Key Takeaways CMS Energy gains from a supportive regulatory setting and stable regulated utility earnings.CMS plans $20B in 2025-2029 upgrades and is expanding solar, wind and battery storage.CMS faces rising costs tied to coal-ash facility closures and stricter emission regulations.CMS Energy Corporation’s (CMS) robust investment in infrastructure upgrades and renewable project is expected to continue to boost its overall performance. The company also benefits from stable and regulated utility operations i ...

This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. By the numbers: CMS Energy Q3 2025   $1.68B Electric utility operating revenue, up 16% year over year.   10.4 TWh Weather-adjusted electricity deliveries, roughly flat year over year.   9 GW Large load pipeline, including 1 GW to 2 GW in “final stages” of development.   $13.7B Planned investment in distribution and clean energy generation through 2029. ...

Core Viewpoint - CMS Energy Corporation announced the pricing of an offering of $850 million in convertible senior notes, which was upsized from a previously announced $750 million offering, with an option for initial purchasers to buy an additional $150 million [1][2] Group 1: Offering Details - The offering consists of 3.125% convertible senior notes due in 2031, with a closing date expected on November 6, 2025, subject to customary conditions [1] - The net proceeds from the offering are expected to be approximately $839.3 million, or $987.7 million if the additional notes are fully purchased, which will be used to retire existing senior notes and for general corporate purposes [2] Group 2: Convertible Notes Characteristics - The convertible notes will be senior, unsecured obligations, maturing on May 1, 2031, with a fixed interest rate of 3.125% payable semiannually starting May 1, 2026 [3] - Holders can convert the notes under certain conditions before February 1, 2031, and at any time thereafter until maturity [4][5] - The initial conversion rate is set at 11.0360 shares per $1,000 principal amount, representing a conversion price of approximately $90.61 per share, which is a 25% premium over the last reported stock price [6] Group 3: Redemption and Repurchase Conditions - CMS Energy may not redeem the notes before May 7, 2029, but can do so thereafter if the stock price meets certain conditions [8][9] - In the event of a fundamental change, holders may require CMS Energy to repurchase the notes at 100% of the principal amount plus accrued interest [7] Group 4: Regulatory and Market Context - The offering is made to qualified institutional buyers under Rule 144A of the Securities Act, and the notes are not registered under the Securities Act [10]

Core Viewpoint - CMS Energy Corporation plans to offer $750 million in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $112.5 million within 13 days of issuance [1][2]. Group 1: Offering Details - The offering will be made under the Securities Act of 1933 and is intended for qualified institutional buyers [4]. - The convertible notes will be senior, unsecured obligations, convertible at the holders' option under certain conditions, with interest payable semiannually [3][4]. - CMS Energy will use the net proceeds to retire its 3.60% Senior Notes due 2025, which have an outstanding principal of $250 million, and for general corporate purposes [2]. Group 2: Company Overview - CMS Energy is a Michigan-based energy company, primarily operating Consumers Energy Company, an electric and gas utility [6].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Insights - CMS Energy Corporation (CMS) reported third-quarter 2025 earnings per share (EPS) of 93 cents, exceeding the Zacks Consensus Estimate of 86 cents by 8.1% and increasing 10.7% from 84 cents in the prior-year quarter [1][8] - The company raised its 2025 adjusted earnings guidance to a range of $3.56-$3.60 per share and initiated 2026 adjusted earnings guidance of $3.80-$3.87 per share [5][8] - CMS reaffirmed its long-term adjusted EPS growth target in the range of 6-8% [6] CMS' Revenues - Operating revenues for CMS totaled $2.02 billion, surpassing the Zacks Consensus Estimate of $1.82 billion by 11.2% and increasing 16.1% from $1.74 billion in the prior-year quarter [2][8] Operational Performance of CMS - Operating expenses amounted to $1.54 billion, reflecting an 11.9% increase from the year-ago quarter [3] - Operating income was reported at $481 million, up from $367 million in the prior-year quarter [3] - Interest charges totaled $203 million, which is a 14% increase from the previous year [3] Financial Condition of CMS - As of September 30, 2025, CMS had cash and cash equivalents of $362 million, up from $103 million as of December 31, 2024 [4] - Total debt and financial leases (excluding securitization debt) were $17.47 billion, compared to $15.87 billion as of December 31, 2024 [4] - Net cash flow from operating activities was $1.76 billion during the first nine months of 2025, down from $1.97 billion in the prior-year period [4] CMS' Zacks Rank - CMS Energy currently holds a Zacks Rank 3 (Hold) [7]

