CMS Energy Announces Second Quarter Results, Strategic Decision on NorthStar Clean Energy Services, Introduces Guidance for 2027
Rhea-AI Summary
CMS Energy (NYSE: CMS) reported second-quarter 2026 diluted earnings per share of $0.37, down from $0.66 in 2025, with adjusted EPS also at $0.37 versus $0.71. For the first six months, reported EPS was $1.47 (2025: $1.67) and adjusted EPS was $1.50 (2025: $1.73).
The company completed a strategic review of NorthStar Clean Energy and, with Board approval, is exiting non-utility renewables development while retaining Michigan-based assets, including Dearborn Industrial Generation, to simplify its business and reduce financing needs. CMS Energy reaffirmed its 2026 adjusted EPS guidance of $3.83–$3.90 and long-term adjusted EPS growth of 6–8 percent, and introduced 2027 adjusted EPS guidance of $4.08–$4.17. Operating revenue was $1.83 billion in Q2 and $4.56 billion year-to-date. Net income available to common stockholders was $117 million for the quarter and $455 million year-to-date. Cash and equivalents, including restricted amounts, ended the period at $345 million, compared with $925 million a year earlier.
Positive
- 2026 adjusted EPS guidance reaffirmed at $3.83–$3.90 per share
- 2027 adjusted EPS guidance introduced at $4.08–$4.17 per share
- Strategic exit from non-utility renewables development expected to reduce financing needs, according to CMS Energy
- Year-to-date operating revenue $4.559 billion vs. $4.285 billion in 2025
- Common stockholders' equity increased to $9.55 billion from $8.92 billion at year-end 2025
- Net cash provided by operating activities remained strong at $1.327 billion for the first six months of 2026
Negative
- Q2 2026 diluted EPS declined to $0.37 from $0.66 in Q2 2025
- Q2 2026 adjusted EPS fell to $0.37 from $0.71 in Q2 2025
- Year-to-date 2026 diluted EPS decreased to $1.47 from $1.67 in 2025
- Q2 2026 operating income decreased to $264 million from $317 million a year earlier
- Net cash provided by operating activities declined to $1.327 billion from $1.414 billion for the first half of 2025
- Cash and cash equivalents, including restricted amounts ended at $345 million vs. $925 million a year earlier
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | Q1 earnings | Positive | -0.2% | Higher quarterly EPS and reaffirmed full-year adjusted guidance |
| Jul 31 | Q2 earnings | Positive | +2.3% | Higher adjusted EPS, guidance reaffirmation, and new data-center load |
| Apr 24 | Q1 earnings | Positive | +0.9% | Higher EPS, revenue, operating income, and reaffirmed guidance |
| Feb 06 | Annual earnings | Positive | +1.8% | Higher annual EPS, raised guidance, and increased dividend |
| Oct 31 | Q3 earnings | Positive | -0.7% | Higher EPS and introduced 2025 guidance |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed three positive reactions and two divergences, including negative reactions after the Q1 2026 and Q3 2024 earnings announcements.
