ALLETE Reports Q3 2025 Financial Results with Decreased Net Income and Revenue

ALLETE, Inc. reported its financial results for the third quarter of 2025, revealing a net income attributable to the company of $27.1 million, or $0.46 per diluted share, compared to $45.0 million, or $0.78 per diluted share, in the same quarter of 2024. For the nine months ended September 30, 2025, net income was $115.1 million, or $1.98 per diluted share, down from $128.7 million, or $2.23 per diluted share, in the prior year. The decrease in profitability was attributed to merger-related expenses of $8.5 million after-tax in 2025, compared to $19.5 million in 2024.

Total operating revenue for the third quarter of 2025 was $375.0 million, a decline from $407.2 million in the same quarter of 2024. The decrease was primarily driven by a significant drop in non-utility revenue, which fell to $53.3 million from $95.4 million year-over-year. In contrast, utility revenue increased slightly to $320.2 million from $310.5 million, reflecting higher sales to residential and municipal customers, although this was offset by lower sales to industrial customers. Operating expenses also decreased to $345.4 million from $361.9 million, contributing to a slight increase in operating income to $29.6 million from $45.3 million.

In terms of operational developments, ALLETE's Regulated Operations segment, which includes Minnesota Power and SWL&P, reported a net income of $93.9 million for the nine months ended September 30, 2025, down from $111.9 million in 2024. This decline was attributed to lower margins from industrial customers and increased operating expenses. Conversely, the New Energy segment reported a net income of $15.2 million, down from $23.4 million, primarily due to lower sales of renewable energy projects. ALLETE Clean Energy's net income also decreased to $4.7 million from $10.1 million, reflecting higher operating expenses and the absence of a significant gain from the sale of a wind project that occurred in 2024.

Looking ahead, ALLETE is focused on completing its merger with Alloy Parent, which is expected to close in late 2025, pending regulatory approvals. The Minnesota Public Utilities Commission (MPUC) recently voted in favor of the merger, and a written order is anticipated. The company aims to maintain a strong financial position, with a long-term objective of achieving consolidated earnings per share growth of 5% to 7%. ALLETE plans to continue investing in its regulated utility operations while expanding its clean energy initiatives, including a new 200 MW wind project in North Dakota expected to be operational by late 2027. As of September 30, 2025, ALLETE had cash and cash equivalents of $78.7 million and a debt-to-capital ratio of 40%.