Cms Energy Corporation · NYSE:CMS
Cms Energy — Q4 2025 Earnings Presentation
33 slides from Cms Energy's earnings presentation, Feb 5, 2026
Slide 1: Leading the Clean Energy Transformation: 2025 Year-End Results & Outlook
LEADING THE CLEAN ENERGY TRANSFORMATION 2025 Year-End Results & Outlook February 5, 2026
Slide 2: Forward-Looking Statements and Non-GAAP Measures
This presentation is made as of the date hereof and contains “forward-looking statements” as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All f
Slide 3: 2025 Successes
2025 Successes . . . People Planet Prosperity ✓ Large Load Tariff approved – ✓ 20-yr REP approved – additional 8 ✓ Delivered adjusted EPS of $3.61, protecting existing customers GW of solar and 2.8 GW of wind in exceeding guidance, up >8% long-term plan ✓ ~$60M of customer assistance to help ✓ Incre
Slide 4: Constructive Regulatory Outcomes
Constructive Regulatory Outcomes. . . Order Bid/Ask Final Ask Other Cases: ($M) ($M) a U-21914: Electric (U-21585) ✓ $154 ~60% $255 ✓ 1st ever storm deferral approved Gas (U-21806) b ✓ $157.5 ~75% $208 U-21859: Renewable Energy Plan +8 GW of solar ✓ Large Load Customer Investments c ✓~$14,000 and +2
Slide 5: Financial Results & Outlook
Financial Results & Outlook . . . 2025 Full-Year Results Amount Commentary Exceeded guidance, Adjusted EPS $3.61 up >8% 2026 Full-Year Outlook Adjusted EPS Guidance $3.06 $3.83 – $3.12 $3.90 Toward the high end Annual Dividend Per Share (DPS) $2.28 Up 11¢ Long-Term Outlook Adjusted EPS Growth 6% 6%t
Slide 6: Updated Customer Investment Plan
Updated Customer Investment Plan . . . New Utility Investment Plan Rate Base Growth Non-Rate Base Earningsb Up $4B from $46.8B prior plan a ✓ ~$50M pre-tax for 36% 10½%/yr FCM by 2030 with 72% Electric utility additional upside investment $28.4B ’26 – ’30 ✓ ~$65M/yr pre-tax $24B 28% for Energy 36% E
Slide 7: Managing Customer Bills
Managing Customer Bills . . . Residential Bills as % of Walleta Residential Bill Growthb (Electric & Gas) (Electric & Gas) Utility Bill ~4½% Utility Bill ~3% >7½% TV & Phone 2% TV & Phone 3% Healthcare 8% Healthcare 8% Food 13% ✓~$450M in cost savings through the Food 13% Transportation Transportati
Slide 8: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . 9 GW Pipeline Qualified 1½ – 2 GW Advanced 4 – 5 GW +1 GW on Progress Made: Large Load Tariff • Order on Large Load Tarriff reduces customer 5-yr rate CAGR • Commercial agreement on EFA terms by ~2% • Near-final rate contract Announced Final Stages on Q2
Slide 9: 2025 Objectives Achieved
2025 Objectives Achieved . . . Objectives Actual Adjusted EPS guidance $3.56 – $3.60 Toward the high end $3.61 ✓ Up >8% from prior year Dividend payout ratio ~60% $2.28 (up 11¢) ✓ Target credit ratings Solid investment grade Solid investment grade ✓ FFO/Debt target: Mid-teensa FFO/Debt target: Mid-t
Slide 10: 2026 Guidance Offers Continued Growth
2026 Guidance Offers Continued Growth . . . Adjusted EPS Utility $4.28 – 4.33 NorthStar 0.25 – 0.30 Parent (0.70) – (0.73) Consolidated EPS $3.83 – $3.90 Toward the high end . . . compounding off 2025 actuals. 10
Slide 11: 2026 Adjusted EPS Growth Range
2026 Adjusted EPS Growth Range . . . a $3.83 - $3.90 12¢ a 37¢ $3.61 (5)¢ - 2¢ (22)¢ 2025 Normal Rates, Cost Savings Parent Financing, 2026 Weather Renewables & Productivity Tax & Other & Investment (incl. Storms) Presentation endnotes are included after the appendix. . . . reflects another year of
Slide 12: Near- and Long-Term Objectives
Near- and Long-Term Objectives . . . 2026 Long-Term Plan Adjusted EPS guidance $3.83 – $3.90 +6% to +8% Toward the high end Toward the high end Dividend Payout Ratio ~60% ~55% over time Target credit ratings Solid Solid investment grade investment grade FFO/Debt target: Mid-teensa FFO/Debt target: M
Slide 13: 2026 Planned Financings
2026 Planned Financings . . . Financings Existing Facilities Plan Actual a ($M) ($M) ~$2.6B of net liquidity Consumers Energy: $300M First Mortgage Bonds $1,735 -- (Nov-2028) CMS Energy: Nov. 2025 Convert @ 3.125% Planned Equity $1,000 ~$700 $1,000 -- ✓ $1,100M (Nov-2030) $750M Retirements (incl. te
Slide 14: 2026 Sensitivities
2026 Sensitivities . . . Full-Year Impact Sensitivity Adj. EPS OCF 2025 Adj. EPS Sensitivities (1% Full Year in Volume) Salesa (¢) ($M) Electric Gas Electric (~38,000 GWh) + 1% + 8 + 33 Residential 5¢ 3¢ Gas (~311 Bcf) + 1 + 4 + 18 Commercial 2½ 1 Industrial ½ <½ Gas Prices ($/Bcf) + 50¢ + 0 + 60
Slide 15: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPS +6% to +8% Dividend Weather Recession Recession Help Recession/ Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ Cold Mild Hot Warm Mild Cold Summer- Hot Ho
Slide 16: Q&A Thank You!
