Financial Performance - Operating revenues for Q1 2025 increased to $1,374.5 million, up 3.4% from $1,331.0 million in Q1 2024[31]. - Net income attributable to Evergy, Inc. for Q1 2025 was $125.0 million, a 2.0% increase from $122.7 million in Q1 2024[31]. - Basic earnings per share for Q1 2025 was $0.54, compared to $0.53 in Q1 2024, indicating a growth of 1.9%[31]. - Comprehensive income attributable to Evergy, Inc. for Q1 2025 was $126.4 million, compared to $124.0 million in Q1 2024, reflecting a 1.9% increase[31]. - Total operating revenues for Q1 2025 were $709.1 million, an increase of 2.7% from $693.2 million in Q1 2024[45]. - Net income attributable to Evergy Kansas Central, Inc. for Q1 2025 was $107.8 million, slightly down from $108.5 million in Q1 2024[45]. - Total operating revenues for Evergy increased to $1,374.5 million in Q1 2025, up from $1,331.0 million in Q1 2024, representing a growth of 3.2%[1]. - Evergy Kansas Central's total revenue from contracts with customers rose to $707.0 million in Q1 2025, compared to $688.8 million in Q1 2024, marking an increase of 2.5%[1]. - Evergy Metro's total electric retail revenue increased to $369.2 million in Q1 2025, up from $361.6 million in Q1 2024, reflecting a growth of 2.2%[2]. Assets and Liabilities - Total assets increased to $32,454.2 million as of March 31, 2025, compared to $32,282.1 million on December 31, 2024, reflecting a growth of 0.53%[25]. - Current assets totaled $1,834.4 million, slightly down from $1,839.3 million, indicating a decrease of 0.24%[25]. - Total current liabilities decreased to $3,314.4 million in Q1 2025 from $3,662.4 million in Q4 2024, reflecting a reduction of 9.5%[28]. - Long-term debt increased to $12,405.5 million in Q1 2025, up from $11,809.2 million in Q4 2024, representing a rise of 5.0%[28]. - Total liabilities increased to $9,768.9 million as of March 31, 2025, compared to $9,724.2 million as of December 31, 2024[42]. - Total equity as of March 31, 2025, was $9,967.9 million, slightly down from $9,989.2 million as of December 31, 2024[28]. - Total long-term liabilities rose to $8,272.2 million as of March 31, 2025, compared to $7,696.1 million as of December 31, 2024[42]. Cash Flow - Cash flows from operating activities for Q1 2025 were $449.6 million, significantly higher than $317.3 million in Q1 2024, marking an increase of 41.6%[34]. - Cash flows from operating activities increased to $299.8 million in Q1 2025, compared to $231.6 million in Q1 2024[47]. - Cash dividends paid in Q1 2025 amounted to $50.0 million[64]. - Evergy's total cash, cash equivalents, and restricted cash increased to $52.2 million as of March 31, 2025, compared to $29.9 million as of December 31, 2024, reflecting a growth of 74.5%[75]. Regulatory and Compliance - The Missouri S.B. 4 legislation allows electric utilities to recover costs associated with new natural gas-fired generating units, including certain construction costs in the rate base, effective until the end of 2035[88]. - The EPA's proposed rule to disapprove the Ozone Interstate Transport State Implementation Plans (ITSIPs) could have a material impact on Evergy's operations and compliance costs[174]. - The final rule lowering the primary annual PM NAAQS from 12.0 µg/m3 to 9.0 µg/m3 could result in significant compliance costs for Evergy[177]. - The EPA's final GHG regulations and guidelines may impose material compliance costs on Evergy, with ongoing judicial reviews affecting implementation[183]. - Evergy's operations are believed to be in substantial compliance with current federal, state, and local environmental standards, but potential changes in regulations could impact financial results[172]. - The Evergy Companies are unable to accurately assess the impact of environmental contingencies due to evolving laws and regulations, which could result in material costs[173]. - The Kansas ITSIP was previously approved in April 2022, but the EPA's recent proposal to disapprove it could have significant implications for Evergy's operations[175]. Investments and Future Plans - 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 in summer 2029 and summer 2030[91]. - Evergy Kansas Central intends to build a 159 MW solar generation facility called Kansas Sky, expected to begin operations by summer 2027, pending regulatory approvals[94]. - Evergy Kansas Central filed for a retail revenue increase of approximately $196 million, with a return on equity of 10.5%, expected to be effective in September 2025[4]. - Evergy Kansas Central's new transmission delivery charge is projected to increase annual retail revenues by $55.9 million compared to 2024, effective May 2025[4]. - Evergy Kansas Central's planned investments in renewable energy projects are awaiting final orders from the KCC, expected in July 2025[4]. Derivative Instruments and Risk Management - Evergy's commodity risk management activities utilize derivative instruments to mitigate the effects of fluctuations in wholesale sales and fuel costs[137]. - Evergy's total derivative assets decreased from $87.4 million as of December 31, 2024, to $82.3 million as of March 31, 2025, reflecting a decline of approximately 6.0%[146]. - The total derivative liabilities also decreased from $75.7 million to $71.2 million, a reduction of about 6.0%[146]. - The maximum exposure related to derivative assets due to counterparty non-performance was $32.9 million as of March 31, 2025[150]. - The potential loss after considering netting arrangements and collateral received was $20.0 million for Evergy and Evergy Kansas Central combined[150]. Environmental and Legal Matters - Two lawsuits were filed against Evergy Metro in January 2025 regarding alleged damages from the Montrose Station coal ash landfill, but the company believes the claims are without merit[187]. - Evergy's asset retirement obligations (AROs) may require future revisions due to new regulatory evaluations, which could materially impact operations and financial results[186].

