CMS Energy Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 1 new, 2 kept. The quarter’s numbers.

Key takeaways

Reported EPS fell to $0.37: Reported diluted EPS was $0.37 for the second quarter, against $0.66 a year earlier. Net income available to common stockholders was $117 million, against $198 million. Source
Adjusted EPS fell to $0.37: Adjusted diluted EPS was $0.37 for the second quarter, compared with $0.71 for 2025. The 2025 adjusted figure excluded a state tax policy change. Source
2026 adjusted EPS guidance reaffirmed: The company reaffirmed 2026 adjusted EPS guidance of $3.83 to $3.90, unchanged from the first quarter release. Source
Long-term growth kept at 6 to 8 percent: Long-term adjusted EPS growth of 6 to 8 percent was kept, with continued confidence toward the high end. Source
2027 earnings guidance introduced: The company introduced 2027 earnings guidance of $4.08 to $4.17. Source
Strategic review at NorthStar completed: CMS completed a strategic review at NorthStar Clean Energy. With Board approval, the company is exiting non-utility renewables development. Source

“This will simplify the business, reduce financing needs, and allow the company to focus more fully on providing regulated energy services.”
CMS Energy Corp., press release

Guidance

Area	Period	Figure	Against last quarter
Adjusted earnings per share Source	2026	$3.83 to $3.90	Kept
Adjusted EPS growth Source	long-term	6 to 8 percent	Kept
Earnings per share Source	2027	$4.08 to $4.17	New

What changed from last quarter

New guidance: The company introduced 2027 earnings guidance of $4.08 to $4.17. Source
Ended: The company is exiting non-utility renewables development and retaining Michigan-based assets, including Dearborn Industrial Generation (DIG), following a strategic review at NorthStar Clean Energy. Source
Guidance kept: 2026 adjusted EPS guidance of $3.83 to $3.90 was reaffirmed, and long-term adjusted EPS growth of 6 to 8 percent was kept. Source

Second quarter and six-month results

Reported EPS fell to $0.37: Reported diluted EPS was $0.37 for the second quarter, against $0.66 a year earlier. Net income available to common stockholders was $117 million, against $198 million. Source
Adjusted EPS fell to $0.37: Adjusted diluted EPS was $0.37 for the second quarter, compared with $0.71 for 2025. The 2025 adjusted figure excluded a state tax policy change. Source
Six-month EPS below prior year: Year-to-date reported EPS was $1.47, against $1.67 in 2025. Year-to-date adjusted EPS was $1.50, against $1.73. Source
Operating revenue nearly flat in quarter: Operating revenue was $1,829 million in the second quarter, against $1,838 million. For six months it was $4,559 million, against $4,285 million. Source

2026 and 2027 guidance

2026 adjusted EPS guidance reaffirmed: The company reaffirmed 2026 adjusted EPS guidance of $3.83 to $3.90, unchanged from the first quarter release. Source
Long-term growth kept at 6 to 8 percent: Long-term adjusted EPS growth of 6 to 8 percent was kept, with continued confidence toward the high end. Source
2027 earnings guidance introduced: The company introduced 2027 earnings guidance of $4.08 to $4.17. Source
Reported EPS guidance not provided: The company is not providing reported earnings guidance, because it cannot estimate the impact of specific line items on future reported earnings. Source

“CMS Energy reaffirmed its 2026 adjusted earnings guidance of $3.83 to $3.90 per share”
CMS Energy Corp., press release

NorthStar Clean Energy decision

Strategic review at NorthStar completed: CMS completed a strategic review at NorthStar Clean Energy. With Board approval, the company is exiting non-utility renewables development. Source
Michigan assets retained, including DIG: The company is retaining Michigan-based assets, including Dearborn Industrial Generation (DIG). Source
Simplifies business, reduces financing needs: Management said the decision will simplify the business, reduce financing needs, and let the company focus more fully on regulated energy services. Source

Costs, income and interest

Operating expenses rose in quarter: Operating expenses were $1,565 million in the second quarter, against $1,521 million. For six months they were $3,805 million, against $3,474 million. Source
Operating income declined in quarter: Operating income was $264 million in the second quarter, against $317 million. For six months it was $754 million, against $811 million. Source
Other income fell sharply: Other income was $75 million in the second quarter, against $137 million. For six months it was $150 million, against $187 million. Source
Interest charges rose: Interest charges were $210 million in the second quarter, against $199 million. For six months they were $413 million, against $385 million. Source
Income tax expense dropped: Income tax expense was $33 million in the second quarter, against $62 million. For six months it was $118 million, against $125 million. Source
Noncontrolling losses widened: Loss attributable to noncontrolling interests was $24 million in the second quarter, against $8 million. For six months it was $87 million, against $17 million. Source

“CMS Energy is introducing 2027 earnings guidance of $4.08 to $4.17.”
CMS Energy Corp., press release

Balance sheet and debt

Debt rose; cash fell: Debt and finance leases, excluding securitization debt, were $18,776 million at June 30, against $18,313 million at December 31, 2025. Cash and equivalents were $241 million, against $509 million. Source
Plant and property grew: Plant, property, and equipment was $32,329 million at June 30, against $30,680 million at year-end 2025. Total assets were $40,905 million, against $39,941 million. Source
Common equity increased: Common stockholders' equity was $9,550 million at June 30, against $8,920 million at December 31, 2025. Source

