Evergy(US:EVRG)2025-11-06 15:02Financial 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 previous 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, following a 1.4% increase in the second quarter, supported by strong 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 gigawatts, 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 serve load and meet increasing reserve margin requirements [9][32] - The strategic focus includes maintaining affordability while investing in infrastructure to support new large customers, with a designed large load power service tariff to ensure new customers pay a fair share [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 a comprehensive financial outlook update in February, including refreshed views on load forecasts and capital investment plans [8][34] 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 committed to delivering safe, affordable, and reliable service to its 1.7 million customers, emphasizing the benefits of new large customers for broader cost-sharing [20][24] 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 a lighter calendar anticipated for 2026 [40][41] Question: How will the growth rate profile look moving towards the end of the decade? - Management refrained from providing specifics but highlighted multiple tailwinds that could positively impact growth [42][43] Question: How much competition exists at the local level for attracting large loads? - Management noted strong collaboration between Kansas and Missouri, with legislative truces to mitigate competition across state lines [50][51] Question: How much of the $17.5 billion CapEx 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: Can you elaborate on the third data center's impact on sales growth? - Management confirmed that the third data center would be additive to the load growth potential, with specifics to be provided in future updates [60][61]