Key Terms
non-gaap financial
mark-to-market adjustments financial
noncontrolling interests financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
CMS Energy also announced the completion of a strategic review at NorthStar Clean Energy, and with Board approval, the company is exiting non-utility renewables development and retaining
CMS Energy reaffirmed its 2026 adjusted earnings guidance of
CMS Energy (NYSE: CMS) is a
CMS Energy will hold a webcast to discuss its 2026 second quarter results and provide a business and financial outlook on Tuesday, July 28 at 10:00 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, major enterprise resource planning software implementations, 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 | ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
6/30/26 | 6/30/25 | 6/30/26 | 6/30/25 | |||||||||
Operating revenue | $ | 1,829 | $ | 1,838 | $ | 4,559 | $ | 4,285 | ||||
Operating expenses | 1,565 | 1,521 | 3,805 | 3,474 | ||||||||
Operating Income | 264 | 317 | 754 | 811 | ||||||||
Other income | 75 | 137 | 150 | 187 | ||||||||
Interest charges | 210 | 199 | 413 | 385 | ||||||||
Income Before Income Taxes | 129 | 255 | 491 | 613 | ||||||||
Income tax expense | 33 | 62 | 118 | 125 | ||||||||
Net Income | 96 | 193 | 373 | 488 | ||||||||
Loss attributable to noncontrolling interests | (24) | (8) | (87) | (17) | ||||||||
Net Income Attributable to CMS Energy | 120 | 201 | 460 | 505 | ||||||||
Preferred stock dividends | 3 | 3 | 5 | 5 | ||||||||
Net Income Available to Common Stockholders | $ | 117 | $ | 198 | $ | 455 | $ | 500 | ||||
Diluted Earnings Per Average Common Share | $ | 0.37 | $ | 0.66 | $ | 1.47 | $ | 1.67 | ||||
CMS ENERGY CORPORATION | ||||||||
In Millions | ||||||||
As of | ||||||||
6/30/26 | 12/31/25 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 241 | $ | 509 | ||||
Restricted cash and cash equivalents | 104 | 106 | ||||||
Other current assets | 2,521 | 2,857 | ||||||
Total current assets | 2,866 | 3,472 | ||||||
Non-current assets | ||||||||
Plant, property, and equipment | 32,329 | 30,680 | ||||||
Other non-current assets | 5,710 | 5,789 | ||||||
Total Assets | $ | 40,905 | $ | 39,941 | ||||
Liabilities and Equity | ||||||||
Current liabilities (1) | $ | 2,193 | $ | 2,592 | ||||
Non-current liabilities (1) | 9,012 | 8,740 | ||||||
Capitalization | ||||||||
Debt and finance leases (excluding securitization debt) (2) | 18,776 | 18,313 | ||||||
Preferred stock and securities | 224 | 224 | ||||||
Noncontrolling interests | 625 | 567 | ||||||
Common stockholders' equity | 9,550 | 8,920 | ||||||
Total capitalization (excluding securitization debt) | 29,175 | 28,024 | ||||||
Securitization debt (2) | 525 | 585 | ||||||
Total Liabilities and Equity | $ | 40,905 | $ | 39,941 | ||||
(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 | ||||||||
Six Months Ended | ||||||||
6/30/26 | 6/30/25 | |||||||
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 615 | $ | 178 | ||||
Net cash provided by operating activities | 1,327 | 1,414 | ||||||
Net cash used in investing activities | (2,093) | (1,880) | ||||||
Cash flows from operating and investing activities | (766) | (466) | ||||||
Net cash provided by financing activities | 496 | 1,213 | ||||||
Total Cash Flows | $ | (270) | $ | 747 | ||||
End of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 345 | $ | 925 | ||||
CMS ENERGY CORPORATION | ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
6/30/26 | 6/30/25 | 6/30/26 | 6/30/25 | |||||||||
Net Income Available to Common Stockholders | $ | 117 | $ | 198 | $ | 455 | $ | 500 | ||||
Reconciling items: | ||||||||||||
Other exclusions from adjusted earnings** | 2 | 5 | 13 | 8 | ||||||||
Tax impact | (1) | (1) | (4) | (2) | ||||||||
State tax policy change | - | 12 | - | 12 | ||||||||
Adjusted net income – non-GAAP | $ | 118 | $ | 214 | $ | 464 | $ | 518 | ||||
Average Common Shares Outstanding - Diluted | 310.8 | 299.1 | 308.9 | 299.0 | ||||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Reported net income per share | $ | 0.37 | $ | 0.66 | $ | 1.47 | $ | 1.67 | ||||
Reconciling items: | ||||||||||||
Other exclusions from adjusted earnings** | * | 0.01 | 0.04 | 0.02 | ||||||||
Tax impact | (*) | (*) | (0.01) | (*) | ||||||||
State tax policy change | - | 0.04 | - | 0.04 | ||||||||
Adjusted net income per share – non-GAAP | $ | 0.37 | $ | 0.71 | $ | 1.50 | $ | 1.73 | ||||
* | Less than | |||||||||||
** | Includes major enterprise resource planning software implementations and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense. | |||||||||||
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, major enterprise resource planning software implementations, changes in accounting principles, voluntary separation program, changes in federal and state 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