United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended:

June 30, 2026

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______________ to _______________

Commission

File No.

Name of Registrant, State of Incorporation, Address

of Principal Executive Offices, and Telephone No.

IRS Employer

Identification No.

000-49965

MGE Energy, Inc.

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53788

(608) 252-7000 | mgeenergy.com

39-2040501

000-1125

Madison Gas and Electric Company

(a Wisconsin Corporation)

133 South Blair Street

Madison, Wisconsin 53788

(608) 252-7000 | mge.com

39-0444025

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $1 Par Value Per Share

MGEE

The NASDAQ Stock Market

MGE Energy, Inc. Yes ☒ No ☐

Madison Gas and Electric Company Yes ☒ No ☐

MGE Energy, Inc. Yes ☒ No ☐

Madison Gas and Electric Company Yes ☒ No ☐

Large Accelerated Filer

Accelerated

Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

MGE Energy, Inc.

☒

☐

☐

☐

☐

Madison Gas and Electric Company

☐

☐

☒

☐

☐

MGE Energy, Inc.        ☐

Madison Gas and Electric Company ☐

MGE Energy, Inc. Yes ☐  No ☒

Madison Gas and Electric Company Yes ☐  No ☒

Number of Shares Outstanding of Each Class of Common Stock as of July 31, 2026

MGE Energy, Inc.

Common stock, $1.00 par value, 37,784,012 shares outstanding.

Madison Gas and Electric Company

Common stock, $1.00 par value, 17,347,894 shares outstanding (all of which are owned beneficially and of record by MGE Energy, Inc.).

PART I. FINANCIAL INFORMATION

3

Filing Format

3

Forward-Looking Statements

3

Where to Find More Information

3

Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report

4

Item 1. Financial Statements.

6

MGE Energy, Inc.

6

Consolidated Statements of Income (unaudited)

6

Consolidated Statements of Cash Flows (unaudited)

7

Consolidated Balance Sheets (unaudited)

8

Consolidated Statements of Common Equity (unaudited)

9

Madison Gas and Electric Company

10

Consolidated Statements of Income (unaudited)

10

Consolidated Statements of Cash Flows (unaudited)

11

Consolidated Balance Sheets (unaudited)

12

Consolidated Statements of Equity (unaudited)

13

MGE Energy, Inc., and Madison Gas and Electric Company - Notes to Consolidated Financial Statements (unaudited)

14

1. Summary of Significant Accounting Policies.

14

2. New Accounting Standards.

15

3. Investment in ATC and ATC Holdco.

15

4. Taxes.

16

5. Pension and Other Postretirement Plans.

16

6. Equity and Financing Arrangements.

17

7. Share-Based Compensation.

18

8. Commitments and Contingencies.

19

9. Rate Matters.

22

10. Derivative and Hedging Instruments.

23

11. Fair Value of Financial Instruments.

25

12. Joint Plant Construction Project Ownership.

28

13. Revenue.

29

14. Segment Information.

29

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

33

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

47

Item 4. Controls and Procedures.

47

PART II. OTHER INFORMATION.

49

Item 1. Legal Proceedings.

49

Item 1A. Risk Factors.

49

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

49

Item 3. Defaults Upon Senior Securities.

49

Item 4. Mine Safety Disclosures.

49

Item 5. Other Information.

49

Item 6. Exhibits.

50

Signatures - MGE Energy, Inc.

51

Signatures - Madison Gas and Electric Company.

52

MGE Energy and Subsidiaries:

CWDC

Central Wisconsin Development Corporation

MAGAEL

MAGAEL, LLC

MGE

Madison Gas and Electric Company

MGE Energy

MGE Energy, Inc.

MGE Power

MGE Power, LLC

MGE Power Elm Road

MGE Power Elm Road, LLC

MGE Power West Campus

MGE Power West Campus, LLC

MGE Services

MGE Services, LLC

MGE State Energy Services

MGE State Energy Services, LLC

MGE Transco

MGE Transco Investment, LLC

MGEE Transco

MGEE Transco, LLC

North Mendota

North Mendota Energy & Technology Park, LLC

Other Defined Terms:

2025 Annual Report on Form 10-K

MGE Energy's and MGE's Annual Report on Form 10-K for the year ended December 31, 2025

2024 ELG Rule

Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category

2021 Incentive Plan

MGE Energy's 2021 Long-Term Incentive Plan

AD/CVD

Antidumping and Countervailing Duties

AFUDC

Allowance for Funds Used During Construction

ATC

American Transmission Company LLC

ATC Holdco

ATC Holdco, LLC

ATM

At-the-Market Offering Program

Badger Hollow

Badger Hollow Solar Park

Blount

Blount Station

BTA

Best Technology Available

CA

Certificate of Authority

CBP

U.S. Customs and Border Protection

CCR

Coal Combustion Residual

Codification

Financial Accounting Standards Board Accounting Standards Codification

Columbia

Columbia Energy Center

Cooling degree days (CDD)

Measure of the extent to which the average daily temperature is above 65 degrees Fahrenheit, which is considered an indicator of possible increased demand for energy to provide cooling

CWIP

Construction Work in Progress

Dth

Dekatherms, a quantity measure for natural gas

DOC

United States Department of Commerce

Elm Road Units

Elm Road Generating Station

EPA

United States Environmental Protection Agency

FERC

Federal Energy Regulatory Commission

FTR

Financial Transmission Rights

GHG

Greenhouse gas

Heating degree days (HDD)

Measure of the extent to which the average daily temperature is below 65 degrees Fahrenheit, which is considered an indicator of possible increased demand for energy to provide heating

High Noon

High Noon Solar Energy Center

IRS

Internal Revenue Service

ITC

Investment Tax Credit

Koshkonong

Koshkonong Solar Park

kWh

Kilowatt-hour, a measure of electric energy produced

MISO

Midcontinent Independent System Operator, Inc.