Q&A Thank You! 1616
Slide 17: Appendix
Appendix 17 17
Slide 18: 2025 Results
2025 Results . . . Full Year Adjusted EPS by Segment 2024 2025 Reported EPS $3.33 $3.53 2025 Utility $3.83 a Adjustments 0.01 0.08 Adjusted EPSa 3.34 35X $3.61 NorthStar 0.24 (0.46) Fourth Quarter Parent 2024 2025 Reported EPS $0.87 $0.94 Total Adjusted EPS $3.61 Adjustmentsa -- 0.01 Adjusted EPSa $
Slide 19: 2025 Adjusted EPS
2025 Adjusted EPS . . . 31¢ a 61¢ $3.61 (22)¢ up >8% a $3.34 Reversal of 2024 weather (43)¢ 2024 Weather Rates, Cost Savings Parent Financing, 2025 Renewables & Productivity Tax & Other & Investment (incl. Storms) Presentation endnotes are included after the appendix. . . . reflects another year of
Slide 20: Utility Customer Investment Plan
Utility Customer Investment Plan 5-Year Plan ($B) 2026 2027 2028 2029 2030 Total Electric Generation $1.4 $2.2 $2.3 $1.9 $1.0 $8.8 Electric Distribution & Other 1.6 1.9 2.1 1.6 1.4 8.6 Gas Utility 1.1 1.3 1.3 1.5 1.5 6.7 Total $4.1 $5.4 $5.7 $5.0 $3.9 $24.1 Depreciation & Amortizationa $1.4 $1.5 $1.
Slide 21: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . Supportive Energy Policy 2025 2026 • Timely recovery of investments ✓ Forward-looking test Electric years/earn authorized ROEs Jun. 2nd: By Apr. 2nd: Q2: ✓ 10-month rate cases Revised Expected Order File New ✓ Monthly fuel adjustment $423Ma, 10.25% ROE
Slide 22: Operating Cash Flow
Operating Cash Flow . . . Adjusted Operating Cash Flow (5-Year Plan Average) ~$2.9B ~$2.7B ~$2.5B ~$2.6B ~$14.5B in ~$13.6B in aggregate ~$13.2B in ~$12.4B in aggregate aggregate aggregate 2023 - 2027 2024 - 2028 2025 - 2029 2026 - 2030 . . . remains strong and supports our capital plan. 22
Slide 23: Strong Balance Sheet
Strong Balance Sheet . . . Consumers Energy S&P Moody’s Fitch Key Strengths Senior Secured A A1 A+ ✓ Forward-looking recovery ✓ Constructive rate construct Commercial Paper A-2 P-2 F-2 ✓ Strong operating cash flow Outlook Stable Stable Stable generation CMS Energy Senior Unsecured BBB Baa2 BBB ✓ 100
Slide 24: DIG (750 MW) & Peakers (200 MW)
DIG (750 MW) & Peakers (200 MW) . . . Pre-Tax Income Opportunities (M) $100 ~$80 80 ~$75 ~$70 ~$60 60 Major $43 outage 40 ~$30 $23 20 0 Historic 2024 2025 2026E 2026 -2030 Avg. 2026+ 2026+ Capacity Price ($kw-mon) ~$3.00 ~$3.25 ~$4.00 ~$4.50 ~$5.25 ~$7.50 ~$10.00 Capacity Available 0% 0% 0% ~5% ~20%
Slide 25: Endnotes
Endnotes “cus evens?
Slide 26: Presentation Endnotes
Presentation Endnotes Slide 4: a$154M order excludes a $22M surcharge related to distribution investments made in 2023 above prior approved levels b$157.5M excludes $9M of approved O&M expense deferral cEstimated capital spend of $14,000M for years 2026-2045, assumes ~$1.895M/MW for solar and ~$2.20
Slide 27: GAAP Reconciliation
CMS Energy provides historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. During an oral presentation, references to “earnings” are on an adjusted basis. All references to net income refer to net income availa
Slide 28: Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Adjusted
CMS ENERGY CORPORATION Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Adjusted Cash Flows from Operating Activities (Unaudited) 2021 2022 2023 2024 2025 Cash Flows from Operating Activities $ 1,703 $ 1,790 $ 2,309 $ 2,370 $ 2,235 Adjustments - Discretionary Pension Contribut
Slide 29: Reconciliation to Non-GAAP Funds from Operations and Adjusted Debt
CMS ENERGY CORPORATION Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Funds from Operations Reconciliation of GAAP Indebtedness to Non-GAAP Adjusted Debt (Unaudited) 12/31/2025 FUNDS FROM OPERATIONS Net Cash Provided by Operating Activities $ 2,235 Reconciling Items: Changes
Slide 30: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment
CMS ENERGY CORPORATION Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment (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 Electric Utility Reported net income per share $ 0.33 $ 0.47 $ 2.39 $ 2.28 Reconciling it
Slide 31: Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
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 item
Slide 32: Adjusted Net Income Reconciliation by Quarter 2025
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2025 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 302 $ 198 $ 275 $ 286 Reconciling items: Electric utility and gas utility * 4 6 6 Tax i
Slide 33: Adjusted Net Income Reconciliation by Quarter 2024
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2024 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 285 $ 195 $ 251 $ 262 Reconciling items: Electric utility and gas utility 4 2 * * Tax i