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]

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][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, reflecting confidence in achieving financial objectives [13] 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 [5][6] - 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 [3][4] 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 [5][6] - The company is well-positioned to serve the growing demand from data centers and other industries, with a significant investment plan of $20 billion for customer investments over the next five years [9] Company Strategy and Development Direction - The company is focused on balancing customer investments with affordability, aiming to keep customer rates at or below inflation while maintaining utility bills below the national average [11] - 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] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong pipeline of new and expanding load, which supports infrastructure investments across both gas and electric businesses [22] - The company anticipates needing more battery storage and gas capacity as part of its long-term strategy to meet growing demand and regulatory requirements [10][39] Other Important Information - The company has reaffirmed its credit ratings and is focused on maintaining a strong financial position to minimize funding costs [20] - The company has completed nearly all planned financings for 2025, with a recent settlement of approximately $500 million of forward equity contracts [20] 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 [25][26] Question: How quickly could the $25 billion of CapEx be folded into the plan? - Management indicated that some of the $25 billion would be incorporated into the next five-year plan, with a focus on electric reliability and renewable energy investments [39][50] Question: What is the mix between self-build and PPA for the Renewable Energy Plan? - The company plans for a mix of self-build and power purchase agreements, with an assumption of about 50% owned versus PPA for solar projects [81][87] Question: How much excess capacity is available to serve the new load? - The company has a bit of excess capacity and is actively building additional capacity in line with the clean energy law [68] Question: What is the status of the Campbell plant and its potential continuation? - Management confirmed that costs associated with operating the Campbell units are treated as a regulatory asset, with a clear path to cost recovery [73][75]

Financial Performance & Outlook - The company's Year-to-Date (YTD) 2025 adjusted EPS is $2.66, showing an increase compared to 2024, with confidence in achieving the full-year target[27] - The full-year 2025 adjusted EPS guidance is $3.56 - $3.60, trending towards the higher end of the range[27] - The annual dividend per share is $2.11, an increase of $0.11[27] - The full-year 2026 adjusted EPS guidance is $3.80 - $3.87, also trending towards the higher end[27] - The long-term adjusted EPS growth is projected at +6% to +8%[27] Capital Investments & Financings - The utility capital plan is $20 billion[27] - Planned financings include $1.125 billion in Consumers Energy First Mortgage Bonds[34] - New debt issuances for CMS Energy are planned at $1.27 billion[34] - Planned equity issuance for CMS Energy is up to $500 million[34] Regulatory Environment - Constructive regulatory outcomes and forward-looking visibility are provided by Michigan's regulatory environment[16] - A gas case order was approved for $157.5 million with a 9.8% ROE[15] - A revised electric case order was approved for $423 million with a 10.25% ROE[15] Infrastructure & Growth - The company has an expansive economic development effort with a 9 GW pipeline[17,18] - The current customer investment plan (2025-2029) is $20 billion[20]