Core Insights - Evergy, Inc. (EVRG) reported third-quarter 2025 operating earnings per share (EPS) of $2.03, missing the Zacks Consensus Estimate of $2.14 by 5.1% and slightly up from $2.02 in the same quarter last year [1] - The company's total revenues for the quarter were $1.81 billion, consistent with the previous year but falling short of the Zacks Consensus Estimate of $1.87 billion by 3.4% [2][8] - Adjusted EPS increased primarily due to the recovery of regulated investments and higher weather-normalized demand [1] Financial Performance - Fuel and purchased power costs were $393.1 million, a decrease of 9.4% from $433.7 million in the prior year [3] - Operating and maintenance expenses rose to $252.8 million, reflecting a 0.5% year-over-year increase [3][8] - Interest expenses increased by 5.6% year over year, totaling $152 million [3] Financial Position - As of September 30, 2025, cash and cash equivalents stood at $27.5 million, up from $22 million at the end of 2024 [4] - Long-term debt increased to $12.45 billion from $11.81 billion as of December 31, 2024 [4] - Cash provided by operating activities for the first nine months of 2025 was $1.71 billion, compared to $1.59 billion in the same period last year [4] Guidance and Outlook - Evergy has narrowed its 2025 adjusted EPS guidance to a range of $3.92-$4.02, with the Zacks Consensus Estimate at $4.01, which is at the higher end of the company's guidance [5] - The company reaffirmed its annual adjusted EPS growth target of 4-6% through 2029 [5] Zacks Rank - Evergy currently holds a Zacks Rank 2 (Buy) [6]

Core Insights - Constellation Energy Corporation (CEG) is set to report its third-quarter 2025 earnings on November 7, with revenue expectations of $6.12 billion, reflecting a 6.53% decline year-over-year, while earnings per share are projected at $3.04, indicating a 10.95% growth compared to the previous year [1] Earnings Performance - CEG has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 4.13% [2] - The earnings surprise history shows reported earnings of $1.91, $2.14, $2.44, and $2.74 for the last four quarters, with an average surprise of 4.13% [3] Earnings Prediction Model - The current Earnings ESP for CEG is 0.00%, indicating that the model does not predict an earnings beat this time [4] Factors Influencing Q3 Performance - Strong demand from commercial customers and an expanding customer base are expected to positively impact Q3 earnings, projected to rise by 10.95% year-over-year, despite a revenue decline [5][8] - CEG's robust nuclear infrastructure is likely to support increased demand from data centers, contributing positively to revenues and earnings [8] - The ongoing expansion of CEG's renewable energy portfolio is expected to foster long-term earnings growth and positively influence Q3 results [9] Shareholder Value and Stock Performance - Ongoing share repurchases are anticipated to enhance shareholder value and positively impact earnings due to a lower number of shares outstanding [10] - CEG's stock has returned 45.6% over the past six months, outperforming the industry growth of 29.6% [13] - The stock is currently trading at a premium, with a forward 12-month price-to-earnings ratio of 31.71X compared to the industry average of 23.36X [15] Strategic Investments - CEG's investments in customer-focused energy solutions, including carbon-free and renewable energy certifications, are expected to generate favorable returns and enhance stakeholder value [17] - The company is well-positioned to capture growing demand and strengthen revenue streams through its extensive carbon-free generation fleet and comprehensive energy supply services [18] Summary - Given the solid earnings growth expectations for Q3 and stable price performance, existing investors may consider holding onto CEG stock [19]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GAAP EPS of $0.34, including $0.10 of merger-related costs, resulting in an adjusted EPS of $0.45 compared to $0.35 for Q3 2024, reflecting a year-over-year increase [10][11] - Year-to-date EPS was reported at $2.58, including $0.11 of merger-related costs, leading to an adjusted EPS of $2.68, a 6.3% increase from $2.52 in the same period last year [12][14] - The company reaffirmed its 2025 earnings guidance with an adjusted EPS range of $4-$4.20, indicating a 5% growth rate at the midpoint over 2024 EPS [6][15] Business Line Data and Key Metrics Changes - Regulatory efforts contributed $0.21 per share of new rates and rider recovery margin for Q3 2025, offsetting unfavorable weather and increased operating costs [10][11] - Customer growth, particularly from large load customers like data centers, is positively impacting earnings, with ongoing negotiations for over 3 gigawatts of demand [6][18] Market Data and Key Metrics Changes - The company is experiencing strong economic conditions in its service territories, with no significant indicators of weakness noted [32] - The merger with Northwestern Energy is expected to enhance competitive positioning and create additional value for customers and shareholders [9] Company Strategy and Development Direction - The company is executing a $1 billion capital plan to support key projects and has made significant progress on regulatory and growth initiatives [4][5] - The merger with Northwestern Energy is anticipated to be finalized in the second half of next year, which will provide increased scale and new opportunities [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth targets, supported by a $4.7 billion capital plan and strong customer demand [7][15] - The company is