Ameren Q4 Earnings Higher Than Expected, Revenues Decline Y/Y

Core Insights - Ameren Corporation (AEE) reported fourth-quarter 2025 earnings of 78 cents per share, exceeding the Zacks Consensus Estimate of 77 cents by 1.3% and reflecting a 1.3% increase from the previous year's figure [1] - The adjusted earnings for 2025 were $5.03 per share, an 8.6% increase from $4.63 in 2024 [2] Revenue Performance - Total revenues for the fourth quarter were $1.78 billion, down 8.2% year over year, and missed the Zacks Consensus Estimate of $2.09 billion by 14.9% [3] - For the full year 2025, total revenues reached $8.8 billion, a 15.4% increase from $7.62 billion in 2024 [3] Operational Highlights - Total electricity sales volumes increased by 6.3% to 16,927 million kilowatt-hours (kWh) compared to 15,929 million kWh in the previous year [4] - Gas volumes rose by 7.5% to 57 million dekatherms from the prior year's level [4] - Total operating expenses were $1.42 billion, down 18.4% year over year [4] - Interest expenses in the fourth quarter totaled $206 million, up from $171 million in the prior-year quarter [4] Segment Performance - The Ameren Missouri segment reported adjusted earnings of $747 million, up from $604 million a year ago, driven by increased infrastructure investments and new electric service rates effective June 1, 2025 [5] - The Ameren Illinois Electric Distribution segment reported adjusted earnings of $256 million, compared to $234 million in the year-ago quarter [5] - The Ameren Illinois Natural Gas segment reported adjusted earnings of $145 million, down from $149 million in the prior-year quarter [6] - The Ameren Transmission segment reported adjusted earnings of $367 million, up from $333 million in the year-ago quarter [6] Financial Condition - As of December 31, 2025, cash and cash equivalents were $13 million, an increase from $7 million at the end of 2024 [7] - Long-term debt totaled $18.21 billion as of December 31, 2025, compared to $17.26 billion at the end of 2024 [9] - Net cash flows from operating activities in 2025 were $3.35 billion, up from $2.76 billion in 2024 [9] Guidance - Ameren affirmed its 2026 earnings guidance, expecting earnings per share (EPS) in the range of $5.25-$5.45, with the Zacks Consensus Estimate for 2026 earnings at $5.35, the midpoint of the company's guided range [10]