Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.82 per share for Q2 2025, exceeding internal budget and overcoming approximately $0.09 of unfavorable weather impacts [6][26] - Year-over-year adjusted earnings decreased from $0.90 per share in Q2 2024 to $0.82 per share in Q2 2025, attributed to a 26% decrease in cooling degree days [26][27] - The company is on track for the midpoint of full-year 2025 adjusted EPS guidance of $3.92 to $4.12 per share [6][32] Business Line Data and Key Metrics Changes - The company achieved a 1.4% increase in weather-normalized demand in Q2 2025, driven by growth in residential and commercial usage [30] - The exit from the Evergy Ventures business resulted in losses of approximately $0.08 million in Q2 2025, with the remaining book value of these investments at approximately $100 million [28][29] Market Data and Key Metrics Changes - The company anticipates a peak demand of 1.1 gigawatts with 500 megawatts online by 2029, supporting an estimated demand forecast of 2% to 3% through 2029 [14][16] - The economic development pipeline includes a robust backlog of over 15 gigawatts, with significant interest from large customers in Kansas and Missouri [11][12] Company Strategy and Development Direction - The company reaffirms a long-term growth target of 4% to 6% through 2029, based on the 2025 midpoint of $4.2 per share [8][32] - The strategy focuses on affordability, reliability, and sustainability, with an emphasis on grid modernization and new generation resources [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of adjusted EPS guidance for 2025, citing strong operational execution and favorable economic conditions [32] - The company is well-positioned to attract new customers and investments, with ongoing discussions and settlements in regulatory proceedings [20][78] Other Important Information - The Kansas Corporation Commission approved settlement agreements for new natural gas plants and solar farms, reflecting a collaborative regulatory environment [7][19] - The company is committed to investing in infrastructure to support economic development and enhance service reliability for existing and new customers [21][24] Q&A Session Summary Question: Can you expand on the timing to derisk equity needs beyond 2025? - Management indicated no planned equity raise in 2025, with approximately $600 million per year needed in 2026 and 2027, and flexibility in accessing equity markets [41][42] Question: How would a lower ramp from Panasonic impact load growth? - Management stated that the current forecast includes only 2% to 3% load growth, with additional customers potentially increasing this to 4% to 5% [43][44] Question: How does the large load customer pipeline relate to tariff proceedings? - Management noted that while tariff proceedings are important, they are not gating items for customer projects, which are advancing in parallel [76][78] Question: Are the approved solar projects subject to additional federal permitting? - Management believes the approved solar projects will qualify under current rules, but will remain flexible to adapt to any new federal guidelines [85][87]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.82 per share for Q2 2025, exceeding internal budget and overcoming approximately $0.09 of unfavorable weather impacts [6][28] - Year-over-year adjusted earnings decreased from $0.90 per share in Q2 2024 to $0.82 per share in Q2 2025, primarily due to a 26% decrease in cooling degree days [28][29] - The company reaffirmed its full-year adjusted EPS guidance of $3.92 to $4.12 per share, with expectations to achieve the midpoint [6][33] Business Line Data and Key Metrics Changes - The company experienced a 1.4% increase in weather-normalized demand in Q2 2025, driven by growth in residential and commercial usage [31] - The exit from the Evergy Ventures business resulted in losses of approximately $0.08 million in Q2 2025, which are excluded from adjusted earnings [30] Market Data and Key Metrics Changes - The company anticipates a peak demand of 1.1 gigawatts with 500 megawatts online by 2029, supporting an estimated demand growth forecast of 2% to 3% through 2029 [15][32] - The economic development pipeline includes a robust backlog of over 15 gigawatts, with significant interest from large customers in Kansas and Missouri [12][13] Company Strategy and Development Direction - The company is committed to a long-term growth target of 4% to 6% through 2029, focusing on affordability, reliability, and sustainability [8][33] - The company aims to invest in grid modernization and new generation resources to support higher capacity margin requirements and accommodate load growth from potential large customers [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a balanced approach to meet customer demand and generation needs, emphasizing the importance of flexibility in operations [68] - The company highlighted the supportive regulatory environment in Kansas and Missouri as a key factor in attracting new customers and investments [20][24] Other Important Information - The company achieved several regulatory milestones, including approvals for new natural gas plants and solar farms in both Kansas and Missouri [7][19] - The Kansas Central rate case settlement, if approved, would provide a net revenue increase of $128 million and establish a mechanism for sharing excess earnings with customers [9][10] Q&A Session Summary Question: Can you expand on the timing to derisk equity needs beyond 2025? - Management indicated no planned equity raise in 2025, with approximately $600 million needed in 2026 and 2027, and flexibility in accessing equity markets [41][42] Question: How would a lower ramp from Panasonic impact load growth? - Management stated that the current forecast includes only 2% to 3% load growth, with additional customers potentially increasing this to 4% to 5% [44] Question: What factors influence the large load customer pipeline? - Management noted that both customer development timelines and the company's ability to process and serve are critical factors [49][51] Question: Is the 8.5% rate base growth inclusive of new gas plants and solar? - Management confirmed that the 8.5% reflects the rate base growth associated with the $17.5 billion capital plan, including some approved projects [58][62] Question: How does the company view federal permitting for renewable projects? - Management expressed confidence that approved solar projects will qualify under current regulations, while remaining flexible to adapt to evolving federal guidelines [81][83]

