ALLETE, Inc. (NYSE: ALE) ALLETE today reported third quarter 2025 earnings of 46 cents per share on net income of $27.1 million. Last year’s third quarter results were 78 cents per share on net income of $45.0 million. Net income in the third quarter of 2025 and year to date primarily reflects lower sales to industrial customers and inflationary pressures at Minnesota Power, lower sales of renewable projects at the clean energy businesses and transaction related expenses.

ALLETE awaits a written order from the Minnesota Public Utilities Commission (“MPUC”) in order to execute on the closing of the partnership with Canada Pension Plan Investment Board (“CPP Investments”) and Global Infrastructure Partners (“GIP”).

“I am grateful for the MPUC’s unanimous approval of ALLETE’s partnership with CPP Investments and GIP on October 3, 2025, and extremely proud of our entire ALLETE team for the thoughtful work with our many stakeholders throughout the regulatory process -- all as they continue to work diligently to execute our Sustainability-in-Action strategy,” said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. “The MPUC’s approval results in historic benefits for our customers, our employees, and the communities we serve. We expect to close the transaction once the written order is received from the MPUC, and we are excited for the next chapter of ALLETE’s wonderful history with these Partners that are aligned with our values and support our culture and strategy.”

ALLETE’s Regulated Operations segment, which includes Minnesota Power, SWLP and the Company’s investment in the American Transmission Company, recorded third quarter 2025 net income of $32.5 million, compared to $34.0 million in the third quarter a year ago. Net income at Minnesota Power was lower than 2024 reflecting lower margins from industrial customers, and higher operating and maintenance expense, partially offset by lower income tax expense and increased cost recovery rider revenue.

ALLETE Clean Energy recorded a third quarter 2025 net loss of $3.6 million compared to net income of $3.9 million in 2024. Net income in 2025 reflected lower production, along with associated tax credits, due to transmission network outages in the SPP market. Net income in the third quarter of 2024 reflected the sale of the Whitetail wind project.

New Energy Equity recorded 2025 third quarter net income of $1.3 million, compared to net income of $11.7 million for the same period in 2024. Net income in 2025 includes lower sales of renewable energy projects due to the timing of project closings. These decreases were partially offset by higher earnings from tax equity financed solar energy facilities and higher investment tax credits.

Corporate and Other businesses, which include BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded a net loss of $3.1 million in the third quarter of 2025, compared to a net loss of $4.6 million in 2024. Net income in 2025 reflects lower merger-related expenses compared to 2024, and lower income tax expense. Merger-related expenses were $3.1 million after-tax in 2025 compared to $3.8 million in 2024.

“Results for 2025 have been negatively impacted by lower industrial margins as a result of lower sales to taconite customers at Minnesota Power which are expected to continue through the remainder of 2025," said ALLETE Vice President – Chief Financial Officer and Corporate Treasurer Jeff Scissons. “As a result of the transaction, historic customer, clean-energy, workforce and governance commitments have been made by our Partners. Approximately $200 million of value including rate credits, an immediate return on equity reduction and rate case stay-out provision will be recognized by Minnesota Power customers, while maintaining existing charitable and economic investments will benefit ALLETE stakeholders and our communities. The rate case stay-out provision will have an impact on 2026 financials, but it is a material benefit to all Minnesota Power customers.”

ALLETE is an energy company headquartered in Duluth, Minn. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, BNI Energy in Bismarck, N.D., New Energy Equity in Annapolis, MD, and has an eight percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.

ALLETE's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.

Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company's operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company's ongoing financial performance over the periods presented.

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