Core Insights - Evergy, Inc. (EVRG) reported third-quarter 2025 operating earnings per share (EPS) of $2.03, missing the Zacks Consensus Estimate of $2.14 by 5.1% and slightly up from $2.02 in the same quarter last year [1] - The company's total revenues for the quarter were $1.81 billion, consistent with the previous year but falling short of the Zacks Consensus Estimate of $1.87 billion by 3.4% [2][8] - Adjusted EPS increased primarily due to the recovery of regulated investments and higher weather-normalized demand [1] Financial Performance - Fuel and purchased power costs were $393.1 million, a decrease of 9.4% from $433.7 million in the prior year [3] - Operating and maintenance expenses rose to $252.8 million, reflecting a 0.5% year-over-year increase [3][8] - Interest expenses increased by 5.6% year over year, totaling $152 million [3] Financial Position - As of September 30, 2025, cash and cash equivalents stood at $27.5 million, up from $22 million at the end of 2024 [4] - Long-term debt increased to $12.45 billion from $11.81 billion as of December 31, 2024 [4] - Cash provided by operating activities for the first nine months of 2025 was $1.71 billion, compared to $1.59 billion in the same period last year [4] Guidance and Outlook - Evergy has narrowed its 2025 adjusted EPS guidance to a range of $3.92-$4.02, with the Zacks Consensus Estimate at $4.01, which is at the higher end of the company's guidance [5] - The company reaffirmed its annual adjusted EPS growth target of 4-6% through 2029 [5] Zacks Rank - Evergy currently holds a Zacks Rank 2 (Buy) [6]

Financial Data and Key Metrics Changes - The company reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago, driven by a recovery of regulated investments and growth in weather-normalized demand [5][26] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the original range of $3.92-$4.12 per share [5][28] - The lower midpoint of guidance is primarily due to weather headwinds impacting results by $0.13 per share [5] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in the third quarter compared to the previous year, supported by increases in both residential and commercial usage [27] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [26] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in service areas [27] - The company has a strong economic development pipeline with opportunities exceeding 15 GW, indicating a robust backlog relative to its size [9][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to meet growing demand and regulatory requirements [9][32] - The strategy emphasizes affordability and competitiveness, with a commitment to maintaining a lower rate trajectory compared to regional peers [21][23] - The company aims to attract large new customers through a proposed large load power service tariff that ensures they pay a fair share of system costs [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, bolstered by economic development opportunities and necessary investments [6][30] - The company anticipates significant load growth driven by large data center projects, with expectations of 4-5% annual load growth through 2029 [31][34] - Management highlighted the importance of collaboration with stakeholders to advance regulatory frameworks that support growth [20][19] Other Important Information - A 4% increase in the quarterly dividend to $2.78 per share was announced, aligning with the updated growth outlook [8] - The company is nearing completion of its 27th refueling outage at Wolf Creek, which generates around 1,200 MW of non-carbon emitting energy [8] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management indicated that the focus will be on implementing elements of SB4-related rulemakings, with expectations for a lighter legislative calendar in 2026 [40][41] Question: How will the growth rate profile look in the upcoming capital plan? - Management refrained from providing specifics but indicated that the updated financial plan will outline the relationship between load growth and capital investments [42][43] Question: How much competition exists in attracting large loads within the service territory? - Management noted strong collaboration between Kansas and Missouri, with legislative truces in place to mitigate competition for economic development [50][51] Question: How much of the $17.5 billion capital expenditure is subject to typical rate case filings? - Management explained that all investments are subject to reviews, with mechanisms in place to mitigate regulatory lag [52][53] Question: What is the impact of the Lambda data center on sales growth? - Management clarified that the Lambda project is expected to contribute to load growth, with further quantification to be provided in future updates [62][64] Question: What is the status of the LLPS tariff discussions? - Management confirmed a unanimous settlement agreement in Kansas and a partial settlement in Missouri, with decisions expected soon [70][71] Question: How will the financing plan be impacted by new agreements? - Management indicated that cash flows from new customers could significantly improve operations, potentially reducing equity funding needs [84][85]

