Evergy(EVRG) - 2025 Q2 - Quarterly Results

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