CMS Energy reported third‑quarter 2025 earnings of $0.92 per share, with adjusted earnings of $0.93, surpassing the consensus estimate of $0.86 per share. Net income available to common shareholders reached $275 million, up from $251 million a year earlier. Operating revenue climbed to $2.021 billion, a 16.1% year‑over‑year increase, while operating income rose to $481 million, a 31% increase from $367 million in Q3 2024.
First‑nine‑month results showed adjusted earnings per share of $2.59 versus $2.45 in the prior year, reflecting steady revenue growth and disciplined cost management across the regulated utility and independent power generation segments.
CMS Energy raised its 2025 adjusted earnings guidance to $3.56–$3.60 per share, up from the previous $3.54–$3.60 range, and introduced 2026 guidance of $3.80–$3.87 per share. Management cited approvals in the natural gas rate case and the Renewable Energy Plan, favorable weather conditions, and robust demand from AI data centers and hyperscalers as key drivers of the stronger‑than‑expected results and the upward revision of guidance.
Operating revenue growth was driven by higher rates and a 28.4 billion kWh increase in electric deliveries and a 213 Bcf rise in gas deliveries over the first nine months of 2025. The CE Way lean operating system helped keep operating expenses in line with revenue growth, supporting the improved margin profile.
Financial health metrics show a debt‑to‑equity ratio of 2.15 and a low interest‑coverage ratio, placing the company in a distress zone according to its Altman Z‑Score. CMS Energy remains focused on renewable energy investments and data‑center demand while managing its capital structure.
Segment contributions indicate that the regulated utility segment accounted for roughly 90% of operating revenue, with the independent power generation segment contributing the remaining 10%.
The earnings beat and guidance lift reinforce CMS Energy’s trajectory of predictable, regulated growth, but the company’s high leverage and low interest coverage highlight ongoing financial risks.
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