Financial Data and Key Metrics Changes - The company reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago, driven by a recovery of regulated investments and growth in weather-normalized demand [5][26] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the previous range of $3.92-$4.12 per share [5][28] - The lower midpoint of guidance is primarily due to weather headwinds impacting results by $0.13 per share [5] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in the third quarter compared to the previous year, following a 1.4% increase in the second quarter, supported by strong residential and commercial usage [27] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [26] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in service areas [27] - The company has a strong economic development pipeline with opportunities exceeding 15 gigawatts, indicating a robust backlog relative to its size [9][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to serve load and meet increasing reserve margin requirements [9][32] - The strategic focus includes maintaining affordability while investing in infrastructure to support new large customers, with a designed large load power service tariff to ensure new customers pay a fair share [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, bolstered by economic development opportunities and necessary investments [6][30] - The company anticipates a comprehensive financial outlook update in February, including refreshed views on load forecasts and capital investment plans [8][34] Other Important Information - A 4% increase in the quarterly dividend to $2.78 per share was announced, aligning with the updated growth outlook [8] - The company is committed to delivering safe, affordable, and reliable service to its 1.7 million customers, emphasizing the benefits of new large customers for broader cost-sharing [20][24] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management indicated that the focus will be on implementing elements of SB4-related rulemakings, with a lighter calendar anticipated for 2026 [40][41] Question: How will the growth rate profile look moving towards the end of the decade? - Management refrained from providing specifics but highlighted multiple tailwinds that could positively impact growth [42][43] Question: How much competition exists at the local level for attracting large loads? - Management noted strong collaboration between Kansas and Missouri, with legislative truces to mitigate competition across state lines [50][51] Question: How much of the $17.5 billion CapEx is subject to typical rate case filings? - Management explained that all investments are subject to reviews, with mechanisms in place to mitigate regulatory lag [52][53] Question: Can you elaborate on the third data center's impact on sales growth? - Management confirmed that the third data center would be additive to the load growth potential, with specifics to be provided in future updates [60][61]

Financial Data and Key Metrics Changes - For Q3 2025, adjusted earnings were reported at $2.03 per share, a slight increase from $2.02 per share in Q3 2024, driven by recovery in regulated investments and growth in weather-normalized demand [4][25] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the previous range of $3.92-$4.12 per share [4][27] - The decrease in the midpoint of guidance is attributed to weather headwinds impacting results by $0.13 per share [4] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in Q3 2025 compared to the previous year, following a 1.4% increase in Q2 2025, supported by strong residential and commercial usage [26] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [25] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in the service areas [26] - The economic development pipeline includes opportunities exceeding 15 gigawatts, indicating strong interest from large customers in the Evergy service territory [8][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to meet growing customer demand and regulatory requirements [7][30] - A 4% increase in the quarterly dividend to $2.78 per share reflects the updated growth outlook and aligns with the target payout ratio of 60%-70% [6] - The company aims to maintain affordability while investing in infrastructure to support new large customers, with a proposed large load power service tariff designed to ensure new customers pay a higher rate [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing tailwinds from economic development opportunities and necessary investments [5][28] - The company anticipates a comprehensive financial outlook update in February, including refreshed views on load forecasts and capital investment plans [6][30] - Management highlighted the importance of collaboration with stakeholders to advance regulatory objectives and support economic growth in the region [19][24] Other Important Information - The company has achieved strong operational performance, with generation availability and grid reliability favorable to targets [5] - The ongoing dialogue with large customers indicates a robust interest in the service territory, with many customers actively participating in capacity studies [10][13] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management noted that there will be a focus on implementing elements of SB4 and anticipates a lighter legislative calendar in 2026 [34] Question: Can you provide insights on the cadence of the upcoming capital plan? - Management indicated that the upcoming capital plan will be laid out by year, with significant investments and load growth helping to mitigate regulatory lag [36] Question: How much competition exists in attracting large loads within the service territory? - Management highlighted strong collaboration between Kansas and Missouri, with legislative truces in place to mitigate competition for economic development [38][39] Question: What is the status of the large load power service tariff discussions? - Management confirmed a unanimous settlement agreement in Kansas and a partial settlement in Missouri, with decisions expected soon [46][47] Question: How will the $2.8 billion equity funding impact the capital investment plan? - Management stated that cash flows from new customers could significantly improve operations, potentially reducing equity funding needs [52][53] Question: How will weather impacts affect future earnings and guidance? - Management acknowledged that weather impacts are within the context of the current year and do not affect the long-term outlook [54][63]

