CMS Energy Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance
Rhea-AI Summary
CMS Energy (NYSE: CMS) reported 2025 GAAP EPS of $3.53 versus $3.33 in 2024 and adjusted EPS of $3.61 versus $3.34 in 2024, exceeding guidance largely due to outperformance at NorthStar Clean Energy. The company raised 2026 adjusted EPS guidance to $3.83–$3.90 from $3.80–$3.87 and reaffirmed long-term adjusted EPS growth of 6–8%. CMS increased its 2026 annual dividend by $0.11 to $2.28, the 20th consecutive annual increase. A webcast discussing results was scheduled for Feb 5, 2026 at 10:00 a.m. ET. The release notes use of non-GAAP adjusted earnings and limits on providing reported earnings guidance or reconciliation.
Positive
- Adjusted EPS of $3.61 in 2025, up from $3.34 in 2024
- Raised 2026 adjusted EPS guidance to $3.83–$3.90
- Increased annual dividend to $2.28, 20th consecutive raise
- Reaffirmed long-term adjusted EPS growth target of 6–8%
Negative
- Company did not provide reported (GAAP) earnings guidance or a reconciliation for future periods
- Adjusted measures may exclude items that could materially affect future reported earnings
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: EIX up 2.34%, CNP up 0.17%, while DTE, FE, and PPL are down between 0.64% and 1.76%. CMS’s slight decline of -0.28% ahead of an earnings beat and guidance raise appears more company-specific than part of a clear sector-wide trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 02 | Weather bill impact | Neutral | -1.3% | Higher January usage and bills with targeted customer assistance funding. |
| Jan 29 | Reliability update | Positive | -1.3% | Improved grid reliability and outage reduction despite extreme weather conditions. |
| Jan 27 | Customer assistance | Positive | +0.7% | Over <b>$100 million</b> in 2026 support to reduce heating costs. |
| Jan 21 | Renewable program | Positive | +0.5% | ICCF joins renewable program adding to <b>700+ MW</b> clean capacity commitments. |
| Jan 15 | Earnings date set | Neutral | +0.6% | Announcement of <b>Feb 5, 2026</b> webcast for year-end 2025 results. |
Recent operational and customer-focused news has generally seen modest price reactions, with positive service and support updates sometimes aligning with small gains but also occasional divergences.
Over the past month, CMS released several customer and reliability updates plus an earnings date notice ahead of these 2025 results. Cold-weather communications on higher usage and bills in January 2026, grid reliability improvements, and expanded customer assistance and renewable programs all highlighted operational execution and customer support, with mixed but generally modest price moves (from about -1.31% to 0.71%). Today’s earnings beat and raised 2026 adjusted EPS guidance extend that narrative from operational and customer initiatives to financial outperformance.
Market Pulse Summary
This announcement highlights CMS Energy’s 2025 earnings beat, with adjusted EPS of $3.61 versus $3.34 in 2024, and a higher 2026 adjusted EPS range of $3.83–$3.90. The company also increased its 2026 dividend to $2.28, marking 20 consecutive annual raises, and reaffirmed 6–8% long-term adjusted EPS growth. Investors may watch future updates on NorthStar Clean Energy performance, regulatory outcomes, and how non-GAAP adjustments evolve, given management’s emphasis on adjusted earnings.
Key Terms
generally accepted accounting principles financial
non-gaap financial
adjusted earnings financial
diluted financial
mark-to-market financial
AI-generated analysis. Not financial advice.
CMS Energy raised its 2026 adjusted earnings guidance to
"CMS Energy had a successful year delivering for all stakeholders in 2025. Our accomplishments include constructive regulatory outcomes, solid cost performance at the Utility and strong results at NorthStar," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "Our customers remain our top priority as the CMS Energy team works every day to improve reliability and affordability."
