Evergy, Inc. · NASDAQ:EVRG
Evergy — Q1 2025 Earnings Presentation
29 slides from Evergy's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Earnings Call
First Quarter 2025 Earnings Call May 8, 2025
Slide 2: Important Information
Important Information Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements r
Slide 3: Agenda
Agenda David Campbell, Chairman & CEO • First quarter highlights • Legislative outcomes • Economic development update • Integrated Resource Plan update • Regulatory updates Bryan Buckler, EVP & CFO • First quarter results • Retail sales trends • 2025 outlook 3 First Quarter 2025 Earnings Presentatio
Slide 4: Business Update
Business Update David Campbell Chairman & CEO
Slide 5: First Quarter Highlights
First Quarter Highlights Adjusted EPS1 • First Quarter 2025 EPS • GAAP: $0.54; Adjusted1: $0.54 • Primary Earnings Drivers $0.54 $0.54 ↑ Recovery of regulated investments ↓ Industrial demand, interest expense, depreciation expense • Reaffirming 2025 adjusted EPS1 guidance of $3.92 - $4.12 • Long-ter
Slide 6: Legislative Outcomes Empowering Growth & Investment
Legislative Outcomes Empowering Growth & Investment Kansas and Missouri stakeholders advanced constructive legislation in recent sessions that will enable significant investment and promote economic prosperity for our customers and communities while solidifying our region as a premier destination fo
Slide 7: Economic Development Pipeline
Economic Development Pipeline ~12.2 GW • Actively Building: 1.1 gigawatts (GW) under active construction ~11.2 GWs ~1.1 ~10.6 GWs • Added ~300 megawatts (MW) of load from Finalizing ~0.8 ~1.3 Agreements; expected to ramp 2030 and beyond ~1.6 • ~500 MW included in our 2-3% demand forecast through 202
Slide 8: Summary of 2025 IRP Preferred Plans
Summary of 2025 IRP Preferred Plans 2025 2030 2040 624 MW 1,860 MW 5,850 MW Includes Additional firm, dispatchable natural gas generation resources Foxtrot, Sunflower Viola, McNew, and Sky, and Kansas Sky Mullin Creek new natural 1,950 MW Solar gas-fired resources Additional wind 600 MW 4,350 MW Nea
Slide 9: Regulatory Updates
Regulatory Updates • Kansas Central Rate Case (25-EKCE-294-RTS): staff testimony due June 6, settlement conference July 8-9, hearings begin July 21, commission order by September 29 • Natural Gas & Solar Predetermination (25-EKCE-207-PRE): reached non-unanimous partial settlement agreement for natur
Slide 10: Core Tenets of Evergy Strategy
Core Tenets of Evergy Strategy Affordability: Maintaining Affordability affordable rates while investing in infrastructure and technology to support growing customer demand Reliability: Targeting top-tier performance in reliability, customer service and generation Reliability Sustainability Su
Slide 11: Financial Update
Financial Update Bryan Buckler EVP & CFO
Slide 12: First Quarter 2025 Adjusted EPS
First Quarter 2025 Adjusted EPS1 (0.10) 0.13 $0.54 0.01 (0.04) $0.54 Favorable heating degree days (HDD); Leap year impact of ($0.03); lower industrial demand primarily driven by unplanned customer maintenance shutdown 1Q24 Weather, Demand Recovery of Regulated D&A, Interest Other 1Q25 and Pricing2
Slide 13: Retail Sales Trends
Retail Sales Trends 1Q25 Total Demand Growth • Cold winter weather led to increases in residential and commercial usage, but declining 8.4% block pricing limited margin benefit and major 3.2% Total snowstorms reduced business activity in January Retail 2.7% and February • Large customer unplanned ma
Slide 14: 2025 Year-To-Go Adjusted EPS Considerations
2025 Year-To-Go Adjusted EPS1 Considerations • ~($0.05) below adjusted EPS1 expectations after the first quarter • First quarter results reflect timing items and weakness in margins from the challenges of the historic snow events that limited business customer operations and the impact of a large cu
Slide 15: 2025E – 2029E Financing Plan
2025E – 2029E Financing Plan Sources & Uses No expectation of tax credit monetization ($ billions) benefiting the cash from operations forecast $17.5 related to the Inflation Reduction Act $2.8 Assumes 2-3% $12.5 load growth $5.8 CAGR through ($3.6) 2029; does not yet include potential benefit to ca