Core Insights - Evergy Inc reported quarterly earnings of $2.03 per share, missing the Zacks Consensus Estimate of $2.14 per share, representing an earnings surprise of -5.14% [1] - The company posted revenues of $1.81 billion for the quarter ended September 2025, also missing the Zacks Consensus Estimate by 3.35% [2] - Evergy shares have increased by approximately 24.7% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Performance - Over the last four quarters, Evergy has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $1.27 billion, and for the current fiscal year, it is $4.01 on revenues of $5.95 billion [7] Market Outlook - The sustainability of Evergy's stock price movement will depend on management's commentary during the earnings call [3] - The Zacks Rank for Evergy is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Utility - Electric Power industry is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [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]

Financial Performance - Third quarter 2025 GAAP earnings per share (EPS) was $2.03, and adjusted EPS was also $2.03[18] - Year-to-date 2025 GAAP EPS was $3.31, while adjusted EPS was $3.41[67] - The company is narrowing its 2025 adjusted EPS guidance to $3.92 - $4.02, compared to the original guidance of $3.92 - $4.12, primarily due to a $0.13 impact from weather[18] - The company anticipates approximately ($0.02) of incremental convertible-related dilution compared to plan and identified mitigation measures of $0.10[41] Economic Development and Load Growth - The company has a transformative 10-year roadmap to serve up to 4-6 GWs of new large load customers[22] - The company's actively building customer pipeline is approximately 1.2 GW, up from approximately 1.1 GW in the previous quarter[23] - Customers finalizing agreements represent a potential 1.5-2.0 GW of peak demand, up from 1.0-1.5 GW, potentially increasing overall company load growth forecast to a 4-5% compound annual growth rate (CAGR) through 2029[23] - Weather-normalized total retail sales grew by 2.0% in the third quarter of 2025, driven by residential (2.4%) and commercial (3.0%) growth, while industrial sales decreased by 0.9%[37] Capital Investments and Financing - The company has a $17.5 billion five-year capital investment plan for 2025-2029[58] - The company plans to issue $2.8 billion in equity from 2026E-2029E[42] - The company entered forward sales agreements for $125 million of common shares via at-the-market program to address future equity needs[59]

Core Viewpoint - Utility Evergy missed Wall Street's adjusted profit estimates for the third quarter and reduced the upper end of its 2025 adjusted earnings forecast due to the impact of milder summer weather [1] Financial Performance - Evergy's third-quarter adjusted profit fell short of Wall Street expectations [1] - The company has trimmed the upper end of its 2025 adjusted earnings forecast [1] Market Impact - The milder summer weather has negatively affected the company's earnings [1]

