CMS Energy (CMS) investor relations material

Strategic priorities and business update

• Focus areas include the integrated resource plan, business mix and capital allocation, economic growth and affordability, regulatory updates, and the gubernatorial race.

• The 2026 Integrated Resource Plan targets +1.4 GW of gas simple cycle by 2031 and +4.1 GW of battery storage by 2040.

• Clean energy deployment to increase by +15.8 GW by 2040, supporting Michigan’s energy law targets and customer affordability.

• Incremental economic development growth projected at 3% CAGR through 2040.

• Customer programs and affordability initiatives aim to keep costs below inflation.

Capital investment and financial outlook

• Long-term investments through 2040 include ~$13B in clean energy resources and ~$12B in gas generation.

• Five-year utility capital plan (2026-2030) totals $24.1B, with $8.8B for electric generation, $8.6B for electric distribution, and $6.7B for gas utility.

• Adjusted EPS guidance for 2026 is $3.83–$3.90, with long-term growth targeted at 6% to 8%.

• Dividend payout ratio expected to remain around 55% over time.

• Planned equity issuance of ~$700M in 2026, with ~$750M per year long-term.

Regulatory and market environment

• Michigan’s regulatory environment supports timely recovery of investments, constructive ROEs, and forward-looking test years.

• Recent electric and gas rate cases have seen approval rates between 52% and 75% of requested amounts.

• Enhanced incentives from 2023 Michigan Energy Law include energy efficiency and FCM adders on PPAs.

• Appointed commissioners serve staggered six-year terms, providing regulatory stability.

• Additional 8 GW of solar and 2.8 GW of wind approved in REP order.