Financial Performance - CMS Energy's consolidated operating revenue was $8.5 billion in 2025, up from $7.5 billion in 2024 and 2023[44] - Consumers' consolidated operating revenue was $8.1 billion in 2025, compared to $7.2 billion in 2024 and 2023[47] - Consumers' electric utility operations generated operating revenue of $5.6 billion in 2025, an increase from $5.1 billion in 2024 and $4.7 billion in 2023[52] - Consumers' gas utility operations generated operating revenue of $2.5 billion in 2025, an increase from $2.1 billion in 2024 and $2.4 billion in 2023[81] - NorthStar Clean Energy's operating revenue was $408 million in 2025, compared to $316 million in 2024 and $297 million in 2023[97] Customer Base and Deliveries - In 2025, Consumers served 1.9 million electric customers and 1.8 million gas customers in Michigan's Lower Peninsula[49] - Consumers' electric deliveries were 37 billion kWh in 2025, with net bundled sales of 34 billion kWh[56] - Deliveries of natural gas through Consumers' network totaled 396 Bcf in 2025, up from 362 Bcf in 2024, with 46% of winter gas supplied from storage[85] Renewable Energy and Emissions Goals - Consumers plans to achieve 60% renewable energy by 2035 and 100% clean energy by 2040, with updates to its Renewable Energy Plan including up to 9,000 MW of solar and 4,000 MW of wind resources[65] - Consumers aims for net-zero methane emissions from its natural gas delivery system by 2030, targeting an 80% reduction from 2012 levels[88] - Consumers has set a goal to reduce customer greenhouse gas emissions by 25% by 2035, with a ten-year investment plan to achieve this[89] - Michigan's 2023 Energy Law mandates a renewable energy standard of 50% by 2030 and 60% by 2035, with a clean energy standard of 80% by 2035 and 100% by 2040[109] - Consumers plans to reduce methane emissions from its natural gas delivery system by about 80% from 2012 levels by 2030[112] Generation Capacity and Resources - In 2025, 41% of Consumers' electric supply was generated by natural gas, producing 14,661 GWh of electricity[70] - Consumers purchased the Covert Generating Station in 2023, adding 1,200 MW of nameplate capacity[64] - Consumers plans to retire coal-fueled generating units totaling 1,922 MW of nameplate capacity, including the D.E. Karn and J.H. Campbell units[63] - In 2025, 20% of Consumers' electric supply was generated by coal-fueled units, producing 7,320 GWh of electricity, with 3,608 GWh supplied to MISO to comply with emergency orders[76] Financial Commitments and Risks - Consumers has future commitments to purchase capacity and energy under long-term PPAs estimated to total $17.0 billion from 2026 through 2060, with annual payments ranging from $0.9 billion to $1.0 billion for the next five years[73] - CMS Energy's fixed-rate financing potential loss in fair value is projected to be $792 million for 2025 and $717 million for 2024[398] - Consumers' fixed-rate financing potential loss in fair value is estimated at $535 million for 2025 and $543 million for 2024[398] - CMS Energy and Consumers are exposed to market risks including interest rates, commodity prices, and investment security prices[395] - A hypothetical adverse change in market rates or prices of 10 percent could lead to potential losses exceeding the amounts shown in sensitivity analyses[396] Workforce and Diversity - CMS Energy and Consumers recorded an OSHA recordable incident rate of 2.34 in 2025, with a target serious injury incidence rate of 0.037 for 2026[124] - The diversity, equity, and inclusion index score for CMS Energy and Consumers was 75% for the year ended December 31, 2025[127] - At December 31, 2025, unions represented 44% of CMS Energy's employees and 45% of Consumers' employees[123] - Consumers' workforce composition includes 26% female employees and 13% racially or ethnically diverse employees as of December 31, 2025[128] Future Plans and Strategies - Consumers plans to file energy storage plans by 2029 to achieve a statewide target of 2,500 MW[109] - Consumers' firm gas transportation contracts are expected to provide 34% of total forecasted gas supply requirements for 2026[95] - Fewer than 300 of Consumers' electric customers purchased electric generation service under the ROA program, which is capped at 10% of Consumers' sales[79] - CMS Energy and Consumers utilize a combination of fixed-rate and variable-rate debt instruments to manage interest-rate risk[397] - The company has established policies and procedures for entering into risk management contracts under the direction of an executive oversight committee[395]

