01—Abstract
Summary
Summary of the 10-Q filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
CMS Energy Corporation (CMS) reported its financial results for the six months ended June 30, 2026.
Net income available to common stockholders was $455 milliona, a decrease from $500 million in the same period of 2025, with diluted EPS at $1.47 compared to $1.67 in the prior year. This decline was attributed to the absence of gains on debt extinguishment, higher service restoration costs, and increased depreciation and property taxes, partially offset by electric and gas rate increases and improved performance at NorthStar Clean Energy. The company is actively managing its transition to cleaner energy sources, aligning with Michigan's 2023 Energy Law which mandates significant increases in renewable and clean energy by 2035 and 2040.
CMS Energy's utility subsidiary, Consumers Energy, is making substantial investments in grid modernization, renewable generation, and natural gas infrastructure to enhance reliability, safety, and environmental performance. Significant regulatory matters, including pending rate cases for both electric and gas utilities, are key factors influencing future financial performance and customer rates.
02—Key points
Key Highlights
- CMS Energy's net income available to common stockholders decreased by $45 million to $455 million for the first six months of 2026 compared to the same period in 2025.
- Diluted Earnings Per Share (EPS) also saw a decline, down to $1.47 for the six months ended June 30, 2026, from $1.67 in the prior year.
- The company is advancing its clean energy transition, aiming for 60% renewable energy by 2035 and 100% clean energy by 2040, in line with Michigan's new energy laws.
- Consumers Energy is undertaking a significant capital expenditure plan of $24.1 billion through 2030, focusing on electric generation, distribution systems, and gas infrastructure upgrades.
- Regulatory proceedings remain critical, with ongoing electric and gas rate cases before the Michigan Public Service Commission (MPSC) impacting future revenue and customer rates.
- CMS Energy announced a plan to divest certain non-Michigan-based renewable projects and exit non-utility renewables development, impacting the NorthStar Clean Energy segment.
- Cash flow from operations for CMS Energy (including Consumers) was $1,327 million for the six months ended June 30, 2026, down from $1,414 million in the prior year, largely due to lower net income and unfavorable changes in working capital.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 28, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.83B$1.84B | −0.5% |
| Operating Expenses | $1.56B$1.52B | +2.9% |
| Operating Income | $264.00M$317.00M | −16.7% |
| Interest Expense | $211.00M$199.00M | +6.0% |
| Net Income | $120.00M$201.00M | −40.3% |
| EPS (Basic) | $0.38$0.67 | −43.3% |
| EPS (Diluted) | $0.37$0.66 | −43.9% |
| Shares Outstanding (Basic) | 310.20M298.50M | +3.9% |
| Shares Outstanding (Diluted) | 310.80M299.10M | +3.9% |
05—Questions
Frequently Asked Questions
What is the primary driver for the decrease in net income for the first half of 2026?
The decrease in net income available to common stockholders for the first six months of 2026 compared to 2025 was primarily due to the absence of gains on extinguishment of debt, higher service restoration costs, and increased depreciation and property taxes. These factors were partially offset by electric and gas rate increases and improved earnings from NorthStar Clean Energy.
How is CMS Energy addressing its transition to cleaner energy sources?
CMS Energy, through its subsidiary Consumers Energy, is committed to a clean energy transition in line with Michigan's 2023 Energy Law. This involves retiring coal-fired generation, investing heavily in renewable energy sources like solar and wind, developing energy storage solutions, and enhancing its natural gas infrastructure for reliability and reduced methane emissions. The company aims for 60% renewable energy by 2035 and 100% clean energy by 2040.
What are the key regulatory matters impacting Consumers Energy?
Consumers Energy is actively involved in several key regulatory matters. These include ongoing electric and gas rate cases with the Michigan Public Service Commission (MPSC) which will determine future rates and recovery of significant capital investments. Additionally, the company is navigating emergency orders related to the continued operation of the J.H. Campbell plant and seeking cost recovery through FERC, as well as the potential sale of its hydroelectric facilities which requires MPSC and FERC approval.
What is the significance of the NorthStar Clean Energy divestiture plan?
CMS Energy's decision to divest certain non-Michigan-based renewable projects and exit non-utility renewables development signifies a strategic shift for its NorthStar Clean Energy segment. This move is expected to streamline operations and potentially result in an impairment charge if sale proceeds are insufficient to cover the carrying value of the assets. The company anticipates completing the divestment within twelve months, subject to regulatory approvals.
06—Continue