ALLETE, Inc. (ALE)

In April 2025, ALLETE reported its first-quarter earnings. In June 2025, ALLETE shares entered oversold territory. In July 2025, ALLETE announced an agreement with the Minnesota Department of Commerce and declared a quarterly dividend of 73 cents per share. In August 2025, ALLETE reported a decrease in profit for its second-quarter earnings. In September 2025, ALLETE was added as a "Top 10 Utility Dividend Stock With 4.44% Yield." In October 2025, Mizuho Securities maintained a "Hold" rating on ALLETE, and the stock gained as the Minnesota Public Utilities Commission (PUC) approved a deal for the company to go private. ALLETE obtained all regulatory approvals for its acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP), with the transaction expected to close in mid-2025.

ALLETE's demand for products and services is subject to seasonality. The company's annual report notes volatility and unpredictability in demand due to broader economic conditions, inflation, or supply chain disruptions, and also points to seasonal variations. The ozone season allowance program requirements for NOx emissions from May 1 through September 30 suggests increased electricity demand for cooling during warmer months. Water service demand can also experience seasonal fluctuations, such as increased usage for irrigation during warmer, drier periods.

ALLETE, Inc. is a clean-energy transformation company in the Utilities sector, focusing on Diversified Utilities and Power Generation. Its business is divided into Regulated Operations and ALLETE Clean Energy. Through Regulated Operations, it provides utility services to retail and municipal customers in Minnesota and Wisconsin, and has an investment in ATC. ALLETE Clean Energy develops and operates clean and renewable energy projects with over 1,200 MW of wind energy capacity across seven states. ALLETE also has interests in coal mining in North Dakota and real estate in Florida.

ALLETE, Inc. is headquartered in Duluth, Minnesota, with regulated utility services covering northeastern Minnesota and northwestern Wisconsin. Its wind energy generation facilities are spread across seven states. The company also has a presence in electric transmission assets in parts of Wisconsin, Michigan, Minnesota, and Illinois through its investment in American Transmission Company (ATC).

ALLETE has demonstrated a strong commitment to clean energy and sustainability, ranking first among U.S.-based investor-owned utilities for investment in wind and solar generation capacity as a percentage of market capitalization in 2023. ALLETE is also recognized as a BBB Accredited Electric Company in Duluth, MN. However, ALLETE's management and board failed to meet their targeted EPS growth rate of 5% to 7% from 2017 to 2022, which may have impacted its reputation among some investors. The recent agreement with the Minnesota Department of Commerce, which includes a one-year customer base rate freeze and a reduction in Return on Equity, further underscores ALLETE's commitment to customer benefits and service quality.

ALLETE, Inc. is primarily owned by institutional investors, holding approximately 77% of the company's shares. Major institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., and State Street Global Advisors, Inc. The general public holds a 22% stake, while individual insiders own less than 1% of the company.