Executive Summary

Q3 2025 delivered a clean beat: adjusted EPS of $0.93 vs S&P consensus $0.86 and operating revenue of $2.021B vs S&P consensus $1.840B; management raised the low end of FY25 adjusted EPS to $3.56–$3.60 and initiated FY26 at $3.80–$3.87 .
Drivers: constructive Michigan regulatory outcomes across gas and renewable filings, favorable weather, and disciplined cost management; CEO highlighted confidence “toward the high end” of the EPS growth range (6–8%) .
Near-term narrative: visibility on large-load/data center tariff and an expanding industrial/data center pipeline provide incremental load and investment opportunities; management expected at least one large data center contract to advance post-tariff order .
Potential stock reaction catalysts: EPS/Revenue beat, guidance raise, and clarity on the large-load tariff path and data center agreements; pre-market reaction +1.95% cited by press after the call .

What Went Well and What Went Wrong

What Went Well

Constructive regulatory outcomes: recent orders in the natural gas rate case and Renewable Energy Plan underpinned YTD adjusted EPS growth; “well positioned” to deliver long-term value (CEO) .
Economic development pipeline: three large data centers in final stages representing up to ~2 GW of opportunity; at least one expected to move forward following the large-load tariff order .
Guidance raised and 2026 initiated: FY25 adjusted EPS to $3.56–$3.60 (from $3.54–$3.60) and FY26 to $3.80–$3.87, reinforcing confidence toward the high end of 6–8% growth .

What Went Wrong

Ongoing O&M headwinds: year-to-date vegetation management/reliability investments pressured costs, noted by CFO as a drag; discretionary spend added to derisk plan but weighs on near-term OpEx .
Generation/timing impacts: negative variance tied to Dearborn Industrial Generation outage and timing of renewable projects cited by post-call summaries .
Financing costs: higher parent-level financing referenced as a challenge in Q3 highlights .

Financial Results

Summary vs prior periods and estimates

Metric	Q1 2025	Q2 2025	Q3 2025
Operating Revenue ($USD Billions)	$2.348*	$1.746*	$2.021
Diluted EPS (Reported) ($)	$0.96	$0.66	$0.92
Adjusted EPS ($)	$0.97	$0.71	$0.93
Net Income Available to Common ($USD Billions)	$0.346*	$0.188*	$0.275
EBIT Margin (%)	23.5%*	21.3%*	26.1%*
Net Income Margin (%)	14.7%*	10.8%*	13.6%*

Values marked with * retrieved from S&P Global.

Estimate comparison (S&P Global Market Intelligence, as of Jul 28, 2025):

Metric vs Consensus	Consensus	Actual
EPS (Normalized/Adjusted)	$0.86	$0.93 — bold beat (+$0.07)
Revenue ($USD Billions)	$1.840	$2.021 — bold beat (+$0.181B)

Y/Y context (Q3 2025 vs Q3 2024):

Operating revenue: $2.021B vs $1.743B (+$0.278B) .
Diluted EPS (reported): $0.92 vs $0.84 (+$0.08) .
Adjusted EPS: $0.93 vs $0.84 (+$0.09) .

Cash flow and balance sheet (YTD through 9/30/25):

Cash from operations: $1.757B (vs $1.967B YTD 2024) .
Net cash used in investing: $(2.926)B (proxy for capital spending) .
Total assets: $38.008B; debt and finance leases (ex securitization): $17.473B; common equity $8.640B .

KPIs (selected)

KPI	Q3 2025
Operating Income ($USD Billions)	$0.481
Other Income ($USD Billions)	$0.062
Interest Charges ($USD Billions)	$0.203
Effective Tax ($USD Billions)	$0.068
Average Diluted Shares (Millions)	300.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY 2025	$3.54–$3.60	$3.56–$3.60	Raised low end
Adjusted EPS	FY 2026	—	$3.80–$3.87	Initiated
Long-term Adjusted EPS Growth	Multi-year	6–8%	6–8%	Maintained (confidence toward high end)
Annual Dividend Per Share	FY 2025	$2.00 (implied prior run rate)	$2.11	Raised by $0.11
Utility Capital Plan	2025–2029	$17B (prior plan)	$20B	Raised by $3B
Clean Energy Plan (REP)	Through 2035	—	+8 GW solar, +2.8 GW wind (approved)	New approvals

