Evergy (EVRG) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted EPS was $0.82, exceeding internal targets but down from $0.90 in Q2 2024, with GAAP EPS at $0.74; strong operational reliability and constructive regulatory outcomes in Kansas and Missouri.

• Net income attributable to shareholders for Q2 2025 was $171.3 million, down from $207.0 million year-over-year, mainly due to lower retail sales, higher expenses, and investment losses, partially offset by new rates and solar project income.

• Economic development pipeline exceeds 15 GW, with 4-6 GW of large customer load in advanced stages, including major data center and manufacturing projects.

• Major regulatory settlements and new legislation in Missouri and Kansas support cost recovery for new natural gas and renewable generation investments.

• $17.5 billion capital investment planned for 2025–2029, supporting 8.5% annualized rate base growth.

Financial highlights

• Q2 2025 adjusted earnings were $191.1 million ($0.82 per share), down from $207.0 million ($0.90 per share) in Q2 2024; GAAP EPS was $0.74.

• Year-to-date 2025 adjusted EPS was $1.37, down from $1.44 in 2024; weather-normalized demand grew 1.4% year-over-year, with commercial and residential usage driving growth.

• Recovery of and return on regulated investments added $0.09 EPS, while higher O&M and depreciation/interest expense reduced EPS by $0.05 and $0.07, respectively.

• Operating and maintenance expenses increased $17.4 million in Q2, mainly from higher labor and benefits; interest expense rose $10.2 million.

• Cash flows from operations increased $138.7 million YTD to $773.5 million.

Outlook and guidance

• 2025 adjusted EPS guidance reaffirmed at $3.92–$4.12, targeting the midpoint with normal weather; long-term adjusted EPS growth target of 4%–6% through 2029, aiming for the upper half of the range from 2026.

• Load growth forecast of 2%–3% CAGR through 2029, with potential to reach 4%–5% if additional large customers finalize agreements.

• Construction of two new combined-cycle natural gas plants and multiple solar projects planned, with operations beginning 2027–2030.

• Anticipates providing updates on five-year load forecasts, capital and financing plans, and earnings outlook at year-end.

• No material impact anticipated from recent federal tax reform (OBBBA) on operations.