CMS Energy(CMS) - 2025 Q2 - Quarterly Results

Earnings Release Summary Second Quarter 2025 Financial Highlights CMS Energy reported strong second quarter 2025 results, with adjusted earnings per share (EPS) increasing to $0.71 from $0.66 in the same period of 2024, driven by regulatory outcomes, cost reductions, and favorable weather Q2 & YTD Earnings Per Share (EPS) Comparison | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Reported EPS | $0.66 | $0.65 | $1.67 | $1.61 | | Adjusted EPS | $0.71 | $0.66 | $1.73 | $1.63 | - The increase in year-to-date adjusted earnings was driven by constructive regulatory outcomes, cost-reduction initiatives, and favorable weather[1] 2025 Guidance and Outlook The company reaffirmed its full-year 2025 adjusted earnings guidance and long-term growth targets, expressing confidence in achieving the upper end of its long-term growth forecast - Reaffirmed 2025 adjusted earnings guidance of $3.54 to $3.60 per share[2] - Maintained long-term adjusted EPS growth forecast of 6% to 8%, with continued confidence toward the high end of this range[2] Business and Strategic Updates Management confirmed the company is on track to meet its 2025 objectives, with a new data center agreement anticipated to create substantial load growth and economic benefits for Michigan - The company is on track to deliver on its 2025 earnings guidance and key operational objectives[3] - Announced a new agreement with a data center, which is expected to add up to 1 gigawatt of load growth in its service territory[3] Financial Statements Consolidated Statements of Income For Q2 2025, operating revenue grew to $1.84 billion from $1.61 billion year-over-year, increasing Net Income Available to Common Stockholders to $198 million ($0.66 per diluted share) from $195 million ($0.65 per share) in Q2 2024 Q2 2025 Statement of Income Highlights (In Millions) | Metric | Q2 2025 | Q2 2024 | Change YoY | | :--- | :--- | :--- | :--- | | Operating Revenue | $1,838 | $1,607 | +14.4% | | Operating Income | $317 | $283 | +12.0% | | Net Income Available to Common Stockholders | $198 | $195 | +1.5% | Summarized Consolidated Balance Sheets As of June 30, 2025, total assets increased to $37.7 billion from $35.9 billion at year-end 2024, primarily due to an increase in plant, property, and equipment, with common stockholders' equity rising to $8.17 billion Balance Sheet Summary (In Millions) | Metric | 6/30/2025 | 12/31/2024 | | :--- | :--- | :--- | | Total Current Assets | $3,193 | $2,790 | | Plant, property, and equipment | $28,847 | $27,461 | | Total Assets | $37,699 | $35,920 | | Total Liabilities and Equity | $37,699 | $35,920 | | Common stockholders' equity | $8,170 | $8,006 | Summarized Consolidated Statements of Cash Flows For the first six months of 2025, net cash from operating activities decreased to $1.41 billion, while net cash used in investing activities increased to $1.88 billion, and net cash provided by financing activities rose to $1.21 billion, ending the period with $925 million in cash Six Months Ended Cash Flow Summary (In Millions) | Metric | 6/30/2025 | 6/30/2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,414 | $1,663 | | Net cash used in investing activities | $(1,880) | $(1,246) | | Net cash provided by financing activities | $1,213 | $124 | | End of Period Cash and Cash Equivalents | $925 | $789 | Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Earnings The company reconciled GAAP to non-GAAP adjusted earnings, with Q2 2025 reported net income of $198 million ($0.66 per share) adjusted to $214 million ($0.71 per share) due to items like a state tax policy change Q2 2025 GAAP to Non-GAAP EPS Reconciliation | Metric | Per Share Amount | | :--- | :--- | | Reported net income per share (GAAP) | $0.66 | | Other exclusions from adjusted earnings | $0.01 | | State tax policy change | $0.04 | | Adjusted net income per share (non-GAAP) | $0.71 | - Adjustments for the quarter primarily consisted of a state tax policy change and other items like restructuring and business optimization costs[18][19]