CMS Energy Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

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
Summarized Consolidated Balance Sheets
(Unaudited)

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
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Twelve Months Ended

12/31/25

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 $0.5 million or $0.01 per share.

**

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.