Core Viewpoint - Evergy Inc reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, but down from $0.90 per share a year ago, indicating a +7.89% earnings surprise [1][2] Group 1: Earnings Performance - The company surpassed consensus EPS estimates two times over the last four quarters [2] - Evergy's revenues for the quarter ended June 2025 were $1.44 billion, missing the Zacks Consensus Estimate by 1.93%, compared to $1.45 billion in the same quarter last year [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Group 2: Stock Performance - Evergy shares have increased approximately 19% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.16 on revenues of $1.85 billion, and for the current fiscal year, it is $4.00 on revenues of $5.96 billion [7] - The Zacks Industry Rank for Utility - Electric Power is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Second Quarter 2025 GAAP Earnings Per Share (EPS) was $0.74, while adjusted EPS was $0.82[19] - Second Quarter 2024 adjusted EPS was $0.90[17] - Year-to-date 2025 adjusted EPS was $1.37, compared to $1.44 in 2024[17] - The company reaffirmed its 2025 adjusted EPS guidance of $3.92 - $4.12 and a long-term adjusted EPS target of 4% to 6% off the 2025E midpoint of $4.02 through 2029E[19] Regulatory and Economic Development - A unanimous settlement agreement was filed for the Evergy Kansas Central Rate Review, projecting a $128 million net revenue increase[23] - The settlement utilizes a 9.7% Return on Equity (ROE) for transmission delivery charge filings and an 8.45% pre-tax rate of return for plant-in-service accounting (PISA) for future investments[23] - The economic development pipeline remains robust, representing over 15 gigawatts of incremental demand actively considering the service territories[27] - The company anticipates serving up to 4-6 GWs of new large load customers, with approximately 500 MW of peak demand expected by 2029 from actively building customers and a potential 600 MW from finalizing agreements[27, 28] Generation and Investment - The company is advancing an "all-of-the-above" generation strategy, including natural gas and solar projects, with a total capacity of 2,184 MW[36] - The company plans $17.5 billion in infrastructure investment from 2025E-2029E, implying an annualized rate base growth of approximately 8.5% from 2024E-2029E[56] Retail Sales Trends - Weather-normalized retail demand grew by 1.4% in the second quarter of 2025, with residential and commercial sectors growing by 1.3% and 2.6% respectively, while industrial declined by 0.9%[49]

[Evergy Second Quarter 2025 Financial Results](index=1&type=section&id=Evergy%20Second%20Quarter%202025%20Financial%20Results) Evergy's Q2 2025 financial results show a decrease in EPS, driven by weather and higher expenses, with reaffirmed full-year guidance [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Evergy reported a decline in Q2 2025 GAAP and adjusted EPS, declared a **$0.6675** dividend, and reaffirmed its full-year adjusted EPS guidance Q2 2025 vs Q2 2024 Earnings Per Share (EPS) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **GAAP EPS** | $0.74 | $0.90 | | **Adjusted EPS (non-GAAP)** | $0.82 | $0.90 | - A quarterly dividend of **$0.6675 per share** was declared by the Board of Directors[7](index=7&type=chunk)[8](index=8&type=chunk) - The company reaffirmed its 2025 adjusted (non-GAAP) EPS guidance range of **$3.92 to $4.12**[4](index=4&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) [Performance Analysis](index=1&type=section&id=Performance%20Analysis) Q2 2025 adjusted EPS decline was driven by unfavorable weather, higher O&M, interest, and depreciation, partially offset by regulated investment recovery and demand growth - Milder weather was a key negative driver, causing a **26% decrease** in cooling degree days compared to Q2 2024[3](index=3&type=chunk) - Earnings were also negatively impacted by higher operations and maintenance (O&M) expense, interest, and depreciation[3](index=3&type=chunk) - Partially offsetting factors included increased revenue from the recovery of regulated investments and growth in weather-normalized demand[3](index=3&type=chunk) [Management Commentary and Business Updates](index=1&type=section&id=Management%20Commentary%20and%20Business%20Updates) CEO David Campbell emphasized financial target delivery and customer service, noting a unanimous Kansas rate case settlement and approvals for new natural gas and solar projects - The company remains focused on delivering against its financial targets and serving its **1.7 million customers**[4](index=4&type=chunk) - A unanimous settlement agreement was announced in the Kansas Central rate case, which awaits approval from the Kansas Corporation Commission (KCC)[5](index=5&type=chunk) - Evergy received approval for new natural gas and solar projects in both Kansas and Missouri[5](index=5&type=chunk) [Financial Outlook and Guidance](index=1&type=section&id=Financial%20Outlook%20and%20Guidance) Evergy reaffirmed its 2025 adjusted EPS guidance of **$3.92 to $4.12** and its long-term annual adjusted EPS growth target of **4% to 6%** through 2029 - The 2025 adjusted EPS (non-GAAP) guidance is reaffirmed at a range of **$3.92 to $4.12**[6](index=6&type=chunk) - The long-term adjusted EPS (non-GAAP) annual growth target is reaffirmed at **4% to 6%** through 2029, based on the 2025 guidance midpoint of **$4.02**[6](index=6&type=chunk) - The company anticipates adjusted EPS growth to be in the **upper half of the 4% to 6% range** beginning in 2026[6](index=6&type=chunk) [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of **$0.6675 per share**, payable September 19, 2025, to shareholders of record on August 22, 2025 Quarterly Dividend Details | Detail | Information | | :--- | :--- | | **Dividend per Share** | $0.6675 | | **Record Date** | August 22, 2025 | | **Payment Date** | September 19, 2025 | [Reconciliation of GAAP to Non-GAAP Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Evergy reconciles GAAP to non-GAAP adjusted earnings by excluding items like mark-to-market impacts and investment losses, with Q2 2025 GAAP net income of **$171.3 million** adjusting to **$191.1 million** - Adjusted earnings (non-GAAP) are used by management to evaluate recurring earnings by excluding items like mark-to-market impacts of hedges and unrealized losses from certain investments[11](index=11&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) Reconciliation of Net Income to Adjusted Earnings (Unaudited, in millions) | Three Months Ended June 30 | 2025 | 2024 | | :--- | :--- | :--- | | **Net income attributable to Evergy, Inc. (GAAP)** | **$171.3** | **$207.0** | | Losses from investments, pre-tax | $25.4 | — | | Income tax benefit | ($5.6) | — | | **Adjusted earnings (non-GAAP)** | **$191.1** | **$207.0** | | **Diluted EPS (GAAP)** | **$0.74** | **$0.90** | | **Adjusted EPS (non-GAAP)** | **$0.82** | **$0.90** | Year-to-Date Reconciliation of Net Income to Adjusted Earnings (Unaudited, in millions) | Year to Date June 30 | 2025 | 2024 | | :--- | :--- | :--- | | **Net income attributable to Evergy, Inc. (GAAP)** | **$296.3** | **$329.7** | | Mark-to-market impact of JEC hedges, pre-tax | — | $2.6 | | Losses from investments, pre-tax | $29.0 | — | | Income tax benefit | ($6.4) | ($0.06) | | **Adjusted earnings (non-GAAP)** | **$318.9** | **$331.7** | | **Diluted EPS (GAAP)** | **$1.28** | **$1.43** | | **Adjusted EPS (non-GAAP)** | **$1.37** | **$1.44** | [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) This section outlines Evergy's corporate profile, forward-looking statement disclaimers, and investor and media contact information [About Evergy](index=4&type=section&id=About%20Evergy) Evergy, Inc. is an energy company serving **1.7 million customers** in