10-KPeriod: FY2023

CMS ENERGY CORP Annual Report, Year Ended Dec 31, 2023

Filed February 8, 2024For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) reported its fiscal year 2023 results, showcasing a solid performance driven by its core utility operations in Michigan. The company, which operates primarily through its subsidiary Consumers Energy, provides essential electric and natural gas services to a significant portion of Michigan's population. Key financial highlights indicate a net income available to common stockholders of $877 million, a slight increase from $827 million in 2022, with diluted earnings per share at $3.01, up from $2.85. The company is actively managing its transition towards cleaner energy, with plans to retire coal-fired generation by 2025 and substantial investments in renewable energy sources and infrastructure upgrades. Regulatory approvals for rate increases in both electric and gas utilities are crucial for recovering these investments and maintaining service reliability and affordability for customers.

Financial Highlights

42 data points
Beta

Revenue

$7.46B

Net Income

$887.00M

11.9% Net Margin

EPS (Diluted)

$3.01

Total Assets

$33.52B

Cash & Equivalents

$227.00M

Free Cash Flow

$2.31B

Financial Statements
Beta
Revenue$7.46B
Operating Expenses$6.23B
Operating Income$1.24B
Interest Expense$616.00M
Net Income$887.00M
EPS (Basic)$3.01
EPS (Diluted)$3.01
Shares Outstanding (Basic)291.20M
Shares Outstanding (Diluted)291.70M

Key Highlights

  • 1Net income available to common stockholders increased to $877 million in 2023 from $827 million in 2022.
  • 2Diluted EPS rose to $3.01 in 2023 from $2.85 in 2022, reflecting improved profitability.
  • 3The company is executing its Clean Energy Plan, with plans to retire all coal-fueled generation by 2025 and significant investments in renewable energy sources.
  • 4Consumers Energy filed for rate increases in both electric and gas utility operations, seeking to recover substantial infrastructure investments aimed at improving reliability and safety.
  • 5CMS Energy's non-utility segment, NorthStar Clean Energy, contributed positively to net income, driven by earnings from renewable projects.
  • 6The company manages its capital structure effectively, with robust access to capital markets and available liquidity through revolving credit facilities.
  • 7CMS Energy is focused on environmental stewardship, with clear goals for reducing carbon and methane emissions across its operations.

Frequently Asked Questions

CMS Energy operates through three primary segments: its electric utility operations, its gas utility operations, and NorthStar Clean Energy, which focuses on domestic independent power production and marketing, including renewable generation.

In 2023, CMS Energy reported a net income available to common stockholders of $877 million, an increase from $827 million in 2022. Diluted earnings per share also increased to $3.01 from $2.85 in the prior year.

CMS Energy is committed to environmental stewardship, with a goal to achieve net-zero carbon emissions from its electric business by 2040 and net-zero methane emissions from its natural gas delivery system by 2030. This includes retiring coal-fired generation by 2025 and investing heavily in renewable energy sources like solar and wind, alongside grid modernization and energy efficiency programs.

Key risks include regulatory changes and rate decisions by the MPSC and FERC, which can impact cost recovery and financial results. Other risks involve potential disruptions in capital and credit markets, changes in energy commodity prices, economic conditions in Michigan, cybersecurity threats, and the successful execution of its extensive capital investment plan for infrastructure and clean energy transition.