CMS Energy (CMS) Q2 2024 earnings summary

Executive summary

• Adjusted EPS for the first half of 2024 reached $1.63, up from $1.45 year-over-year, driven by favorable electric and gas rate case outcomes, operational performance at NorthStar and DIG, and higher weather-normalized sales.

• Net income available to common stockholders was $480 million, with diluted EPS of $1.61 for the six months ended June 30, 2024.

• The company reaffirmed full-year 2024 adjusted EPS guidance of $3.29–$3.35, with confidence toward the high end and a long-term growth target of 6%–8%.

• Strong cash flow and balance sheet support continued investments in clean energy, infrastructure renewal, and grid reliability.

• Focus remains on customer affordability, cost-saving initiatives, and advancing clean energy and reliability goals.

Financial highlights

• Adjusted net income for the first half of 2024 was $485 million, or $1.63 per share, up from the prior year.

• Q2 2024 adjusted EPS was $0.66, down from $0.75 year-over-year; Q2 net income was $195 million, flat year-over-year.

• Operating revenue for the first six months was $3.78 billion, compared to $3.84 billion in the prior year.

• Book value per share increased to $26.04 from $23.72 year-over-year.

• Electric utility net income rose by $50 million, gas utility by $7 million, and NorthStar Clean Energy by $37 million for the six months ended June 30, 2024.

Outlook and guidance

• 2024 adjusted EPS guidance reaffirmed at $3.29–$3.35, with expectations to finish toward the high end.

• Long-term adjusted EPS growth targeted at 6%–8% annually, supported by a $17 billion utility capital plan through 2028.

• Dividend per share is $2.06, with a targeted payout ratio of approximately 60% and 6%–8% annual growth.

• Weather-normalized electric and gas deliveries expected to remain stable, with modest demand growth offset by energy waste reduction.

• Clean Energy Plan targets net-zero carbon emissions by 2040 and net-zero methane emissions by 2030.