CMS Energy (CMS) Q3 2025 earnings summary

Executive summary

• Delivered strong operational, regulatory, and financial results for the first nine months of 2025, with robust performance across electric and gas businesses and industry-leading clean energy commitments supported by Michigan's regulatory environment.

• Net income available to common stockholders for the nine months ended September 30, 2025, was $775 million, up from $731 million year-over-year; diluted EPS rose to $2.59 from $2.45, and adjusted EPS reached $2.66, up from $2.47.

• Achieved key regulatory approvals, including a Renewable Energy Plan for 8 GW solar and 2.8 GW wind by 2035, and constructive outcomes in electric and gas rate cases.

• Maintained a robust pipeline of economic growth, particularly in data centers and manufacturing, supporting 2%-3% forecasted annual sales growth over the next five years.

• Focused on infrastructure renewal, affordability, and customer investment opportunities through 2035, with consistent financial performance and premium total shareholder returns.

Financial highlights

• Year-to-date 2025 adjusted EPS reached $2.66, up from $2.47 in 2024; reported adjusted net income of $797 million, or $2.66 per share, for the first nine months of 2025, up $0.19 year-over-year.

• Q3 2025 net income available to common stockholders was $275M, up from $251M in Q3 2024; Q3 2025 total operating revenue was $1.94B, up from $1.66B.

• Operating revenue for the nine months ended September 30, 2025, was $6.3 billion, up from $5.5 billion year-over-year.

• Annual dividend per share is $2.11, with a long-term payout ratio target of ~60%.

• Raised 2025 EPS guidance to $3.56-$3.60 per share and initiated 2026 guidance at $3.80-$3.87 per share.

Outlook and guidance

• Confident in delivering at the high end of revised 2025 EPS guidance of $3.56–$3.60 and 2026 guidance of $3.80–$3.87, reflecting 6%-8% long-term adjusted EPS growth.

• Utility capital plan increased to $20B for 2025–2029, up $3B from prior plan, with a five-year capital plan refresh expected in Q4.

• Weather-normalized electric deliveries are expected to increase over the next five years, while gas deliveries remain stable.

• Annual rate-base growth targeted at more than 8%, with ongoing cost-control measures to maintain affordability.