Ameren(AEE) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information This section details the registrants, their filing status, and securities information for the Form 10-Q Registrant Details This Form 10-Q is filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company, each a separate legal entity - The report is a combined Form 10-Q filed by Ameren Corporation (Missouri Corporation), Union Electric Company (Missouri Corporation), and Ameren Illinois Company (Illinois Corporation)[2][10] Securities and Filing Status Ameren Corporation's common stock is listed on the New York Stock Exchange. Ameren Corporation is classified as a large accelerated filer, while Union Electric Company and Ameren Illinois Company are non-accelerated filers - Ameren Corporation's Common Stock ($0.01 par value per share) trades under the symbol AEE on the New York Stock Exchange[3] - Ameren Corporation is a large accelerated filer, while Union Electric Company and Ameren Illinois Company are non-accelerated filers[8] Shares Outstanding as of July 31, 2025 | Registrant | Title of each class of common stock | Shares outstanding | | :----------------- | :---------------------------------- | :----------------- | | Ameren Corporation | Common stock, $0.01 par value per share | 270,409,918 | | Union Electric Company | Common stock, $5 par value per share, held by Ameren Corporation | 102,123,834 | | Ameren Illinois Company | Common stock, no par value, held by Ameren Corporation | 25,452,373 | TABLE OF CONTENTS This section provides an organized listing of all major sections and topics within the report GLOSSARY OF TERMS AND ABBREVIATIONS This section provides definitions for key terms and abbreviations used throughout the report, including regulatory plans, filing types, and time period indicators - Key terms defined include '2023 PRP' (Preferred Resource Plan), '2025 Change to the 2023 PRP', 'Form 10-K', 'OBBBA' (The One Big Beautiful Bill Act), 'QTD' (Three months ended June 30), 'YTD' (Six months ended June 30), and 'YoY' (Compared with the year-ago period)[15][16] FORWARD-LOOKING STATEMENTS The report contains forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from expectations. Key factors include regulatory actions, cost control, energy technologies, tax laws, market conditions, and environmental policies - Statements not based on historical facts are considered 'forward-looking' and involve risks and uncertainties that could cause actual results to differ materially[17] - Important factors that could cause actual results to differ include regulatory, judicial, or legislative actions, ability to control costs and make investments, effects of energy technologies, changes in federal/state/local laws and tax rates, market conditions, and environmental regulations[17][19][22] PART I. Financial Information This part contains the unaudited financial statements and management's discussion and analysis of Ameren's financial condition and results of operations Item 1. Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements for Ameren Corporation, Union Electric Company (Ameren Missouri), and Ameren Illinois Company, including statements of income, balance sheets, cash flows, and shareholders' equity, along with detailed notes Ameren Corporation Consolidated Financial Statements Ameren Corporation reported increased net income and EPS for both the three and six months ended June 30, 2025, compared to the prior year. Total assets and equity also grew, while operating cash flow improved significantly Ameren Corporation: Key Income Statement Data (Unaudited) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net Income Attributable to Common Shareholders | $275 | $258 | $564 | $519 | | Earnings per Common Share - Diluted | $1.01 | $0.97 | $2.08 | $1.95 | Ameren Corporation: Key Balance Sheet Data (Unaudited) (millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $46,625 | $44,598 | | Total Liabilities | $34,182 | $32,355 | | Total Equity | $12,443 | $12,243 | Ameren Corporation: Key Cash Flow Data (Unaudited) (millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1,293 | $1,049 | | Net cash used in investing activities | $(2,111) | $(1,932) | | Net cash provided by financing activities | $884 | $912 | Union Electric Company (d/b/a Ameren Missouri) Consolidated Financial Statements Ameren Missouri saw an increase in net income for both the three and six months ended June 30, 2025. The company's total assets and shareholders' equity also grew, with a notable increase in operating cash flow Ameren Missouri: Key Income Statement Data (Unaudited) (millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Available to Common Shareholder | $150 | $128 | $192 | $153 | Ameren Missouri: Key Balance Sheet Data (Unaudited) (millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $24,444 | $23,106 | | Total Shareholders' Equity | $8,140 | $7,998 | Ameren Missouri: Key Cash Flow Data (Unaudited) (millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $592 | $407 | | Net cash used in investing activities | $(1,322) | $(1,155) | | Net cash provided by financing activities | $774 | $749 | Ameren Illinois Company (d/b/a Ameren Illinois) Financial Statements Ameren Illinois reported increased net income for both the three and six months ended June 30, 2025. Total assets and shareholders' equity also increased, while cash provided by operating activities saw a slight decrease Ameren Illinois: Key Income Statement Data (Unaudited) (millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Available to Common Shareholder | $137 | $124 | $373 | $339 | Ameren Illinois: Key Balance Sheet Data (Unaudited) (millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $19,903 | $19,230 | | Total Shareholders' Equity | $7,669 | $7,371 | Ameren Illinois: Key Cash Flow Data (Unaudited) (millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $672 | $691 | | Net cash used in investing activities | $(744) | $(742) | | Net cash provided by financing activities | $90 | $90 | Combined Notes to Financial Statements The notes provide detailed disclosures on accounting policies, regulatory matters, debt, derivatives, fair