01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Evergy, Inc. (Nasdaq: EVRG), a public utility holding company headquartered in Kansas City, Missouri, operates integrated regulated electric utilities Evergy Kansas Central, Evergy Metro and Evergy Missouri West serving about 1.7 million customers in Kansas and Missouri.
For 2024, net income attributable to Evergy, Inc. was $873.5 milliona, or $3.79 diluted EPS, up from $731.3 million, or $3.17, in 2023. Adjusted EPS (non-GAAP) was $3.81 versus $3.54. Operating revenues rose to $5,847.3 million from $5,508.2 million, driven mainly by new Kansas retail rates effective December 2023, the recognition of a $96.5 million COLI-related regulatory liability in 2023 that did not recur, and higher transmission revenues.
The company targets approximately $17.5 billionb of base capital investments through 2029, including about $6.2 billion of new generation that is expected to be primarily renewable and natural gas. Capital expenditures were $2,336.6 million in 2024. Evergy expects to issue about $9.7 billion of debt securities from 2025 to 2029, including refinancing $3.9 billion of maturities, and $2.8 billion of equity and equity-like securities from 2026 to 2029.
It targets a 60%-70% dividend payout ratio and declared a quarterly dividend of $0.6675c per share in February 2025. Pending items include a Kansas Central rate case requesting about $196 million, with new rates expected in September 2025, and a Missouri West rate order that took effect in January 2025 after a partial settlement. Key risks include regulatory lag and the outcome of rate proceedings, coal-related environmental rules (including ozone, particulate matter, greenhouse gas and CCR regulations whose costs could be material), supply chain and tariff pressures, and the Wolf Creek nuclear unit.
Evergy also issued $500.0 milliond of 6.65% junior subordinated notes in December 2024 that allow interest deferral, which would restrict dividends if exercised. Its credit ratings remain investment grade, with Evergy Missouri West's outlook at Negative from Moody's.
02—Key points
Key Highlights
- 2024 net income attributable to Evergy, Inc. was $873.5 million ($3.79 diluted EPS), up from $731.3 million ($3.17) in 2023; adjusted EPS (non-GAAP) was $3.81 versus $3.54.
- Operating revenues were $5,847.3 million, up from $5,508.2 million, led by new Kansas retail rates effective December 2023 and higher transmission revenues.
- Base capital investment target of approximately $17.5 billion through 2029, including about $6.2 billion for new generation, primarily renewable and natural gas.
- Planned financing of about $9.7 billion of debt (2025-2029, including $3.9 billion of refinancing) and $2.8 billion of equity and equity-like securities (2026-2029).
- Pending Kansas Central rate case requests about $196 million, with a 10.5% return on equity and new rates expected in September 2025; Missouri West's rate order took effect in January 2025.
- Dividend policy targets a 60%-70% payout ratio; the Board declared a $0.6675 quarterly dividend in February 2025.
- Environmental rules (ozone, PM2.5, greenhouse gas and CCR regulations) could require material compliance costs; the company is retiring or converting coal units and targets net-zero scope 1 and 2 CO2e emissions by 2045.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.85B$5.51B | +6.2% |
| Operating Expenses | $4.38B$4.23B | +3.6% |
| Operating Income | $1.47B$1.28B | +14.5% |
| Interest Expense | $563.10M$525.80M | +7.1% |
| Net Income | $885.80M$731.30M | +21.1% |
| EPS (Basic) | $3.79$3.18 | +19.2% |
| EPS (Diluted) | $3.79$3.17 | +19.6% |
| Shares Outstanding (Basic) | 230.30M230.00M | +0.1% |
| Shares Outstanding (Diluted) | 230.60M230.50M | 0.0% |
05—Questions
Frequently Asked Questions
How did Evergy's earnings change in 2024?
Net income attributable to Evergy, Inc. rose to $873.5 million from $731.3 million, and diluted EPS rose to $3.79 from $3.17. The filing attributes the increase mainly to new Kansas retail rates effective December 2023, higher transmission revenues and lower pension non-service costs, partly offset by higher depreciation, interest, taxes other than income tax and operating and maintenance expense. The 2023 results included a $96.5 million regulatory liability for COLI rate credit refunds.
What capital investment plans does Evergy have?
Evergy targets approximately $17.5 billion of base capital investments through 2029, including about $6.2 billion of new generation, primarily renewable and natural gas. Its planned natural gas plants include two combined-cycle units in Kansas, expected in 2029 and 2030, and a 440 MW simple-cycle unit in Missouri expected in 2030. Capital expenditures were $2,336.6 million in 2024.
How will Evergy fund its growth?
The company expects to issue about $9.7 billion of debt securities from 2025 to 2029, including refinancing $3.9 billion of maturities, and about $2.8 billion of equity and equity-like securities from 2026 to 2029, subject to market conditions. It also states that cash from operations, debt and equity issuances are expected to meet anticipated cash needs over the next five years. Cash flows from operations were $1,983.7 million in 2024.
What are the main regulatory and environmental risks?
Regulatory lag and rate case outcomes could prevent full cost recovery, and the Kansas PISA and Missouri PISA mechanisms limit annual rate increases. Environmental rules on ozone transport, PM2.5, greenhouse gases, regional haze, water discharges and coal combustion residuals could require material compliance costs, and the company says it cannot fully assess some of these impacts. Evergy also faces litigation over Montrose Station CCRs filed in January 2025.
What should investors know about dividends and debt?
Evergy targets a 60%-70% dividend payout ratio and declared a $0.6675 quarterly dividend in February 2025. In December 2024 it issued $500.0 million of 6.65% junior subordinated notes that allow up to 20 consecutive semi-annual interest deferrals, which would restrict dividends if used. Subsidiary dividend restrictions and debt covenants, including a 0.65 to 1.00 debt-to-capitalization limit, could also affect dividend capacity.
06—Continue