CMS Energy (CMS) Q4 2023 earnings summary

Executive summary

• 2023 adjusted EPS was $3.11 vs. $2.89 in 2022; reported EPS was $3.01 vs. $2.85, marking a 21st consecutive year of strong results.

• The annual dividend increased $0.11 to $2.06, its 18th consecutive annual increase.

• Nearly $300M of weather-related financial headwinds were offset, and more than $125M in customer assistance supported bill affordability.

• Filed a $7B Electric Reliability Roadmap outlining a five-year path to improve reliability and resiliency.

Financial highlights

• FY 2023 reported and adjusted net income were $877M and $907M, respectively, vs. $827M and $838M in 2022.

• FY operating revenue was $7.462B vs. $8.596B; operating income was $1.235B vs. $1.224B.

• Q4 2023 reported and adjusted EPS were both $1.05, vs. $0.58 and $0.60 in Q4 2022; operating income was $406M vs. $271M.

• Q4 revenue was $1.950B vs. $2.278B.

Outlook and guidance

• 2024 adjusted EPS guidance increased to $3.29–$3.35 from $3.27–$3.33, with confidence toward the high end.

• Long-term adjusted EPS and dividend per-share growth targets are each 6%–8%; the dividend payout target is ~60% over time.

• The 2024–2028 utility capital plan is $17B, up $1.5B from the prior plan; ~40% of investments support the Clean Energy Transformation.

• Rate base is projected to increase from $24.6B in 2023 to $35.2B in 2028.