Financial Performance - CMS Energy reported a significant increase in revenue, reaching $2.5 billion for the quarter ended September 30, 2025, representing a 12% year-over-year growth[4]. - The company achieved an earnings per share (EPS) of $1.25, up from $1.10 in the same quarter last year, indicating a 13.6% increase[4]. - For the nine months ended September 30, 2025, CMS Energy's net income available to common stockholders was $775 million, with diluted EPS of $2.59, compared to $731 million and $2.45 for the same period in 2024, reflecting a 6% increase in net income[65]. - Consumers Electric Utility reported a net income of $326 million for the three months ended September 30, 2025, up from $273 million in 2024, representing a 19.5% increase[81]. - For the nine months ended September 30, 2025, net income increased to $617 million from $540 million in 2024, reflecting a 14.3% growth[81]. - Operating revenue for Q3 2025 was $2,021 million, a 16% increase from $1,743 million in Q3 2024[196]. - Net income for the nine months ended September 30, 2025, reached $760 million, up 9.8% from $692 million in the same period of 2024[200]. - Basic earnings per share for Q3 2025 were $0.92, compared to $0.84 in Q3 2024, reflecting a 9.5% increase[196]. - Total operating expenses for the nine months ended September 30, 2025, were $5,014 million, a 12.3% increase from $4,464 million in 2024[196]. - Consumers Energy Company achieved operating revenue of $1,913 million for the three months ended September 30, 2025, up 15.1% from $1,661 million in the same period last year[204]. - The net income attributable to CMS Energy for the three months ended September 30, 2025, was $277 million, compared to $253 million in the prior year, reflecting a year-over-year increase of 9.5%[203]. - Operating income for Consumers Energy Company increased to $483 million for the three months ended September 30, 2025, a rise of 27.8% from $378 million in the same quarter of 2024[204]. - Net income for Consumers Energy Company for the nine months ended September 30, 2025, was $848 million, up from $726 million in the same period of 2024, indicating a growth of 16.8%[204]. - The total operating revenue for Consumers Energy Company for the nine months ended September 30, 2025, reached $6,007 million, an increase of 13.5% from $5,291 million in the previous year[204]. Customer Growth and Market Expansion - Consumers Energy's customer base grew by 3% year-over-year, adding approximately 50,000 new customers in the last quarter[4]. - The company has initiated a new strategy to expand its market presence in the Midwest, targeting a 15% increase in market share by 2026[4]. Investment and Capital Expenditures - CMS Energy plans to invest $1.2 billion in new clean energy initiatives over the next three years, focusing on solar and wind energy developments[4]. - Consumers plans to spend $20.0 billion on capital expenditures through 2029, with $14.8 billion allocated for infrastructure upgrades and clean generation, including $8.5 billion for electric distribution and $6.3 billion for gas infrastructure[72]. - Total capital expenditures for CMS Energy increased to $2,926 million in the nine months ended September 30, 2025, compared to $2,101 million in 2024, reflecting a 39.1% increase[87]. - Capital expenditures for the nine months ended September 30, 2025, totaled $2,750 million, compared to $2,100 million in 2024, indicating a significant investment in growth[200]. Renewable Energy and Environmental Initiatives - CMS Energy's long-term strategy includes a commitment to achieving net-zero carbon emissions by 2040, aligning with state regulatory requirements[4]. - Consumers has reduced carbon dioxide emissions from owned generation by more than 30 percent since 2005[54]. - Consumers' Clean Energy Plan aims for a clean energy standard of 80 percent by 2035 and 100 percent by 2040[54]. - The 2023 Energy Law raises the renewable energy standard from 15 percent to 50 percent by 2030 and 60 percent by 2035[54]. - Consumers aims to achieve 60% renewable energy by 2035 and 100% clean energy by 2040, with updates including up to 9,000 MW of solar and 2,800 MW of wind energy resources[58]. - Consumers has reduced methane emissions by nearly 30 percent since 2012[54]. - Consumers aims for net-zero methane emissions from its natural gas delivery system by 2030, planning to reduce emissions by about 80% from 2012 levels[177]. - Consumers has set a target for net-zero greenhouse gas emissions for its entire natural gas system by 2050, with an interim goal of reducing customer