CMS Energy (CMS) Q4 2025 earnings summary

Executive summary

• 2025 adjusted EPS reached $3.61, exceeding guidance and up over 8% year-over-year, driven by strong utility and NorthStar Clean Energy performance and constructive regulatory outcomes.

• 2026 adjusted EPS guidance raised to $3.83–$3.90, representing 6%–8% growth off 2025 actuals, with confidence toward the high end.

• Approved a 20-year renewable energy plan, unlocking $14 billion in customer investment opportunities and adding 8 GW of solar and 2.8 GW of wind.

• Annual dividend per share increased to $2.28 for 2026, marking the 20th consecutive annual increase.

• Delivered over $100M in cost savings through operational efficiencies.

Financial highlights

• 2025 adjusted EPS of $3.61, up more than 8% from 2024, with total operating revenue of $8.54B and net income of $1.06B.

• Invested $3.8 billion in 2025, funded through operating cash flow, well-priced bond/equity financings, and tax credit transfers.

• Dividend payout ratio targeted at 55% over time, with consistent dividend growth.

• Utility capital plan increased to $24B for 2026–2030, up $4B from the prior plan.

• EBITDA (non-GAAP) for 2025 was $3.36B, up from $3.08B in 2024.

Outlook and guidance

• 2026 adjusted EPS guidance raised to $3.83–$3.90, implying 6%–8% growth, with confidence toward the high end.

• Long-term EPS growth guidance reaffirmed at 6%–8%, compounding off actuals.

• Five-year plan supports 10.5% rate base growth through 2030, with rate base expected to grow from $28.4B in 2025 to $46.8B in 2030.

• Expecting 3% weather-normalized load growth in 2026, with 2%–3% run rate in outer years.

• Planned equity issuance of ~$700M in 2026 and ~$750M per year through 2030.