Investment Plans - The parent company of Consumers Energy plans to invest over $17 billion in generation, distribution, and other assets over the next five years, with generation investment increasing more than 25% compared to the previous five-year plan [1] Load Growth Projections - The utility expects robust and sustained load growth, projecting 3% weather-normalized load growth in 2026 and a run rate of 2% to 3% through 2030, primarily driven by data centers and industrial loads [2][3] Renewable Energy Investments - Consumers Energy plans to spend approximately $14 billion on renewable energy through 2045, which includes 8 GW of solar and 2.8 GW of wind [4] - The planned investment in electric generation through 2030 is around $8.8 billion, which is an increase of $2.5 billion from the prior five-year plan, focusing on renewable generation to comply with state law for 100% carbon-free electricity by 2040 [5] Data Center Developments - Ongoing negotiations for data centers are crucial, with a 1-GW data center agreement announced last July, and the company is close to finalizing a rate contract for this customer [6][7] - There are indications of more data center interests, with two proposed data centers and two new industrial loads expressing interest in Consumers' territory recently, alongside 9 GW of large-load interconnection requests in the pipeline [9]

Core Viewpoint - CMS Energy is optimistic about its regulatory outcomes and growth prospects, particularly in renewable energy and large-load opportunities, while maintaining a focus on customer affordability and long-term investments [4][6][19]. Regulatory Developments - The company anticipates a favorable outcome from its pending electric rate case, expecting a return on equity (ROE) of 9.9% or better, supported by constructive positions from the Michigan Public Service Commission [1][6]. - CMS Energy received approval for a 20-year renewable energy plan, representing approximately $14 billion in customer investment opportunities over the next decade [2][6]. Financial Performance and Guidance - CMS Energy reported adjusted earnings per share (EPS) of $3.61 for 2025, exceeding guidance and reflecting over 8% growth from 2024 [8]. - The company raised its 2026 adjusted EPS guidance to a range of $3.83 to $3.90, indicating 6% to 8% growth from 2025 results [6][8]. Capital Investment Plan - The five-year utility capital investment plan has been expanded to $24 billion, up $4 billion, supporting approximately 10.5% rate base growth through 2030 [6][11]. - Major drivers of the updated plan include an integrated resource plan to be filed in mid-2026, which will address capacity needs and incorporate renewable energy sources [11]. Large-Load Opportunities - The company's large-load pipeline, particularly for data centers, is expanding, with potential projects requiring $2.5 billion to $5 billion of investment per additional gigawatt [5][14]. - The Large Load Tariff has been approved to facilitate data center growth while ensuring existing customers are not burdened with the costs [3][12]. Customer Affordability and Cost Savings - CMS Energy emphasizes customer affordability, noting that utility bills represent about 3% of total expenses, down 150 basis points from a decade ago [19]. - The company achieved over $100 million in savings in 2025 through efficiency efforts and estimates that energy waste reduction programs will save customers about $1.2 billion [20]. Financing Strategy - In 2025, CMS Energy invested $3.8 billion, funded through operating cash flow, bond and equity financings, while maintaining investment-grade credit metrics [21]. - For 2026, the company plans to issue over $1.7 billion at the utility level and approximately $700 million of equity at the parent level [21]. Dividend Policy - CMS Energy aims to continue dividend growth, targeting a payout ratio of about 60% in 2026 and approximately 55% over time [22].

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

Financial Data and Key Metrics Changes - For 2025, the company exceeded its adjusted earnings per share guidance, delivering $3.61 per share, which is an increase of over 8% from 2024's actual result [10] - The company raised its annual guidance for 2026 by $0.03, now expecting earnings per share between $3.83 and $3.90, representing 6%-8% growth from 2025 actual results [11][22] - The company has a target dividend payout ratio of approximately 55% over time, continuing its practice of growing dividends for over 20 years [12] Business Line Data and Key Metrics Changes - The utility segment is expected to provide $4.28-$4.33 of adjusted earnings per share, driven by normal weather and constructive regulatory outcomes [23] - Northstar is anticipated to contribute $0.25-$0.30 to earnings per share, benefiting from favorable capacity contracts and renewable projects [23] Market Data and Key Metrics Changes - The company reported that its residential natural gas rate is 28% below the national average, reflecting its commitment to affordability [10] - The company has seen a 3% load growth in Michigan, with expectations of 2%-3% growth over the five-year plan [56] Company Strategy and Development Direction - The company has received approval for a 20-year renewable energy plan, providing approximately $14 billion of customer investment opportunity over the next decade [5][8] - The company is focused on maintaining affordability while making significant investments in infrastructure, with a five-year $24 billion utility customer investment plan [12][15] - The company is actively pursuing data center opportunities, with a large load tariff designed to protect existing customers while attracting new business [4][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a constructive outcome in the pending electric and gas rate cases, expecting a return on equity (ROE) of 9.9% or better [9][53] - The management highlighted the importance of a constructive regulatory environment in Michigan, which supports long-term investments and customer benefits [7][8] Other Important Information - The company has invested over $1 billion in gas infrastructure to ensure reliable service during cold weather [6] - The company has achieved significant savings for customers through its energy efficiency programs, amounting to approximately $1.2 billion [17] Q&A Session Summary Question: Update on data center opportunities - Management reported progress in discussions with data centers and highlighted the importance of the large load tariff in attracting these customers [35][36] Question: Clarification on the growth plan and its components - Management explained that the data center investments are not included in the current plan, but they expect a low double-digit compound annual growth rate (CAGR) when considering additional opportunities [38][41] Question: Concerns about authorized returns and regulatory feedback - Management expressed confidence in achieving a ROE of 9.9% or better, dismissing concerns about the recent Proposal for Decision as an outlier [50][53] Question: Impact of Integrated Resource Plan on capacity needs - Management clarified that the Integrated Resource Plan will address capacity gaps and that additional load growth will require significant investment [54][56]