Kansas and Missouri, with approximately **50%** of its power from carbon-free sources - Serves **1.7 million customers** in Kansas and Missouri[21](index=21&type=chunk) - Approximately **50%** of Evergy's power is derived from carbon-free sources[21](index=21&type=chunk) [Forward Looking Statements](index=4&type=section&id=Forward%20Looking%20Statements) This section cautions that forward-looking statements regarding strategic plans and financial targets are subject to risks like economic conditions and regulatory actions, and are not guarantees of future performance - Forward-looking statements regarding strategic plans, earnings goals, and future operations are not guarantees of future performance and involve risks[23](index=23&type=chunk) - Key risks include economic and weather conditions, regulatory actions, changes in electricity demand, and financial market volatility[24](index=24&type=chunk) - The company advises against placing undue reliance on these statements and directs investors to its SEC filings for a more comprehensive list of risk factors[26](index=26&type=chunk) [Investor and Media Contacts](index=5&type=section&id=Investor%20and%20Media%20Contacts) This section provides essential contact information for investor relations and media inquiries Contact Information | Department | Contact Person | Title | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | **Investor Relations** | Pete Flynn | Sr. Director, Investor Relations & Insurance | 816-652-1060 | Peter.Flynn@evergy.com | | **Media** | Gina Penzig | Director, Corporate Communications | 785-508-2410 | Gina.Penzig@evergy.com |

[Cautionary Statements Regarding Certain Forward-Looking Information](index=4&type=section&id=Cautionary%20Statements%20Regarding%20Certain%20Forward-Looking%20Information) This section outlines the forward-looking nature of statements, emphasizing that actual results may differ materially due to various risks and uncertainties - Forward-looking statements are subject to risks and uncertainties, including economic and weather conditions, regulatory actions, and changes in business strategy[14](index=14&type=chunk)[15](index=15&type=chunk) - Readers are advised to consider information in other SEC filings for additional risks and uncertainties[17](index=17&type=chunk) [Glossary of Terms](index=6&type=section&id=Glossary%20of%20Terms) This section provides a glossary of frequently used abbreviations and acronyms throughout the report to aid reader comprehension - The glossary defines common abbreviations and acronyms such as **AFUDC** (Allowance for funds used during construction), **EPS** (Earnings per common share), and **SPP** (Southwest Power Pool, Inc.)[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Part I - Financial Information](index=8&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., along with detailed notes [Evergy, Inc. Unaudited Consolidated Balance Sheets](index=8&type=section&id=Evergy%2C%20Inc.%20Unaudited%20Consolidated%20Balance%20Sheets) Evergy, Inc.'s consolidated balance sheets show a slight increase in total assets and liabilities as of June 30, 2025, with equity remaining stable **Consolidated Balance Sheet Highlights (Evergy, Inc.):** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $1,865.5 | $1,839.3 | +$26.2 | | Property, Plant and Equipment, Net | $25,409.8 | $24,930.9 | +$478.9 | | Total Other Assets | $5,636.0 | $5,511.9 | +$124.1 | | **TOTAL ASSETS** | **$32,911.3** | **$32,282.1** | **+$629.2** | | Total Current Liabilities | $3,709.6 | $3,662.4 | +$47.2 | | Total Long-Term Liabilities | $19,202.5 | $18,630.5 | +$572.0 | | Total Equity | $9,999.2 | $9,989.2 | +$10.0 | | **TOTAL LIABILITIES AND EQUITY** | **$32,911.3** | **$32,282.1** | **+$629.2** | [Evergy, Inc. Unaudited Consolidated Statements of Comprehensive Income](index=10&type=section&id=Evergy%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) Evergy, Inc.'s comprehensive income shows a significant decrease in net income and diluted EPS for the three months and year-to-date periods ended June 30, 2025 **Consolidated Statements of Comprehensive Income (Evergy, Inc.):** | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $1,437.0 | $1,447.5 | -$10.5 | $2,811.5 | $2,778.5 | +$33.0 | | Total Operating Expenses | $1,093.2 | $1,089.4 | +$3.8 | $2,176.1 | $2,160.2 | +$15.9 | | Income from Operations | $343.8 | $358.1 | -$14.3 | $635.4 | $618.3 | +$17.1 | | Net Income Attributable to Evergy, Inc. | $171.3 | $207.0 | **-$35.7** | $296.3 | $329.7 | **-$33.4** | | Basic Earnings Per Common Share | $0.74 | $0.90 | **-$0.16** | $1.29 | $1.43 | **-$0.14** | | Diluted Earnings Per Common Share | $0.74 | $0.90 | **-$0.16** | $1.28 | $1.43 | **-$0.15** | [Evergy, Inc. Unaudited Consolidated Statements of Cash Flows](index=11&type=section&id=Evergy%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Evergy, Inc.'s cash flow statements show increased operating cash flows, decreased investing cash usage, and decreased financing cash flows year-to-date June 30, 2025 **Consolidated Statements of Cash Flows (Evergy, Inc.):** | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $773.5 | $634.8 | **+$138.7** | | Cash Flows used in Investing Activities | $(1,235.4) | $(1,270.1) | **+$34.7** | | Cash Flows from Financing Activities | $467.0 | $643.1 | **-$176.1** | | Net Change in Cash, Cash Equivalents and Restricted Cash | $5.1 | $7.8 | -$2.7 | [Evergy, Inc. Unaudited Consolidated Statements of Changes in Equity](index=12&type=section&id=Evergy%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section details changes in Evergy, Inc.'s consolidated equity, highlighting movements from net income, common stock issuances, and dividends declared **Evergy, Inc. Shareholders' Equity:** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $7,258.1 | $7,245.9 | +$12.2 | | Retained Earnings | $2,721.8 | $2,732.9 | -$11.1 | | Accumulated Other Comprehensive Loss | $(21.1) | $(23.8) | +$2.7 | | Total Evergy, Inc. Shareholders' Equity | $9,958.8 | $9,955.0 | **+$3.8** | - **Net income** for the three months ended June 30, 2025, was **$171.3 million**, contributing to retained earnings[38](index=38&type=chunk) - **Dividends declared** on common stock were **$0.6675 per share** for the quarter ended June 30, 2025, totaling **$153.6 million**[38](index=38&type=chunk) [Evergy Kansas Central, Inc. Unaudited Consolidated Balance Sheets](index=14&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Unaudited%20Consolidated%20Balance%20Sheets) Evergy Kansas Central, Inc.'s balance sheets show an increase in total assets and equity, with decreased current liabilities and increased long-term liabilities **Consolidated Balance Sheet Highlights (Evergy Kansas Central, Inc.):** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $1,031.4 | $978.2 | +$53.2 | | Property, Plant and Equipment, Net | $13,162.4 | $12,880.1 | +$282.3 | | Total Other Assets | $1,231.7 | $1,150.8 | +$80.9 | | **TOTAL ASSETS** | **$15,425.5** | **$15,009.1** | **+$416.4** | | Total Current Liabilities | $1,643.9 | $2,028.1 | **-$384.2** | | Total Long-Term Liabilities | $8,272.3 | $7,696.1 | **+$576.2** | | Total Equity | $5,509.3 | $5,284.9 | **+$224.4** | | **TOTAL LIABILITIES AND EQUITY** | **$15,425.5** | **$15,009.1** | **+$416.4** | [Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Income](index=16&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Income) Evergy Kansas Central, Inc.'s income statements show a slight decrease in net income year-over-year, despite an increase in operating revenues **Consolidated Statements of Income (Evergy Kansas Central, Inc.):** | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $733.5 | $727.3 | +$6.2 | $1,442.6 | $1,420.5 | **+$22.1** | | Total Operating Expenses | $552.3 | $544.6 | +$7.7 | $1,087.6 | $1,074.5 | +$13.1 | | Income from Operations | $181.2 | $182.7 | -$1.5 | $355.0 | $346.0 | +$9.0 | | Net Income Attributable to Evergy Kansas Central, Inc. | $120.4 | $121.4 | **-$1.0** | $228.2 | $229.9 | **-$1.7** | [Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Cash Flows](index=17&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Evergy Kansas Central, Inc.'s cash flow statements show increased operating cash flows, increased investing cash usage, and slightly increased financing cash flows **Consolidated Statements of Cash Flows (Evergy Kansas Central, Inc.):** | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $388.9 | $347.9 | **+$41.0** | | Cash Flows used in Investing Activities | $(673.7) | $(629.7) | **-$44.0** | | Cash Flows from Financing Activities | $287.1 | $279.6 | **+$7.5** | | Net Change in Cash and Cash Equivalents | $2.3 | $(2.2) | **+$4.5** | [Evergy Kansas Central, Inc. Unaudited Consolidated Statements of Changes in Equity](index=18&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section details changes in Evergy Kansas Central, Inc.'s consolidated equity, showing an increase primarily due to net income, partially offset by dividends **Evergy Kansas Central, Inc. Shareholder's Equity:** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :----------------------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $2,737.6 | $2,737.6 | $0.0 | | Retained Earnings | $2,731.3 | $2,513.1 | **+$218.2** | | Total Evergy Kansas Central, Inc. Shareholder's Equity | $5,468.9 | $5,250.7 | **+$218.2** | - **Net income** for the three months ended June 30, 2025, was **$120.4 million**[52](index=52&type=chunk) - **Dividends declared** on common stock were **$10.0 million** for the year-to-date period ended March 31, 2025[52](index=52&type=chunk) [Evergy Metro, Inc. Unaudited Consolidated Balance Sheets](index=19&type=section&id=Evergy%20Metro%2C%20Inc.%20Unaudited%20Consolidated%20Balance%20Sheets) Evergy Metro, Inc.'s consolidated balance sheets show an increase in total assets, current liabilities, and equity, with a slight increase in long-term liabilities **Consolidated Balance Sheet Highlights (Evergy Metro, Inc.):** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total Current Assets | $714.9 | $701.5 | +$13.4 | | Property, Plant and Equipment, Net | $8,333.8 | $8,292.4 | +$41.4 | | Total Other Assets | $1,064.4 | $982.8 | +$81.6 | | **TOTAL ASSETS** | **$10,113.1** | **$9,976.7** | **+$136.4** | | Total Current Liabilities | $1,227.5 | $1,139.9 | **+$87.6** | | Total Long-Term Liabilities | $5,488.9 | $5,460.6 | +$28.3 | | Total Equity | $3,396.7 | $3,376.2 | **+$20.5** | | **TOTAL LIABILITIES AND EQUITY** | **$10,113.1** | **$9,976.7** | **+$136.4** | [Evergy Metro, Inc. Unaudited Consolidated Statements of Comprehensive Income](index=21&type=section&id=Evergy%20Metro%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) Evergy Metro, Inc.'s comprehensive income statements show a slight decrease in net income year-over-year, despite a slight increase in operating revenues year-to-date **Consolidated Statements of Comprehensive Income (Evergy Metro, Inc.):** | Metric | 3 Months Ended June 30, 2025 (millions) | 3 Months Ended June 30, 2024 (millions) | Change (millions) | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :-------------------------- | :-------------------------- | :---------------- | | Operating Revenues | $471.2 | $474.0 | -$2.8 | $898.9 | $894.9 | +$4.0 | | Total Operating Expenses | $358.1 | $351.2 | +$6.9 | $706.9 | $693.5 | +$13.4 | | Income from Operations | $113.1 | $122.8 | -$9.7 | $192.0 | $201.4 | -$9.4 | | Net Income | $68.8 | $74.6 | **-$5.8** | $105.7 | $107.3 | **-$1.6** | [Evergy Metro, Inc. Unaudited Consolidated Statements of Cash Flows](index=22&type=section&id=Evergy%20Metro%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Evergy Metro, Inc.'s cash flow statements show increased operating cash flows, decreased investing cash usage, and decreased financing cash flows **Consolidated Statements of Cash Flows (Evergy Metro, Inc.):** | Metric | YTD June 30, 2025 (millions) | YTD June 30, 2024 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash Flows from Operating Activities | $287.0 | $239.0 | **+$48.0** | | Cash Flows used in Investing Activities | $(323.0) | $(364.7) | **+$41.7** | | Cash Flows from Financing Activities | $37.1 | $125.0 | **-$87.9** | | Net Change in Cash and Cash Equivalents | $1.1 | $(0.7) | **+$1.8** | [Evergy Metro, Inc. Unaudited Consolidated Statements of Changes in Equity](index=23&type=section&id=Evergy%20Metro%2C%20Inc.%20Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section details changes in Evergy Metro, Inc.'s consolidated equity, showing an increase primarily due to net income, partially offset by dividends **Evergy Metro, Inc. Total Equity:** | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Common Stock | $1,563.1 | $1,563.1 | $0.0 | | Retained Earnings | $1,830.4 | $1,809.7 | **+$20.7** | | Accumulated Other Comprehensive Income | $3.2 | $3.4 | -$0.2 | | Total Equity | $3,396.7 | $3,376.2 | **+$20.5** | - **Net income** for the three months ended June 30, 2025, was **$68.8 million**[68](index=68&type=chunk) - **Dividends declared** on common stock were **$35.0 million** for the quarter ended June 30, 2025[68](index=68&type=chunk) [Combined Notes to Unaudited Consolidated Financial Statements](index=24&type=section&id=Combined%20Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides combined notes to the unaudited consolidated financial statements for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., detailing organizational structure, accounting policies, and significant financial disclosures [Note 1: Organization and Basis of Presentation](index=24&type=section&id=Note%201%3A%20Organization%20and%20Basis%20of%20Presentation) This note describes Evergy's organizational structure as a public utility holding company and details the basis of presentation for its financial statements - Evergy operates as a public utility holding company with subsidiaries Evergy Kansas Central, Evergy Metro, Evergy Missouri West, and Evergy Transmission Company[71](index=71&type=chunk)[75](index=75&type=chunk) - The Evergy Companies collectively have approximately **15,800 MWs** of owned generating capacity and renewable power purchase agreements, serving about **1.7 million customers** in Kansas and Missouri[73](index=73&type=chunk)[224](index=224&type=chunk) - Evergy plans to construct two combined-cycle natural gas plants in Kansas (**705 MW each**, operational by 2029/2030) and