Evergy (EVRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted and GAAP EPS were $0.90, up from $0.81 (adjusted) and $0.78 (GAAP) in Q2 2023, driven by higher sales, favorable weather, new retail rates, and increased transmission margin, partially offset by higher O&M, depreciation, and interest expenses.

• Net income for Q2 2024 was $207.0 million, compared to $179.1 million in Q2 2023.

• Major economic development wins with Google, Panasonic, and Meta, representing approximately 750 MW of load and expected to become the largest customers in their jurisdictions.

• Reaffirmed 2024 adjusted EPS guidance of $3.73–$3.93 and long-term annual adjusted EPS growth target of 4%–6% from 2023 to 2026.

• Transitioned CFO role to Geoff Lay following Kirk Andrews' resignation, with a search for a permanent CFO ongoing.

Financial highlights

• Q2 2024 adjusted earnings: $207 million ($0.90/share) vs. $186.1 million ($0.81/share) in Q2 2023.

• Year-to-date adjusted earnings: $331.7 million ($1.44/share) vs. $322.2 million ($1.40/share) year-over-year.

• Q2 2024 operating revenues rose to $1,447.5 million, up $93.3 million year-over-year.

• Weather-normalized retail sales growth in Q2 2024 was 2.2% total, with residential up 4.5%, commercial up 1.7%, and industrial down 0.3% year-over-year.

• Adjusted earnings exclude mark-to-market impacts, non-regulated energy marketing costs from the 2021 winter event, and a 2023 regulatory liability for customer refunds.

Outlook and guidance

• 2024 adjusted EPS guidance range reaffirmed at $3.73–$3.93, with a long-term adjusted EPS growth target of 4%–6% through 2026, based on the 2023 midpoint of $3.65/share.

• Five-year capital investment plan of $12.5 billion through 2028, with no new equity issuance expected through 2026.

• Weather-normalized demand growth of 2%–3% expected through 2028, driven by large new customer loads.

• Implied rate base CAGR of approximately 6% from 2023 to 2028.

• Updated capital investment plan to be provided with Q3 2024 earnings.