At a glance
MGE Energy Inc is worth $2.78B, about 20 times its fiscal 2025 earnings. Revenue grew 9.9% to $743.7M in fiscal 2025, with 18.3% kept as profit; over 5 years it has grown 6.7% a year. It pays a 2.65% dividend yield, raised every year for at least 9 years, and returned $303.9M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −11.7% over the past year with dividends reinvested and +1.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 33.6% in the 2020 crash (S&P 500: 33.7%) and 27.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 17 months and 21 months after the lows.
The business in plain English
MGE Energy is a holding company, a parent that owns other businesses. Its main one is MGE, a Madison, Wisconsin, utility incorporated in 1896 that generates, purchases and delivers electricity and distributes natural gas. Its electric service covers 264 square miles of Dane County. As of December 31, 2025, it had about 170,000 electric customers, roughly 91% of them in Fitchburg, Madison, Middleton and Monona.
MGE earns money as a regulated utility. Wisconsin's utility regulator (the PSCW) sets its prices, giving it a chance to recover reasonable costs and earn a return on the money it invests. Electric operations made up about 72% of MGE's regulated revenue in 2025, with gas providing the rest. MGE offers nearly all its generation to MISO, the regional wholesale power market, and purchases its customers' supply there. Coal was its largest fuel source in 2025, followed by renewables and natural gas.
Smaller pieces round out the group. MGE Energy owns stakes in the coal-fired Elm Road Units in Oak Creek and a cogeneration plant (making both power and heat) on the University of Wisconsin's Madison campus, and leases that capacity to the utility. It also invests in American Transmission Company, which provides electric transmission service mainly in Wisconsin. Total revenue was $743.7 million in 2025.
Price history
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MGEE -11.7% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $161.2M, up 1.1% from a year earlier, and net income was $33.4M (+25.9%).
- For fiscal 2025, revenue was $743.7M (+9.9% year over year; +6.7% a year from FY2020 to FY2025) with a 18.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.7% good |
|---|---|
| Operating margin | 22.9% good |
| Free cash flow margin | -10.8% weak |
| Return on equity (FY2025) | 10.4% watch |
| Return on assets (FY2025) | 4.3% watch |
| Net cash (cash minus debt) | $-917.7M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $538.6M | $92.4M | $-30.7M |
| FY2021 | $606.6M | $105.8M | $-15.6M |
| FY2022 | $714.5M | $111.0M | $-21.3M |
| FY2023 | $690.4M | $117.7M | $15.5M |
| FY2024 | $676.9M | $120.6M | $40.9M |
| FY2025 | $743.7M | $135.9M | $-80.0M |
Valuation snapshot
| Market value | $2.78B |
|---|---|
| P/E ratio | 19.7 |
| Dividend yield | 2.65% |
Rank among 1514 US companies
Market value at each year end
MGE Energy’s market value went from $2.26B at the end of 2016 to $2.78B on Oct 28, 2026, up 23%; since the end of 2025 it is down 3%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.78B | -3.2% |
| 2025 | $2.87B | -15.8% |
| 2024 | $3.40B | +30.1% |
| 2023 | $2.61B | +2.7% |
| 2022 | $2.55B | -14.4% |
| 2021 | $2.97B | +17.4% |
| 2020 | $2.53B | -7.3% |
| 2019 | $2.73B | +31.5% |
| 2018 | $2.08B | -5.0% |
| 2017 | $2.19B | -3.4% |
| 2016 | $2.26B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MGEE price data to Oct 28, 2026 | -4.5% | -11.7% | +3.7% | +1.5% | +4.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -4.5% |
| 2025 | -14.7% |
| 2024 | +32.8% |
| 2023 | +5.1% |
| 2022 | -12.6% |
| 2021 | +19.9% |
| 2020 | -9.3% |
| 2019 | +34.0% |
| 2018 | -2.9% |
| 2017 | -1.5% |
| 2016 | +44.0% |
| 2015 | +4.7% |
| 2014 | +21.8% |
| 2013 | +16.7% |
| 2012 | +13.5% |
| 2011 | +13.4% |
| 2010 | +24.6% |
| 2009 | +13.2% |
| 2008 | -3.0% |
| 2007 | +1.1% |
| 2006 | +11.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 15% over that stretch · deepest drop along the way 21.7%, back to its old high 4.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 29.3% over that stretch · deepest drop along the way 33.6%, back to its old high 16.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.1% over that stretch · deepest drop along the way 27.2%, back to its old high 21.1 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 3 open-market purchases ($71K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 11, 2026 | James G Berbee Director | buy | $29K |
| Sep 9, 2026 | James G Berbee Director | buy | $21K |
| Aug 19, 2026 | James G Berbee Director | buy | $21K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15.4% | Sep 30, 2025 |
| Vanguard Portfolio Management | 7.34% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5.4% | Mar 31, 2025 |
| Vanguard Capital Management | 5.29% | Mar 31, 2026 |
ETFs with the most weight in MGEE
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 4.87% |
| SIXL ETC 6 Meridian Low Beta Equity ETF | 0.43% |
| FYC First Trust Small Cap Growth AlphaDEX Fund | 0.37% |
| IJT iShares S&P Small-Cap 600 Growth ETF | 0.35% |
| SLYG SPDR S&P 600 Small Cap Growth ETF | 0.33% |
| AFSM First Trust Active Factor Small Cap ETF | 0.32% |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 0.3% |
| QVMS Invesco S&P SmallCap 600 QVM Multi-factor ETF | 0.29% |
What could go wrong
- Heavy reliance on co-owned coal plants. Co-owned coal plants supply a significant part of MGE's electricity. Coal supply problems could limit their operation, and plans to switch Elm Road to natural gas still need Wisconsin regulators' approval.
