CMS Energy (CMS) Q4 2024 earnings summary

Executive summary

• Achieved 2024 adjusted EPS of $3.34, at the high end of guidance, with 6%-8% long-term adjusted EPS growth target reaffirmed and strong operational execution across electric and gas businesses.

• Increased annual dividend per share to $2.17 for 2025, marking the 19th consecutive annual increase.

• Filed a 20-year Renewable Energy Plan, targeting 9 GW solar, 4 GW wind, 60% renewables by 2035, and 100% clean energy by 2040, aligned with Michigan's 2023 Energy Law.

• Advanced customer reliability, restoring power to over 93% of customers within 24 hours in 2024, up from 87% in 2023, and secured over 360 MW of new load through economic development.

• Delivered over $110M in waste elimination savings and $110M gain from Appliance Service Plan business sale shared with customers.

Financial highlights

• 2024 adjusted EPS: $3.34 (up from $3.11 in 2023); reported EPS: $3.33 (up from $3.01 in 2023); adjusted net income: $998 million.

• Operating revenue for 2024 was $7,515 million, up from $7,462 million in 2023.

• Operating cash flow exceeded $2.7 billion, supporting capital plans.

• Invested $3.3 billion in 2024 to enhance electric and gas system safety, reliability, and cleanliness.

• Maintained solid investment-grade credit metrics, affirmed by rating agencies.

Outlook and guidance

• 2025 adjusted EPS guidance raised to $3.54–$3.60, representing 6%-8% growth, with continued focus on compounding off actuals.

• Long-term adjusted EPS growth guided toward the high end of 6%-8% annually.

• Dividend payout ratio targeted at about 60%, with future dividend growth expected in the low 5% range as more earnings are retained for investment.

• Utility capital investment plan for 2025–2029 increased to $20 billion, up $3 billion from prior plan.

• Expecting $1.3 billion in new HoldCo long-term debt and up to $500 million in equity issuance in 2025, with equity needs declining as tax credit transfers ramp up.