Evergy(US:EVRG)2025-05-08 14:02Financial Data and Key Metrics Changes - For Q1 2025, adjusted earnings were reported at $0.54 per share, unchanged from Q1 2024, with total earnings of $125 million compared to $124.7 million a year ago [5][25] - Retail demand grew by 2.7%, while weather-normalized demand decreased by 3%, indicating a mixed performance influenced by weather conditions and customer outages [27][28] - The company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02 per share [7][35] Business Line Data and Key Metrics Changes - The recovery of regulated investments contributed $0.13 to EPS, while higher depreciation and interest expenses due to increased infrastructure investments reduced EPS by $0.10 [26] - The industrial sector experienced a decline in demand primarily due to a large customer outage caused by an unplanned maintenance shutdown [27] Market Data and Key Metrics Changes - The customer pipeline expanded to 12.2 gigawatts, with significant projects in the actively building category, including a data center project in Missouri [12][14] - The company anticipates a ramp-up in demand from large customers like Meta and Panasonic in the second half of the year, contributing to overall growth [28][34] Company Strategy and Development Direction - The long-term outlook remains strong, with a target of 4% to 6% earnings growth through 2029, supported by a robust customer pipeline and favorable regulatory frameworks [7][35] - The Integrated Resource Plan (IRP) reflects an all-of-the-above strategy for new generation development, adding approximately 2.1 gigawatts of new generation from 2025 through 2035 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the EPS target for 2025, citing strong operational performance and expected demand growth [29][35] - The company is committed to maintaining reliability and affordability while advancing a balanced generation portfolio [23][24] Other Important Information - Recent legislative outcomes in Kansas and Missouri are expected to enhance regulatory frameworks and support infrastructure investments [9][10] - The company is focused on managing operational costs and leveraging various levers to meet financial targets [81][84] Q&A Session Summary Question: Clarification on quarterly performance and expectations - The first quarter came in 5 cents below expectations, with a gross number of $3.97 before mitigating actions [40][41] Question: Timing of large customer contracts - The timing for the 1.3 gigawatts is linked to finalizing large load power service tariff proceedings, expected to conclude by year-end [43][45] Question: Impact of sales growth on equity - Increased sales could significantly reduce equity needs, potentially hundreds of millions of dollars over the five-year period [52][53] Question: Coal plant retirement rationale - The timing for coal plant retirements was extended due to the need for flexibility and the age of the units, with considerations for environmental regulations [76][78] Question: Large load tariff discussions - The company is engaged in constructive dialogue with large customers regarding tariff proceedings, which are crucial for future growth [90][93]