Core Viewpoint - The market anticipates Evergy Inc (EVRG) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus EPS estimate of $0.66, reflecting a +22.2% change, and revenues expected to reach $1.41 billion, up 6.2% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for May 8, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 0.53% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Evergy is higher than the consensus estimate, resulting in an Earnings ESP of +1.52%, suggesting a strong likelihood of beating the consensus EPS estimate [10][11]. - The stock currently holds a Zacks Rank of 2, further supporting the expectation of an earnings beat [11]. Historical Performance - In the last reported quarter, Evergy was expected to post earnings of $0.36 per share but delivered $0.35, resulting in a surprise of -2.78% [12]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [13]. Industry Context - Centuri Holdings (CTRI), another player in the electric utility sector, is expected to report a loss of $0.16 per share for the same quarter, indicating a year-over-year change of +99.9%, with revenues projected at $530.54 million, up 0.5% [17]. - Despite a 33.3% downward revision in the consensus EPS estimate for Centuri, a higher Most Accurate Estimate has led to an Earnings ESP of 25.00%, suggesting a likely earnings beat [18].

Core Insights - Consistency is emphasized as the most important factor in dividend growth investing [1] Group 1 - The author has been investing since September 2017 and has a long-standing interest in dividend investing since 2009 [1] - The blog "Kody's Dividends" documents the journey towards financial independence through dividend growth investing [1] - The author expresses gratitude for the blog's role in connecting with the Seeking Alpha community as an analyst [1] Group 2 - The author holds a beneficial long position in shares of GOOGL and META through various means [1] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [1]

Core Viewpoint - The stock market is experiencing significant declines, reminiscent of the COVID-19 sell-off in 2020, with a looming global trade war and increased recession probabilities due to President Trump's new tariffs [1]. Group 1: Company Analysis - Kroger - Kroger's stock has risen approximately 14% despite the overall market downturn, indicating resilience [3]. - The company acknowledges potential tariff impacts, particularly on its produce business, but expects only a mid-single-digit percentage effect [4]. - Kroger is likely to perform well even in a recession, as grocery shopping remains essential, potentially increasing sales of its private-label products [5]. - Management expresses a proactive approach to tariffs, viewing them as an opportunity rather than a significant threat [6]. Group 2: Company Analysis - Evergy - Evergy, a utility company serving 1.7 million customers, has shown gains this year and is well-positioned amidst new tariffs [7]. - The company has a market cap of approximately $15.7 billion and a projected net income of $873.5 million for 2024, with a robust backlog of growth opportunities [8]. - There was no mention of tariffs in Evergy's earnings call, suggesting minimal impact from trade policies, and the company is expected to continue providing dividends with a yield over 3.8% [9]. Group 3: Company Analysis - Vertex Pharmaceuticals - Vertex Pharmaceuticals has seen its stock rise nearly 20% year-to-date, demonstrating strong performance amid tariff concerns [10]. - The company specializes in therapies for cystic fibrosis and is expanding its product line with new treatments, which are unlikely to be affected by tariffs [11]. - Vertex's pipeline includes several late-stage programs that could lead to significant revenue, including a potential cure for severe type 1 diabetes [13].

