, customers, communities and other stakeholders will benefit from this partnership for generations to come.' ALLETE's Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power and the Company's investment in the American Transmission Company, recorded first quarter 2025 net income of $38.4 million, compared to $44.2 million in the first quarter a year ago. Net income at Minnesota Power was lower than 2024 reflecting lower margins from industrial customers, higher operating and maintenance expense and higher depreciation expense. These decreases were partially offset by higher margins from residential, commercial and municipal customers. Net income at Superior Water, Light and Power was higher than 2024 reflecting new rates implemented in 2025 as well as higher kWh and gas sales. After-tax equity earnings in the American Transmission Company were higher than 2024 primarily due to additional equity investments. ALLETE Clean Energy recorded first quarter 2025 net income of $7.4 million compared to $3.8 million in 2024. Net income in 2025 reflects higher production at ALLETE Clean Energy's tax equity financed wind energy facilities. Earnings in 2024 reflected negative impacts from a forced network outage near its Caddo wind energy facility. New Energy Equity recorded 2025 first quarter net income of $9.2 million, compared to net income of $4.0 million for the same period in 2024. Net income in 2025 includes higher sales of renewable energy projects and investment tax credits at New Energy Equity compared to 2024. Corporate and Other businesses, which include BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded net income of $1.1 million in the first quarter of 2025, compared to a net loss of $1.3 million in 2024. Net income in 2025 includes lower income tax expense, partially offset by higher transaction expenses related to the merger in 2025. Transaction expenses were $2.1 million after-tax in 2025 compared to $1.2 million in 2024. 'Results for the first quarter of 2025 were impacted primarily by lower industrial margins as a result of lower sales to taconite customers at Minnesota Power," said ALLETE Vice President – Chief Financial Officer and Corporate Treasurer Jeff Scissons. 'Our Non-regulated subsidiaries all had solid first quarter performances and are executing on their annual plans while navigating dynamic operating environments.' 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 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. March 31, 2025 2024 Operating Revenue Contracts with Customers – Utility $332.8 $338.3 Contracts with Customers – Non-utility 65.9 63.7 Other – Non-utility 1.5 1.3 Total Operating Revenue 400.2 403.3 Operating Expenses Fuel, Purchased Power and Gas – Utility 123.0 133.5 Transmission Services – Utility 19.0 22.7 Cost of Sales – Non-utility 24.9 24.4 Operating and Maintenance 93.0 91.7 Depreciation and Amortization 69.7 65.0 Taxes Other than Income Taxes 17.6 18.7 Total Operating Expenses 347.2 356.0 Operating Income 53.0 47.3 Other Income (Expense) Interest Expense (21.4) (20.4) Equity Earnings 6.0 5.5 Other 4.6 8.6 Total Other Expense (10.8) (6.3) Income Before Income Taxes 42.2 41.0 Income Tax Expense 7.5 4.0 Net Income 34.7 37.0 Net Loss Attributable to Non-Controlling Interest (21.4) (13.7) Net Income Attributable to ALLETE $56.1 $50.7 Average Shares of Common Stock Basic 57.9 57.6 Diluted 58.0 57.7 Basic Earnings Per Share of Common Stock $0.97 $0.88 Diluted Earnings Per Share of Common Stock $0.97 $0.88 Dividends Per Share of Common Stock $0.73 $0.705 Expand Consolidated Balance Sheet Millions - Unaudited Mar. 31, Dec. 31, Dec. 31, 2025 2024 2025 2024 Assets Liabilities and Equity Cash and Cash Equivalents $92.0 $32.8 Current Liabilities $380.6 $404.2 Other Current Assets 385.9 402.4 Long-Term Debt 1,832.8 1,704.7 Property, Plant and Equipment – Net 5,255.5 5,181.5 Deferred Income Taxes 269.5 253.4 Regulatory Assets 364.6 371.7 Regulatory Liabilities 580.6 570.5 Equity Investments 344.0 340.1 Defined Benefit Pension and Other Postretirement Benefit Plans 99.2 118.2 Goodwill and Intangibles – Net 155.3 155.3 Other Non-Current Liabilities 314.8 312.8 Other Non-Current Assets 269.0 270.5 Redeemable Non-Controlling Interest 0.5 0.4 Equity 3,388.3 3,390.1 Total Assets $6,866.3 $6,754.3 Total Liabilities, Redeemable Non-Controlling Interest and Equity $6,866.3 $6,754.3 Expand Three Months Ended ALLETE, Inc. March 31, Income (Loss) 2025 2024 Millions Regulated Operations $38.4 $44.2 ALLETE Clean Energy 7.4 3.8 New Energy 9.2 4.0 Corporate and Other 1.1 (1.3) Net Income Attributable to ALLETE $56.1 $50.7 Diluted Earnings Per Share $0.97 $0.88 Expand Statistical Data Corporate Common Stock High $65.99 $63.69 Low $64.72 $55.86 Close $65.70 $59.64 Book Value $49.44 $48.95 Expand Kilowatt-hours Sold Millions Regulated Utility Retail and Municipal Residential 332 306 Commercial 354 338 Industrial 1,574 1,798 Municipal 132 125 Total Retail and Municipal 2,392 2,567 Other Power Suppliers 926 757 Total Regulated Utility Kilowatt-hours Sold 3,318 3,324 Expand Regulated Utility Revenue Millions Regulated Utility Revenue Retail and Municipal Electric Revenue Residential $49.3 $46.7 Commercial 48.3 47.4 Industrial 138.4 158.5 Municipal 9.6 9.0 Total Retail and Municipal Electric Revenue 245.6 261.6 Other Power Suppliers 47.1 40.0 Other (Includes Water and Gas Revenue) 40.1 36.7 Total Regulated Utility Revenue $332.8 $338.3 Expand This exhibit has been furnished and shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
