ALLETE, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $31.9 million, or $0.55 per diluted share, compared to $33.0 million, or $0.57 per diluted share, in the same quarter of 2024. The company's total operating revenue for the quarter was $360.3 million, a slight increase from $354.5 million year-over-year. The revenue growth was primarily driven by higher utility sales, which rose to $305.1 million from $279.8 million, reflecting increased demand from residential and municipal customers, although this was partially offset by lower sales to industrial customers.
In terms of profitability, ALLETE's operating income decreased to $18.0 million from $29.4 million in the prior year, attributed to rising operating expenses, which increased by 5.6% to $342.3 million. The increase in expenses was largely due to higher costs associated with fuel, purchased power, and maintenance. Additionally, the company incurred $5.5 million in merger-related expenses during the quarter, which impacted overall profitability. For the first half of 2025, net income attributable to ALLETE was $88.0 million, up from $83.7 million in the same period of 2024.
Strategically, ALLETE is in the process of merging with Alloy Parent LLC, a transaction that has been approved by shareholders and is subject to regulatory approvals. The merger is expected to enhance ALLETE's operational capabilities and market position. The company has also been focusing on expanding its renewable energy portfolio, with ALLETE Clean Energy reporting a net income of $8.3 million for the first half of 2025, up from $6.2 million in 2024, driven by increased production at its wind energy facilities.
Operationally, ALLETE's customer base remains stable, with Minnesota Power serving approximately 150,000 retail customers. The company reported a total employee count of 1,673 as of June 30, 2025. The outlook for the remainder of the year includes expectations for continued growth in net income, with a target of achieving consolidated earnings per share growth of 5% to 7%. ALLETE is also preparing for significant capital expenditures, projected at approximately $900 million for 2025, primarily related to its HVDC transmission system project and renewable energy initiatives.
About ALLETE INC
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