on track to complete major projects, including the Ready Wyoming transmission expansion and the Lang 2 generation project, which are expected to enhance service reliability and support growth [20][21] Other Important Information - The company has maintained a healthy balance sheet with a net debt to total capitalization target of 55% and a strong liquidity position [14] - The company has a long-standing commitment to dividends, targeting a payout ratio of 55%-65% [16] Q&A Session Summary Question: Data center resource requirements and equipment reservations - Management confirmed they have reservations in place and are utilizing a flexible service model to meet growing demand [26][27] Question: Concerns about the approval process in Montana - Management is closely monitoring the situation and remains optimistic about the approval process [29] Question: Fourth-quarter issues that might impact guidance - Management indicated no significant operational or financial issues, with weather being the primary concern [30][31] Question: Indicators of economic weakness in service areas - Management reported no signs of weakness in their service territories, with conditions remaining strong [32] Question: EPS upside from data center projects - Management acknowledged the potential for significant EPS growth from data centers, but emphasized the variability in contractual agreements [40][41] Question: Strategic considerations for coal mine assets - Management is keeping options open regarding the coal mine, aware of potential rare earth minerals but not expecting significant monetization in the near term [45]

Financial Data and Key Metrics Changes - The company reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a growth of approximately 16% [5][25]. - The GAAP earnings for the same period were $2.35 per share, which included a tax benefit of $0.18 per share due to IRS guidance and a FERC order [25][6]. - The company expects adjusted diluted earnings per share for 2025 to be in the range of $4.90-$5.10, up from the original guidance of $4.85-$5.05 [10][27]. Business Line Data and Key Metrics Changes - The company deployed over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including significant investments in electric distribution and transmission systems [7][8]. - In Missouri, 11,300 electric distribution poles were replaced, and in Illinois, over 8,500 stronger electric distribution poles were installed [7][8]. - The company has invested more than $825 million in new or existing generation resources, with plans to add approximately 10 gigawatts of generation capacity by 2035 [8][9]. Market Data and Key Metrics Changes - Total normalized retail sales in Ameren Missouri increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26]. - The company is actively engaging with potential data center customers, with signed construction agreements now totaling 3 gigawatts, up from 2.3 gigawatts [12][56]. - The anticipated new load from data center customers is expected to contribute significantly to sales growth, with projections of 1 gigawatt by 2029 and 1.5 gigawatts by 2032 [12][13]. Company Strategy and Development Direction - The company is focused on investing in electric and natural gas infrastructure to enhance reliability and safety, while also optimizing operations to keep customer rates affordable [4][5]. - The strategy includes engaging with stakeholders on economic development opportunities and advancing regulatory frameworks to support large-load customers [5][11]. - The company aims to maintain a balanced energy mix, targeting approximately 70% generation from on-demand resources and 30% from intermittent resources by 2040 [16]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic growth potential of the regions served, highlighting significant opportunities for investment and job creation [4][5]. - The company expects to continue delivering strong earnings growth, projecting a compound annual growth rate of 6-8% from 2025 through 2029 [10][22]. - Management emphasized the importance of regulatory approvals and energy service agreements to solidify future growth expectations [46][78]. Other Important Information - The company has a pipeline of investment opportunities exceeding $68 billion, with further details expected in February regarding planned capital investments for 2026-2030 [21][22]. - Leadership changes were announced, with Michael Moehn transitioning to Group President of Ameren's Utilities and Lenny Singh becoming the new CFO [23][24]. Q&A Session Summary Question: Will the increase in data center construction agreements necessitate revisions to generation plans? - Management indicated that the current generation plans can accommodate the increased sales expectations from the expanded data center agreements, with further evaluations to be made as ramp rates are established [34][36]. Question: What factors contribute to the company's current earnings guidance? - Management noted that the guidance reflects a conservative approach based on known factors, with potential for upside as regulatory approvals and energy service agreements are finalized [45][77]. Question: How does the recent omnibus energy bill in Illinois impact the business? - Management highlighted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could provide opportunities for the company [60][62]. Question: Can you clarify the $5 billion increase in the capital plan pipeline? - Management explained that the increase is due to various factors, including investments in generation and grid reliability, with more details to be provided in February [87][88].

