Ameren(AEE) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights Ameren Corporation reported increased net income and diluted EPS for Q2 and YTD 2025, reaffirming its full-year earnings guidance Second Quarter 2025 Financial Performance Ameren Corporation reported increased net income and diluted EPS for the second quarter of 2025 compared to the prior year, driven by infrastructure investments, new electric service rates, and cost management, partially offset by higher interest expense and lower retail sales due to weather Q2 Financial Performance Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------------------- | :------ | :------ | :----------- | | Net Income Attributable to Common Shareholders | $275 million | $258 million | +$17 million | | Diluted EPS | $1.01 | $0.97 | +$0.04 | - Positive factors contributing to earnings growth include increased infrastructure investments, new Ameren Missouri electric service rates (effective June 1, 2025), and continued disciplined cost management[3] - Offsetting factors include higher interest expense at Ameren Parent and Ameren Missouri, lower Ameren Missouri retail sales (due to near-normal temperatures in Q2 2025 compared to warmer-than-normal in Q2 2024), and higher weighted-average basic common shares outstanding[3] Year-to-Date 2025 Financial Performance For the six months ended June 30, 2025, Ameren's GAAP net income and diluted EPS increased year-over-year. Adjusted net income for 2024, excluding a prior year charge, also showed growth YTD Financial Performance Summary | Metric | YTD 2025 (GAAP) | YTD 2024 (GAAP) | YTD 2024 (Adjusted) | | :----------------------------------- | :-------------- | :-------------- | :------------------ | | Net Income Attributable to Common Shareholders | $564 million | $519 million | $530 million | | Diluted EPS | $2.08 | $1.95 | $1.99 | - The increase in year-over-year six-month earnings reflected increased infrastructure investments, new Ameren Missouri electric service rates, and higher Ameren Missouri electric retail sales[4] - These positive factors were partially offset by higher interest expense at Ameren Missouri and Ameren Parent[6] - A charge for additional mitigation relief related to Ameren Missouri's Rush Island Energy Center, which decreased first quarter 2024 earnings by $11 million, was excluded from adjusted six-month 2024 earnings[6][7] Earnings Guidance Ameren reaffirmed its 2025 diluted EPS guidance range and anticipates delivering earnings in the top half of this range, supported by strong year-to-date performance and assuming normal temperatures for the latter half of the year 2025 Earnings Guidance | Metric | 2025 Guidance Range | | :-------------------- | :------------------ | | Diluted EPS | $4.85 to $5.05 per share | - Ameren is well positioned to deliver 2025 earnings in the top half of its guidance range due to strong year-to-date performance[8] - Earnings guidance for 2025 assumes normal temperatures for the last six months of the year and is subject to various risks and uncertainties[8] Segment Performance Ameren's operating segments generally reported increased earnings for Q2 2025, while Ameren Parent recorded a larger loss Ameren Missouri Segment Results Ameren Missouri's second quarter 2025 earnings increased, primarily due to new electric service rates and infrastructure investments, despite lower electric retail sales influenced by weather and higher interest expense Ameren Missouri Earnings | Metric | Q2 2025 | Q2 2024 | | :------- | :------ | :------ | | Earnings | $150 million | $128 million | - The year-over-year increase reflected new electric service rates effective June 1, 2025, earnings on increased infrastructure investments, and lower operations and maintenance expenses[9] - These positive factors were partially offset by lower electric retail sales, primarily driven by near-normal temperatures in Q2 2025 compared to warmer-than-normal temperatures in the prior-year period, and higher interest expense[9] Ameren Transmission Segment Results Ameren Transmission reported an increase in earnings for the second quarter of 2025 Ameren Transmission Earnings | Metric | Q2 2025 | Q2 2024 | | :------- | :------ | :------ | | Earnings | $86 million | $79 million | Ameren Illinois Electric Distribution Segment Results Ameren Illinois Electric Distribution experienced a slight increase in earnings for the second quarter of 2025 Ameren Illinois Electric Distribution Earnings | Metric | Q2 2025 | Q2 2024 | | :------- | :------ | :------ | | Earnings | $64 million | $61 million | Ameren Illinois Natural Gas Segment Results Ameren Illinois Natural Gas reported an increase in earnings for the second quarter of 2025 Ameren Illinois Natural Gas Earnings | Metric | Q2 2025 | Q2 2024 | | :------- | :------ | :------ | | Earnings | $10 million | $6 million | Ameren Parent Results Ameren Parent recorded a larger