CMS Energy Announces Strong 2024 Financial Results for the 22nd Consecutive Year, Raises 2025 Adjusted EPS Guidance

Rhea-AI Summary

CMS Energy reported strong financial results for 2024, with earnings per share reaching $3.33, up from $3.01 in 2023. Adjusted earnings per share were $3.34, compared to $3.11 in 2023.

The company increased its annual dividend by 11 cents to $2.17 for 2025, marking the 19th consecutive year of dividend increases. CMS Energy also raised its 2025 adjusted earnings guidance to $3.54-$3.60 per share and reaffirmed long-term adjusted EPS growth of 6-8%.

Operational highlights for 2024 include record investments in the electric grid through the Reliability Roadmap, improving power restoration times to over 93% of customers within 24 hours (up from 87% in 2023). The company also secured over 360 megawatts of new load through economic development efforts.

Positive

• EPS increased 10.6% from $3.01 to $3.33 in 2024
• Adjusted EPS grew 7.4% from $3.11 to $3.34
• Annual dividend increased by 11 cents to $2.17
• Raised 2025 adjusted earnings guidance to $3.54-$3.60
• Improved power restoration metrics to 93% within 24 hours
• Secured 360 megawatts of new load through economic development

Negative

• None.

Insights

Financial Analyst

CMS Energy's 2024 results demonstrate robust financial execution and operational excellence. The 7.4% year-over-year adjusted EPS growth aligns with their long-term target range of 6-8%, showing consistent delivery on promises to investors. The company's decision to raise 2025 guidance suggests strong momentum and management confidence in their business model.

The 19th consecutive annual dividend increase, representing a 5.3% boost to $2.17 per share, reinforces CMS's position as a reliable income generator. This consistency is particularly valuable in the utility sector, where predictable returns are prized by investors.

Operational metrics reveal meaningful improvements that support financial performance. The increase in 24-hour power restoration rates from 87% to 93% indicates enhanced grid reliability, which typically leads to higher customer satisfaction and favorable regulatory treatment. The addition of 360 megawatts of new load through economic development is significant, as it creates a natural growth driver without requiring rate increases.

Looking ahead, several factors support CMS's confident outlook:

• Demonstrated ability to execute on their Reliability Roadmap, justifying continued capital investment
• Strong economic development success attracting new load, providing organic growth
• Consistent track record of meeting financial targets over 22 consecutive years
• Clear visibility into future earnings through regulated utility operations

Utility Industry Expert

The operational achievements highlighted in CMS Energy's results are particularly noteworthy within the utility sector context. The 6 percentage point improvement in 24-hour restoration rates represents a significant advancement in service reliability, exceeding typical utility improvement rates of 1-2 percentage points annually.

The 360 megawatts of new load acquisition is exceptionally strong for a mature utility market like Michigan. This achievement has three key implications:

• Creates natural rate base growth without burdening existing customers
• Demonstrates the region's economic vitality and CMS's ability to attract business investment
• Provides a buffer against potential load erosion from energy efficiency and distributed generation

The company's Reliability Roadmap investments are strategically timed, as grid resilience becomes increasingly critical with electrification trends and extreme weather events. The improved restoration metrics suggest these investments are delivering tangible benefits, which typically strengthens the case for future rate recovery and capital deployment.

JACKSON, Mich., Feb. 6, 2025 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $3.33 for 2024, compared to $3.01 per share for 2023. The company's adjusted earnings per share for 2024 were $3.34, compared to $3.11 per share for 2023. CMS Energy increased its annual dividend by 11 cents per share to $2.17 for 2025, the 19^th increase in as many years. 

CMS Energy raised its 2025 adjusted earnings guidance to $3.54 to $3.60 from $3.52 to $3.58 per share (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

"In addition to strong financial performance, the company's 2024 highlights include record investments in our electric grid through the Reliability Roadmap, restoring power to over 93% of customers in less than 24 hours – compared to 87% in 2023. We also landed over 360 megawatts of new load through our economic development efforts, bringing jobs, and investments to Michigan," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "Our customers, communities and investors are well positioned for 2025 due to the hard work and improvements made by the CMS Energy team."