Financial Data and Key Metrics Changes - The company reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a $0.30 increase in adjusted earnings per share [5][25][26] - The GAAP earnings for the third quarter 2025 were $2.35 per share, which included a tax benefit of $0.18 per share due to IRS guidance [25][26] - The company expects adjusted diluted earnings per share for 2025 to be in the range of $4.90-$5.10, up from the original guidance of $4.85-$5.05 [10][27] Business Line Data and Key Metrics Changes - Ameren invested over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including the replacement of 11,300 electric distribution poles and installation of 300 smart switches [7][8] - The company has invested more than $825 million in new or existing generation resources through September 2025, with plans to add approximately 10 GW of generation capacity by 2035 [8][9] Market Data and Key Metrics Changes - Total normalized Ameren Missouri retail sales increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26] - The executed construction agreements with data center developers in Missouri expanded to 3 GW, up from 2.3 GW, indicating strong demand in the region [12][58] Company Strategy and Development Direction - The company is focused on investing in electric and natural gas infrastructure to enhance reliability and safety, while also optimizing operations to keep customer rates affordable [4][5] - Ameren's long-term earnings growth guidance is set at a 6%-8% compound annual growth rate from 2025 through 2029, driven by strategic infrastructure investments [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic growth of the regions served, highlighting opportunities for investment and job creation [4][5] - The company anticipates significant growth in data center demand, with expectations of 1 GW of new load from data center customers by the end of 2029 [12][14] Other Important Information - A leadership transition is set for January 1, with Michael Moehn becoming Group President of Ameren's Utilities and Lenny Singh taking over as CFO [23][24] - The company plans to provide updates on its five-year sales growth expectations and capital investments in February 2026 [12][22] Q&A Session Summary Question: Will the increase in data center construction agreements necessitate revisions to generation plans? - Management confirmed that the increase to 3 GW of construction agreements enhances confidence in sales projections and current generation plans can accommodate this growth [34][36] Question: What factors contribute to the current earnings guidance being at the lower end of the growth range? - Management indicated that while they are currently projecting growth within the 6%-8% range, they are open to revising this based on economic development opportunities and regulatory approvals [44][46] Question: Can you elaborate on the implications of the recent Omnibus Energy bill in Illinois? - Management highlighted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could benefit the company in the long run [60][62] Question: How does the company view the potential for incremental investments from the Clean Grid Reliability Act? - Management noted that the biggest opportunity lies in energy efficiency investments, which are expected to double, providing regulatory asset treatment [68][70] Question: What is the breakdown of the 2 GW in advanced discussions for data centers? - Management clarified that the 2 GW in advanced discussions is specific to Missouri, with ongoing interest from developers in both states [91][92]

Financial Data and Key Metrics Changes - Ameren reported third quarter 2025 adjusted earnings of $2.17 per share, an increase from $1.87 per share in the third quarter of 2024, reflecting a $0.30 increase in adjusted earnings per share [5][25][26] - The company recorded a tax benefit of $0.18 per share in the third quarter of 2025, which was excluded from adjusted earnings [6][25] - The updated earnings guidance for 2025 is now in the range of $4.90-$5.10, up from the original range of $4.85-$5.05 [10][27] Business Line Data and Key Metrics Changes - Ameren invested over $3 billion in critical infrastructure upgrades during the first three quarters of 2025, including the replacement of 11,300 electric distribution poles and installation of 300 smart switches [6][8] - In Missouri, the company has invested more than $825 million in new or existing generation resources, with plans to add approximately 10 gigawatts of generation capacity by 2035 [8][9] - The transmission business placed in service 11 new or upgraded transmission substations and 40 miles of new or upgraded transmission lines [7] Market Data and Key Metrics Changes - Total normalized Ameren Missouri retail sales increased by approximately 1.5% across all customer classes over the trailing 12 months through September [26] - The company expects to see significant economic growth in the region, driven by investments in data centers and other sectors, which will necessitate incremental investment in utility infrastructure [4][12] Company Strategy and Development Direction - Ameren's strategy focuses on investing in electric and natural gas infrastructure to enhance reliability and safety while optimizing operations to keep customer rates affordable [4][5] - The company is actively engaging with stakeholders on economic development opportunities and regulatory frameworks to support new