ALLETE Reports Q1 2025 Financial Results with $56.1 Million Net Income

ALLETE, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $56.1 million, or $0.97 per diluted share, compared to $50.7 million, or $0.88 per diluted share, in the same period of 2024. The increase in net income was attributed to higher production at ALLETE Clean Energy's wind facilities and improved sales in the New Energy segment, which focuses on renewable energy projects. However, the results also included transaction expenses of $2.1 million related to the ongoing merger with Alloy Parent LLC, which was approved by ALLETE's board and shareholders in 2024.

Total operating revenue for the first quarter of 2025 was $400.2 million, a slight decrease from $403.3 million in the prior year. The decline was primarily driven by a $5.5 million drop in utility revenue, largely due to lower fuel adjustment clause recoveries. In contrast, revenue from non-utility contracts increased to $65.9 million from $63.7 million, reflecting growth in the New Energy segment. Operating expenses decreased to $347.2 million from $356.0 million, mainly due to lower fuel and purchased power costs.

In terms of operational metrics, ALLETE's Regulated Operations segment, which includes Minnesota Power and SWL&P, reported a net income of $38.4 million, down from $44.2 million in the previous year. This decline was attributed to lower margins from industrial customers and increased operating expenses. Conversely, ALLETE Clean Energy's net income rose to $7.4 million from $3.8 million, benefiting from higher production levels. The New Energy segment also saw a significant increase in net income, reaching $9.2 million compared to $4.0 million in 2024, driven by higher sales of renewable energy projects.

As of March 31, 2025, ALLETE's total assets stood at $6.87 billion, up from $6.75 billion at the end of 2024. The company had cash and cash equivalents of $92.0 million, significantly higher than $32.8 million at the end of the previous year. ALLETE's employee count was 1,638, with 1,595 being full-time employees. The company continues to focus on strategic growth through its clean energy initiatives and the ongoing merger, which is expected to enhance its market position and operational capabilities. Looking ahead, ALLETE aims to achieve consolidated earnings per share growth of 5% to 7% and maintain its commitment to providing reliable energy while transitioning to a more sustainable energy portfolio.