CMS Energy Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 5 February 2026: press release. Guidance figures: 2 raised, 1 kept. The quarter’s numbers.

Key takeaways

Reported 2025 EPS rose to $3.53: Reported diluted EPS was $3.53 for 2025 versus $3.33 for 2024. Net income available to common stockholders was $1,061 million versus $993 million. Source
Operating revenue and income both rose: Full-year operating revenue was $8,539 million versus $7,515 million. Operating expenses were $6,812 million versus $6,028 million. Source
Recent rate-case and plan orders cited: The third-quarter release cited recent orders in the natural gas rate case and a Renewable Energy Plan filing as examples of constructive regulatory outcomes.
Adjusted EPS $3.61 versus $3.34: Adjusted EPS for 2025 was $3.61 versus $3.34 for 2024, as calculated under the non-GAAP reconciliation in the release. Source
2026 adjusted EPS guidance raised: The 2026 adjusted EPS range moved up $0.03 at each end, to $3.83 to $3.90 per share from $3.80 to $3.87. Source
Long-term 6 to 8 percent growth kept: Long-term adjusted EPS growth of 6 to 8 percent was reaffirmed, with continued confidence toward the high end of that range. Source
2025 framed as successful year: The CEO described 2025 as a successful year delivering for all stakeholders, citing regulatory outcomes, cost performance at the Utility and NorthStar results. Source

“CMS Energy had a successful year delivering for all stakeholders in 2025.”
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy

Guidance

Area	Period	Figure	Against last quarter
Adjusted EPS Source	2026	$3.83 to $3.90	Raised from $3.80 to $3.87
Long-term adjusted EPS growth Source	Long term	6 to 8 percent	Kept
Annual dividend per share Source	2026	$2.28	Raised

What changed from last quarter

Guidance raised: 2026 adjusted EPS range raised by $0.03 at both ends, to $3.83 to $3.90. Source
Guidance kept: The long-term adjusted EPS growth target of 6 to 8 percent was reaffirmed, unchanged from the prior quarter. Source

Full-year 2025 results and drivers

Reported 2025 EPS rose to $3.53: Reported diluted EPS was $3.53 for 2025 versus $3.33 for 2024. Net income available to common stockholders was $1,061 million versus $993 million. Source
Operating revenue and income both rose: Full-year operating revenue was $8,539 million versus $7,515 million. Operating expenses were $6,812 million versus $6,028 million. Source
Fourth-quarter EPS $0.94 versus $0.87: Fourth-quarter diluted EPS was $0.94 compared with $0.87 a year earlier. Full-year diluted EPS was $3.53 against $3.33. Source
Earlier 2025 gains credited to regulation: In the third-quarter release, year-to-date adjusted EPS growth was attributed largely to constructive regulatory outcomes and favorable weather.
Recent rate-case and plan orders cited: The third-quarter release cited recent orders in the natural gas rate case and a Renewable Energy Plan filing as examples of constructive regulatory outcomes.

Interest, tax and other income

Interest charges rose to $789 million: Full-year interest charges were $789 million versus $708 million. Fourth-quarter interest charges were $201 million versus $180 million. Source
Income tax expense increased in 2025: Full-year income tax expense was $246 million versus $176 million. Full-year net income was $1,002 million versus $947 million. Source
Other income declined for the year: Full-year other income was $310 million versus $344 million. Fourth-quarter other income was $61 million in both periods. Source

“Our accomplishments include constructive regulatory outcomes, solid cost performance at the Utility and strong results at NorthStar,”
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy

Adjusted earnings and exclusions

Adjusted EPS $3.61 versus $3.34: Adjusted EPS for 2025 was $3.61 versus $3.34 for 2024, as calculated under the non-GAAP reconciliation in the release. Source
Adjusted net income reached $1,087 million: Full-year adjusted net income was $1,087 million versus $998 million. Fourth-quarter adjusted net income was $290 million versus $262 million. Source
State tax change excluded from adjusted results: The company excluded a $12 million state tax policy change from 2025 adjusted earnings, equal to $0.04 per share. Source

2026 guidance and long-term growth

2026 adjusted EPS guidance raised: The 2026 adjusted EPS range moved up $0.03 at each end, to $3.83 to $3.90 per share from $3.80 to $3.87. Source
Long-term 6 to 8 percent growth kept: Long-term adjusted EPS growth of 6 to 8 percent was reaffirmed, with continued confidence toward the high end of that range. Source
No reported-earnings guidance given: The company did not provide reported earnings guidance or a reconciliation for future periods, because it cannot estimate the impact of specific line items. Source

“Our customers remain our top priority as the CMS Energy team works every day to improve reliability and affordability.”
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy

Cash flow and balance sheet

Operating cash flow eased to $2,235 million: Net cash from operating activities was $2,235 million versus $2,370 million. Net cash used in investing activities was $4,038 million versus $3,054 million. Source
Financing inflow rose to $2,240 million: Net cash provided by financing activities was $2,240 million versus $614 million. Year-end cash including restricted amounts was $615 million. Source
Plant and debt both increased: Plant, property and equipment was $30,680 million at year-end versus $27,461 million. Debt and finance leases excluding securitization were $18,313 million versus $15,866 million. Source
Common equity rose to $8,920 million: Common stockholders' equity was $8,920 million at year-end 2025 versus $8,006 million a year earlier. Source
Diluted share count rose: Full-year diluted average shares were 301.0 million versus 298.3 million. Fourth-quarter diluted average shares were 305.8 million versus 298.7 million. Source