CMS Energy (NYSE: CMS) is a
CMS Energy will hold a webcast to discuss its 2025 year-end results and provide a business and financial outlook on Thursday, February 5, 2026 at 10:00 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
| ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
12/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||
Operating revenue | $ | 2,233 | $ | 1,989 | $ | 8,539 | $ | 7,515 | ||||
Operating expenses | 1,798 | 1,564 | 6,812 | 6,028 | ||||||||
Operating Income | 435 | 425 | 1,727 | 1,487 | ||||||||
Other income | 61 | 61 | 310 | 344 | ||||||||
Interest charges | 201 | 180 | 789 | 708 | ||||||||
Income Before Income Taxes | 295 | 306 | 1,248 | 1,123 | ||||||||
Income tax expense | 53 | 51 | 246 | 176 | ||||||||
Net Income | 242 | 255 | 1,002 | 947 | ||||||||
Loss attributable to noncontrolling interests | (47) | (10) | (69) | (56) | ||||||||
Net Income Attributable to CMS Energy | 289 | 265 | 1,071 | 1,003 | ||||||||
Preferred stock dividends | 3 | 3 | 10 | 10 | ||||||||
Net Income Available to Common Stockholders | $ | 286 | $ | 262 | $ | 1,061 | $ | 993 | ||||
Diluted Earnings Per Average Common Share | $ | 0.94 | $ | 0.87 | $ | 3.53 | $ | 3.33 | ||||
CMS ENERGY CORPORATION
| ||||||||
In Millions | ||||||||
As of | ||||||||
12/31/25 | 12/31/24 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 509 | $ | 103 | ||||
Restricted cash and cash equivalents | 106 | 75 | ||||||
Other current assets | 2,857 | 2,612 | ||||||
Total current assets | 3,472 | 2,790 | ||||||
Non-current assets | ||||||||
Plant, property, and equipment | 30,680 | 27,461 | ||||||
Other non-current assets | 5,789 | 5,669 | ||||||
Total Assets | $ | 39,941 | $ | 35,920 | ||||
Liabilities and Equity | ||||||||
Current liabilities (1) | $ | 2,592 | $ | 2,261 | ||||
Non-current liabilities (1) | 8,740 | 8,345 | ||||||
Capitalization | ||||||||
Debt and finance leases (excluding securitization debt) (2) | 18,313 | 15,866 | ||||||
Preferred stock and securities | 224 | 224 | ||||||
Noncontrolling interests | 567 | 518 | ||||||
Common stockholders' equity | 8,920 | 8,006 | ||||||
Total capitalization (excluding securitization debt) | 28,024 | 24,614 | ||||||
Securitization debt (2) | 585 | 700 | ||||||
Total Liabilities and Equity | $ | 39,941 | $ | 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 | ||||||||
Twelve Months Ended | ||||||||
12/31/25 | 12/31/24 | |||||||
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 178 | $ | 248 | ||||
Net cash provided by operating activities | 2,235 | 2,370 | ||||||
Net cash used in investing activities | (4,038) | (3,054) | ||||||
Cash flows from operating and investing activities | (1,803) | (684) | ||||||
Net cash provided by financing activities | 2,240 | 614 | ||||||
Total Cash Flows | $ | 437 | $ | (70) | ||||
End of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 615 | $ | 178 | ||||
CMS ENERGY CORPORATION
| ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
12/31/25 | 12/31/24 | 12/31/25 | 12/31/24 | |||||||||
Net Income Available to Common Stockholders | $ | 286 | $ | 262 | $ | 1,061 | $ | 993 | ||||
Reconciling items: | ||||||||||||
Disposal of discontinued operations (gain) loss | - | * | - | * | ||||||||
Tax impact | - | (*) | - | (*) | ||||||||
Other exclusions from adjusted earnings** | 5 | * | 19 | 6 | ||||||||
Tax impact | (1) | (*) | (5) | (1) | ||||||||
State tax policy change | (*) | - | 12 | - | ||||||||
Voluntary separation program | - | - | - | * | ||||||||
Tax impact | - | - | - | (*) | ||||||||
Adjusted net income – non-GAAP | $ | 290 | $ | 262 | $ | 1,087 | $ | 998 | ||||
Average Common Shares Outstanding - Diluted | 305.8 | 298.7 | 301.0 | 298.3 | ||||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Reported net income per share | $ | 0.94 | $ | 0.87 | $ | 3.53 | $ | 3.33 | ||||
Reconciling items: | ||||||||||||
Disposal of discontinued operations (gain) loss | - | * | - | * | ||||||||
Tax impact | - | (*) | - | (*) | ||||||||
Other exclusions from adjusted earnings** | 0.01 | * | 0.05 | 0.01 | ||||||||
Tax impact | (*) | (*) | (0.01) | (*) | ||||||||
State tax policy change | (*) | - | 0.04 | - | ||||||||
Voluntary separation program | - | - | - | * | ||||||||
Tax impact | - | - | - | (*) | ||||||||
Adjusted net income per share – non-GAAP | $ | 0.95 | $ | 0.87 | $ | 3.61 | $ | 3.34 | ||||
* | Less than | |||||||||||
** | Includes business optimization initiative, 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
FAQ
What did CMS (NYSE: CMS) report for GAAP and adjusted EPS in 2025 compared to 2024?
How did CMS change its 2026 adjusted EPS guidance on February 5, 2026?
What dividend announcement did CMS make for 2026 and what does it mean for shareholders?
Why did CMS say adjusted earnings exceeded guidance for 2025?
Will CMS provide GAAP earnings guidance or a reconciliation for 2026?