Financial Performance - Third quarter 2025 GAAP earnings were $475.0 million, or $2.03 per share, compared to $465.6 million, or $2.02 per share in the same period of 2024[1][2][6]. - Adjusted earnings (non-GAAP) for the third quarter 2025 were $475.1 million, or $2.03 per share, reflecting a year-over-year increase driven by recovery of regulated investments and growth in weather-normalized demand[2][3][11]. - Year-to-date adjusted earnings (non-GAAP) for 2025 were $794.0 million, or $3.41 per share, compared to $797.3 million, or $3.46 per share in 2024[11][12]. Guidance and Outlook - The company narrowed its 2025 adjusted EPS (non-GAAP) guidance range to $3.92 to $4.02, down from the previous range of $3.92 to $4.12[4][5][6]. - The company expects adjusted EPS growth in the upper half of the 4% to 6% range beginning in 2026, based on the 2025 adjusted EPS guidance midpoint of $4.02[5][6]. - Management indicated that the long-term outlook remains strong, supported by economic development opportunities and necessary investments[4][5]. - The company will provide an updated growth outlook during the year-end earnings call in February[4]. Dividends - The quarterly dividend was increased by 4% to $0.6950 per share, payable on December 19, 2025[6][7]. Business Operations - Evergy serves 1.7 million customers in Kansas and Missouri, with about half of its power coming from carbon-free sources[19]. - The company is focused on producing, transmitting, and delivering reliable, affordable, and sustainable energy while advancing its strategic objectives[19]. Risk and Uncertainty - The Evergy Companies acknowledge that predicting all factors affecting their business is not possible, and new risks may emerge over time[24]. - The company emphasizes that undue reliance should not be placed on forward-looking statements due to inherent uncertainties[24]. - Evergy Companies undertake no obligation to publicly update or revise any forward-looking statements unless required by law[24].

Financial Performance - Operating revenues for Q3 2025 were $1,809.9 million, slightly down from $1,811.4 million in Q3 2024, while year-to-date revenues increased to $4,621.4 million from $4,589.9 million[32]. - Net income attributable to Evergy, Inc. for Q3 2025 was $475.0 million, compared to $465.6 million in Q3 2024, with year-to-date net income decreasing to $771.3 million from $795.3 million[32]. - Basic earnings per common share for Q3 2025 were $2.06, compared to $2.02 in Q3 2024, while diluted earnings per share remained stable at $2.03[32]. - Total operating expenses decreased to $1,151.4 million in Q3 2025 from $1,183.9 million in Q3 2024, contributing to improved income from operations[32]. - Net income for the third quarter of 2025 was $478.0 million, compared to $125.0 million in the same quarter of 2024, representing a year-over-year increase of approximately 282.4%[39]. - Year-to-date net income for 2025 was $453.3 million, compared to $481.3 million for the same period in 2024, indicating a decline of 5.8%[51]. - Evergy's total operating revenues for the year to date September 30, 2025, were $4,621.4 million, a slight increase from $4,589.9 million in 2024[105]. Assets and Liabilities - Total assets increased to $33,440.4 million as of September 30, 2025, compared to $32,282.1 million on December 31, 2024, reflecting a growth of approximately 3.6%[26]. - Current assets rose to $1,924.7 million, up from $1,839.3 million, indicating an increase of about 4.6%[26]. - Total current liabilities increased to $3,733.0 million as of September 30, 2025, from $3,662.4 million at the end of 2024, driven by increases in accounts payable and accrued taxes[29]. - Long-term debt rose to $12,446.3 million as of September 30, 2025, compared to $11,809.2 million at the end of 2024, reflecting ongoing financing needs[29]. - The company reported total equity of $10,332.5 million as of September 30, 2025, an increase from $9,989.2 million at the end of 2024, primarily due to retained earnings growth[29]. - Evergy's total assets as of September 30, 2025, were valued at $520.4 million, with $425.0 million classified under Level 2[182]. - The book value of Evergy's long-term debt as of September 30, 2025, was $13,062.9 million, with a fair value of $12,739.2 million[180]. Cash Flow and Investments - Cash flows from operating activities for the year-to-date period were $1,711.2 million, up from $1,588.1 million in the same period of 2024[34]. - The company experienced a net change in cash of $13.7 million, with cash and cash equivalents totaling $43.6 million at the end of the period[34]. - Evergy's cash and cash equivalents rose to $6.7 million as of September 30, 2025, compared to $3.7 million at the end of 2024, showing a significant increase of approximately 81.1%[41]. - Cash flows from operating activities increased to $866.3 million year-to-date in 2025, up from $801.6 million in 2024[51]. - Evergy's investments in early-stage clean energy companies were valued at $95.7 million as of September 30, 2025, down from $121.4 million on December 31, 2024[83]. Regulatory and Compliance - Evergy Kansas Central filed for a retail revenue increase of approximately $196 million, reflecting a return on equity of 10.5%[116]. - A unanimous settlement agreement resulted in an increase to retail revenues of $128 million for Evergy Kansas Central, effective October 2025[117]. - The KCC approved a $54.8 million increase in annual retail revenues for Evergy Kansas Central due to updated transmission costs effective May 2025[124]. - The EPA plans to end the Good Neighbor Rule for the 2015 Ozone NAAQS, which could materially impact Evergy Companies' operations and compliance costs[197]. - The EPA finalized the primary annual PM NAAQS, lowering it from 12.0 µg/m3 to 9.0 µg/m3, effective May 2024, potentially leading to significant compliance costs for Evergy Companies[198]. Dividends and Shareholder Returns - The company declared dividends on common stock of $0.6675 per share, totaling $153.6 million for the third quarter of 2025, consistent with the previous quarter[39]. - Evergy Kansas Central and Evergy Metro declared cash dividends of up to $50.0 million and $125.0 million, respectively, payable on or before December 18, 2025[96]. Debt and Financing - In March 2025, Evergy Kansas Central issued $300.0 million of 5.25% First Mortgage Bonds, maturing in 2035, to pay down commercial paper[149]. - In August 2025, Evergy Metro issued $400.0 million of 5.125% Mortgage Bonds, maturing in 2035, for general corporate purposes[149]. - Evergy's $2.5 billion master credit facility expires in 2028, with specific sublimits for each borrower[145]. - As of September 30, 2025, Evergy had drawn $1,230.7 million from its master credit facility, with a weighted average interest rate of 4.28%[148]. Operational Highlights - Evergy plans to construct two combined-cycle natural gas plants in Kansas, each with an initial generating capacity of approximately 705 MW, expected to begin operations by summer 2029 and summer 2030[100]. - Evergy Kansas Central intends to construct a 159 MW solar generation facility called Kansas Sky, expected to begin operations by summer 2027, pending regulatory approvals[102]. Risk Management - Evergy's risk management strategies include the use of derivative instruments to mitigate commodity price and interest rate risks[153][154]. - The aggregate fair value of derivative instruments with credit-risk-related contingent features in a liability position was $36.5 million, requiring an additional $32.6 million of collateral if triggered[172].

