CMS Energy (CMS) Q3 2024 earnings summary

Executive summary

• Adjusted EPS for the first nine months of 2024 was $2.47, up from $2.06 in 2023, driven by favorable regulatory outcomes, operational performance, and higher NorthStar Clean Energy earnings.

• 2024 EPS guidance reaffirmed at $3.29–$3.35, with confidence toward the high end, and 2025 guidance initiated at $3.52–$3.58, reflecting 6%–8% long-term growth.

• Strong cash flow, balance sheet, and industry-leading net zero commitments underpin the investment thesis.

• Michigan's regulatory environment and new energy laws support timely recovery of investments, constructive ROEs, and increased renewable standards.

• Significant investments in grid reliability, renewable energy, and storage are underway, supported by regulatory and legislative frameworks.

Financial highlights

• Adjusted net income for the first nine months was $736 million, or $2.47 per share, with reported EPS at $2.45; net income and EPS rose year-over-year due to higher rate relief and cost efficiencies.

• Q3 2024 operating revenue was $1,743 million, up from $1,673 million in Q3 2023; nine-month operating revenue was $5.53 billion, nearly flat year-over-year.

• Operating income for Q3 2024 was $367 million, up from $271 million year-over-year; nine-month operating income rose to $1.06 billion.

• Cash and cash equivalents at September 30, 2024, were $467 million for CMS Energy and $403 million for Consumers.

• Net cash provided by operating activities for the nine months was $1.97 billion for CMS Energy and $2.01 billion for Consumers.

Outlook and guidance

• 2024 adjusted EPS guidance reaffirmed at $3.29–$3.35, with a bias toward the high end; 2025 guidance set at $3.52–$3.58, reflecting 6%–8% long-term growth.

• Five-year capital and financial plans to be refreshed on the Q4 call.

• Consumers expects weather-normalized electric deliveries to increase and gas deliveries to remain stable over the next five years.

• The company will continue to seek fair regulatory treatment to support its investment plan and maintain affordable customer rates.

• Expect continued upward pressure on load growth assumptions in upcoming Renewable Energy Plan and IRP filings.