value measurements, related-party transactions, commitments, the Callaway Energy Center, retirement benefits, income taxes, and supplemental and segment information Note 1. Summary of Significant Accounting Policies Ameren operates as a public utility holding company, with its subsidiaries' financial statements consolidated. The company consolidates AMF, a variable interest entity formed for securitized utility tariff bonds related to the Rush Island Energy Center retirement. Ameren also holds unconsolidated variable interests in innovative energy technologies and maintains Company-Owned Life Insurance (COLI) - Ameren consolidates AMF, a variable interest entity (VIE) formed in 2024 for securitized utility tariff bonds related to the accelerated retirement of the Rush Island Energy Center. Ameren Missouri is the primary beneficiary[57] - Ameren had unconsolidated variable interests in equity method investments, primarily for innovative energy technologies, totaling $68 million as of June 30, 2025, with a maximum exposure to loss of $99 million[61] Net Cash Surrender Value of COLI (millions) | Company | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Ameren (parent) | $209 | $260 | | Ameren Illinois | $122 | $118 | Note 2. Rate and Regulatory Matters This note details significant regulatory proceedings and their updates across Missouri, Illinois, and federal jurisdictions, impacting Ameren's electric and natural gas businesses, including rate orders, legislative changes, and appeals Missouri Regulatory Matters Missouri enacted Senate Bill 4, modifying PISA, integrated resource planning, and allowing future test years for natural gas utilities. Ameren Missouri received approvals for electric and natural gas rate increases and filed a new large load customer rate plan - Missouri Senate Bill 4 (April 2025, effective August 2025) modifies the PISA to include new natural gas generating units and extends its effective date through 2035 (with potential extension to 2040). It also reduces the annual limit on electric service revenue requirement increases from 2.5% to 2.25%[64][65][67] - The law modifies integrated resource planning, requiring MoPSC to publish a 4-year filing schedule by August 2027. Approved plans will limit CCN review scope and allow construction work in progress (CWIP) in rate base for new generation facilities[68][69] - MoPSC approved a $355 million increase to Ameren Missouri's annual electric retail service revenue requirement (effective June 1, 2025) and a $32 million increase for natural gas delivery service (effective September 1, 2025)[71][72] - Ameren Missouri filed a request to modify its large primary service tariff for customers requesting 100 MW or more, including terms like a 15-year minimum service term and 70% minimum demand charges. A decision is expected by February 2026[73] Ameren Missouri: Generation and Storage Facilities | Facility Name | Agreement Type | Facility Size (MW) | MoPSC CCN Status | In-service Date | | :------------------------------ | :------------- | :----------------- | :--------------- | :-------------- | | Vandalia Solar Project | Self-build | 50 | Approved March 2024 | Fourth quarter 2025 | | Bowling Green Solar Project | Self-build | 50 | Approved March 2024 | First quarter 2026 | | Split Rail Solar Project | Build-transfer | 300 | Approved March 2024 | Mid-2026 | | Castle Bluff Natural Gas Project | Self-build | 800 | Approved October 2024 | Fourth quarter 2027 | | Big Hollow Battery Energy Storage Project | Self-build | 400 | Filed June 2025 | Second quarter 2028 | | Big Hollow Natural Gas Project | Self-build | 800 | Filed June 2025 | Third quarter 2028 | Illinois Regulatory Matters Ameren Illinois is appealing the ICC's MYRP order regarding allowed ROE and rate base inclusion. The company also filed for a reconciliation adjustment for 2024 electric distribution service, proposed energy-efficiency investments, and requested a natural gas delivery service rate increase - ICC approved electric distribution service revenue requirements for 2024-2027, totaling a cumulative four-year increase of $308 million. Ameren Illinois appealed the order to revise the allowed ROE and include an asset for other postretirement benefits in the rate base[77] - Ameren Illinois filed for a 2024 electric distribution service revenue requirement reconciliation adjustment, requesting $60 million, while ICC staff recommended $49 million. A decision is required by December 2025[78] - Ameren Illinois filed an energy-efficiency plan proposing annual investments up to $126 million from 2026 through 2029, with an ICC decision expected by September 2025[80] - Ameren Illinois requested a $135 million increase in annual revenues for natural gas delivery service, based on a 10.7% ROE and $3.3 billion rate base. ICC staff recommended $103 million, and the Illinois Attorney General recommended $55 million. A decision is expected by early December 2025[81] Federal Regulatory Matters FERC approved transmission rate incentives for Ameren's MISO second tranche projects, allowing CWIP in rate base for ATXI. The FERC also decreased the allowed base ROE for MISO transmission rate base, leading to required refunds and ongoing appeals by Ameren companies - FERC approved transmission rate incentives for Ameren's MISO second tranche projects, allowing construction work in progress (CWIP) in rate base for ATXI and recovery of prudently incurred costs if projects are abandoned[83] - FERC decreased the allowed base ROE for MISO-regulated transmission rate base from 10.02% to 9.98% in October 2024, requiring refunds. Ameren Missouri, Ameren Illinois, and ATXI have appealed this order[84] Liabilities for Expected FERC ROE Refunds (June 30, 2025, millions) | Company | Amount | | :-------------- | :----- | | Ameren | $11 | | Ameren Illinois | $7 | Note 3. Short-term Debt and Liquidity Ameren's liquidity is supported by available cash, credit agreements, commercial paper, and short-term affiliate borrowings. As of June 30, 2025, the company had $1.4 billion in net available liquidity and was in compliance with credit agreement covenants - As of