Financial Data and Key Metrics Changes - For 2025, the company exceeded its adjusted earnings per share guidance, delivering $3.61 per share, which is an increase of over 8% from 2024's actual result [10] - The company raised its annual guidance for 2026 by $0.03, now expecting earnings per share between $3.83 and $3.90, representing 6%-8% growth from 2025 actual results [11][22] - The company has a target dividend payout ratio of approximately 55% over time, continuing a trend of dividend growth for over 20 years [12] Business Line Data and Key Metrics Changes - The utility segment is expected to provide $4.28-$4.33 of adjusted earnings per share, driven by normal weather and constructive regulatory outcomes [23] - Northstar is projected to contribute $0.25-$0.30 to earnings per share, benefiting from favorable capacity contracts and renewable projects [23] Market Data and Key Metrics Changes - The company reported that its residential natural gas rate is 28% below the national average, reflecting a balance between system investment and customer affordability [10] - The company aims to keep residential bills below the national average and Midwest average, with recent electric bill increases among the lowest in the country [17][18] Company Strategy and Development Direction - The company has received approval for a 20-year renewable energy plan, providing approximately $14 billion of customer investment opportunities over the next decade [5][8] - A five-year $24 billion utility customer investment plan has been outlined, with increased investments in electric generation and gas delivery systems [12][15] - The company is focusing on customer affordability while making significant infrastructure investments, leveraging operational efficiencies to save customers money [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a constructive outcome in the pending electric and gas rate cases, expecting a return on equity (ROE) of 9.9% or better [9][53] - The management highlighted a strong regulatory environment in Michigan, which supports long-term investments and customer benefits [8][9] - The company is optimistic about the growth potential from data centers and manufacturing customers, with ongoing discussions and agreements in place [19][20] Other Important Information - The company has invested over $1 billion in gas infrastructure improvements to ensure reliability and safety for customers [6] - The company has a strong focus on energy efficiency, with programs expected to save customers approximately $1.2 billion [17] Q&A Session Summary Question: Update on data center opportunities - Management reported progress in discussions with data centers, with a growing pipeline and positive indicators for the Large Load Tariff [36][75] Question: Clarification on the financial plan and growth expectations - Management explained that the data center investments are not included in the current financial plan, but they expect a low double-digit CAGR when considering additional opportunities [42][45] Question: Concerns about authorized returns and regulatory feedback - Management expressed confidence in achieving a constructive outcome in the rate case, emphasizing the strong justification for capital investments and operational needs [50][53] Question: Capacity needs and Integrated Resource Plan (IRP) - Management clarified that the IRP will address capacity gaps and that additional load from data centers would lead to increased rate base growth [56][58]

