ALLETE Reports Decrease in Net Income to $179.3 Million for Fiscal Year 2024

ALLETE, Inc. reported a net income of $179.3 million, or $3.10 per diluted share, for the fiscal year ending December 31, 2024, a decrease from $247.1 million, or $4.30 per diluted share, in 2023. The decline in profitability was attributed to transaction expenses of $22.6 million related to a pending merger, as well as lower earnings from its clean energy segment. In contrast, net income from regulated operations increased to $160.9 million from $147.2 million in the previous year, driven by the implementation of interim rates and higher transmission margins, despite higher depreciation and property tax expenses.

The company experienced significant operational changes, including the completion of the Whitetail wind project sale and a forced outage at the Caddo wind energy facility, which impacted revenue generation. ALLETE Clean Energy's net income fell to $17.8 million from $71.7 million in 2023, primarily due to the absence of prior year gains from arbitration rulings and project sales. Corporate and Other segment income also decreased significantly, reflecting the merger-related expenses and lower earnings from solar projects and real estate sales.

ALLETE's customer base remains stable, with Minnesota Power serving approximately 150,000 retail customers and SWL&P providing services to about 15,000 electric customers. The company’s industrial customers accounted for 56% of total regulated utility kilowatt-hour sales in 2024, with taconite mining and paper industries being significant contributors. However, sales to industrial customers decreased due to lower demand and milder weather conditions compared to the previous year.

Strategically, ALLETE is focused on expanding its renewable energy portfolio, with plans to increase its renewable energy supply to 70% by 2030 and achieve carbon-free operations by 2040. The company is also pursuing various transmission projects to enhance grid reliability and support its clean energy initiatives. The recent merger agreement with Alloy Parent is expected to further strengthen ALLETE's market position, although it is subject to regulatory approvals and other conditions.

Looking ahead, ALLETE anticipates that net income from regulated operations will constitute approximately 75% of total consolidated net income in 2025. The company is committed to maintaining a competitive dividend policy while investing in growth opportunities across its regulated and clean energy segments. The ongoing transition to renewable energy and compliance with new state regulations are expected to drive future growth and operational efficiency.