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 2024 year-end results and provide a business and financial outlook on Thursday, February 6, 2025 at 9:30 a.m. (EST). 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, 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						Twelve Months Ended
		12/31/24			12/31/23			12/31/24			12/31/23
Operating revenue		$	1,989		$	1,950		$	7,515		$	7,462
Operating expenses			1,564			1,544			6,028			6,227
Operating Income			425			406			1,487			1,235
Other income			61			83			344			362
Interest charges			180			172			708			643
Income Before Income Taxes			306			317			1,123			954
Income tax expense			51			66			176			147
Income From Continuing Operations			255			251			947			807
Income from discontinued operations, net of tax			-			-			-			1
Net Income			255			251			947			808
Loss attributable to noncontrolling interests			(10)			(58)			(56)			(79)
Net Income Attributable to CMS Energy			265			309			1,003			887
Preferred stock dividends			3			3			10			10
Net Income Available to Common Stockholders		$	262		$	306		$	993		$	877
Diluted Earnings Per Average Common Share		$	0.87		$	1.05		$	3.33		$	3.01

 

CMS ENERGY CORPORATION Summarized Consolidated Balance Sheets (Unaudited)
		In Millions
		As of
		12/31/24				12/31/23
Assets
Current assets
Cash and cash equivalents			$	103			$	227
Restricted cash and cash equivalents				75				21
Other current assets				2,612				2,591
Total current assets				2,790				2,839
Non-current assets
Plant, property, and equipment				27,461				25,072
Other non-current assets				5,669				5,606
Total Assets			$	35,920			$	33,517
Liabilities and Equity
Current liabilities (1)			$	2,261			$	1,822
Non-current liabilities (1)				8,345				7,927
Capitalization
Debt and finance leases (excluding securitization debt) (2)				15,866				14,856
Preferred stock and securities				224				224
Noncontrolling interests				518				581
Common stockholders' equity				8,006				7,320
Total capitalization (excluding securitization debt)				24,614				22,981
Securitization debt (2)				700				787
Total Liabilities and Equity			$	35,920			$	33,517
(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
		Twelve Months Ended
		12/31/24				12/31/23
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts			$	248			$	182
Net cash provided by operating activities				2,370				2,309
Net cash used in investing activities				(3,054)				(3,386)
Cash flows from operating and investing activities				(684)				(1,077)
Net cash provided by financing activities				614				1,143
Total Cash Flows			$	(70)			$	66
End of Period Cash and Cash Equivalents, Including Restricted Amounts			$	178			$	248

 

CMS ENERGY CORPORATION  Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income  (Unaudited)
		In Millions, Except Per Share Amounts
		Three Months Ended						Twelve Months Ended
		12/31/24			12/31/23			12/31/24			12/31/23
Net Income Available to Common Stockholders		$	262		$	306		$	993		$	877
Reconciling items:
Disposal of discontinued operations (gain) loss			*			*			*			(1)
Tax impact			(*)			(*)			(*)			*
Other exclusions from adjusted earnings**			*			3			6			9
Tax impact			(*)			(1)			(1)			(3)
Voluntary separation program			-			*			*			33
Tax impact			-			(*)			(*)			(8)
Adjusted net income – non-GAAP		$	262		$	308		$	998		$	907
Average Common Shares Outstanding - Diluted			298.7			292.7			298.3			291.7
Diluted Earnings Per Average Common Share
Reported net income per share		$	0.87		$	1.05		$	3.33		$	3.01
Reconciling items:
Disposal of discontinued operations (gain) loss			*			*			*			(*)
Tax impact			(*)			(*)			(*)			*
Other exclusions from adjusted earnings**			*			0.01			0.01			0.03
Tax impact			(*)			(0.01)			(*)			(0.01)
Voluntary separation program			-			*			*			0.11
Tax impact			-			(*)			(*)			(0.03)
Adjusted net income per share – non-GAAP		$	0.87		$	1.05		$	3.34		$	3.11

*	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, 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 was CMS Energy's earnings per share (EPS) for 2024?

CMS Energy reported earnings per share of $3.33 for 2024, compared to $3.01 per share in 2023.

How much did CMS Energy increase its dividend for 2025?

CMS Energy increased its annual dividend by 11 cents per share to $2.17 for 2025, marking the 19th consecutive year of dividend increases.

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

CMS Energy raised its 2025 adjusted earnings guidance to $3.54-$3.60 per share, up from the previous guidance of $3.52-$3.58.

How much new load did CMS Energy secure through economic development in 2024?

CMS Energy secured over 360 megawatts of new load through its economic development efforts in 2024.

What was CMS Energy's power restoration performance in 2024?

CMS Energy restored power to over 93% of customers within 24 hours in 2024, an improvement from 87% in 2023.