June 30, 2025, the net liquidity available to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, was $1.4 billion[88] Commercial Paper Outstanding (millions) | Company | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Ameren (parent) | $566 | $1,055 | | Ameren Missouri | $330 | $— | | Ameren Illinois | $245 | $88 | | Ameren consolidated | $1,141 | $1,143 | Weighted-Average Interest Rates for Commercial Paper (Six Months Ended June 30, 2025) | Company | Weighted-Average Interest Rate (%) | | :-------------- | :----------------------------- | | Ameren (parent) | 4.63 | | Ameren Missouri | 4.60 | | Ameren Illinois | 4.59 | | Ameren Consolidated | 4.61 | - The average interest rate for borrowings under the utility money pool for the six months ended June 30, 2025, was 4.58%, down from 5.41% in 2024[91] Note 4. Long-term Debt and Equity Financings Ameren issued common stock through its DRPlus and 401(k) plan and for stock-based compensation. The company also entered into new forward sale agreements and issued senior unsecured notes. Ameren Missouri and Ameren Illinois issued first mortgage bonds to repay short-term debt and maturing long-term debt - Ameren issued 0.2 million shares of common stock under its DRPlus and 401(k) plan, generating $18 million in proceeds for the six months ended June 30, 2025. Additionally, 0.3 million shares valued at $25 million were issued for stock-based compensation in Q1 2025[92] - Ameren has an ATM program to sell up to $1.75 billion of common stock, with approximately $230 million available as of June 30, 2025. No shares were issued under this program during the three and six months ended June 30, 2025[94] - Ameren had forward sale agreements for 12.2 million shares of common stock outstanding as of June 30, 2025, representing $1.1 billion in potential cash proceeds upon physical settlement[95][96] - Ameren (parent) issued $750 million of 5.375% senior unsecured notes due March 2035. Ameren Missouri issued $500 million of 5.25% first mortgage bonds due April 2035. Ameren Illinois issued $350 million of 5.625% first mortgage bonds due March 2055[97][99][100] - Ameren (parent) repurchased $24 million of subsidiary debt, resulting in an $8 million pre-tax gain[98] Note 5. Other Income, Net Ameren's 'Other Income, Net' decreased for both the three and six months ended June 30, 2025, primarily due to lower non-service cost components of net periodic benefit income, partially offset by gains on debt extinguishment and increased allowance for equity funds used during construction Other Income, Net (millions) | Company | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Ameren | $96 | $103 | $181 | $192 | | Ameren Missouri | $47 | $49 | $90 | $93 | | Ameren Illinois | $37 | $37 | $71 | $68 | - For Ameren, the decrease in 'Other Income, Net' was primarily driven by a reduction in the non-service cost components of net periodic benefit income, partially offset by an $8 million gain on the extinguishment of debt[104][105] Note 6. Derivative Financial Instruments Ameren uses derivatives to manage market price risks for natural gas, power, and interest rates. Most commodity derivatives qualify for regulatory deferral, with changes in fair value recorded as regulatory assets or liabilities. Ameren (parent) uses interest rate swaps as cash flow hedges - Derivative instruments are used to manage risks from changes in market prices for natural gas, power, interest rates, and rail transportation surcharges[106] - Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recognized as regulatory assets or liabilities, having no effect on operating income[109] - Ameren (parent) had interest rate swaps with notional amounts of $490 million as of June 30, 2025, designated as cash flow hedges, resulting in an unrealized loss of $6 million (net of income tax benefits) for the six months ended June 30, 2025[110] Open Gross Commodity Contract Volumes (June 30, 2025) | Commodity | Ameren Missouri (gallons) | Ameren Illinois (mmbtu) | Ameren (MWhs) | | :---------- | :------------------------ | :---------------------- | :------------ | | Fuel oils | 24 | — | 24 | | Natural gas | 44 | 223 | 267 | | Power | — | 4 | 4 | Derivative Assets and Liabilities (June 30, 2025, millions) | Company | Derivative Assets | Derivative Liabilities | | :-------------- | :---------------- | :--------------------- | | Ameren | $29 | $113 | | Ameren Missouri | $17 | $13 | | Ameren Illinois | $12 | $100 | Note 7. Fair Value Measurements Fair value measurements are categorized into three levels based on input observability. The nuclear decommissioning trust fund primarily consists of Level 1 equity securities. Long-term debt is disclosed at fair value, with most classified as Level 2 - Fair value measurements are classified into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[116] Nuclear Decommissioning Trust Fund Fair Value (June 30, 2025, millions) | Investment Type | Level 1 | Level 2 | Level 3 | Total | | :---------------- | :------ | :------ | :------ | :---- | | Equity securities: U.S. large capitalization | $967 | $— | $— | $967 | | Debt securities: U.S. Treasury and agency | $— | $179 | $— | $179 | | Debt securities: Corporate bonds | $— | $163 | $— | $163 | | Debt securities: Other | $— | $97 | $— | $97 | | Total | $967| $439| $— | $1,406| Long-Term Debt Fair Value (June 30, 2025, millions) | Company | Carrying Amount | Fair Value (Total) | Level 2 Fair Value | Level 3 Fair Value | | :-------------- | :-------------- | :----------------- | :----------------- | :----------------- | | Ameren | $18,840 | $17,338 | $16,792 | $546 | | Ameren Missouri | $8,244 | $7,483 | $7,483 | $— | | Ameren Illinois | $5,900 | $5,296 | $5,296 | $— | Note 8. Related-party Transactions Ameren Missouri and Ameren Illinois engage in affiliate transactions, including support services, and have intercompany balances related to income taxes. These transactions are eliminated in Ameren's consolidated financial statements - Ameren Missouri and Ameren Illinois had long-term receivables from Ameren Services of $20 million and $22 million, respectively, as of June 30, 2025, related to pension and