Ameren beats second-quarter profit estimates on higher electricity rates

Ameren

31/07/2025 22:00

July 31 (Reuters) - Utility firm Ameren AEE.N beat Wall Street estimates for second-quarter profit on Thursday, as higher electricity rates helped offset unfavorable weather and higher operating expenses.

Utility firms use rate case proceedings to seek power price increases, basing their appeals on their investments or expenses incurred in delivering services.

The higher rates helped offset both its total quarterly operating expenses, which were up about 36% at $1.81 billion from a year earlier, and a 13% rise in interest charges to $187 million.

Ameren Missouri, its largest segment by profit, has been making significant investments to upgrade its grid infrastructure, leading to higher borrowings and a corresponding rise in interest expenses.

The segment reported quarterly earnings of $150 million, up about 17% from a year earlier.

The utility serves about 2.4 million electric customers and more than 900,000 natural gas customers in Missouri and Illinois.

The St. Louis, Missouri-based company reaffirmed its 2025 profit forecast range of $4.85 to $5.05 per share.

The company reported an adjusted profit of $1.01 per share for the quarter ended June 30, compared with analysts' average estimate of 98 cents per share, according to data compiled by LSEG.

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Alan Barona)

 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal))