MGEE

MGE Energy stock has delivered a 15.2% gain over the past three years, yet current valuation checks point to a company that screens as relatively expensive on most measures, while the most recent Dividend Discount Model, or intrinsic value, estimate suggests the shares trade at a premium of about 25.5% to that model. For investors, the share price near US$77 already reflects steady expectations, so the key issue is whether the combination of income profile and growth prospects justifies paying above that intrinsic value estimate when traditional multiples look roughly in line with peers. Over the past three years, MGE Energy has returned 15.2%, which signals steady wealth creation for long term holders even though shorter term returns have been weaker. The recent partnership to explore a 200 megawatt fusion energy power plant may support long term growth expectations, while execution risk around commercialising new carbon free technology can weigh on how much of that potential investors are willing to price in today. With a low value score of 2 out of 6, MGE Energy does not screen as a clear bargain on the broader cross check of intrinsic value estimates and market based ratios. The issue now is whether MGE Energy’s current valuation leaves enough room for investors who are weighing income, growth potential and the pricing premium to the intrinsic value estimate. Compare MGE Energy’s premium pricing and fusion ambitions with other potential opportunities by scanning 38 power grid technology and infrastructure stocks that could also benefit from long term grid and clean energy investment themes. The Dividend Discount Model values MGE Energy by projecting future dividends and discounting them back to today. For MGE Energy, the model uses a recent annual dividend per share of about $2.17, an estimated return on equity of 10.67% and a payout ratio near 50%. This implies earnings coverage that currently supports the dividend without stretching the balance sheet. The model caps long term dividend growth at 3.7%, even though the underlying earnings growth input is slightly higher. This keeps the forecast grounded for a mature electric utility. On these assumptions, the DDM points to an intrinsic value of about $61 per share, which is below the recent share price around $77, so the stock screens as overvalued on this framework. The recent fusion power plant partnership with Realta Fusion may help explain why the market is willing to pay above the DDM estimate today, since that potential is not explicitly captured in a dividend-based model. On this Dividend Discount Model view, MGE Energy currently looks overvalued relative to its projected dividend stream. Our Dividend Discount Model (DDM) analysis suggests MGE Energy may be overvalued by 25.5%. Discover 54 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MGE Energy. P/E is usually a clear way to compare an established utility like MGE Energy with its peers because earnings tend to be relatively stable in this sector. MGE Energy currently trades on a P/E of about 19.4x, which is slightly below the Electric Utilities industry average of roughly 20.3x and close to the peer group average of around 20.1x. The tailored fair P/E for MGE Energy is estimated at 18.2x, which is only a small step down from the current level. That gap indicates the stock carries a modest premium to what the model implies, but not an extreme one. At this level, investors are paying roughly in line with other electric utilities for MGE Energy’s mix of regulated earnings, dividend profile and future projects, including its interest in fusion energy, rather than getting a clear discount or paying a steep premium. On the P/E multiple, MGE Energy appears priced roughly in line with what the model and sector comparisons indicate is fair. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for MGE Energy pick up where this valuation puzzle leaves off and spell out the specific growth, margin and earnings paths that would need to occur for the stock to be worth materially more or materially less than today’s price. Each narrative links its number to a clear view on how MGE Energy's growth, profitability and risks might change, which you can revisit on the Community page as new information appears. Add your voice to the Simply Wall St community with a number driven narrative on MGE Energy that sets out how you see the Realta Fusion partnership and dividend profile shaping the stock's potential from here. Share your case and track how it holds up as new results and project updates emerge. Do you think there's more to the story for MGE Energy? Head over to our Community to see what others are saying! For MGE Energy, the Dividend Discount Model (DDM) points to an intrinsic value that is below the current share price, while the P/E comparison suggests the stock trades close to what peers and the tailored fair multiple indicate is reasonable. That split reflects a tension between cash return timing and capital needs on one side, and investor expectations for future growth and projects like fusion on the other. The key question from here is whether MGE Energy can deliver enough reliable earnings and dividend growth to justify paying above the intrinsic value estimate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MGEE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