postretirement benefit plans[127] Affiliate Balances Related to Income Taxes (June 30, 2025, millions) | Company | Income Taxes Payable to Parent | Income Taxes Receivable from Parent | | :-------------- | :----------------------------- | :---------------------------------- | | Ameren Missouri | $1 | $25 | | Ameren Illinois | $24 | $— | Impact of Related-party Transactions on Income Statement (Six Months Ended June 30, 2025, millions) | Line Item | Ameren Missouri | Ameren Illinois | | :-------------------------------- | :-------------- | :-------------- | | Total Operating Revenues | $15 | $6 | | Total Other Operations and Maintenance | $88 | $83 | Note 9. Commitments and Contingencies Ameren is involved in various legal, tax, and regulatory proceedings. Environmental compliance, particularly with Clean Air Act and CCR Rule, is a significant commitment, with revised capital expenditure estimates for 2025-2029. Ameren Illinois also has substantial remediation obligations for former MGP sites - Ameren and Ameren Missouri revised capital expenditure estimates for environmental compliance to a range of $90 million to $120 million from 2025 through 2029, due to proposed EPA rules[137] - The EPA issued proposed rules in June and July 2025 to repeal greenhouse gas emissions standards for fossil fuel-fired power plants and to repeal revisions to the MATS[141][142][143] - Ameren Missouri plans to substantially complete the closures of remaining CCR surface impoundments by the end of 2026, with Asset Retirement Obligations (AROs) of $46 million associated with CCR storage facilities as of June 30, 2025[145] - Ameren Illinois has an estimated remaining obligation of $46 million to $91 million for remediation of former MGP sites, with actual costs and timing subject to significant uncertainty[147][148] Note 10. Callaway Energy Center The nuclear decommissioning trust fund for Ameren Missouri's Callaway Energy Center totaled $1,414 million as of June 30, 2025. The MoPSC approved reducing annual customer contributions for decommissioning costs to zero, effective June 2025, as the trust fund exceeded estimated future costs. The center maintains substantial insurance coverage - The fair value of the nuclear decommissioning trust fund for Ameren Missouri's Callaway Energy Center was $1,414 million as of June 30, 2025[151] - In May 2025, the MoPSC ordered the reduction of annual customer contributions for Callaway Energy Center decommissioning costs from $7 million to zero, effective June 2025, because the trust fund level exceeded estimated future costs[151] Callaway Energy Center Insurance Coverage (April 1, 2025, millions) | Type of Coverage | Maximum Coverages | Maximum Assessments for Single Incidents | | :----------------------- | :---------------- | :--------------------------------------- | | Public liability and nuclear worker liability | $16,263 | $166 | | Property damage | $3,200 | $22 | | Accidental outage | $490 | $9 | Note 11. Retirement Benefits This note details the components of net periodic benefit cost (income) for Ameren's pension and postretirement benefit plans. For the six months ended June 30, 2025, Ameren reported net periodic benefit income for both pension and postretirement plans Net Periodic Benefit Cost (Income) (Six Months Ended June 30, millions) | Metric | 2025 Pension Benefits | 2024 Pension Benefits | 2025 Postretirement Benefits | 2024 Postretirement Benefits | | :-------------------------------- | :-------------------- | :-------------------- | :--------------------------- | :--------------------------- | | Service cost | $41 | $44 | $5 | $6 | | Total non-service cost components | $(51) | $(86) | $(45) | $(46) | | Net periodic benefit income | $(10) | $(42) | $(40) | $(40) | Net Periodic Benefit Costs (Income) by Subsidiary (Six Months Ended June 30, 2025, millions) | Company | Pension Benefits | Postretirement Benefits | | :-------------- | :--------------- | :---------------------- | | Ameren Missouri | $(7) | $(14) | | Ameren Illinois | $(2) | $(26) | Note 12. Income Taxes The recently enacted OBBBA modified IRA provisions for production and investment tax credits, maintaining eligibility for certain solar, wind, and battery storage projects while restricting transferability to specified foreign entities. Ameren is evaluating the OBBBA's impact but expects no material effects in 2025. Effective income tax rates varied across Ameren and its subsidiaries - The OBBBA (enacted July 2025) modified IRA provisions for production and investment tax credits, maintaining eligibility for solar and wind projects starting construction within one year of enactment and placed in-service by end of 2030. It also provides investment tax credits for battery storage projects[165] - The OBBBA continues to allow transferability of tax credits but restricts transfers to specified foreign entities. Ameren is evaluating the OBBBA and expects no material impacts on its results of operations, financial position, and liquidity in 2025[165] Effective Income Tax Rates (Six Months Ended June 30) | Company | 2025 (%) | 2024 (%) | | :-------------- | :------- | :------- | | Ameren | 14 | 14 | | Ameren Missouri | 6 | 2 | | Ameren Illinois | 24 | 24 | Note 13. Supplemental Information This note provides supplemental financial details, including reconciliations of cash, cash equivalents, and restricted cash, allowance for doubtful accounts, accrued capital expenditures, asset retirement obligations, stock-based compensation, deferred compensation, operating revenues, excise taxes, and earnings per share Cash, Cash Equivalents, and Restricted Cash (June 30, 2025, millions) | Company | Total Cash, Cash Equivalents, and Restricted Cash | | :-------------- | :---------------------------------------------- | | Ameren | $394 | | Ameren Missouri | $61 | | Ameren Illinois | $320 | Allowance for Doubtful Accounts (June 30, 2025, millions) | Company | End of Period | | :-------------- | :------------ | | Ameren | $39 | | Ameren Missouri | $12 | | Ameren Illinois | $27 | Accrued Capital Expenditures (Six Months Ended June 30, 2025, millions) | Company | Accrued Capital Expenditures | | :-------------- | :--------------------------- | | Ameren | $453 | | Ameren Missouri | $284 | | Ameren Illinois | $162 | - Ameren granted 275,869 performance share units ($33 million fair value) and 118,213 restricted share units ($11 million fair value) in Q1 2025[176] Excise Taxes (Six Months Ended June 30, 2025, millions) | Company | Excise Taxes | | :-------------- | :----------- | | Ameren | $155 | | Ameren Missouri | $81 | | Ameren Illinois | $74 | Weighted-Average Common Shares Outstanding (Six Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | | :--------------------------------------- | :-------------- | :-------------- | | Weighted-average Common Shares Outstanding – Basic | 270.1 | 266.5 | | Weighted-average Common Shares Outstanding – Diluted | 271.5 | 266.8 | Note 14. Segment Information This note provides disaggregated financial information by segment for Ameren and Ameren Illinois, detailing revenues, net income attributable to common shareholders, and capital expenditures for the three and six months ended June 30, 2025 and 2024 Ameren: Net Income Attributable to Common Shareholders by Segment (Six Months Ended June 30, 2025, millions) | Segment | Net Income Attributable to Ameren Common Shareholders | | :-------------------------------- | :---------------------------------------------------- | | Ameren Missouri | $192 | | Ameren Illinois Electric Distribution | $127 | | Ameren Illinois Natural Gas | $118 | | Ameren Transmission | $175 | | Other / Intersegment Eliminations | $(48) | | Total Ameren | $564 | Ameren: Capital Expenditures by Segment (Six Months Ended June 30, 2025, millions) | Segment | Capital Expenditures | | :-------------------------------- | :------------------- | | Ameren Missouri | $1,325 | | Ameren Illinois Electric Distribution | $320 | | Ameren Illinois Natural Gas | $147 | | Ameren Transmission | $331 | | Other / Intersegment Eliminations | $5 | | Total Ameren | $2,130 | Ameren: Total Revenues by Segment (Six Months Ended June 30, 2025, millions) | Segment | Total Revenues | | :-------------------------------- | :------------- | | Ameren Missouri | $2,297 | | Ameren Illinois Electric Distribution | $1,145 | | Ameren Illinois Natural Gas | $569 | | Ameren Transmission | $418 | | Intersegment Eliminations | $(111) | | Total Ameren | $4,318 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Ameren's financial performance, condition, and results of operations, including an overview of key drivers, detailed analysis of income statement components, liquidity and capital resources, and future outlook Overview Ameren reported increased net income and EPS for the three and six months ended June 30, 2025, driven by higher base rates, increased deferral of financing costs, infrastructure investments, and improved AFUDC. The company invested $2.1 billion in rate-regulated businesses and highlighted key regulatory developments in Missouri and Illinois Net Income Attributable to Ameren Common Shareholders (millions, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Attributable to Common Shareholders | $275 | $258 | $564 | $519 | | Earnings per Common Share - Diluted | $1.01 | $0.97 | $2.08 | $1.95 | - Net income was favorably affected by increased base rate revenues at Ameren Missouri, increased deferral of financing costs related to PISA and RESRAM, increased infrastructure investments at Ameren Transmission and Ameren Illinois Electric Distribution, and higher allowance for equity funds used during construction at Ameren Transmission[199] - Unfavorable impacts included increased financing costs due to higher short-term debt and interest rates, and decreased retail electric sales volumes at Ameren Missouri due to milder spring and early summer temperatures[202] - Ameren invested $2.1 billion in its rate-regulated businesses in the six months ended June 30, 2025, as part of its strategic plan to invest in infrastructure, enhance regulatory frameworks, and optimize operating performance[203] - Key regulatory updates include Missouri Senate Bill 4 enactment, MoPSC approval of a $355 million increase in Ameren Missouri's electric retail service revenue requirement, and Ameren Illinois' appeal of the ICC's MYRP order[204][205][210] Results of Operations Ameren's results of operations are influenced by economic conditions, energy efficiency, weather, and regulatory frameworks. The company reported increased earnings per diluted share, driven by higher base rates and infrastructure investments, but partially offset by increased financing costs and share issuances Earnings Summary Ameren's net income attributable to common shareholders and diluted EPS increased for both the three and six months ended June 30, 2025, primarily due to higher base rates, increased deferrals, and infrastructure investments, partially offset by increased financing costs and common share issuances Ameren Earnings Summary (millions, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Attributable to Common Shareholders | $275 | $258 | $564 | $519 | | Earnings per Common Share - Diluted | $1.01 | $0.97 | $2.08 | $1.95 | - Favorable impacts on diluted EPS included decreased interest charges (4 cents QTD, 9 cents YTD), increased base rate revenues (8 cents QTD/YTD), increased rate base investments (2 cents QTD, 6 cents YTD), and higher AFUDC (3 cents QTD, 5 cents YTD)[226] - Unfavorable impacts on diluted EPS included increased financing costs (6 cents QTD, 14 cents YTD), decreased retail electric sales volumes due to milder weather (4 cents QTD), and increased weighted-average basic common shares outstanding (2 cents QTD, 3 cents YTD)[226] Operating Revenues Ameren's total operating revenues increased significantly, driven by higher electric revenues across Ameren Missouri, Ameren Illinois Electric Distribution, and Ameren Transmission, and increased natural gas revenues from Ameren Illinois Natural Gas and Ameren Missouri Electric Revenues Ameren's electric revenues increased substantially, primarily due to higher off-system sales, capacity, and FAC revenues at Ameren Missouri, coupled with base rate increases and increased capital investments across its