large-load customers [5][11] - Ameren aims to maintain a balanced energy mix, targeting approximately 70% generation from on-demand resources and 30% from intermittent resources by 2040 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve strong long-term earnings growth, projecting a compound annual growth rate of 6-8% from 2025 through 2029 [10][23] - The leadership team highlighted the importance of securing energy services agreements with hyperscalers to solidify sales growth expectations [39][54] - The company anticipates a bright future, driven by significant investment opportunities and economic growth in the communities it serves [5][12] Other Important Information - A leadership update was announced, with Michael Moehn transitioning to Group President of Ameren's Utilities and Lenny Singh becoming the Chief Financial Officer [24] - The company has a pipeline of investment opportunities exceeding $68 billion, which will be detailed in February [22] Q&A Session Summary Question: Will future revisions to generation plans be needed with the new data center agreements? - Management indicated that the current generation plans can accommodate the increased sales expectations from the new data center agreements, with further evaluations to be made as ramp rates are established [33][34] Question: What factors contribute to the current earnings guidance? - Management emphasized that the guidance reflects strong sales growth, new electric service rates, and increased expenditures for energy center reliability [38][39] Question: How does the company view the implications of the recent omnibus energy bill in Illinois? - Management noted that the bill introduces integrated resource planning and increased investment in energy efficiency, which could provide opportunities for Ameren [46][48] Question: Can you clarify the breakdown of advanced discussions for data centers? - Management confirmed that the 2 gigawatts in advanced discussions are primarily in Missouri, with significant opportunities for data center development in both Missouri and Illinois [60][61]

Financial Performance & Outlook - Black Hills Corp reaffirmed its full-year adjusted earnings guidance range of $400 to $420[14] - The company is targeting a long-term EPS growth of 4% to 6%, planning to deliver in the upper half of the range starting in 2026[14] - Black Hills Corp is forecasting $1 billion in capital investment for 2025 and $47 billion from 2025 to 2029[14] - The company completed a $220 million equity issuance in 2025[12] Strategic Initiatives & Merger - Black Hills Corp is progressing with its merger with NorthWestern Energy, having filed joint applications for transaction approval with regulatory commissions in Montana, Nebraska, and South Dakota[21, 22] - The company expects to file a joint application with FERC during Q4 2025[22] - Black Hills Corp is engaged with high-quality partners representing 3 GW+ of data center load requests[12] Capital Investments & Projects - The company's capital investment forecast is $47 billion from 2025-2029[16] - The Ready Wyoming transmission expansion project is on track to be placed in service by year-end, with the first phase completed in late 2024 at a cost of ~$40 million out of a total ~$350 million project[12, 58] - Construction has commenced on the 99 MW Lange II generation project in Rapid City, with an expected in-service date in the second half of 2026[12] Regulatory & Reliability - Black Hills Corp reached a settlement for the Nebraska Gas rate review[12] - The company was recognized by Escalent as the 2025 Most Trusted Utility Brand and 2025 Easiest Utilities to do Business With[12]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's future earnings potential and financial health [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11] Company Spotlight: Southern Company - Southern Company, a major utility provider in the U.S., serves approximately nine million customers and has a Zacks Rank of 3 (Hold) with a VGM Score of B [12] - The company is positioned as a potential growth investment, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 5.7% for the current fiscal year [13] - Recent upward revisions in earnings estimates and a solid earnings surprise average of +3% further enhance its attractiveness to investors [13]

Core Insights - National Grid reported a strong first half with a focus on operational excellence and capital discipline, aiming to deliver reliable and clean energy while meeting growing demand [1][2][3] - The company is committed to a GBP 60 billion capital investment program, projecting around 10% annual investment growth and 6% to 8% underlying earnings per share growth [4][5] Investment and Operational Performance - National Grid has invested over GBP 5 billion in the first half, with a target of over GBP 11 billion for the full year, reflecting a 12% year-on-year increase [8][30] - The company has secured the supply chain for its major projects, with over 75% of the GBP 60 billion investment plan underpinned by delivery mechanisms [7][19] - The U.K. Electricity Transmission capital investment increased by 31% to GBP 1.7 billion, driven by new substations and ongoing projects [19][32] Regulatory and Policy Developments - Approximately 75% of the U.S. five-year investment plan has been approved within rate cases, indicating strong regulatory support [8][11] - New York State's shift towards an all-of-the-above energy