Core Viewpoint - Evergy, Inc. (EVRG) is expected to report its third-quarter 2025 results on November 6, with a prior earnings surprise of 7.89% in the last quarter [1] Factors Impacting Q3 Earnings - Ongoing investments in infrastructure and technology are likely to support Evergy's third-quarter earnings, addressing increasing customer demand [2] - Economic development within service areas is anticipated to lead to stronger demand, particularly from data centers [2] - The rise in demand from residential, commercial, and industrial customers is expected to positively influence earnings, although higher operating and maintenance expenses may negatively impact the bottom line [3] Q3 Expectations - The Zacks Consensus Estimate for earnings is projected at $2.14 per share, reflecting a year-over-year increase of 5.9% [4] - Revenue estimates stand at $1.87 billion, indicating a 3.4% increase from the previous year [4] Earnings Prediction Model - The current Earnings ESP for Evergy is 0.00%, indicating that the model does not predict an earnings beat this time [5] - Evergy holds a Zacks Rank of 2 (Buy), which typically suggests a favorable outlook [6] Comparable Stocks - Atmos Energy Corporation (ATO) is expected to report its fourth-quarter fiscal 2025 results on November 5, with an Earnings ESP of +4.85% and a Zacks Rank of 2 [7] - Duke Energy (DUK) is scheduled to report its third-quarter 2025 results on November 7, with an Earnings ESP of +1.63% and a Zacks Rank of 2 [10] - New Jersey Resources Corporation (NJR) is set to report its fourth-quarter fiscal 2025 results on November 19, with an Earnings ESP of +8.51% and a Zacks Rank of 3 [11]