a **440 MW** simple-cycle natural gas plant in Missouri (operational by 2030)[101](index=101&type=chunk)[102](index=102&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Evergy Kansas Central intends to construct a **159 MW solar facility** (Kansas Sky) by summer 2027, and Evergy Missouri West plans two solar facilities (Sunflower Sky, **65 MW**; Foxtrot, **100 MW**) by summer 2027[103](index=103&type=chunk)[104](index=104&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) [Note 2: Revenue](index=31&type=section&id=Note%202%3A%20Revenue) This note disaggregates operating revenues by customer class for Evergy, Evergy Kansas Central, and Evergy Metro for the three months and year-to-date periods **Evergy Operating Revenues by Customer Class (YTD June 30, millions):** | Customer Class | 2025 | 2024 | Change | | :--------------- | :----- | :----- | :----- | | Residential | $1,001.8 | $1,015.7 | -$13.9 | | Commercial | $904.1 | $918.5 | -$14.4 | | Industrial | $305.5 | $335.1 | -$29.6 | | Wholesale | $139.8 | $144.3 | -$4.5 | | Transmission | $262.3 | $237.8 | **+$24.5** | | Other | $162.3 | $90.8 | **+$71.5** | | **Total Operating Revenues** | **$2,811.5** | **$2,778.5** | **+$33.0** | - Evergy Kansas Central's total operating revenues increased by **$22.1 million** year-to-date June 30, 2025, to **$1,442.6 million**, primarily driven by wholesale and transmission revenues[107](index=107&type=chunk) - Evergy Metro's total operating revenues increased by **$4.0 million** year-to-date June 30, 2025, to **$898.9 million**, with a significant decrease in wholesale revenue offset by increases in other revenues[108](index=108&type=chunk) [Note 3: Receivables](index=32&type=section&id=Note%203%3A%20Receivables) This note details the Evergy Companies' receivables, including customer accounts, other receivables, and the allowance for credit losses, and describes the sale of accounts receivable **Evergy Receivables, Net (millions):** | Category | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :-------------- | :---------------- | :----- | | Customer accounts receivable - unbilled | $248.0 | $108.4 | **+$139.6** | | Other receivables | $153.4 | $150.0 | +$3.4 | | Allowance for credit losses | $(12.7) | $(15.7) | **+$3.0** | | **Total Receivables, net** | **$390.8** | **$245.4** | **+$145.4** | - The **allowance for credit losses** for Evergy decreased from **$15.7 million** at December 31, 2024, to **$12.7 million** at June 30, 2025, due to write-offs exceeding credit loss expense and recoveries[113](index=113&type=chunk) - Evergy Kansas Central, Evergy Metro, and Evergy Missouri West extended their receivable sale facilities from November 2025 to April 2028[115](index=115&type=chunk) [Note 4: Rate Matters and Regulation](index=34&type=section&id=Note%204%3A%20Rate%20Matters%20and%20Regulation) This note outlines significant regulatory proceedings and rate matters affecting the Evergy Companies, including rate cases and predetermination applications - Evergy Kansas Central reached a unanimous settlement for its 2025 Rate Case, providing a **$128.0 million increase** to retail revenues, effective September 29, 2025, subject to KCC approval[118](index=118&type=chunk)[226](index=226&type=chunk) - The KCC approved Evergy Kansas Central's predetermination for natural gas plant investments, allowing a CWIP rider one year after construction begins, and for the Kansas Sky solar investment, allowing recovery through a levelized revenue requirement[121](index=121&type=chunk)[123](index=123&type=chunk) - The MPSC approved Evergy Missouri West's CCN requests for planned renewable and natural gas plant investments, establishing their prudency and allowing the use of SB 4 CWIP inclusion and PISA[129](index=129&type=chunk)[130](index=130&type=chunk) [Note 5: Goodwill](index=36&type=section&id=Note%205%3A%20Goodwill) This note discusses Evergy's annual goodwill impairment test, conducted as of May 1, 2025, which indicated no impairment - Evergy's goodwill, totaling **$2,336.6 million**, was tested for impairment as of May 1, 2025[133](index=133&type=chunk) - The fair value of the reporting unit (Evergy's consolidated operations) exceeded its carrying amount, resulting in **no impairment of goodwill**[133](index=133&type=chunk) [Note 6: Pension Plans and Post-Retirement Benefits](index=37&type=section&id=Note%206%3A%20Pension%20Plans%20and%20Post-Retirement%20Benefits) This note details the Evergy Companies' participation in defined benefit pension plans and post-retirement benefits, providing components of net periodic benefit costs and expected contributions - Evergy, Evergy Kansas Central, and Evergy Metro participate in qualified non-contributory defined benefit pension plans and provide post-retirement benefits[136](index=136&type=chunk)[138](index=138&type=chunk) **Net Periodic Benefit Costs (YTD June 30, 2025, millions):** | Entity | Pension Benefits | Post-Retirement Benefits | | :-------------------- | :--------------- | :----------------------- | | Evergy | $24.7 | $(1.9) | | Evergy Kansas Central | $6.4 | $(0.6) | | Evergy Metro | $16.8 | $(1.0) | - Evergy expects to make additional cash pension contributions of **$24.4 million** in 2025, with **$8.6 million** from Evergy Kansas Central and **$15.8 million** from Evergy Metro[144](index=144&type=chunk) [Note 7: Short-Term Borrowings and Short-Term Bank Lines of Credit](index=39&type=section&id=Note%207%3A%20Short-Term%20Borrowings%20and%20Short-Term%20Bank%20Lines%20of%20Credit) This note describes the Evergy Companies' **$2.5 billion** master credit facility, its expiration in 2028, and compliance with debt covenants - Evergy Companies have a **$2.5 billion master credit facility** expiring in 2028, with specific sublimits for each borrower[146](index=146&type=chunk) **Committed Credit Facilities (June 30, 2025, millions):** | Entity | Master Credit Facility | Commercial Paper | Available Borrowings Capacity | Weighted Average Interest Rate | | :-------------------- | :--------------------- | :--------------- | :---------------------------- | :----------------------------- | | Evergy, Inc. | $500.0 | $341.5 | **$157.8** | **4.57%** | | Evergy Kansas Central | $900.0 | $502.2 | **$396.8** | **4.57%** | | Evergy Metro | $600.0 | $305.9 | **$293.0** | **4.57%** | | Evergy Missouri West | $500.0 | $273.6 | **$226.4** | **4.75%** | | **Total Evergy** | **$2,500.0** | **$1,423.2** | **$1,074.0** | | - As of June 30, 2025, Evergy, Evergy Kansas Central, Evergy Metro, and Evergy Missouri West were in compliance with all debt covenants, including a total indebtedness to total capitalization ratio not greater than **0.65 to 1.00**[147](index=147&type=chunk)[278](index=278&type=chunk) [Note 8: Long-Term Debt](index=39&type=section&id=Note%208%3A%20Long-Term%20Debt) This note details recent long-term debt issuances by Evergy Kansas Central and remarketing of pollution control bonds by Evergy Metro - In March 2025, Evergy Kansas Central issued **$300.0 million** of **5.25% First Mortgage Bonds** maturing in 2035 and **$300.0 million** of **4.70% Notes** maturing in 2028[150](index=150&type=chunk)[151](index=151&type=chunk) - In July 2025, Evergy Metro