loss in the second quarter of 2025 compared to the prior year, primarily due to higher interest expense Ameren Parent Loss | Metric | Q2 2025 | Q2 2024 | | :------- | :------ | :------ | | Loss | $35 million | $16 million | - The year-over-year comparison reflected higher interest expense[13] Company Information & Disclosures This section details Ameren's analyst call, company profile, non-GAAP financial measures, and forward-looking statements Analyst Conference Call Ameren will host a conference call on August 1, 2025, for financial analysts, investors, and the public to discuss 2025 earnings, guidance, and other matters, with a live webcast and presentation available online - Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, August 1, 2025[14] - The call will discuss 2025 earnings, earnings guidance, and other matters[14] - Investors, news media, and the public can listen to a live broadcast and access an accompanying slide presentation at AmerenInvestors.com[14] About Ameren Ameren Corporation is a St. Louis-based utility company providing electric and natural gas services to millions of customers across a 64,000-square-mile area through its rate-regulated utility subsidiaries: Ameren Missouri, Ameren Illinois, and Ameren Transmission Company of Illinois - Ameren Corporation is based in St. Louis and serves 2.5 million electric customers and over 900,000 natural gas customers[15] - Its service area covers 64,000 square miles through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries[15] - Subsidiaries include Ameren Missouri (electric generation, transmission, distribution, natural gas distribution), Ameren Illinois (electric transmission and distribution, natural gas distribution), and Ameren Transmission Company of Illinois (regional electric transmission projects in MISO)[15] Use of Non-GAAP Financial Measures Ameren utilizes adjusted earnings and adjusted earnings per share as non-GAAP financial measures, which exclude significant discrete items not considered representative of ongoing earnings, such as prior year charges related to legal settlements and regulatory orders. These measures are used for internal financial planning, performance analysis, and communication with stakeholders - Ameren presents adjusted earnings and adjusted earnings per share as non-GAAP measures, which may not be comparable to those of other companies[16] - Adjusted earnings generally exclude income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as prior year charges for mitigation relief related to the New Source Review (NSR) and Clean Air Act proceeding, and customer refunds related to a FERC order on MISO's allowed base return on equity (ROE)[16] - These non-GAAP measures are used internally for financial planning and performance analysis, and externally for communicating earnings results and outlook to analysts and investors, as they allow for more accurate comparison of ongoing performance across periods[17] Forward-looking Statements The release contains forward-looking statements that are subject to various risks and uncertainties, which could cause actual results to differ materially from those discussed. These factors include regulatory, judicial, or legislative actions, economic and market conditions, operational risks, environmental policies, and geopolitical events - Statements not based on historical facts are considered 'forward-looking' and involve risks and uncertainties that could cause actual results to differ materially[18] - Key risk factors include regulatory, judicial, or legislative actions; ability to control costs and recover investments; effects of multi-year rate plans (MYRPs); ability to construct/acquire renewable energy facilities; MISO long-range transmission planning; counterparty obligations; advancements in energy technologies; changes in federal, state, or local laws and policies (e.g., OBBBA, IRA); energy demand; fuel cost and availability; cyberattacks; economic, geopolitical, and capital market conditions; weather; construction, installation, performance, and cost recovery of assets; environmental laws; labor disputes; negative public opinion; legal proceedings; pandemics; and global conflicts[18][20] - The company cautions against undue reliance on these statements and undertakes no obligation to update or revise them publicly, except as required by federal securities laws[19] Financial Statements Ameren's consolidated financial statements show increased revenues and net income, alongside growth in assets and operating cash flows for Q2 and YTD 2025 Consolidated Statement of Income Ameren's consolidated statement of income shows increased total operating revenues and net income for both the three and six months ended June 30, 2025, compared to the prior year, primarily driven by higher electric revenues, though operating expenses also rose significantly due to fuel and purchased power