WE

WEC Energy Group, Inc. stock research

Dec 31, 2025

FY2025 Q4

WEC Energy Group (WEC) Gross Margin — Quarter Ended Dec 31, 2025

Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit also increased relative to the prior quarter and the year-ago period, but cost of revenue rose at a faster pace, resulting in a lower gross margin compared to both periods.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit also increased relative to the prior quarter and the year-ago period, but cost of revenue rose at a faster pace, resulting in a lower gross margin compared to both periods.

  • The strongest observable margin driver is the relative growth of cost of revenue, which increased more rapidly than revenue, compressing gross margin.
  • Compared with the prior quarter, gross margin weakened; compared with the same quarter last year, gross margin also weakened. Revenue and gross profit were higher in both comparisons, while cost of revenue was substantially higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

63.7%

Gross profit

$1.6B

Revenue

$2.5B

Cost of revenue

$921.5M

Quarter-over-quarter change

-7.4 pts

Year-over-year change

-4.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2025$3.1B$2.0B$1.2B63.0%
Jun 30, 2025$2.0B$1.4B$570.5M71.6%
Sep 30, 2025$2.1B$1.5B$608.1M71.1%
Dec 31, 2025$2.5B$1.6B$921.5M63.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2025

-7.4 pts

Year-over-year change

Dec 31, 2024

-4.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the relative growth of cost of revenue, which increased more rapidly than revenue, compressing gross margin.

Compared with the prior quarter, gross margin weakened; compared with the same quarter last year, gross margin also weakened. Revenue and gross profit were higher in both comparisons, while cost of revenue was substantially higher.

Monitor the trajectory of cost of revenue relative to revenue, as its faster growth was the primary factor behind the margin decline.