remarketed **$23.4 million** of its Series 2008 EIRR bonds, maturing in 2038, at a fixed rate of **4.05%** through June 2030[152](index=152&type=chunk) [Note 9: Derivative Instruments](index=40&type=section&id=Note%209%3A%20Derivative%20Instruments) This note explains the Evergy Companies' use of derivative instruments to manage market risks associated with electricity, natural gas, and interest rates - Evergy Companies use derivative instruments to manage commodity price volatility (electricity, natural gas) and interest rate fluctuations, and for non-regulated energy marketing[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) **Evergy's Total Derivative Assets and Liabilities (June 30, 2025, millions):** | Category | Assets | Liabilities | | :-------------------- | :----- | :---------- | | Total Derivative Assets | **$64.5** | | | Total Derivative Liabilities | | **$65.4** | - As of June 30, 2025, Evergy's and Evergy Kansas Central's maximum exposure to credit risk from derivative assets was **$35.0 million**, with a potential loss of **$25.9 million** after netting arrangements and collateral[165](index=165&type=chunk) [Note 10: Fair Value Measurements](index=44&type=section&id=Note%2010%3A%20Fair%20Value%20Measurements) This note outlines the hierarchical framework for fair value measurements and provides tables summarizing the fair values of financial assets and liabilities - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than quoted prices), **Level 3** (significant unobservable inputs), and **NAV** (investments without readily determinable fair value)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) **Evergy Long-Term Debt Fair Value (June 30, 2025, millions):** | Entity | Book Value | Fair Value | | :----- | :--------- | :--------- | | Evergy | $13,050.5 | $12,437.6 | | Evergy Kansas Central | $5,178.9 | $4,707.1 | | Evergy Metro | $3,224.6 | $3,016.8 | - Evergy's nuclear decommissioning trust assets totaled **$929.8 million** as of June 30, 2025, with **$72.5 million** measured at NAV[177](index=177&type=chunk)[179](index=179&type=chunk) [Note 11: Commitments and Contingencies](index=50&type=section&id=Note%2011%3A%20Commitments%20and%20Contingencies) This note details environmental matters and legal proceedings that could impact the Evergy Companies, including regulations related to ozone, particulate matter, and greenhouse gases - The EPA's proposed and final rules on Ozone NAAQS, ITFIPs, and Regional Haze Rule could materially impact Evergy Companies' operations and compliance costs, with ongoing litigation and reconsideration plans[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - New GHG regulations from the EPA, including CO2 limitations for power plants and potential CCS requirements, are under reconsideration and judicial review, posing material compliance cost risks[197](index=197&type=chunk) - Lawsuits were filed against Evergy Metro alleging damages from CCRs associated with Montrose Station, and a nuclear antitrust class action was filed against Wolf Creek Nuclear Operating Corporation, in which Evergy has a **94% indirect ownership**[202](index=202&type=chunk)[203](index=203&type=chunk) [Note 12: Related Party Transactions and Relationships](index=54&type=section&id=Note%2012%3A%20Related%20Party%20Transactions%20and%20Relationships) This note describes related party transactions among Evergy Kansas Central, Evergy Metro, and Evergy Missouri West, including jointly-owned plants, shared services, and money pool arrangements - Evergy Kansas Central, Evergy Metro, and Evergy Missouri West engage in related party transactions for jointly-owned plants and shared services[204](index=204&type=chunk)[205](index=205&type=chunk) **Operating Expenses and Capital Costs Billed for Jointly-Owned Plants and Shared Services (YTD June 30, 2025, millions):** | Billing Entity | To Evergy Missouri West | To Evergy Metro | To Evergy Kansas Central | | :----------------------------- | :---------------------- | :-------------- | :----------------------- | | Evergy Kansas Central | $69.6 | | $26.5 | | Evergy Metro | $55.2 | | $68.1 | - Evergy Kansas Central and Evergy Metro had **no outstanding receivables or payables** under the Evergy, Inc. money pool as of June 30, 2025[211](index=211&type=chunk) [Note 13: Taxes](index=55&type=section&id=Note%2013%3A%20Taxes) This note provides the effective income tax rates for Evergy, Evergy Kansas Central, and Evergy Metro, detailing the reasons for differences from the statutory federal rates **Effective Income Tax Rates (YTD June 30, 2025):** | Entity | Federal Statutory Rate | Effective Income Tax Rate | | :-------------------- | :--------------------- | :------------------------ | | Evergy | **21.0%** | **6.1%** | | Evergy Kansas Central | **21.0%** | **4.5%** | | Evergy Metro | **21.0%** | **13.4%** | - Key factors causing differences from the federal statutory rate include COLI policies, state income taxes, flow-through depreciation, and federal tax credits[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Note 14: Segment Information](index=57&type=section&id=Note%2014%3A%20Segment%20Information) This note states that Evergy operates in a single reportable segment, with performance assessed based on consolidated net income attributable to Evergy, Inc - Evergy's chief operating decision maker assesses performance and allocates resources on a consolidated basis, meaning Evergy operates in a **single reportable segment**[218](index=218&type=chunk)[224](index=224&type=chunk) **Evergy Operating Revenues and Net Income Attributable to Evergy, Inc. (YTD June 30, millions):** | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Operating Revenues | $2,811.5 | $2,778.5 | +$33.0 | | Net Income Attributable to Evergy, Inc. | $296.3 | $329.7 | **-$33.4** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a combined MD&A for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., covering executive summaries, results of operations, and liquidity and capital resources [Evergy, Inc. Executive Summary](index=58&type=section&id=Evergy%2C%20Inc.%20Executive%20Summary) This executive summary provides an overview of Evergy's business, recent regulatory developments, new legislation, planned investments, and an earnings overview - Evergy Kansas Central's 2025 Rate Case resulted in a unanimous settlement for a **$128.0 million retail revenue increase**, pending KCC approval, effective September 29, 2025[226](index=226&type=chunk) - Missouri SB 4 allows electric utilities to recover costs for new natural gas-fired generating units by including **Construction Work in Progress (CWIP)** in the rate base and extends **Plant-In-Service Accounting (PISA)** provisions[229](index=229&type=chunk)[230](index=230&type=chunk) - Kansas HB 2107 establishes a **two-year statute of limitations** and a **$5.0 million punitive damages limit** for wildfire-related claims against Kansas electric utilities[231](index=231&type=chunk) - Evergy plans significant investments in natural gas plants (two **705 MW** combined-cycle in Kansas, one **440 MW** simple-cycle in Missouri) and solar facilities (**159 MW** Kansas Sky, **65 MW** Sunflower Sky, **100 MW** Foxtrot), with regulatory approvals secured for most[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) **Evergy, Inc. Earnings Overview (YTD June 30, millions, except EPS):** | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Net income attributable to Evergy, Inc. | $296.3 | $329.7 | **-$33.4** | | Diluted Earnings Per Common Share | $1.28 | $1.43 | **-$0.15** | [Evergy, Inc. Results of Operations](index=63&type=section&id=Evergy%2C%20Inc.