CMS Energy Announces First Quarter Results for 2025, Reaffirms 2025 Adjusted EPS Guidance

Rhea-AI Summary

CMS Energy (NYSE: CMS) reported strong Q1 2025 performance with earnings per share of $1.01, up from $0.96 in Q1 2024. Adjusted EPS reached $1.02, compared to $0.97 in the previous year. The company reaffirmed its 2025 adjusted earnings guidance of $3.54-$3.60 per share and maintained its long-term adjusted EPS growth target of 6-8%.

Operating revenue increased to $2.447 billion from $2.176 billion year-over-year, while operating income grew to $494 million from $412 million. Net income available to common stockholders rose to $302 million from $285 million. The company's electric rate case in March supported investments in their electric Reliability Roadmap, alongside progress in economic development and customer investment projects.

Positive

• Operating revenue increased 12.5% YoY to $2.447 billion
• Operating income grew 19.9% to $494 million
• Net income rose 6% to $302 million
• Adjusted EPS increased 5.2% to $1.02
• Favorable electric rate case outcome supporting infrastructure investments

Negative

• Other income decreased 41.9% to $50 million from $86 million
• Interest charges increased 5.1% to $186 million

Insights

Financial Analyst

CMS Energy reported Q1 growth across all financial metrics while reaffirming 2025 guidance, signaling positive operational and financial trajectory.

CMS Energy's first quarter results demonstrate notable financial improvements across all key performance indicators. The utility posted a 5.2% year-over-year increase in reported earnings per share, reaching $1.01 compared to $0.96 in Q1 2024. On an adjusted basis, EPS similarly grew 5.2% to $1.02 from $0.97.

Revenue performance was particularly strong, climbing 12.5% to $2.447 billion from $2.176 billion in the comparable quarter. This robust top-line growth translated into even stronger operating income improvement, which increased 19.9% to $494 million from $412 million. Net income available to common stockholders rose 6.0% to $302 million.

The company's cash position strengthened considerably, with cash and cash equivalents more than quadrupling to $465 million from $103 million at year-end 2024. Operating cash flow reached $1 billion for the quarter, up from $956 million in Q1 2024, demonstrating enhanced cash generation capabilities.

Management has reaffirmed its 2025 adjusted earnings guidance of $3.54 to $3.60 per share and expressed continued confidence toward achieving the high end of their long-term adjusted EPS growth target of 6% to 8%. CEO Garrick Rochow specifically noted that the Q1 results show the company is "on track to deliver operationally and financially for 2025."

Several positive developments were highlighted, including a constructive outcome in the company's March electric rate case supporting investments in their electric Reliability Roadmap, sustained momentum in economic development, and progress on customer investment projects in both electric and gas systems.

JACKSON, Mich., April 24, 2025 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $1.01 for the first quarter of 2025, compared to $0.96 per share for 2024. The company's adjusted earnings per share for the first quarter were $1.02, compared to $0.97 per share for 2024.

CMS Energy reaffirmed its 2025 adjusted earnings guidance of $3.54 to $3.60 per share (*See below for important information about non-GAAP measures) and long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

"Results from the first quarter show we are on track to deliver operationally and financially for 2025," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "A constructive outcome in our electric rate case in March, which supports needed investments in our electric Reliability Roadmap; sustained momentum on the economic development front; and steady progress on a variety of customer investment projects in our electric and gas systems together support our triple bottom line of people, planet and prosperity."  

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2025 first quarter results and provide a business and financial outlook on Thursday, April 24 at 9:30 a.m. (EDT). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.   

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings. 

