CMS Energy Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. Guidance figures: 1 raised, 1 new, 1 kept. The quarter’s numbers.

Key takeaways

Reported EPS rose to $0.92: The company reported diluted EPS of $0.92 for the quarter, against $0.84 a year earlier. Net income available to common stockholders was $275 million, against $251 million. Source
Adjusted EPS of $0.93 for quarter: Adjusted EPS was $0.93 for the quarter, against $0.84 in the same quarter of 2024. Adjusted EPS added $0.02 per share of other exclusions and deducted a $0.01 per share tax impact. Source
Nine-month adjusted EPS reached $2.66: Adjusted EPS for the first nine months was $2.66, against $2.47, which the company attributes largely to constructive regulatory outcomes and favorable weather. Reported EPS was $2.59, against $2.45. Source
Plant and property rose to $29.7 billion: Plant, property and equipment was $29,690 million at September 30, 2025, against $27,461 million at December 31, 2024. Total assets were $38,008 million, against $35,920 million. Source
Debt rose to $17.5 billion: Debt and finance leases, excluding securitization debt, were $17,473 million at September 30, against $15,866 million at year-end 2024. Securitization debt was $600 million, against $700 million. Source
Recent regulatory orders cited: Management cited recent orders in the natural gas rate case and a Renewable Energy Plan filing as evidence of its regulatory track record. Source

“as demonstrated by recent orders in our natural gas rate case and Renewable Energy Plan filing”
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy

Guidance

Area	Period	Figure	Against last quarter
Adjusted EPS, 2025 Source	Full year 2025	$3.56 to $3.60	Raised from $3.54 to $3.60
Adjusted EPS, 2026 Source	Full year 2026	$3.80 to $3.87	New
Long-term adjusted EPS growth Source	Long-term	6 to 8 percent	Kept

What changed from last quarter

Guidance raised: The 2025 adjusted EPS range low end was raised by $0.02, from $3.54 to $3.56. Source
New guidance: 2026 adjusted EPS guidance was initiated at $3.80 to $3.87 per share. Source
New: Recent orders in a natural gas rate case and a Renewable Energy Plan filing were reported. Source

Earnings and revenue

Reported EPS rose to $0.92: The company reported diluted EPS of $0.92 for the quarter, against $0.84 a year earlier. Net income available to common stockholders was $275 million, against $251 million. Source
Adjusted EPS of $0.93 for quarter: Adjusted EPS was $0.93 for the quarter, against $0.84 in the same quarter of 2024. Adjusted EPS added $0.02 per share of other exclusions and deducted a $0.01 per share tax impact. Source
Nine-month adjusted EPS reached $2.66: Adjusted EPS for the first nine months was $2.66, against $2.47, which the company attributes largely to constructive regulatory outcomes and favorable weather. Reported EPS was $2.59, against $2.45. Source
Operating revenue and income increased: Operating revenue was $2,021 million for the quarter, against $1,743 million, and operating income was $481 million, against $367 million. Source

Non-GAAP adjustments

Quarter adjustments of $0.02 per share: Other exclusions from adjusted earnings, which include restructuring costs and business optimization initiative, were $0.02 per share for the quarter. The tax impact was $0.01 per share. Source
State tax change excluded for nine months: A state tax policy change of $12 million, or $0.04 per share, is excluded from adjusted earnings for the nine-month period. The reconciliation shows no 2025 voluntary separation program amounts. Source
No reported EPS guidance provided: The company said it is not providing reported earnings guidance, and is not providing a reconciliation for future-period earnings, because it cannot estimate the impact of specific line items. Source

“With a clear plan for long-term customer value and earnings growth, the company is well positioned to achieve our operational and financial goals for all stakeholders.”
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy

Below-the-line items and taxes

Other income declined year over year: Other income was $62 million for the quarter, against $84 million a year earlier. For the nine months it was $249 million, against $283 million. Source
Interest charges increased: Interest charges were $203 million for the quarter, against $178 million, and $588 million for the nine months, against $528 million. Source
Income tax expense increased: Income tax expense was $68 million for the quarter, against $26 million, and $193 million for the nine months, against $125 million. Source

Balance sheet and capital

Plant and property rose to $29.7 billion: Plant, property and equipment was $29,690 million at September 30, 2025, against $27,461 million at December 31, 2024. Total assets were $38,008 million, against $35,920 million. Source
Debt rose to $17.5 billion: Debt and finance leases, excluding securitization debt, were $17,473 million at September 30, against $15,866 million at year-end 2024. Securitization debt was $600 million, against $700 million. Source
Cash balance higher at quarter end: Cash and cash equivalents were $362 million at September 30, against $103 million at December 31, 2024. Source
Common equity increased: Common stockholders' equity was $8,640 million, against $8,006 million at year-end 2024. Source

Nine-month cash flow

Operating cash flow lower year over year: Net cash from operating activities was $1,757 million for the nine months, against $1,967 million. Investing activities used $2,926 million, against $2,101 million. Source
Financing inflows larger: Net cash provided by financing activities was $1,423 million, against $353 million. Cash including restricted amounts ended the period at $432 million, against $467 million. Source

Regulatory orders and strategy

Recent regulatory orders cited: Management cited recent orders in the natural gas rate case and a Renewable Energy Plan filing as evidence of its regulatory track record. Source
Long-term plan for customer value: Management said it has a clear plan for long-term customer value and earnings growth, and that the company is well positioned to meet its operational and financial goals. Source