- Grid operator rules could force extra spending. Changes in how MISO, the regional grid operator, credits plants such as solar farms toward reserve requirements could force MGE to add or purchase capacity, possibly at costs rates won't cover.
- Regulators decide what it can charge. Wisconsin's utility regulator (PSCW) sets MGE's prices. It may reject some costs, decisions can be slow, and costs set aside for later recovery would hit earnings at once if recovery is denied.
- Changes to federal tax credits. Changes to federal tax law, including the Inflation Reduction Act and the One Big Beautiful Bill Act, or an inability to use tax credits, could hurt earnings, cash flow and credit ratings.
- Big capital projects depend on borrowing. In 2025, capital spending exceeded cash from operations by about $80 million, and total debt was $934 million as of June 30, 2026. Project delays, higher interest rates or a credit downgrade could raise costs.
- Weather and a small service area. Mild winters or cool summers cut energy use, and storms can disrupt facilities. MGE's electric service covers only 264 square miles of Dane County, so local weather and economic swings matter.
Recent events
- Major agreement signed; New debt or financial obligation
- Other company announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Shareholder vote results
- Investor presentation or announcement
- Major agreement signed; Other company announcement
- Quarterly results released
- Executive or board change
- Investor presentation or announcement
For income and retirement investors
MGE Energy has raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. Dividends per share rose from $1.45 in 2020 to $1.85 in 2025, about 5% a year, and took about half of 2025 earnings. Free cash flow, the cash left after capital spending, was negative in 2025, so it did not cover the dividend. The company bought back no shares in fiscal 2021–2025, and its share count rose 4.5% from October 2021 to July 2026. The yield was 2.65% as of October 28, 2026.
In the 2008 financial crisis the stock's deepest fall was about 22%, and it regained its high about four months after the March 2009 low. It fell about 34% in the 2020 COVID crash, needing nearly 17 months to recover, and about 27% in the 2022 market downturn, needing about 21 months. As a single stock, MGEE carries more risk than a diversified fund.
Questions investors ask
How does MGE Energy make money?
Mainly by supplying electricity and natural gas through its regulated utility, MGE, which had about 170,000 electric customers in a 264-square-mile area of Dane County, Wisconsin, including Madison, as of December 31, 2025. Wisconsin's utility regulator (the PSCW) sets its prices, giving it a chance to recover reasonable costs and earn a return on what it invests. Electricity made up about 72% of MGE's regulated revenue in 2025. Smaller sums come from power plant stakes leased to the utility and an investment in American Transmission Company.
Does MGE Energy raise its dividend every year?
Yes, it has raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. Dividends per share rose from $1.45 in 2020 to $1.85 in 2025, about 5% a year, and took about half of 2025 earnings. The yield was 2.65% as of October 28, 2026. Free cash flow (cash left after capital spending) was negative in 2025, so it did not cover the dividend. As a holding company, MGE Energy depends on cash from its subsidiaries to pay dividends.
Is MGE Energy moving away from coal?
Yes, gradually. Coal was MGE's largest fuel source in 2025, but the company targets net-zero carbon electricity by 2050. In October 2025, MGE and the plant's co-owners asked Wisconsin regulators to switch the Elm Road Units from coal to natural gas, with coal expected to be only a backup by the end of 2030 and gone by the end of 2032. MGE also expects to add about 252 megawatts (MW) of solar, 18 MW of wind and 125 MW of battery storage by the end of 2030.
How has MGE Energy stock performed over the long run?
Modestly. As of October 28, 2026, the share price had gained about 4.6% a year over 10 years (58% in total), 1.5% a year over five years and 3.7% a year over three years, before dividends. It fell 11.7% in the year to that date, after dropping 14.7% in 2025 and rising 32.8% in 2024. Its deepest decline, about 34%, came in the 2020 COVID crash, and recovery took nearly 17 months.
How much debt does MGE Energy have?
About $934 million of total debt as of June 30, 2026, against $16.6 million of cash and $1.44 billion of shareholders' equity. Borrowing is normal for utilities, which fund long-lived plants and lines partly with debt. In 2025 capital spending exceeded cash from operations by about $80 million. The company's annual report warns that higher interest rates, market disruptions or a credit-rating change could raise its financing costs. An October 5, 2026, filing reported a new debt or financial obligation.