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

CMS ENERGY CORPORATION Consolidated Statements of Income (Unaudited)
								In Millions, Except Per Share Amounts
								Three Months Ended
								3/31/25			3/31/24
Operating revenue								$	2,447		$	2,176
Operating expenses									1,953			1,764
Operating Income									494			412
Other income									50			86
Interest charges									186			177
Income Before Income Taxes									358			321
Income tax expense									63			58
Net Income									295			263
Loss attributable to noncontrolling interests									(9)			(24)
Net Income Attributable to CMS Energy									304			287
Preferred stock dividends									2			2
Net Income Available to Common Stockholders								$	302		$	285
Diluted Earnings Per Average Common Share								$	1.01		$	0.96

 

CMS ENERGY CORPORATION Summarized Consolidated Balance Sheets (Unaudited)
		In Millions
		As of
		3/31/25				12/31/24
Assets
Current assets
Cash and cash equivalents			$	465			$	103
Restricted cash and cash equivalents				61				75
Other current assets				2,256				2,612
Total current assets				2,782				2,790
Non-current assets
Plant, property, and equipment				27,903				27,461
Other non-current assets				5,610				5,669
Total Assets			$	36,295			$	35,920
Liabilities and Equity
Current liabilities (1)			$	1,920			$	2,261
Non-current liabilities (1)				8,486				8,345
Capitalization
Debt and finance leases (excluding securitization debt) (2)				16,308				15,866
Preferred stock and securities				224				224
Noncontrolling interests				588				518
Common stockholders' equity				8,111				8,006
Total capitalization (excluding securitization debt)				25,231				24,614
Securitization debt (2)				658				700
Total Liabilities and Equity			$	36,295			$	35,920
(1)  Excludes debt and finance leases.
(2)  Includes current and non-current portions.
CMS ENERGY CORPORATION
Summarized Consolidated Statements of Cash Flows
(Unaudited)
		In Millions
		Three Months Ended
		3/31/25				3/31/24
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts			$	178			$	248
Net cash provided by operating activities				1,000				956
Net cash used in investing activities				(918)				(637)
Cash flows from operating and investing activities				82				319
Net cash provided by financing activities				266				294
Total Cash Flows			$	348			$	613
End of Period Cash and Cash Equivalents, Including Restricted Amounts			$	526			$	861

 

CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited)
								In Millions, Except Per Share Amounts
								Three Months Ended
								3/31/25			3/31/24
Net Income Available to Common Stockholders								$	302		$	285
Reconciling items:
Other exclusions from adjusted earnings**									3			4
Tax impact									(1)			(1)
Voluntary separation program									-			*
Tax impact									-			(*)
Adjusted net income – non-GAAP								$	304		$	288
Average Common Shares Outstanding - Diluted									299.1			297.2
Diluted Earnings Per Average Common Share
Reported net income per share								$	1.01		$	0.96
Reconciling items:
Other exclusions from adjusted earnings**									0.01			0.01
Tax impact									(*)			(*)
Voluntary separation program									-			*
Tax impact									-			(*)
Adjusted net income per share – non-GAAP								$	1.02		$	0.97
*	Less than $0.5 million or $0.01 per share.
**	Includes restructuring costs and business optimization initiative.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors.  Internally, the Company uses adjusted earnings to measure and assess performance.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.

 

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SOURCE CMS Energy

FAQ

What were CMS Energy's Q1 2025 earnings per share compared to Q1 2024?

CMS Energy reported Q1 2025 earnings of $1.01 per share, up from $0.96 in Q1 2024, while adjusted EPS was $1.02 compared to $0.97.

What is CMS Energy's adjusted earnings guidance for 2025?

CMS Energy reaffirmed its 2025 adjusted earnings guidance range of $3.54 to $3.60 per share.

How much did CMS Energy's operating revenue grow in Q1 2025?

Operating revenue increased to $2.447 billion in Q1 2025 from $2.176 billion in Q1 2024, representing a 12.5% growth.

What is CMS Energy's long-term adjusted EPS growth target?

CMS Energy maintains a long-term adjusted EPS growth target of 6 to 8 percent, with confidence toward the high end.

How did CMS Energy's net income perform in Q1 2025?

Net income available to common stockholders increased to $302 million in Q1 2025 from $285 million in Q1 2024.