Key Highlights

• MGE Energy reported Q3 2026 GAAP Earnings of $56.4 million, or $1.48 per diluted share, up from $44.5 million, or $1.22 per diluted share, in Q3 2025

• Electric segment earnings increased $11.6 million, driven by strategic capital investments in renewable energy projects

• AFUDC Equity from key construction projects increased $3.3 million year over year

• Nine-month 2026 earnings reached $138.2 million, or $3.70 per diluted share, compared with $112.6 million, or $3.08, in the prior-year period

MGE Energy, Inc. (NASDAQ:MGEE), a public Utility Holding Company headquartered in Madison, Wisconsin, reported third-quarter 2026 financial results that reflected meaningful year-over-year earnings growth driven by its continued investment in renewable energy infrastructure and expanding rate base.

Third-Quarter Financial Performance

MGE Energy posted GAAP earnings of $56.4 million for the three months ended September 30, 2026, translating to $1.48 per diluted share. This compares with earnings of $44.5 million, or $1.22 per diluted share, in the same quarter of 2025, representing a 27% increase in Net Income and a 21% increase in diluted EPS. Operating revenues for the quarter reached $190.4 million, up from $175.7 million a year earlier.

The earnings growth was predominantly driven by the Electric segment, which saw earnings increase by $11.6 million compared to the prior-year quarter. This improvement reflected strategic capital investments that expanded the company's rate base, largely through the deployment of key renewable energy projects. Gas segment net income remained stable relative to Q3 2025.

Renewable Energy and Construction Projects

A notable contributor to the quarter's results was the increase in allowance for funds used during construction (AFUDC) equity, which rose $3.3 million compared to Q3 2025. This increase was associated with the construction of several large-scale projects, including Koshkonong, High Noon, Sunnyside, and other early-stage development initiatives. AFUDC equity represents the Return on Equity capital invested in construction projects that have not yet been placed in service, and its growth typically signals an expanding pipeline of capital projects.

MGE Energy's strategy of deploying capital into renewable energy Assets has been a consistent theme in recent quarters. The company's principal subsidiary, Madison Gas and Electric, generates and distributes electricity to approximately 170,000 customers in Dane County, Wisconsin, and purchases and distributes Natural Gas to approximately 180,000 customers across seven south-central and western Wisconsin counties.

Year-to-Date Results

For the nine-month period ended September 30, 2026, MGE Energy reported net income of $138.2 million, or $3.70 per diluted share, compared with $112.6 million, or $3.08 per diluted share, in the first nine months of 2025. Operating revenues for the nine-month period totaled $594.3 million, up from $554.1 million. The year-to-date results benefited from the same factors driving the quarterly performance: expanding rate base from renewable energy investments, higher AFUDC equity, and a modest contribution from increased investment gains.

Investment Portfolio Contribution

Beyond its core utility operations, MGE Energy's earnings also benefited from an approximately $2.2 million increase in investment gains during the quarter compared with Q3 2025. These gains included returns from Venture Capital funds focused on technologies and innovations relevant to the evolving energy industry, reflecting a supplementary investment strategy that complements the company's regulated utility business.

The Energy Transition in Focus

MGE Energy's Q3 2026 results illustrate how the company's capital deployment strategy centered on renewable energy is translating into measurable earnings growth. The combination of rate base expansion, rising AFUDC equity from active construction projects, and a stable gas segment provided a foundation for the quarter's performance. With projects like Koshkonong and High Noon advancing through construction, the company's rate base growth trajectory and its associated earnings contribution will remain important metrics to monitor in the quarters ahead.