MW

Megawatt, a measure of electric energy generating capacity

MWh

Megawatt-hour, a measure of electric energy produced

NAAQS

National Ambient Air Quality Standards

Nasdaq

The Nasdaq Stock Market

NOx

Nitrogen Oxide

OBBBA

One Big Beautiful Bill Act

Paris

Paris Solar-Battery Park

PGA

Purchased Gas Adjustment clause, a regulatory mechanism used to reconcile natural gas costs recovered in rates to actual costs

PM

Particulate Matter

PSCW

Public Service Commission of Wisconsin

PTC

Production Tax Credit

ROE

Return on Equity

Saratoga

Saratoga Solar Electric Generation and BESS Facility

SEC

Securities and Exchange Commission

SO2

Sulfur Dioxide

Stock Plan

Direct Stock Purchase and Dividend Reinvestment Plan of MGE Energy

Sunnyside

Sunnyside Solar and Battery Project

Therm

Measure of quantity of heat used to measure gas supply

UFLPA

Uyghur Forced Labor Prevention Act

Ursa

Ursa Solar Electric Generation Facility

USITC

United States International Trade Commission

VIE

Variable Interest Entity

WCCF

West Campus Cogeneration Facility

WDNR

Wisconsin Department of Natural Resources

WEPCO

Wisconsin Electric Power Company, a subsidiary of WEC Energy Group, Inc.

West Riverside

West Riverside Energy Center

WPDES

Wisconsin Pollutant Discharge Elimination System

WRO

Withhold Release Order

XBRL

eXtensible Business Reporting Language

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Operating Revenues:

Electric revenues

$

131,594

$

129,527

$

263,034

$

255,016

Gas revenues

29,601

29,925

140,864

123,406

Total Operating Revenues

161,195

159,452

403,898

378,422

Operating Expenses:

Fuel for electric generation

12,907

16,292

33,216

33,861

Purchased power

5,813

5,562

8,280

9,940

Cost of gas sold

9,285

11,313

80,108

65,277

Other operations and maintenance

65,242

57,777

126,810

114,336

Depreciation and amortization

28,939

28,354

57,028

56,032

Other general taxes

6,375

5,931

12,670

11,888

Total Operating Expenses

128,561

125,229

318,112

291,334

Operating Income

32,634

34,223

85,786

87,088

Other income, net

14,286

3,707

25,276

6,311

Interest expense, net

(9,288

)

(8,457

)

(19,093

)

(16,038

)

Income before income taxes

37,632

29,473

91,969

77,361

Income tax provision

(4,279

)

(2,975

)

(10,135

)

(9,271

)

Net Income

$

33,353

$

26,498

$

81,834

$

68,090

Earnings Per Share of Common Stock

Basic

$

0.89

$

0.73

$

2.21

$

1.86

Diluted

$

0.89

$

0.72

$

2.21

$

1.86

Dividends per share of common stock

$

0.475

$

0.450

$

0.950

$

0.900

Weighted Average Shares Outstanding

Basic

37,351

36,540

36,972

36,526

Diluted

37,456

36,569

37,029

36,557

Six Months Ended

June 30,

2026

2025

Operating Activities:

Net income

$

81,834

$

68,090

Adjustments to reconcile net income to cash provided by operating activities

Depreciation and amortization

57,028

56,032

Deferred income taxes

5,518

2,578

Provision for doubtful receivables

3,513

4,400

Employee benefit plan credit

(4,232

)

(2,320

)

Cash contributions to pension and other postretirement plans

(3,752

)

(3,800

)

Equity earnings in investments

(7,336

)

(6,241

)

Dividends from investments

5,545

6,008

Changes in assets and liabilities

Current assets

23,420

13,105

Accounts payable

(21,055

)

(13,491

)

Deferred income taxes

9,532

—

Other current liabilities

298

(2,309

)

Regulatory assets and liabilities, net

9,995

7,381

Other, net

(11,480

)

4,520

Cash Provided by Operating Activities

148,828

133,953

Investing Activities:

Capital expenditures

(210,906

)

(111,753

)

Capital contributions to investments

(7,714

)

(5,871

)

Other

2,287

(630

)

Cash Used for Investing Activities

(216,333

)

(118,254

)

Financing Activities:

Issuance of common stock, net

88,948

3,750

Cash dividends paid on common stock

(35,299

)

(32,872

)

Repayments of long-term debt

(3,897

)

(2,625

)

Issuance of long-term debt

90,000

—

(Repayments of) proceeds from short-term debt

(59,777

)

5,500

Other

(1,523

)

(812

)

Cash Provided by (Used for) Financing Activities

78,452

(27,059

)

Change in cash, cash equivalents, and restricted cash

10,947

(11,360

)

Cash, cash equivalents, and restricted cash at beginning of period

8,736

24,496

Cash, cash equivalents, and restricted cash at end of period

$

19,683

$

13,136

June 30,

December 31,

ASSETS

2026

2025

Current Assets:

Cash and cash equivalents

$

16,621

$

5,666

Accounts receivable, less reserves of $11,049 and $8,578, respectively

42,330