CMS Energy (CMS) Q2 2024 earnings summary

Executive summary

• Adjusted EPS for the first half of 2024 reached $1.63, up from $1.45 year-over-year, driven by favorable electric and gas rate case outcomes, operational gains at NorthStar and DIG, and higher weather-normalized sales.

• Full-year 2024 adjusted EPS guidance of $3.29–$3.35 was reaffirmed, with confidence toward the high end and a long-term adjusted EPS growth target of 6%–8%.

• Dividend per share is $2.06, with a targeted payout ratio of approximately 60% over time.

• Strategic investments continue in electric reliability, gas delivery, and clean energy transformation, supported by strong cash flow and balance sheet.

Financial highlights

• Adjusted net income for H1 2024 was $485 million, or $1.63 per share, up from the prior year; reported net income per share was $1.61, up from $1.36.

• Q2 2024 adjusted EPS was $0.66, down from $0.75 year-over-year; Q2 adjusted net income was $197M, down from $217M.

• EBIT (non-GAAP) for the trailing twelve months was $1,746M, and EBITDA was $2,959M, both up year-over-year.

• Book value per share increased to $26.04 from $23.72 year-over-year.

• Operating revenue for the first six months was $3.78B, compared to $3.84B in the prior year period.

Outlook and guidance

• 2024 full-year adjusted EPS guidance is $3.29–$3.35, with expectations to finish toward the high end and a long-term growth target of 6%–8%.

• Dividend per share growth is targeted at 6%–8% annually.

• Utility capital plan increased by $1.5B to $17B for 2024–2028, with $13.6B over the next five years focused on electric and gas infrastructure.

• Clean Energy Plan targets net-zero carbon emissions by 2040 and net-zero methane emissions by 2030.

• Management anticipates $0.20 per share positive variance in H2 2024 if weather normalizes.