costs Consolidated Income Statement Highlights (Millions of $) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total Operating Revenues | $2,221 | $1,693 | $4,318 | $3,509 | | Operating Income | $411 | $361 | $841 | $732 | | Net Income Attributable to Ameren Common Shareholders | $275 | $258 | $564 | $519 | | Diluted EPS | $1.01 | $0.97 | $2.08 | $1.95 | - Electric revenues significantly increased from $1,521 million in Q2 2024 to $2,038 million in Q2 2025, and from $2,885 million in YTD 2024 to $3,660 million in YTD 2025[22] - Fuel and purchased power expenses rose substantially from $327 million in Q2 2024 to $794 million in Q2 2025, and from $655 million in YTD 2024 to $1,296 million in YTD 2025[22] Consolidated Balance Sheet As of June 30, 2025, Ameren's total assets increased to $46,625 million from $44,598 million at December 31, 2024, primarily driven by growth in property, plant, and equipment, and regulatory assets. Long-term debt also saw an increase Consolidated Balance Sheet Highlights (Millions of $) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total Assets | $46,625 million | $44,598 million | | Property, Plant, and Equipment, Net | $37,816 million | $36,304 million | | Long-term Debt, Net | $18,811 million | $17,262 million | | Total Shareholders' Equity | $12,314 million | $12,114 million | - Current assets increased from $2,264 million at December 31, 2024, to $2,474 million at June 30, 2025, mainly due to higher accounts receivable and unbilled revenue[24] - Current liabilities decreased from $3,413 million to $3,087 million, largely due to a reduction in current maturities of long-term debt[24] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, Ameren saw an increase in net cash provided by operating activities, while net cash used in investing activities also increased due to higher capital expenditures. Net cash provided by financing activities slightly decreased Condensed Consolidated Cash Flows (Millions of $) | Metric | YTD 2025 | YTD 2024 | | :----------------------------------- | :------- | :------- | | Net cash provided by operating activities | $1,293 million | $1,049 million | | Net cash used in investing activities | $(2,111) million | $(1,932) million | | Net cash provided by financing activities | $884 million | $912 million | | Capital expenditures | $(2,130) million | $(1,892) million | | Cash, cash equivalents, and restricted cash at end of period | $394 million | $301 million | - Operating activities benefited from higher net income and deferred income taxes, partially offset by changes in other assets and liabilities[26] - Financing activities included significant issuances of long-term debt ($1,599 million in YTD 2025 vs $1,470 million in YTD 2024) and dividends on common stock ($384 million in YTD 2025 vs $356 million in YTD 2024)[26] Operating Statistics Operating statistics reveal decreased electric sales but increased electric revenues, alongside growth in gas sales and revenues, and a slight increase in common shares outstanding Electric Sales and Revenues Total electric sales decreased for both the second quarter and year-to-date 2025, primarily due to lower Ameren Missouri off-system sales and Ameren Illinois industrial sales. Despite this, total electric revenues significantly increased, largely driven by a substantial rise in Ameren Missouri's off-system sales and capacity revenues Electric Sales and Revenues | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total Electric Sales (million kWh) | 15,672 | 17,110 | 33,480 | 34,250 | | Total Electric Revenues (million $) | $2,038 | $1,521 | $3,660 | $2,885 | - Ameren Missouri's off-system sales decreased from 1,484 million kWh in Q2 2024 to 662 million kWh in Q2 2025, but off-system sales and capacity revenues dramatically increased from $47 million to $471 million in the same period[29] - Ameren Illinois Electric Distribution's industrial sales decreased from 2,712 million kWh in Q2 2024 to 2,511 million kWh in Q2 2025[29] Gas Sales and Revenues Total gas sales and revenues increased for both the second quarter and year-to-date 2025, with Ameren Illinois Natural Gas contributing the majority of the growth Gas Sales and Revenues | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total Gas Sales (million dekatherms) | 33 | 31 | 107 | 99 | | Total Gas Revenues (million $) | $183 | $172 | $658 | $624 | - Ameren Illinois Natural Gas sales increased from 28 million dekatherms in Q2 2024 to 30 million dekatherms in Q2 2025, and revenues increased from $148 million to $158 million[31] Common Stock Information As of June 30, 2025, Ameren's common shares outstanding slightly increased, and the book value per share improved compared to December 31, 2024 Common Stock Details | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Shares outstanding (in millions) | 270.4 | 269.9 | | Book value per share | $45.54 | $44.88 |