emissions by 25% by 2035[178]. - Consumers is constructing two renewable natural gas facilities scheduled for commercial operation in 2026[179]. - Over 15% of Consumers' electricity supply currently comes from renewable sources, with plans to add up to 2,800 MW of new wind energy and 9,000 MW of solar energy resources[112][113]. Operational Efficiency and Cost Management - The company reported a 5% reduction in operational costs due to improved efficiency measures implemented in the last quarter[4]. - Consumers is addressing inflationary pressures and tariffs to maintain affordable energy services[50]. - Consumers' investment program is expected to result in annual rate-base growth of more than 8%, maintaining affordable customer prices[69]. Regulatory and Compliance Matters - The MPSC established a performance-based financial mechanism allowing utilities to earn up to $10 million annually for meeting reliability benchmarks starting in 2026[130]. - The MPSC must issue a final order on the electric rate case by April 2026[132]. - Consumers expects to incur $240 million in capital expenditures from 2025 to 2029 to comply with environmental regulations[134]. - Consumers has received a compliance extension for wastewater discharge regulations until the end of 2025 for its J.H. Campbell facility[156]. Debt and Financial Position - Long-term debt increased to $16,774 million as of September 30, 2025, from $15,194 million at the end of 2024[202]. - Total assets as of September 30, 2025, were $38,008 million, up from $35,920 million at the end of 2024, showing a growth in the company's asset base[201]. - The company reported a comprehensive income attributable to CMS Energy of $782 million for the nine months ended September 30, 2025, compared to $739 million in 2024[197]. - CMS Energy Corporation reported total equity at the end of the period of $9,431 million, an increase from $8,641 million in the previous year, representing a growth of 9.2%[203].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.66 for the first nine months of 2025, an increase of $0.19 compared to the same period in 2024, primarily driven by favorable regulatory outcomes and a return to normal weather conditions [12][14][15] - The bottom end of the earnings guidance for 2025 has been raised to a range of $3.56 to $3.60 per share from $3.54 to $3.60 per share, with a full-year guidance for 2026 set at $3.80 to $3.87 per share, reflecting a growth of 6% to 8% off the midpoint of the revised range for 2025 [13][12] Business Line Data and Key Metrics Changes - The company connected approximately 450 MW of the planned 900 MW of industrial growth in its five-year plan, with an additional 100 MW of signed contracts year-to-date, indicating strong growth in sectors such as food processing, aerospace, and advanced manufacturing [6][7] - The Renewable Energy Plan approved an additional 8 GW of solar and 2.8 GW of wind through 2035, which will be integrated into the company's next five-year plan [4][9] Market Data and Key Metrics Changes - The company continues to see strong economic growth in Michigan, with a robust pipeline of projects, particularly in data centers and manufacturing, contributing to a forecasted annual sales growth of 2% to 3% over the next five years [6][7] - The company has agreements with data centers that could lead to significant load increases, with one data center planning up to 1 GW of load starting in early 2030 [7][8] Company Strategy and Development Direction - The company is focused on balancing a robust capital investment plan of $20 billion over five years with affordability for customers, aiming to keep utility bills below the national average [11][12] - The Integrated Resource Plan, to be filed in mid-2026, will detail additional capacity needed to replace retired plants and support future growth, emphasizing the need for more battery storage and natural gas generation [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for the remainder of the year and into 2026, citing a strong pipeline of new and expanding loads that will bolster growth opportunities [22][12] - The management highlighted the importance of maintaining affordability while executing a significant capital plan, with a focus on cost management and operational efficiencies [11][12] Other Important Information - The company has reaffirmed its credit ratings and is targeting mid-teens funds from operations to debt on a consolidated basis to preserve solid investment-grade credit ratings [19][20] - The company has completed nearly all planned financings for 2025, including a recent settlement of approximately $500 million of forward equity contracts [20][21] Q&A Session Summary Question: Can you elaborate on the timing of the large load tariff? - Management expects the large load tariff to be finalized by November 