Management view and customer priorities

2025 framed as successful year: The CEO described 2025 as a successful year delivering for all stakeholders, citing regulatory outcomes, cost performance at the Utility and NorthStar results. Source
Customers named top priority: The CEO said customers remain the top priority and that the team works every day to improve reliability and affordability. Source

Figures management reported

Figure	Reported
Rate cases	Recent orders in natural gas rate case and Renewable Energy Plan filing
EPS growth target Source	6 to 8 percent long-term adjusted EPS growth

Earlier plans management reported on

Ahead: Full-year 2025 adjusted EPS of $3.61 exceeded that range, which management attributed largely to NorthStar Clean Energy. Source

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 Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance

JACKSON, Mich., Feb. 5, 2026 - CMS Energy announced today reported earnings per share of $3.53 for 2025, compared to $3.33 per share for 2024. The company’s adjusted earnings per share for 2025 were $3.61, compared to $3.34 per share for 2024, exceeding the guidance range largely due to outperformance at NorthStar Clean Energy. CMS Energy also increased its annual dividend by 11 cents per share to $2.28 for 2026, the 20 increase in as many years.

CMS Energy raised its 2026 adjusted earnings guidance to $3.83 to $3.90 from $3.80 to $3.87 per share (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

“CMS Energy had a successful year delivering for all stakeholders in 2025. Our accomplishments include constructive regulatory outcomes, solid cost performance at the Utility and strong results at NorthStar,” said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. “Our customers remain our top priority as the CMS Energy team works every day to improve reliability and affordability.”

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 year-end results and provide a business and financial outlook on Thursday, February 5, 2026 at 10:00 a.m. (EST). 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, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, 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		Twelve Months Ended
	12/31/25	12/31/24	12/31/25	12/31/24
Operating revenue	$2,233	$1,989	$8,539	$7,515
Operating expenses	1,798	1,564	6,812	6,028
Operating Income	435	425	1,727	1,487
Other income	61	61	310	344
Interest charges	201	180	789	708
Income Before Income Taxes	295	306	1,248	1,123
Income tax expense	53	51	246	176
Net Income	242	255	1,002	947
Loss attributable to noncontrolling interests	(47)	(10)	(69)	(56)
Net Income Attributable to CMS Energy	289	265	1,071	1,003
Preferred stock dividends	3	3	10	10
Net Income Available to Common Stockholders	$286	$262	$1,061	$993
Diluted Earnings Per Average Common Share	$0.94	$0.87	$3.53	$3.33

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

	In Millions
	As of
	12/31/25	12/31/24
Assets
Current assets
Cash and cash equivalents	$509	$103
Restricted cash and cash equivalents	106	75
Other current assets	2,857	2,612
Total current assets	3,472	2,790
Non-current assets
Plant, property, and equipment	30,680	27,461
Other non-current assets	5,789	5,669
Total Assets	$39,941	$35,920
Liabilities and Equity
Current liabilities	$2,592	$2,261
Non-current liabilities	8,740	8,345
Capitalization
Debt and finance leases (excluding securitization debt)	18,313	15,866
Preferred stock and securities	224	224
Noncontrolling interests	567	518
Common stockholders' equity	8,920	8,006
Total capitalization (excluding securitization debt)	28,024	24,614
Securitization debt	585	700
Total Liabilities and Equity	$39,941	$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
	Twelve Months Ended
	12/31/25	12/31/24
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$178	$248
Net cash provided by operating activities	2,235	2,370
Net cash used in investing activities	(4,038)	(3,054)
Cash flows from operating and investing activities	(1,803)	(684)
Net cash provided by financing activities	2,240	614
Total Cash Flows	$437	$(70)
End of Period Cash and Cash Equivalents, Including Restricted Amounts	$615	$178

CMS ENERGY CORPORATION

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

(Unaudited)

	In Millions, Except Per Share Amounts
	Three Months Ended		Twelve Months Ended
	12/31/25	12/31/24	12/31/25	12/31/24
Net Income Available to Common Stockholders	$286	$262	$1,061	$993
Reconciling items:
Disposal of discontinued operations (gain) loss	-	*	-	*
Tax impact	-	(*)	-	(*)
Other exclusions from adjusted earnings**	5	*	19	6
Tax impact	(1)	(*)	(5)	(1)
State tax policy change	(*)	-	12	-
Voluntary separation program	-	-	-	*
Tax impact	-	-	-	(*)
Adjusted net income - non-GAAP	$290	$262	$1,087	$998
Average Common Shares Outstanding - Diluted	305.8	298.7	301.0	298.3
Diluted Earnings Per Average Common Share
Reported net income per share	$0.94	$0.87	$3.53	$3.33
Reconciling items:
Disposal of discontinued operations (gain) loss	-	*	-	*
Tax impact	-	(*)	-	(*)
Other exclusions from adjusted earnings**	0.01	*	0.05	0.01
Tax impact	(*)	(*)	(0.01)	(*)
State tax policy change	(*)	-	0.04	-
Voluntary separation program	-	-	-	*
Tax impact	-	-	-	(*)
Adjusted net income per share - non-GAAP	$0.95	$0.87	$3.61	$3.34

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

** Includes business optimization initiative, major enterprise resource planning software implementations, and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense.

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.