Financial Data and Key Metrics Changes - For 2025, the company exceeded its adjusted earnings per share guidance, delivering $3.61 per share, which is an increase of over 8% from 2024's actual result [9][10]. - The company raised its annual guidance for 2026 by $0.03, now expecting earnings per share in the range of $3.83-$3.90, representing 6%-8% growth from 2025 actual results [10][20]. Business Line Data and Key Metrics Changes - The utility segment is expected to provide $4.28-$4.33 of adjusted earnings per share, driven by normal weather and constructive regulatory outcomes [22]. - Northstar is projected to contribute $0.25-$0.30 to earnings per share, benefiting from favorable capacity contracts and renewable projects [22]. Market Data and Key Metrics Changes - The residential natural gas rate is reported to be 28% below the national average, reflecting the company's commitment to affordability [9]. - The company anticipates a 3% weather-normalized load growth for 2026, with expectations of 2%-3% growth in subsequent years [27]. Company Strategy and Development Direction - The company has a five-year $24 billion utility customer investment plan, which is up $4 billion from the previous plan, aimed at improving reliability and customer service [11][14]. - The approval of a 20-year renewable energy plan highlights the constructive regulatory environment in Michigan, providing visibility for long-term investments in solar and wind [4][7]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a constructive outcome for the ongoing electric rate case, expecting a return on equity (ROE) of 9.9% or better [8][41]. - The management emphasized the importance of maintaining affordability for customers, noting that utility bills remain approximately 3% of total expenses, down from 4.5% a decade ago [16][52]. Other Important Information - The company has invested over $1 billion in gas storage and delivery infrastructure to ensure reliability and affordability for customers [5][11]. - The company is actively working on securing data center opportunities, with significant progress made in finalizing agreements and tariffs [17][30]. Q&A Session Summary Question: Update on data center opportunities in Michigan - Management reported positive progress with data centers, noting an increase in interest and advanced talks with potential customers [30][31]. Question: Clarification on the 6%-8% growth guidance - Management explained that the growth guidance accounts for funding costs and refinancing pressures, with a focus on maintaining a high-quality earnings trajectory [36][38]. Question: Concerns regarding authorized returns and regulatory feedback - Management expressed confidence in achieving a constructive outcome in the rate case, emphasizing the strong justification for capital investments and operational needs [41][43]. Question: Impact of zoning on data center development - Management indicated that zoning issues are not seen as impediments, highlighting successful navigation of local regulations to facilitate data center growth [59][60].

Core Insights - CMS Energy Corporation (CMS) reported fourth-quarter 2025 earnings per share (EPS) of 95 cents, exceeding the Zacks Consensus Estimate of 94 cents by 1.3% and reflecting a 9.2% increase from 87 cents in the prior-year quarter [1][7] - For the full year 2025, CMS reported adjusted earnings of $3.61 per share, up from $3.34 in 2024, driven by strong performance at NorthStar Clean Energy [1][7] CMS' Revenues - Operating revenues for the fourth quarter totaled $2.23 billion, surpassing the Zacks Consensus Estimate of $2.11 billion by 5.9% and increasing 12.3% from $1.99 billion in the prior-year quarter [2] - Total revenues for 2025 reached $8.54 billion, higher than $7.52 billion in 2024 [2] Operational Performance of CMS - Operating expenses amounted to $1.8 billion, reflecting a 14.4% increase from the year-ago quarter [3] - Operating income was reported at $435 million, slightly up from $425 million in the prior-year quarter [3] - Interest charges totaled $201 million, an increase of 11.7% from the previous year [3] Financial Condition of CMS - As of December 31, 2025, CMS had cash and cash equivalents of $509 million, compared to $103 million as of December 31, 2024 [4] - Total debt and financial leases (excluding securitization debt) were $18.31 billion as of December 31, 2025, up from $15.87 billion a year earlier [4] - Net cash flow from operating activities was $2.24 billion in 2025, down from $2.37 billion in 2024 [4] CMS' 2026 Guidance - The company raised its 2026 adjusted earnings guidance to a range of $3.83-$3.90 per share, up from the previous range of $3.80-$3.87 per share [5] - The current Zacks Consensus Estimate for 2026 earnings is $3.85, which is lower than the midpoint of the company's newly guided range [5] - CMS reaffirmed its long-term adjusted EPS growth target of 6-8% [5]

LEADING THE CLEAN ENERGY TRANSFORMATION 2025 Year-End Results & Outlook February 5, 2026 This presentation is made as of the date hereof and contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in C ...

Core Insights - CMS Energy reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and showing an increase from $0.87 per share a year ago, resulting in an earnings surprise of +1.28% [1] - The company achieved revenues of $2.23 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.92%, compared to $1.99 billion in the same quarter last year [2] - CMS Energy has outperformed the S&P 500 with a share price increase of about 2.4% since the beginning of the year, while the S&P 500 gained 0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $2.49 billion, and for the current fiscal year, it is $3.85 on revenues of $8.81 billion [7] - The estimate revisions trend for CMS Energy was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Electric Power industry, to which CMS Energy belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]