Slide 16: Economic Development Pipeline Projected Demand
Economic Development Pipeline Projected Demand • Our 2-3% demand growth forecast through 2029 only '24-'29 CAGR includes ~500 MWs of Actively Building customers Base Retail 0.5-1.0% + Actively Building • Load from customers in the Finalizing Agreements Current Demand Forecast 2-3% category would be
Slide 17: Growth Outlook Summary
Growth Outlook Summary • Reaffirming 2025 adjusted EPS1 guidance of Targeted Adjusted EPS Growth1 $3.92 - $4.12 • Reaffirming long-term adjusted EPS1 target of Top half of 4-6% EPS CAGR2 4% to 6% off of the 2025E midpoint of $4.02 through 2029E • Expect to be in the top half of 4% to 6% $4.02 range,
Slide 18: Q&A
Q&A 18 First Quarter 2025 Earnings Presentation
Slide 19: Appendix
Appendix
Slide 20: Inflation Reduction Act and Tariffs
Inflation Reduction Act and Tariffs Federal Tariffs • If federal tariffs hold over the long-term, we could see a higher cost of materials used in capital projects – currently expected to be less than a 5% impact to annual capital expenditures. Our primary goal is to manage the impacts for our custom
Slide 21: Generation Projects - Regulatory Approval Requests
Generation Projects - Regulatory Approval Requests Project Fuel Type MW Ownership Regulatory Filings Dockets Targeted COD2 PISA Eligibility CWIP EKC (50%) & EMW Predetermination (KS) 25-EKCE-207-PRE (KS) & Sumner County Natural Gas 705 2029 Yes Yes (50%) & CCN1 (MO) EA-2025-0075 (MO) EKC (50%) & EMW
Slide 22: Evergy IRP Preferred Plan, 2024 vs. 2025
Evergy IRP Preferred Plan, 2024 vs. 2025 2024 IRP Update (April 2024) 2025 IRP Update (May 2025) Projected Additions & Retirements (MW)1 Projected Additions & Retirements (MW)1 300 150 150 150 150 150 150 300 150 150 150 1,150 150 300 1,150 300 1,065 740 300 300 600 650 650 624 710 200 450 415 450 3
Slide 23: Generation Projects in Five-Year Capital Plan
Generation Projects in Five-Year Capital Plan1 Operating Company Resource Type MW COD In Capital Plan? Solar 159 2027 Yes Wind 150 2028 No Solar 150 2029 Yes Natural Gas (1/2 CCGT) 355 2029 Yes Evergy Kansas Central Solar 150 2030 Yes Natural Gas (1/2 CCGT) 355 2030 Yes Natural Gas (CCGT) 710 2031 N
Slide 24: Evergy Five-Year Capital Investment Plan
Evergy Five-Year Capital Investment Plan $ in millions 2025E 2026E 2027E 2028E 2029E Total New Generation 501 906 1,251 1,920 1,592 6,170 General Facilities, IT, and Other 204 227 283 274 316 1,304 Transmission 547 543 699 725 756 3,270 Distribution 926 1,077 908 905 915 4,731 Legacy Generation 363
Slide 25: Debt Maturities & Credit Ratings
Debt Maturities & Credit Ratings CFO pre-WC/Debt1 Strong Credit Ratings Moody’s S&P Global Evergy, Inc. Estimate2 ~15.0% Outlook Stable Stable Target3 ≥15.0% Senior Unsecured Debt Baa2 BBB Junior Subordinated Notes Baa3 BBB- Commercial Paper P-2 A-2 Long-Term Debt Maturities4,5 ($ millions) Evergy K
Slide 26: Evergy Kansas Central Rate Request
Evergy Kansas Central Rate Request Case Attributes $196 Million Revenue Increase Request Filed 1/31/2025 196 Revenue Increase since 20231 $196.4M 44 Percent Increase since 20231 8.62% Rate Base $6,733M ROE 10.5% 43 Cost of Debt 4.64% 18 Common Equity Ratio 51.97% Rate of Return 7.69% Test Year 6/30/
Slide 27: 2024 vs. 2025 Quarterly Adjusted EPS Considerations
2024 vs. 2025 Quarterly Adjusted EPS1 Considerations 27 First Quarter 2025 Earnings Presentation 1Adjusted EPS is a non-GAAP financial measure. See appendix for reconciliation to most comparable GAAP information 2For 2025, Q2-Q4 percentage ranges represent forward looking estimates as measured again
Slide 28: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation Adjusted EPS1 2024 2025E GAAP EPS $3.73 - $3.93 $3.92 - $4.12 Adjustments - - Adjusted EPS1 (non-GAAP) $3.73 - $3.93 $3.92 - $4.12 1Adjusted earnings and adjusted earnings per share guidance (non-GAAP) are financial measures that are not calculated in accordance w
Slide 29: First Quarter GAAP to Non-GAAP EPS Reconciliation
First Quarter GAAP to Non-GAAP EPS Reconciliation 29 First Quarter 2025 Earnings Presentation