Evergy(US:EVRG)2025-11-05 22:32Financial Performance - Operating revenues for Q3 2025 were $1,809.9 million, slightly down from $1,811.4 million in Q3 2024, while year-to-date revenues increased to $4,621.4 million from $4,589.9 million[32]. - Net income attributable to Evergy, Inc. for Q3 2025 was $475.0 million, compared to $465.6 million in Q3 2024, with year-to-date net income decreasing to $771.3 million from $795.3 million[32]. - Basic earnings per common share for Q3 2025 were $2.06, compared to $2.02 in Q3 2024, while diluted earnings per share remained stable at $2.03[32]. - Total operating expenses decreased to $1,151.4 million in Q3 2025 from $1,183.9 million in Q3 2024, contributing to improved income from operations[32]. - Net income for the third quarter of 2025 was $478.0 million, compared to $125.0 million in the same quarter of 2024, representing a year-over-year increase of approximately 282.4%[39]. - Year-to-date net income for 2025 was $453.3 million, compared to $481.3 million for the same period in 2024, indicating a decline of 5.8%[51]. - Evergy's total operating revenues for the year to date September 30, 2025, were $4,621.4 million, a slight increase from $4,589.9 million in 2024[105]. Assets and Liabilities - Total assets increased to $33,440.4 million as of September 30, 2025, compared to $32,282.1 million on December 31, 2024, reflecting a growth of approximately 3.6%[26]. - Current assets rose to $1,924.7 million, up from $1,839.3 million, indicating an increase of about 4.6%[26]. - Total current liabilities increased to $3,733.0 million as of September 30, 2025, from $3,662.4 million at the end of 2024, driven by increases in accounts payable and accrued taxes[29]. - Long-term debt rose to $12,446.3 million as of September 30, 2025, compared to $11,809.2 million at the end of 2024, reflecting ongoing financing needs[29]. - The company reported total equity of $10,332.5 million as of September 30, 2025, an increase from $9,989.2 million at the end of 2024, primarily due to retained earnings growth[29]. - Evergy's total assets as of September 30, 2025, were valued at $520.4 million, with $425.0 million classified under Level 2[182]. - The book value of Evergy's long-term debt as of September 30, 2025, was $13,062.9 million, with a fair value of $12,739.2 million[180]. Cash Flow and Investments - Cash flows from operating activities for the year-to-date period were $1,711.2 million, up from $1,588.1 million in the same period of 2024[34]. - The company experienced a net change in cash of $13.7 million, with cash and cash equivalents totaling $43.6 million at the end of the period[34]. - Evergy's cash and cash equivalents rose to $6.7 million as of September 30, 2025, compared to $3.7 million at the end of 2024, showing a significant increase of approximately 81.1%[41]. - Cash flows from operating activities increased to $866.3 million year-to-date in 2025, up from $801.6 million in 2024[51]. - Evergy's investments in early-stage clean energy companies were valued at $95.7 million as of September 30, 2025, down from $121.4 million on December 31, 2024[83]. Regulatory and Compliance - Evergy Kansas Central filed for a retail revenue increase of approximately $196 million, reflecting a return on equity of 10.5%[116]. - A unanimous settlement agreement resulted in an increase to retail revenues of $128 million for Evergy Kansas Central, effective October 2025[117]. - The KCC approved a $54.8 million increase in annual retail revenues for Evergy Kansas Central due to updated transmission costs effective May 2025[124]. - The EPA plans to end the Good Neighbor Rule for the 2015 Ozone NAAQS, which could materially impact Evergy Companies' operations and compliance costs[197]. - The EPA finalized the primary annual PM NAAQS, lowering it from 12.0 µg/m3 to 9.0 µg/m3, effective May 2024, potentially leading to significant compliance costs for Evergy Companies[198]. Dividends and Shareholder Returns - The company declared dividends on common stock of $0.6675 per share, totaling $153.6 million for the third quarter of 2025, consistent with the previous quarter[39]. - Evergy Kansas Central and Evergy Metro declared cash dividends of up to $50.0 million and $125.0 million, respectively, payable on or before December 18, 2025[96]. Debt and Financing - In March 2025, Evergy Kansas Central issued $300.0 million of 5.25% First Mortgage Bonds, maturing in 2035, to pay down commercial paper[149]. - In August 2025, Evergy Metro issued $400.0 million of 5.125% Mortgage Bonds, maturing in 2035, for general corporate purposes[149]. - Evergy's $2.5 billion master credit facility expires in 2028, with specific sublimits for each borrower[145]. - As of September 30, 2025, Evergy had drawn $1,230.7 million from its master credit facility, with a weighted average interest rate of 4.28%[148]. Operational Highlights - 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 by summer 2029 and summer 2030[100]. - Evergy Kansas Central intends to construct a 159 MW solar generation facility called Kansas Sky, expected to begin operations by summer 2027, pending regulatory approvals[102]. Risk Management - Evergy's risk management strategies include the use of derivative instruments to mitigate commodity price and interest rate risks[153][154]. - The aggregate fair value of derivative instruments with credit-risk-related contingent features in a liability position was $36.5 million, requiring an additional $32.6 million of collateral if triggered[172].