electric segments - Ameren's electric revenues increased $517 million (+34%) for the three months and $775 million (+27%) for the six months ended June 30, 2025, compared to the year-ago periods[237] - Ameren Missouri's electric revenues increased $451 million (+52%) QTD and $630 million (+40%) YTD, primarily due to higher off-system sales, capacity, transmission, and FAC revenues (+$435 million QTD, +$599 million YTD) and higher electric base rates (+$44 million QTD/YTD)[239][240] - Ameren Illinois Electric Distribution's revenues increased $64 million (+13%) QTD and $130 million (+13%) YTD, mainly from increased purchased power expenses recovered from customers (+$55 million QTD, +$75 million YTD) and higher base rates (+$9 million QTD, +$31 million YTD)[241][246] - Ameren Transmission's electric revenues increased $17 million (+9%) QTD and $42 million (+11%) YTD, driven by higher recoverable expenses and increased capital investment[238] Natural Gas Revenues Ameren's natural gas revenues increased, primarily driven by higher collection of natural gas costs under the PGA at Ameren Illinois Natural Gas and colder winter temperatures impacting Ameren Missouri - Ameren's natural gas revenues increased $11 million (+6%) QTD and $34 million (+5%) YTD[247] - Ameren Illinois Natural Gas' revenues increased $10 million (+7%) QTD and $30 million (+6%) YTD, mainly due to higher collection of natural gas costs under the PGA (+$6 million QTD, +$22 million YTD) and a change in timing of VBA revenues (+$6 million QTD/YTD)[249] - Ameren Missouri's natural gas revenues were comparable QTD and increased $4 million (+5%) YTD, primarily due to colder winter temperatures[248] Fuel and Purchased Power Ameren's fuel and purchased power expenses significantly increased, largely due to higher energy costs from MISO capacity auctions at Ameren Missouri and increased purchased power expenses at Ameren Illinois Electric Distribution - Ameren's electric fuel and purchased power expenses increased $467 million (+143%) QTD and $641 million (+98%) YTD[252] - Ameren Missouri's fuel and purchased power expenses increased $425 million (+225%) QTD and $589 million (+166%) YTD, primarily due to higher spring and summer capacity prices from MISO auctions (+$437 million QTD, +$602 million YTD)[253][255] - Ameren Illinois Electric Distribution's purchased power expenses increased $55 million (+33%) QTD and $75 million (+21%) YTD, mainly due to higher summer capacity prices from MISO auctions (+$43 million QTD, +$41 million YTD) and increased transmission service charges[254] Natural Gas Purchased for Resale Ameren's natural gas purchased for resale expenses increased, primarily driven by higher amortization of natural gas costs deferred under the PGA at Ameren Illinois Natural Gas - Ameren's natural gas purchased for resale expenses increased $6 million (+18%) QTD and $24 million (+13%) YTD[258] - Ameren Illinois Natural Gas' expenses increased $6 million (+25%) QTD and $22 million (+15%) YTD, primarily due to higher amortization of natural gas costs previously deferred under the PGA[260] - Ameren Missouri's natural gas purchased for resale expenses were comparable QTD/YTD, with colder winter temperatures increasing costs by $7 million YTD, offset by lower PGA amortization[259] Other Operations and Maintenance Expenses Ameren's other operations and maintenance expenses decreased QTD but increased YTD. Ameren Missouri saw decreases due to the absence of a litigation charge and lower MEEIA program expenses, while Ameren Illinois experienced increases from higher bad debt costs and storm-related expenses - Ameren's other operations and maintenance expenses decreased $5 million QTD and increased $10 million YTD[265] - Ameren Missouri's expenses decreased $9 million QTD and $13 million YTD, primarily due to the absence of a $15 million charge related to the Rush Island Energy Center litigation (YTD) and decreased MEEIA program expenses[267][268][269] - Ameren Illinois Electric Distribution's expenses increased $3 million QTD and $33 million YTD, driven by higher bad debt costs (+$4 million QTD, +$17 million YTD), increased energy-efficiency investments, and storm-related expenses[269][270] - Ameren Illinois Natural Gas' expenses decreased $4 million QTD and $7 million YTD, mainly due to lower labor expense and energy efficiency rider costs[270] Depreciation and Amortization Expenses Ameren's depreciation and amortization expenses increased, primarily due to the amortization of a regulatory asset related to the Rush Island Energy Center securitization and the inclusion of previously deferred property, plant, and equipment in base rates, partially offset by the absence of Rush Island depreciation - Ameren's depreciation and amortization expenses increased $10 million QTD and $16 million YTD[275] - Ameren Missouri's expenses increased $1 million QTD and YTD, driven by the amortization of a regulatory asset for Rush Island Energy Center securitization (+$5 million QTD, +$11 million YTD) and inclusion of PISA/RESRAM eligible assets in base rates (+$5 million QTD/YTD)[276] - These increases were partially offset by the absence of depreciation expense associated with Ameren Missouri's Rush Island Energy Center (-$9 million QTD, -$18 million YTD)[276] Taxes Other Than Income Taxes Ameren's taxes other than income taxes were comparable QTD but increased YTD, mainly due to higher gross receipts taxes across Ameren Missouri and Ameren Illinois, partially offset by a property tax refund at Ameren Missouri - Ameren's taxes other than income taxes were comparable QTD and increased $9 million YTD[281] - The increase was primarily due to higher gross receipts taxes at Ameren Missouri (+$5 million), Ameren Illinois Natural Gas (+$4 million), and Ameren Illinois Electric Distribution (+$3 million), resulting from increased retail sales[281] - These increases were partially offset by a $6 million property tax refund at Ameren Missouri[281] Other Income, Net Ameren's 'Other Income, Net' decreased QTD and YTD, primarily due to lower non-service cost components of net periodic benefit income. Ameren Transmission saw an increase