CMS Energy (CMS) Q3 2026 earnings summary

Executive summary

• Reaffirmed 2026 adjusted EPS guidance of $3.83–$3.90 and 2027 guidance of $4.08–$4.17, with confidence toward the high end of 2026 guidance.

• NorthStar Clean Energy restructuring remains on track for year-end; the shift supports nearly 100% utility-based earnings after 2027 and reduces parent funding needs by more than $500M.

Financial highlights

• Q3 2026 revenue was $2.183B vs. $2.021B YoY; reported diluted EPS was $0.39 vs. $0.92, while adjusted diluted EPS was $1.44 vs. $0.93.

• Q3 net income available to common stockholders was $121M vs. $275M, including $525M of NorthStar impairment, disposal and exit costs.

• 9M adjusted diluted EPS was $2.95 vs. $2.66; reported diluted EPS was $1.86 vs. $2.59. Adjusted net income was $915M vs. $797M.

• 9M operating cash flow was $1.798B vs. $1.757B; investing cash use was $3.111B vs. $2.926B, primarily reflecting higher capital expenditures.

Outlook and guidance

• Long-term adjusted EPS growth target remains 6%–8%; annual dividend per share is $2.28, up 11%, with a ~55% payout ratio targeted over time.

• The 2026–2030 utility capital plan is $24.1B, with annual rate-base growth expected to exceed 10%, subject to MPSC approvals and cost controls; an updated plan is expected with the year-end update.

• Annual sales growth is projected at 2%–3% through 2030; electric deliveries are expected to rise while gas deliveries remain stable.