MADISON, Wis., August 05, 2026--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the second quarter of 2026. MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the second quarter of 2026 were $33.4 million, or $0.89 per share, compared to $26.5 million, or $0.72 per share, for the same period in the prior year. Electric segment earnings increased $3.0 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. Gas net income remained stable compared to the second quarter of 2025. In addition, earnings benefited from approximately $3.9 million of investment gains, including returns from venture capital funds focused on technologies and innovations relevant to the evolving energy industry. 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/20260805274426/en/ Contacts Steve B. SchultzMedia Relations608-252-7219 | [email protected] Ken FrassettoInvestor Relations608-252-4723 | [email protected]

The market expects MGE (MGEE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This public utility holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +6.9%. Revenues are expected to be $166.37 million, up 4.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 8.7% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For MGE, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that MGE will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that MGE would post earnings of $1.13 per share when it actually produced earnings of $1.32, delivering a surprise of +16.81%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. MGE doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Utility - Electric Power industry, Otter Tail (OTTR), is soon expected to post earnings of $1.48 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -20%. This quarter's revenue is expected to be $334.5 million, up 0.4% from the year-ago quarter. The consensus EPS estimate for Otter Tail has been revised 8.9% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Otter Tail will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGE Energy Inc. (MGEE) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

American Electric Power (AEP) came out with quarterly earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.58%. A quarter ago, it was expected that this utility would post earnings of $1.15 per share when it actually produced earnings of $1.19, delivering a surprise of +3.48%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. AEP, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $6.02 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.02%. This compares to year-ago revenues of $5.46 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AEP shares have added about 16.8% since the beginning of the year versus the S&P 500's gain of 5.2%. While AEP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AEP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $5.5 billion in revenues for the coming quarter and $6.33 on $23.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. MGE (MGEE), another stock in the same industry, has yet to report results for the quarter ended March 2026. This public utility holding company is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of -0.9%. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. MGE's revenues are expected to be $227.06 million, up 3.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report MGE Energy Inc. (MGEE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects MGE (MGEE) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This public utility holding company is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of -0.9%. Revenues are expected to be $227.06 million, up 3.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For MGE, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that MGE will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that MGE would post earnings of $0.64 per share when it actually produced earnings of $0.64, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. MGE doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. American Electric Power (AEP), another stock in the Zacks Utility - Electric Power industry, is expected to report earnings per share of $1.55 for the quarter ended March 2026. This estimate points to a year-over-year change of +0.7%. Revenues for the quarter are expected to be $5.69 billion, up 4.1% from the year-ago quarter. The consensus EPS estimate for AEP has been revised 1.6% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.21%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that AEP will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGE Energy Inc. (MGEE) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MADISON, Wis., February 24, 2026--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the fourth quarter and full year of 2025. MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the full year of 2025 were $135.9 million, or $3.72 per share, compared to $120.6 million, or $3.33 per share, for the same period in the prior year. MGE Energy's earnings for the fourth quarter of 2025 were $23.3 million, or 64 cents per share, compared to $22.0 million, or 61 cents per share, for the same period in the prior year. Electric segment earnings increased $11.3 million for 2025 compared to 2024. This growth was largely driven by the successful deployment of key renewable energy projects. The Darien Solar Project in Rock and Walworth counties became operational in March 2025, followed by the Paris Battery Energy Storage System (BESS) in June 2025. MGE owns 25 MW of solar capacity from the Darien Solar Project and 11 MW of battery capacity from the Paris BESS. Gas segment earnings increased $2.5 million for 2025 compared to 2024. During 2025, gas retail therm deliveries increased approximately 14% compared to the prior year, primarily due to warmer-than-normal weather in 2024. 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/20260224526788/en/ Contacts Steve B. Schultz Media Relations 608-252-7219 | [email protected] Ken Frassetto Investor Relations 608-252-4723 | [email protected]