Figures management reported

Figure	Reported
EPS growth target Source	6 to 8 percent long-term adjusted EPS growth, reaffirmed
Rate cases Source	Recent order in natural gas rate case; no figures given

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

CMS Energy Announces Strong Third Quarter Results, Raises 2025 Adjusted EPS, Initiates 2026 Guidance

JACKSON, Mich., Oct. 30, 2025 - CMS Energy announced today reported earnings per share of $0.92 for the third quarter of 2025, compared to $0.84 per share for 2024. The company’s adjusted earnings per share for the third quarter were $0.93, compared to $0.84 per share for the same quarter in 2024. For the first nine months of the year, the company reported $2.59 per share compared to $2.45 per share for the same timeframe in 2024. The company’s adjusted earnings per share on a year-to-date basis were $2.66 in 2025, compared to $2.47 in 2024, largely due to constructive regulatory outcomes and favorable weather.

CMS Energy raised its 2025 adjusted earnings guidance to $3.56 to $3.60 per share from $3.54 to $3.60 per share* (*See below for important information about non-GAAP measures). The company also initiated 2026 adjusted earnings guidance of $3.80 to $3.87 per share and reaffirmed its long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

“CMS Energy continues to build on its strong track record of constructive regulatory outcomes, as demonstrated by recent orders in our natural gas rate case and Renewable Energy Plan filing,” said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. “With a clear plan for long-term customer value and earnings growth, the company is well positioned to achieve our operational and financial goals for all stakeholders.”

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2025 third quarter results and provide a business and financial outlook on Thursday, October 30 at 9:30 a.m. (EDT). To participate in the webcast, go to CMS Energy’s homepage (cmsenergy.com) and select “Events and Presentations.”

Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, major enterprise resource planning software implementations, changes in accounting principles, voluntary separation program, changes in federal and state tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings.

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

Media Contacts: Katie Carey, 517/740-1739

Investment Analyst Contact: Travis Uphaus, 517/817-9241

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

	In Millions, Except Per Share Amounts
	Three Months Ended		Nine Months Ended
	9/30/25	9/30/24	9/30/25	9/30/24
Operating revenue	$2,021	$1,743	$6,306	$5,526
Operating expenses	1,540	1,376	5,014	4,464
Operating Income	481	367	1,292	1,062
Other income	62	84	249	283
Interest charges	203	178	588	528
Income Before Income Taxes	340	273	953	817
Income tax expense	68	26	193	125
Net Income	272	247	760	692
Loss attributable to noncontrolling interests	(5)	(6)	(22)	(46)
Net Income Attributable to CMS Energy	277	253	782	738
Preferred stock dividends	2	2	7	7
Net Income Available to Common Stockholders	$275	$251	$775	$731
Diluted Earnings Per Average Common Share	$0.92	$0.84	$2.59	$2.45

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

	In Millions
	As of
	9/30/25	12/31/24
Assets
Current assets
Cash and cash equivalents	$362	$103
Restricted cash and cash equivalents	70	75
Other current assets	2,313	2,612
Total current assets	2,745	2,790
Non-current assets
Plant, property, and equipment	29,690	27,461
Other non-current assets	5,573	5,669
Total Assets	$38,008	$35,920
Liabilities and Equity
Current liabilities	$1,890	$2,261
Non-current liabilities	8,614	8,345
Capitalization
Debt and finance leases (excluding securitization debt)	17,473	15,866
Preferred stock and securities	224	224
Noncontrolling interests	567	518
Common stockholders' equity	8,640	8,006
Total capitalization (excluding securitization debt)	26,904	24,614
Securitization debt	600	700
Total Liabilities and Equity	$38,008	$35,920

Excludes debt and finance leases.

Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

	In Millions
	Nine Months Ended
	9/30/25	9/30/24
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$178	$248
Net cash provided by operating activities	1,757	1,967
Net cash used in investing activities	(2,926)	(2,101)
Cash flows from operating and investing activities	(1,169)	(134)
Net cash provided by financing activities	1,423	353
Total Cash Flows	$254	$219
End of Period Cash and Cash Equivalents, Including Restricted Amounts	$432	$467

CMS ENERGY CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

(Unaudited)

	In Millions, Except Per Share Amounts
	Three Months Ended		Nine Months Ended
	9/30/25	9/30/24	9/30/25	9/30/24
Net Income Available to Common Stockholders	$275	$251	$775	$731
Reconciling items:
Other exclusions from adjusted earnings**	6	*	14	6
Tax impact	(2)	(*)	(4)	(1)
State tax policy change	-	-	12	-
Voluntary separation program	-	-	-	*
Tax impact	-	-	-	(*)
Adjusted net income - non-GAAP	$279	$251	$797	$736
Average Common Shares Outstanding - Diluted	300.4	298.8	299.4	298.2
Diluted Earnings Per Average Common Share
Reported net income per share	$0.92	$0.84	$2.59	$2.45
Reconciling items:
Other exclusions from adjusted earnings**	0.02	*	0.04	0.02
Tax impact	(0.01)	(*)	(0.01)	(*)
State tax policy change	-	-	0.04	-
Voluntary separation program	-	-	-	*
Tax impact	-	-	-	(*)
Adjusted net income per share - non-GAAP	$0.93	$0.84	$2.66	$2.47

* Less than $0.5 million or $0.01 per share.

** Includes restructuring costs and business optimization initiative.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the Company uses adjusted earnings to measure and assess performance. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, major enterprise resource planning software implementations, changes in accounting principles, voluntary separation program, changes in federal and state tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items. The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.