10-QPeriod: Q1 FY2025

CMS ENERGY CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 24, 2025For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corp. (CMS) reported solid financial results for the first quarter of 2025, demonstrating year-over-year growth in net income available to common stockholders and diluted earnings per share (EPS). Net income rose to $302 million from $285 million in the prior year period, with diluted EPS increasing to $1.01 from $0.96. The company's performance was driven by improved electric and gas utility operations, benefiting from rate increases and favorable weather conditions for gas sales. These positive contributions were partially offset by lower earnings from its NorthStar Clean Energy segment and increased depreciation and property taxes, reflecting ongoing capital investments. CMS Energy continues to execute its long-term investment plan, with substantial capital expenditures focused on infrastructure upgrades and clean energy initiatives, aiming to enhance reliability, safety, and environmental stewardship while managing costs to maintain affordable customer rates.

Financial Highlights

44 data points
Beta

Revenue

$2.45B

Net Income

$304.00M

12.4% Net Margin

EPS (Diluted)

$1.01

Total Assets

$36.30B

Cash & Equivalents

$526.00M

Free Cash Flow

$112.00M

Financial Statements
Beta
Revenue$2.45B
Operating Expenses$1.95B
Operating Income$494.00M
Interest Expense$187.00M
Net Income$304.00M
EPS (Basic)$1.01
EPS (Diluted)$1.01
Shares Outstanding (Basic)298.20M
Shares Outstanding (Diluted)299.10M

Key Highlights

  • 1Net income available to common stockholders increased by $17 million to $302 million for the three months ended March 31, 2025, compared to $285 million in the same period last year.
  • 2Diluted Earnings Per Share (EPS) grew to $1.01 for the first quarter of 2025, up from $0.96 in the first quarter of 2024.
  • 3The electric utility segment saw a net income increase of $27 million, driven by rate increases and higher deliveries.
  • 4The gas utility segment experienced a net income increase of $44 million, attributed to favorable weather and rate adjustments.
  • 5The company is making significant capital expenditures, with $20.0 billion planned through 2029, focusing on electric distribution, gas infrastructure, and clean generation.
  • 6CMS Energy is advancing its clean energy goals, including transitioning away from coal-fired generation and increasing renewable energy sources in its portfolio.
  • 7The company's financial position remains strong, with all relevant financial covenants met as of March 31, 2025.

Frequently Asked Questions

The primary drivers of CMS Energy's earnings growth in the first quarter of 2025 were increased electric and gas utility revenues. This was primarily due to approved rate increases and, for the gas utility, more favorable weather conditions leading to higher sales volumes compared to the same period in the prior year.

CMS Energy plans to invest approximately $20.0 billion through 2029. These investments are strategically focused on maintaining and upgrading its electric distribution and gas infrastructure to enhance safety and reliability, facilitating its clean energy transition, and investing in clean generation sources like wind and solar.

CMS Energy is committed to environmental sustainability through its 'Planet' initiative. This includes significant investments in renewable energy, aiming for a 60% renewable energy mix by 2035 and 100% clean energy by 2040. The company is phasing out coal-fired generation, reducing greenhouse gas emissions, and increasing energy efficiency programs.

Key regulatory developments include the MPSC's approval of an annual electric rate increase of $176 million, effective April 2025, based on a 9.90% authorized return on equity. Additionally, Consumers filed for a $248 million annual gas rate increase in December 2024, with a decision expected by October 2025. The company also navigated regulatory matters concerning the 2023 Energy Law, which mandates higher renewable and clean energy standards.