OGE Energy raises profit forecast after warm weather lifts quarter

OGE Energy Corp. (OGE) said in a filing on Oct. 27 that it earned $1.52 per diluted share in the quarter ended Sept. 30, topping the $1.38 consensus estimate compiled by Finnhub. The company also raised its 2026 earnings forecast.

OGE Energy is the parent of Oklahoma Gas and Electric Company, a regulated electric company with about 919,000 customers in Oklahoma and western Arkansas.

Here's how the company did:

• Diluted EPS: $1.52 vs. $1.14 a year earlier, topping the $1.38 consensus estimate compiled by Finnhub
• Revenue: $1,182.8 million vs. $1,045.0 million a year earlier, topping the $1.11 billion estimate
• Net income: $316.2 million vs. $231.3 million a year earlier

Segment results

OG&E contributed net income of $320.9 million, or $1.54 per diluted share, compared with $242.9 million, or $1.20 per diluted share, a year earlier. The company said stronger sales from warmer weather drove the increase, partly offset by higher income tax expense.

Other operations, which includes the holding company, posted a loss of $4.7 million, or 2 cents per diluted share, compared with a loss of $11.6 million, or 6 cents, a year earlier. Higher income from energy-related investments and lower interest expense drove the result.

2026 guidance

OGE Energy raised its 2026 consolidated earnings forecast to $2.62 to $2.68 per average diluted share, from the $2.38 to $2.48 range it gave on July 29. The company said it expects to exceed its original 2026 guidance because of warmer than normal weather.

The new guidance assumes normal weather for the rest of the year. OG&E's earnings are seasonal and depend on weather from year to year.

Costs and operations

Chairman, President and CEO Sean Trauschke said, "I'm proud of our team for delivering reliable service through record-setting weather conditions while continuing to execute on investments that strengthen the grid and position us to support future growth across our region."

Fuel, purchased power and direct transmission expense rose to $441.2 million from $388.5 million. Interest expense fell to $63.0 million from $69.6 million.

The quarter recorded 1,897 cooling degree days, against 1,288 a year earlier and a normal of 1,265. The number of customers was 918,559.