01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Evergy, Inc. (Evergy) filed this combined Form 10-Q for the quarter ended March 31, 2026, covering Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. Consolidated net income attributable to Evergy, Inc. was $151.5 milliona, or $0.64 diluted EPS, versus $125.0 million, or $0.54, in the first quarter of 2025.
Adjusted earnings (non-GAAP) were $161.8 millionb, or $0.69 per share, versus $127.8 million, or $0.55 recast for 2025. Operating revenues rose to $1,443.7 million from $1,374.5 million, driven by new Evergy Kansas Central retail rates effective October 2025 ($40.0 million increase), higher non-regulated energy marketing revenue ($16.6 million), and higher wholesale revenue, partially offset by unfavorable weather (heating degree days down 20%). Capital spending and financing activity were heavy.
Additions to property, plant and equipment were $851.9 millionc versus $592.8 million a year earlier, and Evergy's notes payable and commercial paper rose to $1,960.3 million from $1,394.0 million at year-end 2025. Evergy repurchased $244.1 million principal of its 4.50% Convertible Notes for $309.5 million, funded by term loans, and issued $350.0 million of 4.25% Notes due 2029. In May 2026, Evergy entered into a $1.0 billion Delayed Draw Term Loan Agreement, with no borrowings made as of the filing.
Large load customers signed electric service agreements for projected peak load of approximately 2,500 MWs, with Evergy's remaining contractual minimum consideration for large load contracts stated at $8.7 billiond. Evergy Metro filed a rate case in February 2026 requesting an increase of approximately $140 million, with an evidentiary hearing scheduled for October 2026 and new rates expected in January 2027.
Evergy Kansas Central's KCC earnings review mechanism requires refunds of 50% of earnings above a 9.7% return on equity, and the filing states no significant refund obligation is estimated for 2026. Subsidiary-level results also appear in the filing: Evergy Kansas Central net income was $147.0 million and Evergy Metro net income was $36.2 million.
02—Key points
Key Highlights
- Evergy net income attributable to Evergy, Inc. was $151.5 million, or $0.64 diluted EPS, compared with $125.0 million, or $0.54, in Q1 2025.
- Adjusted earnings (non-GAAP) were $161.8 million, or $0.69 per share, versus $127.8 million, or $0.55 recast for Q1 2025.
- Operating revenues were $1,443.7 million versus $1,374.5 million, with the Evergy Kansas Central rate increase contributing $40.0 million and non-regulated energy marketing adding $16.6 million.
- Additions to property, plant and equipment were $851.9 million, up from $592.8 million, and notes payable and commercial paper increased to $1,960.3 million from $1,394.0 million.
- Evergy repurchased $244.1 million principal of Convertible Notes for $309.5 million, funded by term loans, and issued $350.0 million of 4.25% Notes due 2029.
- Evergy signed electric service agreements with large load customers for approximately 2,500 MWs of projected peak data center load, with $8.7 billion of remaining contractual minimum consideration for large load contracts.
- Evergy Metro requested an approximately $140 million retail revenue increase from the MPSC in February 2026, with an evidentiary hearing scheduled for October 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.44B$1.37B | +5.0% |
| Operating Expenses | $1.13B$1.08B | +3.9% |
| Operating Income | $318.40M$291.60M | +9.2% |
| Interest Expense | $174.50M$152.50M | +14.4% |
| Net Income | $154.60M$128.10M | +20.7% |
| EPS (Basic) | $0.66$0.54 | +22.2% |
| EPS (Diluted) | $0.64$0.54 | +18.5% |
| Shares Outstanding (Basic) | 230.70M230.40M | +0.1% |
| Shares Outstanding (Diluted) | 235.60M232.10M | +1.5% |
05—Questions
Frequently Asked Questions
What drove the increase in Evergy's first-quarter 2026 earnings?
Net income attributable to Evergy, Inc. increased $26.5 million, primarily due to new Evergy Kansas Central retail rates effective October 2025, higher non-regulated energy marketing revenue, higher equity AFUDC and corporate-owned life insurance proceeds, and lower income tax expense. These were partially offset by higher depreciation, interest and operating and maintenance expense.
How is Evergy funding its capital program and debt repurchases?
Evergy relied on short-term borrowings, term loans and long-term debt. Notes payable and commercial paper rose to $1,960.3 million, Evergy entered into $55.0 million and $500.0 million term loan credit agreements in January and February 2026, and it issued $350.0 million of 4.25% Notes due 2029. Evergy also has an ATM Program with about $1.1 billion of common stock available for issuance and a $1.0 billion Delayed Draw Term Loan Agreement entered into in May 2026 with no borrowings to date.
What regulatory actions could affect future revenue?
Evergy Metro filed a rate case in February 2026 seeking about $140 million of additional retail revenue at a 10.5% return on equity, with new rates expected in January 2027 if approved. Evergy Kansas Central's 2026 Transmission Delivery Charge is expected to increase annual retail revenues by $16.8 million, while Evergy Metro's is expected to decrease them by $4.3 million.
What is the outlook for large load and data center demand?
In the first quarter of 2026, the Evergy Companies signed electric service agreements with multiple large load customers for projected peak steady-state load of approximately 2,500 MWs, with service expected to begin between 2026 and 2028. Remaining contractual minimum consideration under large load contracts is stated as $8.7 billion for Evergy, with remaining terms of 10 to 17 years.
Are there material legal or environmental uncertainties disclosed?
The filing discloses several uncertainties, including Montrose Station coal ash lawsuits filed in 2025 against Evergy Metro, a nuclear antitrust class action naming Wolf Creek's operator, and multiple EPA rulemakings on ozone, PM2.5, regional haze, greenhouse gases and coal combustion residuals. Management states it cannot assess the outcomes of these matters or states that compliance costs could be material.
06—Continue