Core Viewpoint - Evergy, Inc. is focusing on expanding its operations in the transmission market through planned investments and strategic acquisitions, while also aiming to enhance its renewable asset portfolio to improve overall performance [1][2]. Group 1: Investment Plans - In 2024, Evergy plans to invest $2.34 billion in infrastructure to modernize the grid, replace aging equipment, and advance sustainability [2]. - The company targets nearly $17.5 billion in capital investments for the period of 2025-2029, which includes approximately $6.17 billion for new renewable generation [2]. Group 2: Renewable Projects - Evergy is actively developing renewable projects with a total capacity of 800 MW, of which 500 MW is included in its 2-3% demand forecast [3]. - The company announced plans to construct two combined-cycle natural gas plants in Kansas, each with an initial generating capacity of nearly 705 MW, expected to begin operations in the summer of 2029 and 2030 respectively [3]. Group 3: Joint Ventures - Evergy has a joint venture with American Electric Power named Transource Energy, which focuses on developing competitive electric transmission projects across the U.S., positioning Evergy for sustainable long-term growth in the transmission market with a 13.5% interest in the venture [4]. Group 4: Challenges - The company faces potential delays in capital projects due to permit issues, equipment availability, or increased costs, which could adversely impact profitability [5]. - Seasonal electricity sales and changing weather conditions significantly affect overall performance, with mild seasons potentially reducing electricity demand [5]. Group 5: Stock Performance - Over the past three months, Evergy's shares have increased by 14.8%, outperforming the industry's growth of 7.4% [6].

February 27, 2025 Fourth Quarter 2024 Earnings Call Important Information Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy's strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital ...

Financial Data and Key Metrics Changes - For the full year 2024, Evergy reported adjusted earnings of $878 million or $3.81 per share, compared to $816 million or $3.54 per share for the same period last year, reflecting a year-over-year increase in adjusted EPS driven by strong cost management and load growth [49][50][66] - The adjusted EPS growth was impacted by a 5% decrease in cooling degree days and a 4% decrease in heating degree days, leading to a $0.13 decline in EPS versus 2023 [50] - The company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02, representing a 5% increase over the 2024 guidance midpoint [15][66] Business Line Data and Key Metrics Changes - Retail sales trends showed a weather-normalized increase of 1.1% in 2024, driven by solid growth in both residential and commercial usage [52][54] - The company anticipates a 2.4% growth in load demand for 2025, with significant contributions expected from new large customers such as Meta and Panasonic [53][54] Market Data and Key Metrics Changes - The economic development pipeline in Kansas and Missouri has grown from approximately 6 gigawatts to over 11 gigawatts, reflecting robust demand from large customers [18][19] - The company expects weather-normalized demand growth of 2% to 3% through 2029, with upside potential from additional customer wins [17][54] Company Strategy and Development Direction - Evergy's strategic objectives focus on affordability, reliability, and sustainability, with a five-year capital investment plan totaling $17.5 billion aimed at modernizing infrastructure and supporting economic growth [9][28][45] - The company is actively pursuing regulatory and legislative initiatives to support infrastructure investment and mitigate regulatory lag, including the passage of House Bill 2527 in Kansas [11][12][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and maintain strong performance, citing successful regulatory execution and a solid capital investment plan [10][15] - The company anticipates continued growth driven by a strong labor market and robust customer demand in its service areas [53][54] Other Important Information - The company raised its dividend by 4% to an annualized $2.67, consistent with its target payout ratio [15] - Evergy's capital investment program is expected to result in 8.5% annualized rate base growth through 2029, compared to a prior forecast of approximately 8% [28][67] Q&A Session Summary Question: Timeline for finalizing agreements on 1.6 gigawatts - Management indicated that discussions are advancing well and expects announcements later this year, with agreements finalized over the course of the year [72][76][78] Question: Next steps for capital structure in Kansas - Management characterized the proceeding as procedural and expressed a desire to seek a constructive settlement during the rate case [79][82] Question: Timeline for developing associated generation - Management confirmed that they have a good plan to serve customers from both transmission and generation perspectives, with updates to the Integrated Resource Plans (IRPs) expected in March and April [89][92][100] Question: Protections for existing customers in large load tariff - Management is seeking a well-balanced tariff that covers incremental costs while providing protections for existing customers, including minimum bills and contract periods [107][111] Question: Timeline for Senate Bill 4 in Missouri - Management expressed confidence in the bill's passage, highlighting its transformative potential for the regulatory framework in Missouri [120][125] Question: Matching load with generation projects - Management provided clarity on the load forecast, indicating that they expect to have the necessary transmission and generation capacity to serve the anticipated load growth [126][130]