approach aims to balance clean energy goals with affordability, potentially reducing energy costs by up to $6 billion through the NESE pipeline [9][10] - The U.K. government is exploring ways to expedite infrastructure delivery, which could benefit future transmission projects [11][12] Financial Performance - Underlying operating profit increased by 13% to GBP 2.3 billion, driven by higher regulatory revenues in both U.K. and U.S. electricity transmission businesses [13][30] - Underlying earnings per share rose by 6% to 29.8p, supported by strong operating performance despite higher finance costs [30][38] - Cash generated from continuing operations was GBP 3.6 billion, a 35% increase compared to the prior year, reflecting improved profitability [38] Future Outlook and Strategic Priorities - National Grid aims to maintain momentum in capital delivery and regulatory engagement, focusing on the RIIO-T3 framework to ensure competitive returns [41][43] - The company is preparing for upcoming regulatory decisions and is actively engaging with stakeholders to facilitate connections and infrastructure development [21][43] - Strategic priorities include enhancing collaboration with the AI Energy Council and advancing construction across Wave 1 ASTI projects [41][43]

Financial Data and Key Metrics Changes - The company reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago, driven by a recovery of regulated investments and growth in weather-normalized demand [5][26] - Year-to-date adjusted earnings are $3.41 per share compared to $3.46 per share a year ago, leading to a narrowed 2025 adjusted EPS guidance range of $3.92-$4.02 per share from the original range of $3.92-$4.12 per share [5][28] - The lower midpoint of guidance is primarily due to weather headwinds impacting results by $0.13 per share [5] Business Line Data and Key Metrics Changes - Weather-normalized demand increased by 2% in the third quarter compared to the previous year, supported by increases in both residential and commercial usage [27] - The recovery of regulated investments contributed an additional $0.11 to EPS, while higher depreciation and interest expenses led to a $0.07 decrease in EPS [26] Market Data and Key Metrics Changes - The unemployment rates in Missouri, Kansas, and the Kansas City metro area remain below the national average of 4.3%, supporting robust customer demand in service areas [27] - The company has a strong economic development pipeline with opportunities exceeding 15 GW, indicating a robust backlog relative to its size [9][10] Company Strategy and Development Direction - The company is focused on a five-year capital investment plan that includes expected generation investments to meet growing demand and regulatory requirements [9][32] - The strategy emphasizes affordability and competitiveness, with a commitment to maintaining a lower rate trajectory compared to regional peers [21][23] - The company aims to attract large new customers through a proposed large load power service tariff that ensures they pay a fair share of system costs [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, bolstered by economic development opportunities and necessary investments [6][30] - The company anticipates significant load growth driven by large data center projects, with expectations of 4-5% annual load growth through 2029 [31][34] - Management highlighted the importance of collaboration with stakeholders to advance regulatory frameworks that support growth [20][19] Other Important Information - A 4% increase in the quarterly dividend to $2.78 per share was announced, aligning with the updated growth outlook [8] - The company is nearing completion of its 27th refueling outage at Wolf Creek, which generates around 1,200 MW of non-carbon emitting energy [8] Q&A Session Summary Question: What are the priorities for the 2026 Missouri legislative session? - Management indicated that the focus will be on implementing elements of SB4-related rulemakings, with expectations for a lighter legislative calendar in 2026 [40][41] Question: How will the growth rate profile look in the upcoming capital plan? - Management refrained from providing specifics but indicated that the updated financial plan will outline the relationship between load growth and capital investments [42][43] Question: How much competition exists in attracting large loads within the service territory? - Management noted strong collaboration between Kansas and Missouri, with legislative truces in place to mitigate competition for economic development [50][51] Question: How much of the $17.5 billion capital expenditure is subject to typical rate case filings? - Management explained that all investments are subject to reviews, with mechanisms in place to mitigate regulatory lag [52][53] Question: What is the impact of the Lambda data center on sales growth? - Management clarified that the Lambda project is expected to contribute to load growth, with further quantification to be provided in future updates [62][64] Question: What is the status of the LLPS tariff discussions? - Management confirmed a unanimous settlement agreement in Kansas and a partial settlement in Missouri, with decisions expected soon [70][71] Question: How will the financing plan be impacted by new agreements? - Management indicated that cash flows from new customers could significantly improve operations, potentially reducing equity funding needs [84][85]