7, which is crucial for advancing several data center projects in the pipeline [25][26] Question: How quickly could the $25 billion of CapEx be folded into the plan? - Management indicated that the $25 billion in additional investment opportunities will be incorporated into the next five-year plan, with a focus on electric reliability and renewable energy investments [36][38] Question: What is the current capacity to serve the new load? - The company has excess capacity to serve the connected load and is actively building additional renewable capacity to meet future demands [53] Question: Can you explain the status of the Campbell plant? - Management confirmed that costs associated with operating the Campbell units are treated as a regulatory asset, with a clear path to cost recovery established [56][57] Question: How does the company plan to balance self-build and PPA in its renewable energy strategy? - The company plans a mix of self-build and power purchase agreements, with an assumption of about 50% owned versus PPA for solar projects [65][66]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.66 for the first nine months of 2025, an increase of $0.19 compared to the same period in 2024, primarily driven by favorable regulatory outcomes and weather-related sales [12][14] - The bottom end of the earnings guidance for 2025 has been raised to $3.56 to $3.60 per share from $3.54 to $3.60 per share, with full-year guidance for 2026 set at $3.80 to $3.87 per share, reflecting a growth of 6% to 8% off the midpoint of this year's revised range [13][12] Business Line Data and Key Metrics Changes - The company connected approximately 450 megawatts of the planned 900 megawatts of industrial growth in its five-year plan, with an additional 100 megawatts of signed contracts year to date [6][7] - The Renewable Energy Plan approved an additional 8 gigawatts of solar and 2.8 gigawatts of wind through 2035, which will be integrated into the next five-year plan [4][9] Market Data and Key Metrics Changes - The company continues to see strong economic growth in Michigan, with a robust pipeline of projects in data centers and manufacturing, contributing to a forecasted annual sales growth of 2% to 3% over the next five years [6][7] - The company has agreements with data centers that could lead to significant load increases, with one data center planning up to 1 gigawatt of load starting in early 2030 [7][8] Company Strategy and Development Direction - The company is focused on balancing a robust capital investment plan of $20 billion with affordability for customers, aiming to keep utility bills below the national average [11][12] - The Integrated Resource Plan to be filed in mid-2026 will detail additional capacity needed to replace retired plants and support future growth, emphasizing the need for more battery storage and natural gas generation [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for the full year and long-term growth, citing a supportive regulatory environment and strong economic indicators in Michigan [4][22] - The company is committed to maintaining affordability while investing significantly in infrastructure, with customer utility bills remaining a small percentage of total expenses [11][12] Other Important Information - The company has reaffirmed its credit ratings and is focused on maintaining a strong financial position, targeting mid-teens funds from operations to debt on a consolidated basis [19][20] - The company has completed nearly all planned financings for 2025, with a recent settlement of approximately $500 million of forward equity contracts [20][21] Q&A Session Summary Question: Can you elaborate on the timing of the large load tariff? - Management expects the large load tariff to be finalized by November 7, which is crucial for advancing projects in the pipeline, including three large data centers [25][26] Question: How quickly could the $25 billion of CapEx be folded into the plan? - Management indicated that the $25 billion in opportunities could be integrated into the next five-year plan, with a focus on electric reliability and renewable energy investments [36][38] Question: What is the current capacity to serve the new load? - The company has excess capacity to serve the connected load and is actively building additional renewable capacity as part of the clean energy law [54] Question: Can you explain the status of the Campbell plant? - Management confirmed that costs associated with operating the Campbell units are treated as a regulatory asset, with a clear path to cost recovery established [56][58] Question: How does the company plan to balance self-build and PPA in its renewable energy investments? - The company plans a mix of self-build and power purchase agreements, with an assumption of about 50% owned versus PPA for solar projects [65][67]