from higher AFUDC, while Ameren Illinois' 'Other Income, Net' was comparable QTD and increased YTD due to AFUDC and interest income - Ameren's 'Other Income, Net' decreased $7 million QTD and $11 million YTD, primarily due to a decrease in the non-service cost component of net periodic benefit income[288] - Ameren Transmission's 'Other Income, Net' increased $6 million QTD and $11 million YTD, driven by a higher allowance for equity funds used during construction (AFUDC)[289] - Ameren Illinois' 'Other Income, Net' was comparable QTD and increased $3 million YTD, mainly due to a $13 million increase in AFUDC and $2 million from other interest income, partially offset by a $13 million decrease in the non-service cost component of net periodic benefit income[291][292] Interest Charges Ameren's interest charges increased significantly, driven by higher short-term borrowings and long-term debt issuances at Ameren (parent) and Ameren Missouri. These increases were partially offset by deferrals to regulatory assets at Ameren Missouri - Ameren's interest charges increased $22 million QTD and $43 million YTD[295] - Ameren (parent)'s interest charges increased $14 million QTD and $33 million YTD, due to higher short-term borrowings (+$6 million QTD, +$26 million YTD) and a long-term debt issuance (+$7 million QTD/YTD)[295] - Ameren Missouri's interest charges increased $7 million QTD and $5 million YTD, primarily due to long-term debt issuances (+$12 million QTD, +$20 million YTD) and securitized utility tariff bonds (+$6 million QTD, +$12 million YTD)[297] - These increases were partially offset by a deferral of interest to a regulatory asset related to PISA and RESRAM investments, which decreased Ameren Missouri's interest charges by $10 million QTD and $27 million YTD[298] - Ameren Illinois' interest charges increased $3 million QTD and $10 million YTD, mainly due to increased long-term debt interest at Ameren Illinois Transmission and Electric Distribution, partially offset by decreased short-term debt interest[300][301] Income Taxes The effective income tax rates for Ameren and its subsidiaries remained relatively stable or saw slight increases for the six months ended June 30, 2025. Ameren Illinois Electric Distribution and Natural Gas experienced lower effective tax rates QTD due to timing of pre-tax income and higher AFUDC tax benefits Effective Income Tax Rates (Six Months Ended June 30) | Company | 2025 (%) | 2024 (%) | | :-------------- | :------- | :------- | | Ameren | 14 | 14 | | Ameren Missouri | 6 | 2 | | Ameren Illinois | 24 | 24 | - The effective tax rate was lower at Ameren Illinois Electric Distribution (16% vs 20%) and Ameren Illinois Natural Gas (26% vs 35%) for the three months ended June 30, 2025, primarily due to the timing of pre-tax income and higher tax benefits related to the allowance for funds used during construction[303][304] Liquidity and Capital Resources Ameren's liquidity is primarily supported by utility tariff-based revenues and access to capital markets. The company expects significant capital expenditures over the next five years, funded by a combination of long-term debt and equity issuances. Cash flows from operating activities increased, while investing activities used more cash Cash Flows from Operating Activities Ameren's cash provided by operating activities increased significantly, driven by the transfer of production and investment tax credits and higher customer collections. This was partially offset by increased interest payments, collateral postings, and payments for Callaway Energy Center outage and coal deliveries - Ameren's cash provided by operating activities increased $244 million in the first six months of 2025, compared with the year-ago period[311] - Key contributors to the increase included a $234 million increase from the transfer of production and investment tax credits and a $216 million increase from higher customer collections due to base rate increases and colder winter temperatures[311] - Offsetting factors included a $65 million increase in interest payments, a $49 million increase in net collateral posted, a $22 million decrease due to the absence of insurance proceeds, and increased payments for the Callaway Energy Center outage (+$21 million) and coal deliveries (+$19 million)[311][312] Cash Flows from Investing Activities Ameren's cash used in investing activities increased, primarily due to a significant rise in capital expenditures for natural gas generation, infrastructure upgrades, and storm-related expenses. This was partially offset by a withdrawal from COLI funds and decreased nuclear fuel expenditures - Ameren's cash used in investing activities increased $179 million during the first six months of 2025, compared with the year-ago period[315] - The increase was primarily a result of a $238 million increase in capital expenditures, largely for natural gas generation-related investments at Ameren Missouri, natural gas distribution and infrastructure upgrades at Ameren Illinois, and major storm-related expenditures[315] - This increase was partially offset by a $54 million withdrawal of funds related to the cash surrender value of COLI and an $18 million decrease due to the timing of nuclear fuel expenditures at Ameren Missouri[315] Cash Flows from Financing Activities Ameren's cash provided by financing activities decreased, as the company utilized proceeds from long-term debt issuances to repay debt and fund capital expenditures. Common stock dividends increased due to a higher dividend rate and more shares outstanding - Ameren's cash provided by financing activities decreased $28 million during the first six months of 2025[320] - Ameren utilized $1.6 billion in net proceeds from long-term debt issuances for general corporate purposes and to repay $300 million of long-term debt maturities and short-term debt[320] - Common stock dividends paid by Ameren increased to $384 million (YTD 2025) from $356 million (YTD 2024), due to increases in both the dividend rate and the number of common shares outstanding[320] Short-term Debt and Liquidity Ameren's consolidated net available liquidity was $1.422 billion as of June 30, 2025, supported by $2.6 billion in credit agreements. The company's utility subsidiaries have FERC authorization for short-term debt issuances Ameren's Consolidated Net Available Liquidity (June 30, 2025, millions) | Component | Amount | | :-------------------------------- | :----- | | Missouri Credit Agreement – subtotal | $693 | | Illinois Credit Agreement – subtotal | $718 | | Subtotal | $1,411 | | Add: Cash and cash equivalents | $11 | | Net Available Liquidity | $1,422 | - The Ameren Companies have multiyear credit agreements providing $2.6 billion of credit through December 2028[325] - FERC authorized Ameren Missouri, Ameren Illinois, and ATXI to issue up to $1.4 billion, $1 billion, and $500 million, respectively, of short-term debt securities through January 2027[328] Long-term Debt and Equity Ameren and its subsidiaries issued $1.6 billion in long-term debt during the first six months of 2025, primarily to repay short-term debt and maturing obligations. Ameren also issued common stock through its DRPlus and 401(k) plan Issuances of Long-term Debt (Six Months Ended June 30, 2025, millions) | Registrant | Description | Amount | | :---------------- | :-------------------------------- | :----- | | Ameren | 5.375% Senior unsecured notes due 2035 | $749 | | Ameren Missouri | 5.25% First mortgage bonds due 2035 | $500 | | Ameren Illinois | 5.625% First mortgage bonds due 2055 | $350 | | Total Ameren | | $1,599 | Maturities of Long-term Debt (Six Months Ended June 30, 2025, millions) | Registrant | Description | Amount | | :---------------- | :-------------------------------- | :----- | | Ameren Illinois | 3.25% Senior secured notes due 2025 | $300 | | Total Ameren | | $300 | - Ameren issued $25 million in common stock under its DRPlus and 401(k) plan for the six months ended June 30, 2025[331] Indebtedness Provisions and Other Covenants As of June 30, 2025, all Ameren Companies were in compliance with the provisions and covenants of their credit agreements, indentures, and articles of incorporation. The companies believe they will maintain access to capital markets on reasonable terms - At June 30, 2025, the Ameren Companies were in compliance with all provisions and covenants contained in their credit agreements, indentures, and articles of incorporation[334] - Ameren, Ameren Missouri, and Ameren Illinois each believe they will continue to have access to the capital and credit markets on reasonable terms, despite potential uncertainties[335] Dividends Ameren's board of directors determines common stock dividends, considering various factors, and expects a payout ratio between 55% and 65% of annual earnings. No restrictions on dividend payments were in effect for Ameren or its subsidiaries as of June 30, 2025 - Ameren expects its dividend payout ratio to be between 55% and 65% of annual earnings over the next few years[338] - As of June 30, 2025, Ameren, Ameren Missouri, and Ameren Illinois were not restricted from paying dividends[339] Common Stock Dividends Declared and Paid (Six Months Ended June 30, millions) | Company | 2025 | 2024 | | :-------------- | :--- | :--- | | Ameren | $384 | $356 | | Ameren Missouri | $50 | $— | | Ameren Illinois | $75 | $25 | | ATXI | $39 | $— | Credit Ratings Ameren and its subsidiaries maintain solid investment-grade credit ratings from Moody's and S&P, which are crucial for liquidity and access to capital markets Principal Credit Ratings (Effective Date of Report) | Company | Moody's Issuer/Corporate Credit Rating | S&P Issuer/Corporate Credit Rating | | :-------------- | :------------------------------------- | :--------------------------------- | | Ameren | Baa1 | BBB+ | | Ameren Missouri | Baa1 | BBB+ | | Ameren Illinois | A3 | BBB+ | | ATXI | A2 | Not Rated | Collateral Postings A downgrade below investment grade could trigger significant additional collateral postings for Ameren and its subsidiaries. Changes in commodity prices could also require additional collateral, though currently estimated to be immaterial - A downgrade below investment grade (below 'Baa3' from Moody's or 'BBB-' from S&P) could require Ameren, Ameren Missouri, and Ameren Illinois to post additional collateral of $702 million, $666 million, and $36 million, respectively, as of June 30, 2025[342] - Changes in commodity prices (e.g., 15% higher/lower in next 12 months) could trigger additional collateral postings, but these amounts are currently estimated to be immaterial compared to each company's liquidity[344] Outlook Ameren's outlook highlights key trends and uncertainties, including regulatory changes in Missouri and Illinois, significant capital expenditure plans for infrastructure and clean energy transition, and the impact of tax credit provisions. The company expects continued investment in its utility infrastructure and managing liquidity Operations Outlook Ameren anticipates significant operational changes driven by Missouri Senate Bill 4, which modifies resource planning and rate mechanisms. The company expects substantial capital expenditures for infrastructure, including MISO transmission projects and Ameren Missouri's clean energy transition plan, which targets net-zero carbon emissions by 2045 - Missouri Senate Bill 4 (effective August 2025) modifies integrated resource planning, allowing CWIP in rate base for new generation facilities and a future test year for natural gas utilities. It also extends PISA through 2035 and reduces the annual electric rate increase limit to 2.25%[346][347][348] - Ameren Missouri expects a year-over-year earnings increase of approximately $100 million in 2025 due to the April 2025 MoPSC electric rate order, which authorized a $355 million increase to its annual revenue requirement[348] - Ameren Missouri's 2025 Change to the 2023 PRP targets net-zero carbon emissions by 2045, including adding 1,600 MW of natural gas-fired generation by 2030, 3,200 MW of renewable generation by 2030, and 1,000 MW of battery storage by 2030. It also plans to retire all coal-fired energy centers by 2042[354] - Estimated capital expenditures from 2025 through 2029 are up to $27.4 billion (Ameren M