Utility ALLETE's Q3 profit falls on lower sales to industrial customers

ALLETE's Q3 2025 earnings per share dropped to 46 cents from 78 cents last year, primarily due to lower sales to industrial customers and transmission network outages. The company anticipates continued lower sales through 2025 and expects $200 million in benefits for Minnesota Power customers. The average analyst rating remains "buy" with a median 12-month price target of $67.86, slightly above its recent closing price of $67.39. The stock is currently trading at a P/E of 17, up from 16 three months ago.

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Overview

ALLETE Q3 2025 earnings per share fell to 46 cents from 78 cents last year
Company awaits MPUC order to complete partnership with CPP Investments and GIP
ALLETE Clean Energy Q3 net loss due to transmission network outages in SPP market

Outlook

ALLETE expects lower sales to industrial customers to continue through 2025
Company anticipates $200 mln in benefits for Minnesota Power customers
Rate case stay-out provision to impact 2026 financials

Result Drivers

INDUSTRIAL SALES DECLINE - Lower sales to industrial customers at Minnesota Power impacted net income negatively
TRANSMISSION OUTAGES - ALLETE Clean Energy’s net loss due to transmission network outages in the SPP market affecting production and tax credits
PROJECT CLOSING TIMING - New Energy Equity’s lower net income due to timing of renewable project closings, partially offset by higher tax equity earnings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $375 mln

Operatin

revenue

Q3 Net $13.30

Income mln

Q3 Basic $0.47

EPS

Q3 $29.60

Operatin mln

g Income

Q3 $14.90

Pretax mln

Profit

Analyst Coverage

The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 1 “strong buy” or “buy”, 1 “hold” and no “sell” or “strong sell”
The average consensus recommendation for the electric utilities peer group is “buy”
Wall Street’s median 12-month price target for ALLETE Inc is $67.86, about 0.7% above its October 30 closing price of $67.39
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)