Financial Data and Key Metrics Changes - For the full year 2024, Evergy reported adjusted earnings of $878 million or $3.81 per share, compared to $816 million or $3.54 per share for the same period last year, reflecting a year-over-year increase in adjusted EPS driven by strong cost management and load growth [49][50][66] - The adjusted EPS growth was impacted by a 5% decrease in cooling degree days and a 4% decrease in heating degree days, leading to a $0.13 decline in EPS versus 2023 [50] - The company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02, representing a 5% increase over the 2024 guidance midpoint [15][66] Business Line Data and Key Metrics Changes - Retail sales trends showed a weather-normalized increase of 1.1% in 2024, driven by strong growth in both residential and commercial usage [52][53] - The company anticipates a 2.4% growth in load demand for 2025, with significant contributions expected from new large customers such as Meta and Panasonic [53][55] Market Data and Key Metrics Changes - The economic development pipeline in Kansas and Missouri has grown from approximately 6 gigawatts to over 11 gigawatts, reflecting robust demand from large customers [18][19] - The projected peak summer demand for 2025 is approximately 10.6 gigawatts, indicating a strong backlog of growth opportunities [19] Company Strategy and Development Direction - Evergy's strategic objectives focus on affordability, reliability, and sustainability, with a five-year capital investment plan totaling $17.5 billion aimed at modernizing infrastructure and supporting economic growth [9][28][45] - The company is actively pursuing regulatory and legislative initiatives to support infrastructure investment and mitigate regulatory lag, particularly in Kansas and Missouri [11][33][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by weather and operational costs, reaffirming a long-term growth target of 4% to 6% through 2029 [15][66] - The management highlighted the importance of a competitive regulatory framework and successful execution of capital plans to support economic development in the region [11][12][45] Other Important Information - The company raised its dividend by 4% to an annualized $2.67, consistent with its target payout ratio [15] - Evergy's capital investment plan is expected to result in 8.5% annualized rate base growth through 2029, an increase from the prior forecast of approximately 8% [28][67] Q&A Session Summary Question: Timeline for finalizing agreements related to 1.6 gigawatts - Management indicated that discussions are advancing well and expects announcements later this year, with agreements finalized over the course of the year [72][76][78] Question: Next steps for capital structure in Kansas - Management characterized the proceeding as procedural and expressed a desire to seek a constructive settlement, similar to previous cases [79][82] Question: Timeline for developing associated generation - Management confirmed that they have a good plan to serve customers from both transmission and generation perspectives, with updates expected in the upcoming IRP filings [89][91][100] Question: Protections for existing customers in large load tariff - Management is seeking a well-balanced tariff that covers incremental costs while providing protections for existing customers, including minimum bills and contract periods [107][111] Question: Timeline for SB4 in Missouri - Management expressed confidence in the bill's passage, highlighting its transformative potential for the regulatory framework in Missouri [120][124] Question: Matching load with generation projects - Management provided clarity on the load forecast, indicating that they expect to have the necessary transmission and generation capacity to serve the anticipated load growth [126][130]

Core Insights - Evergy, Inc. reported fourth-quarter 2024 operating earnings per share (EPS) of 35 cents, which was 2.8% below the Zacks Consensus Estimate of 36 cents, but represented a 29.6% increase from the previous year's figure of 27 cents [1] - Full-year adjusted EPS for 2024 was $3.81, an increase from $3.54 in the prior year [2] Financial Performance - Quarterly revenues reached $1.26 billion, exceeding the Zacks Consensus Estimate of $1.194 billion by 5.3%, and up from $1.188 billion in the same quarter last year [3] - Full-year revenues for 2024 totaled $5.85 billion, compared to $5.51 billion in 2023 [3] Expense Overview - Fuel and purchased power costs for the year were $1.48 billion, a decrease of 0.6% from $1.49 billion the previous year [4] - Operating and maintenance expenses increased by 1.8% to $961.9 million from $945.3 million last year [4] - Interest expenses rose by 7% year-over-year to $563.1 million [4] Cash Flow and Debt - Cash and cash equivalents as of December 31, 2024, were $22 million, down from $27.7 million a year earlier [5] - Long-term debt increased to $11.81 billion from $11.05 billion as of December 31, 2023 [5] - Cash provided by operating activities in 2024 was $1.983 billion, slightly up from $1.980 billion in the previous year [5] Guidance and Growth Outlook - The company reaffirmed its 2025 GAAP EPS and adjusted EPS guidance of $3.92-$4.12, with the Zacks Consensus Estimate at $4.02 [6] - Evergy aims for an annual EPS growth target of 4-6% through 2029 [6] Zacks Rank - Evergy currently holds a Zacks Rank 3 (Hold) [7]

Core Viewpoint - Evergy Inc reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share, but showing an increase from $0.27 per share a year ago, indicating a mixed performance in earnings expectations [1][2] Financial Performance - The company posted revenues of $1.26 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.28%, compared to $1.19 billion in the same quarter last year [2] - Over the last four quarters, Evergy has exceeded consensus revenue estimates four times, but has only surpassed EPS estimates once [2] Stock Performance - Evergy shares have increased approximately 12.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $1.41 billion, and for the current fiscal year, it is $4.02 on revenues of $5.92 billion [7] - The outlook for the Utility - Electric Power industry is currently in the bottom 49% of Zacks industries, which may impact Evergy's stock performance [8]