%20Results%20of%20Operations) This section provides a detailed comparative analysis of Evergy's operating results, including revenues, expenses, and gross margin, for the three months and year-to-date periods **Evergy Operating Revenues and Expenses (YTD June 30, millions):** | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $2,811.5 | $2,778.5 | +$33.0 | | Fuel and purchased power | $685.7 | $735.4 | **-$49.7** | | SPP network transmission costs | $211.3 | $172.7 | **+$38.6** | | Operating and maintenance | $487.1 | $469.2 | +$17.9 | | Depreciation and amortization | $576.5 | $556.2 | +$20.3 | | Taxes other than income tax | $215.5 | $226.7 | -$11.2 | | Income from operations | $635.4 | $618.3 | +$17.1 | | Interest expense | $306.3 | $276.8 | **+$29.5** | | Net income attributable to Evergy, Inc. | $296.3 | $329.7 | **-$33.4** | - Evergy's utility gross margin (non-GAAP) increased by **$44.1 million** year-to-date June 30, 2025, driven by new Evergy Missouri West retail rates and higher transmission revenue, partially offset by lower retail sales due to unfavorable weather[264](index=264&type=chunk) - Other income (expense), net, shifted from a net income of **$5.3 million** in YTD 2024 to a net expense of **$10.4 million** in YTD 2025, primarily due to **$29.0 million** in unrealized losses and impairment losses from non-regulated investments[259](index=259&type=chunk)[269](index=269&type=chunk) [Evergy, Inc. Liquidity and Capital Resources](index=67&type=section&id=Evergy%2C%20Inc.%20Liquidity%20and%20Capital%20Resources) This section discusses Evergy's primary sources of liquidity and capital requirements, covering short-term borrowing capacity, debt issuances, credit ratings, pension contributions, and cash flow changes - Evergy relies on cash from operations, short-term borrowings, long-term debt, and equity issuances to fund capital requirements, which include capital expenditures, contractual obligations, and dividends[271](index=271&type=chunk) - As of June 30, 2025, Evergy had **$1,074.0 million** of available borrowing capacity under its **$2.5 billion master credit facility**[272](index=272&type=chunk)[149](index=149&type=chunk) - Cash flows from operating activities increased by **$138.7 million** year-to-date June 30, 2025, primarily due to increased cash receipts from retail electric sales and decreased payments for a Wolf Creek refueling outage[281](index=281&type=chunk) - Cash flows from financing activities decreased by **$176.1 million** year-to-date June 30, 2025, mainly due to a **$327.3 million decrease** in proceeds from long-term debt, net, partially offset by a **$197.7 million increase** in short-term debt borrowings[282](index=282&type=chunk) [Evergy Kansas Central, Inc. Management's Narrative Analysis of Results of Operations](index=69&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Management%27s%20Narrative%20Analysis%20of%20Results%20of%20Operations) This section provides a narrative analysis of Evergy Kansas Central's results of operations, including changes in operating revenues, expenses, and gross margin **Evergy Kansas Central Operating Revenues and Expenses (YTD June 30, millions):** | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $1,442.6 | $1,420.5 | +$22.1 | | Fuel and purchased power | $244.0 | $262.6 | **-$18.6** | | SPP network transmission costs | $211.3 | $172.7 | **+$38.6** | | Operating and maintenance | $229.2 | $233.6 | -$4.4 | | Depreciation and amortization | $286.3 | $279.7 | +$6.6 | | Taxes other than income tax | $116.8 | $125.9 | -$9.1 | | Income from operations | $355.0 | $346.0 | +$9.0 | | Interest expense | $120.4 | $114.0 | +$6.4 | | Net income attributable to Evergy Kansas Central, Inc. | $228.2 | $229.9 | **-$1.7** | - Evergy Kansas Central's utility gross margin (non-GAAP) increased by **$2.1 million** year-to-date June 30, 2025, driven by increased transmission revenue, partially offset by lower retail sales due to unfavorable weather and the Kansas property tax rider[288](index=288&type=chunk) - Operating and maintenance expense decreased by **$4.4 million**, primarily due to an **$8.2 million decrease** in plant operating and maintenance expense at fossil-fuel generating facilities, mainly at JEC due to a major maintenance outage in 2024[289](index=289&type=chunk) [Evergy Metro, Inc. Management's Narrative Analysis of Results of Operations](index=72&type=section&id=Evergy%20Metro%2C%20Inc.%20Management%27s%20Narrative%20Analysis%20of%20Results%20of%20Operations) This section provides a narrative analysis of Evergy Metro's results of operations, including changes in operating revenues, expenses, and gross margin **Evergy Metro Operating Revenues and Expenses (YTD June 30, millions):** | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Operating revenues | $898.9 | $894.9 | +$4.0 | | Fuel and purchased power | $282.6 | $282.1 | +$0.5 | | Operating and maintenance | $149.1 | $135.5 | **+$13.6** | | Depreciation and amortization | $204.0 | $202.4 | +$1.6 | | Taxes other than income tax | $71.2 | $73.5 | -$2.3 | | Income from operations | $192.0 | $201.4 | -$9.4 | | Interest expense | $70.5 | $76.0 | -$5.5 | | Net income | $105.7 | $107.3 | **-$1.6** | - Evergy Metro's utility gross margin (non-GAAP) increased by **$3.5 million** year-to-date June 30, 2025, primarily due to higher retail sales driven by increased retail pricing, despite unfavorable weather[297](index=297&type=chunk) - Operating and maintenance expense increased by **$13.6 million**, primarily due to a **$7.1 million increase** in general and administrative labor and employee benefits expense and a **$4.3 million increase** in plant operating and maintenance expense at fossil-fuel generating facilities, mainly at Iatan Station due to a major maintenance outage in 2025[298](index=298&type=chunk)[300](index=300&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that Evergy's exposure to market risk has not materially changed since December 31, 2024, and refers readers to the annual report for detailed disclosures - Evergy's exposure to market risk has **not materially changed** since December 31, 2024[303](index=303&type=chunk) - Risks include non-financial and non-quantifiable factors such as business, legal, operational, and credit risks[302](index=302&type=chunk) [Item 4. Controls and Procedures](index=74&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that Evergy, Evergy Kansas Central, and Evergy Metro's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Evergy, Evergy Kansas Central, and Evergy Metro's disclosure controls and procedures were **effective** at a reasonable assurance level as of June 30, 2025[304](index=304&type=chunk)[307](index=307&type=chunk)[309](index=309&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025, for any of the registrants[305](index=305&type=chunk)[308](index=308&type=chunk)[310](index=310&type=chunk) [Part II - Other Information](index=74&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=74&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Notes 4 and 11 of the consolidated financial statements for information regarding material lawsuits and regulatory proceedings - Information on material lawsuits and regulatory proceedings is incorporated by reference from **Notes 4 and 11** to the consolidated financial statements[311](index=311&type=chunk) [Item 1A. Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K for Evergy, Evergy Kansas Central, and Evergy Metro - **No material changes** to risk factors have occurred since the filing of the 2024 Form 10-K for Evergy, Evergy Kansas Central, and Evergy Metro[313](index=313&type=chunk) - The business is influenced by many unpredictable factors and uncertainties that may materially affect actual results[312](index=312&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on Evergy's purchases of its equity securities during the three months ended June 30, 2025, specifically shares purchased for withholding taxes related to RSU vesting - Evergy purchased **451 shares** of its equity securities at an average price of **$69.25 per share** during May 2025[315](index=315&type=chunk) - These purchases were for withholding taxes related to the vesting of Restricted Share Units (RSUs)[315](index=315&type=chunk) [Item 3. Defaults Upon Senior Securities](index=76&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there are no defaults upon senior securities to report - **No defaults** upon senior securities are reported[316](index=316&type=chunk) [Item 4. Mine Safety Disclosures](index=76&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the registrant - Mine safety disclosures are **not applicable** to the registrant[317](index=317&type=chunk) [Item 5. Other Information](index=76&type=section&id=Item%205.%20Other%20Information) This section provides information on where to access SEC filings and other company information, including the SEC's website and Evergy Companies' investor relations website - SEC filings and other information for Evergy Companies are available on **sec.gov** and **http://investors.evergy.com**[318](index=318&type=chunk) - Material financial information is communicated through SEC filings, press releases, public conference calls, and the Investor Relations section of the company website[319](index=319&type=chunk) [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the SEC, including certifications, XBRL documents, and other related materials - The exhibits include **Rule 13a-14(a)/15d-14(a) Certifications** and **Section 1350 Certifications** from David A. Campbell and W. Bryan Buckler for Evergy, Evergy Metro, and Evergy Kansas Central[321](index=321&type=chunk) - **XBRL Instance Document**, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Labels Linkbase, and Presentation Linkbase Documents are included[321](index=321&type=chunk) [Signatures](index=79&type=section&id=Signatures) This section contains the signatures of the authorized officer for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc., certifying the filing of the report - The report is signed by **W. Bryan Buckler**, Executive Vice President and Chief Financial Officer, on behalf of Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc.[328](index=328&type=chunk)

Core Viewpoint - Evergy (EVRG) is expected to report its second-quarter 2025 results on August 7, following a significant negative earnings surprise of 181.8% in the previous quarter [1][9]. Group 1: Factors Impacting Q2 Earnings - Continued investments in grid modernization and efforts to enhance service reliability are anticipated to positively influence Evergy's second-quarter earnings [2]. - The company's earnings are likely to benefit from energy efficiency programs and cost-saving initiatives [2]. - Economic development within Evergy's service territories has driven increased demand, particularly from data centers, which is expected to support earnings [3]. Group 2: Q2 Earnings Expectations - The Zacks Consensus Estimate for Evergy's earnings is set at 77 cents per share, reflecting a year-over-year decrease of 14.4% [4]. - Revenue expectations are pegged at $1.47 billion, indicating a 1.23% increase from the same period last year [4]. Group 3: Earnings Prediction Model - The current model does not predict an earnings beat for Evergy, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5][6].

Core Viewpoint - Evergy, Inc. (EVRG) is expanding its operations in the transmission market through strategic partnerships and acquisitions while focusing on renewable energy assets to enhance performance [1][8] Group 1: Expansion and Investments - Evergy has initiated expansion through partnerships, systematic acquisitions, and collaborations, including a joint venture named Transource Energy aimed at developing competitive transmission projects across the U.S. [2] - The company plans to invest $2.34 billion in infrastructure modernization in 2024 and targets nearly $17.5 billion in capital investments from 2025 to 2029, with around $6.17 billion allocated for new renewable generation [3] - Evergy is actively developing renewable projects with a total capacity of 800 megawatts (MW), with 500 MW included in its demand forecast, and is securing agreements for 1.3 gigawatts (GW) from data center projects [4] Group 2: Challenges and Risks - The company faces risks from potential failures of old equipment, which could lead to unplanned outages and increased costs for purchasing power to meet sales obligations [5] - Seasonal electricity sales and changing weather conditions significantly impact Evergy's performance, as mild seasons can reduce electricity demand [6] Group 3: Stock Performance - Over the past six months, Evergy's stock has increased by 8.9%, outperforming the industry growth of 5.7% [7]

Group 1 - Evergy Inc (EVRG) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while OGE Energy (OGE) has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - EVRG has a forward P/E ratio of 16.32 and a PEG ratio of 2.86, while OGE has a forward P/E of 19.23 and a PEG ratio of 3.04 [5] Group 2 - EVRG's P/B ratio is 1.52, compared to OGE's P/B ratio of 1.91, indicating a better valuation relative to book value [6] - Based on the analysis, EVRG earns a Value grade of B, while OGE receives a Value grade of C, suggesting that EVRG is the more attractive option for value investors [6]

Core Insights - The article highlights the reputation of Brad Thomas as a leading figure in the REIT sector, emphasizing his expertise and the trust he has built over the years [1] Group 1 - Brad Thomas is recognized as the 1 ranked REIT analyst on Seeking Alpha, indicating his high standing in the industry [1] - The article mentions that his writings are well-received, with readers suggesting that his insights should be included in educational curricula [1] - Thomas has established a trusted brand in the REIT sector, making him a go-to source for information and investment ideas [1]