CMS Energy (CMS) investor relations material

Investment thesis and operating model

• Investment case centers on regulated utility earnings, diversified growth, clean energy, strong cash flow and balance sheet, and affordability through the CE Way and digital initiatives.

• 95% of earnings are regulated utility earnings; 2025 average rate base was $17.5B electric and $10.9B gas.

• Long-term adjusted EPS growth target is 6%–8%, with a ~55% dividend payout ratio over time.

Customer investment and infrastructure

• Five-year customer investment plan totals $24B; longer-range plans include $18B+ for electric distribution and $13B+ for natural gas delivery over 10 years.

• Planned work includes 100+ miles of gas main replacements annually, ~512K vintage service replacements annually, up to 400 miles of electric undergrounding annually, and 20K poles replaced annually.

• The 2026–2030 utility capital plan is $24B; rate base is projected to grow from $28.4B in 2025 to $46.8B in 2030, a 10% CAGR.

• Investment priorities include safety, reliability, resiliency, and customer affordability; energy efficiency incentives are estimated at ~$65M annually.

Resource plan and clean energy

• The 2026 IRP targets 15.8 GW of clean energy resources and 4.1 GW of battery storage by 2040, plus 1.4 GW of gas generation by 2031.

• IRP capital opportunity is ~$27B through 2040; forecast FCM is ~$125M from 2031 onward and ~$195M by 2040.

• The plan targets Michigan Energy Law goals: 60% renewable portfolio standard by 2035 and 100% clean energy by 2040, while maintaining reliability and affordability.

• Approximately 70% of PPAs were signed, including ~680 MW of clean PPAs; forecast FCM is ~$50M by 2030 and ~$125M from 2031 onward.