Cash flow and share count

Operating cash flow dipped: Net cash from operating activities was $1,327 million for six months, against $1,414 million in the same period of 2025. Source
Investing outflow was larger: Net cash used in investing activities was $2,093 million for six months, against $1,880 million. Source
Financing inflow was smaller: Net cash from financing activities was $496 million for six months, against $1,213 million a year earlier. Source
Diluted share count increased: Average diluted shares were 310.8 million in the second quarter, against 299.1 million. For six months they were 308.9 million, against 299.0 million. Source

Non-GAAP adjusting items

Other exclusions were small: Other exclusions from adjusted earnings were $2 million in the second quarter, against $5 million. For six months they were $13 million, against $8 million. Source
2025 state tax change excluded: The 2025 adjusted figures excluded a state tax policy change of $12 million, or $0.04 per share, in the second quarter. Source
Adjusted net income reconciled: Adjusted net income was $118 million in the second quarter, against $214 million. For six months it was $464 million, against $518 million. Source

Coming up, as management said on 28 July 2026

Exit from non-utility renewables: The company is exiting non-utility renewables development, after completing the NorthStar Clean Energy strategic review. Source

Figures management reported

Figure	Reported
EPS growth target Source	6 to 8 percent

Earlier plans management reported on

Not stated: Management reaffirmed 2026 adjusted EPS guidance; the release does not state progress against it. Source
Not stated: Long-term growth target kept, with continued confidence toward the high end; the release gives no progress status. 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 Announces Second Quarter Results, Strategic Decision on NorthStar Clean Energy Services, Introduces Guidance for 2027

JACKSON, Mich., July 28, 2026 - CMS Energy announced today reported earnings per share of $0.37 for the second quarter of 2026, compared to $0.66 per share for 2025. The company’s adjusted earnings per share for the second quarter were $0.37, compared to $0.71 per share for 2025. For the first six months of the year, the company reported $1.47 per share compared to $1.67 per share for the same timeframe in 2025. On an adjusted earnings per share basis year to date, the company reported $1.50 per share in 2026 compared to $1.73 per share in 2025.

CMS Energy also announced the completion of a strategic review at NorthStar Clean Energy, and with Board approval, the company is exiting non-utility renewables development and retaining Michigan-based assets, including Dearborn Industrial Generation (or DIG). This will simplify the business, reduce financing needs, and allow the company to focus more fully on providing regulated energy services.

CMS Energy reaffirmed its 2026 adjusted earnings guidance of $3.83 to $3.90 per share (*See below for important information about non-GAAP measures) and long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end. CMS Energy is introducing 2027 earnings guidance of $4.08 to $4.17.

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 2026 second quarter results and provide a business and financial outlook on Tuesday, July 28 at 10:00 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 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		Six Months Ended
	6/30/26	6/30/25	6/30/26	6/30/25
Operating revenue	$1,829	$1,838	$4,559	$4,285
Operating expenses	1,565	1,521	3,805	3,474
Operating Income	264	317	754	811
Other income	75	137	150	187
Interest charges	210	199	413	385
Income Before Income Taxes	129	255	491	613
Income tax expense	33	62	118	125
Net Income	96	193	373	488
Loss attributable to noncontrolling interests	(24)	(8)	(87)	(17)
Net Income Attributable to CMS Energy	120	201	460	505
Preferred stock dividends	3	3	5	5
Net Income Available to Common Stockholders	$117	$198	$455	$500
Diluted Earnings Per Average Common Share	$0.37	$0.66	$1.47	$1.67

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

	In Millions
	As of
	6/30/26	12/31/25
Assets
Current assets
Cash and cash equivalents	$241	$509
Restricted cash and cash equivalents	104	106
Other current assets	2,521	2,857
Total current assets	2,866	3,472
Non-current assets
Plant, property, and equipment	32,329	30,680
Other non-current assets	5,710	5,789
Total Assets	$40,905	$39,941
Liabilities and Equity
Current liabilities	$2,193	$2,592
Non-current liabilities	9,012	8,740
Capitalization
Debt and finance leases (excluding securitization debt)	18,776	18,313
Preferred stock and securities	224	224
Noncontrolling interests	625	567
Common stockholders' equity	9,550	8,920
Total capitalization (excluding securitization debt)	29,175	28,024
Securitization debt	525	585
Total Liabilities and Equity	$40,905	$39,941

Excludes debt and finance leases.

Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

	In Millions
	Six Months Ended
	6/30/26	6/30/25
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$615	$178
Net cash provided by operating activities	1,327	1,414
Net cash used in investing activities	(2,093)	(1,880)
Cash flows from operating and investing activities	(766)	(466)
Net cash provided by financing activities	496	1,213
Total Cash Flows	$(270)	$747
End of Period Cash and Cash Equivalents, Including Restricted Amounts	$345	$925

CMS ENERGY CORPORATION

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

(Unaudited)

	In Millions, Except Per Share Amounts
	Three Months Ended				Six Months Ended
	6/30/26		6/30/25		6/30/26	6/30/25
Net Income Available to Common Stockholders	$117		$198		$455	$500
Reconciling items:
Other exclusions from adjusted earnings**	2		5		13	8
Tax impact	(1)		(1)		(4)	(2)
State tax policy change	-		12		-	12
Adjusted net income - non-GAAP	$118		$214		$464	$518
Average Common Shares Outstanding - Diluted	310.8		299.1		308.9	299.0
Diluted Earnings Per Average Common Share
Reported net income per share	$0.37		$0.66		$1.47	$1.67
Reconciling items:
Other exclusions from adjusted earnings**	*		0.01		0.04	0.02
Tax impact	(*	)	(*	)	(0.01)	(*	)
State tax policy change	-		0.04		-	0.04
Adjusted net income per share - non-GAAP	$0.37		$0.71		$1.50	$1.73

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

** Includes 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.