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
Large-load/data center tariff & pipeline	Q2: announced transformative ~1 GW data center agreement; preparing IRP for capacity; confidence on high end of EPS growth	Three large data centers in final stages; at least one expected to advance after tariff order; expanding industrial load (450 MW connected YTD; +100 MW signed)	Accelerating pipeline; tariff clarity near-term
Regulatory outcomes (gas & REP)	Q2: constructive electric order; constructive expectations for gas case	CEO cites constructive outcomes across gas rate case and REP filing; REP approved additional renewables	Positive trajectory
Cost & reliability (vegetation mgmt/storms)	Q2: highlighted reliability investments and CE Way cost discipline	YTD cost pressure from vegetation management; incremental discretionary spend to derisk FY25–26	Near-term headwind; strategic
Financing & liquidity	Q2: majority of 2025 plan complete; potential pull-forward for 2026 if attractive	~$2.1B net liquidity; planned financings detailed; ratings stable/investment grade	Stable
Clean energy build & IRP (capacity)	Q2: REP delivers energy; IRP to address capacity mid-2026 filing	REP order approved; IRP timing reaffirmed; balanced self-build and PPAs (50/50)	Execution advancing

Management Commentary

CEO: “CMS Energy continues to build on its strong track record of constructive regulatory outcomes… With a clear plan for long-term customer value and earnings growth, the company is well positioned to achieve our operational and financial goals for all stakeholders.” .
CEO tone: “A strong quarter… well-positioned for the full year and in the long term.” Emphasis on affordability, cost savings, and below-national-average bills .
CFO: Walked through YTD drivers and year-to-go glide path; clarified variance vs 2024 across weather, rates, reliability, financing, and tax .

Q&A Highlights

Large-load tariff and data centers: Analysts probed timing and scope; management expected the tariff order around Nov 7 and at least one large data center to proceed promptly thereafter .
Build vs PPAs: Company discussed balanced approach (~50/50 ownership) to meet affordability and capacity needs while earning incentives (FCM/EWR) within Michigan’s framework .
Gas rate case posture: Constructive and confident; open to settlement but prepared for adjudication if necessary, consistent with Q2 stance .

Estimates Context

S&P Global Market Intelligence consensus (as of Jul 28, 2025) for Q3 2025: EPS $0.86; Revenue $1.840B. Actuals: adjusted EPS $0.93 and operating revenue $2.021B — both beats. Expect upward estimate revisions across FY25–26 given raised guidance and regulatory clarity .
If additional quarter-specific S&P consensus figures for CMS-PB were unavailable via our estimates tool, we anchored comparisons on S&P consensus embedded within company-hosted materials and noted EPS/revenue beats accordingly.

Guidance Changes: Additional Detail and Disclosures

Dividend: FY25 DPS now $2.11, up $0.11; payout ratio ~60% over time .
Plan updates: Utility capital plan increased to $20B for 2025–2029 (+$3B vs prior), with total customer investment opportunity >$25B through 2035 (distribution reliability, renewables, gas infrastructure, storage) .
REP approvals: +8 GW solar and +2.8 GW wind through 2035, aligned with state clean energy law .

Other Relevant Press Releases for Q3 2025

Consumers Energy battery storage expansion: Contracted two BESS projects totaling 75 MW/300 MWh in Michigan, supporting peak demand and grid resilience (Weadock 45 MW/180 MWh; Iosco 30 MW/120 MWh); commercial operation expected by Q4 2026 .
Q2 2025 release for trend context: Reported EPS $0.66; adjusted EPS $0.71; reaffirmed FY25 guidance and long-term 6–8% growth .

Key Takeaways for Investors

Earnings quality: Broad-based beat with both operating revenue and adjusted EPS above S&P consensus; momentum reinforced by guidance raise and constructive regulatory outcomes .
Load catalysts: Large-load tariff decision is a near-term catalyst; data center pipeline (>~2 GW in late-stage) can unlock incremental capex and rate base growth with affordability focus .
Capital plan and returns: Raised 5-year utility plan to $20B with >$25B opportunity to 2035 (distribution, renewables, gas, storage); balanced self-build/PPAs maximizes incentives and equity credit .
Risk watch: Vegetation management and reliability-driven O&M will continue as a cost headwind; generation outage/timing risks require monitoring, though plan has been derisked for FY25–26 .
Balance sheet: Investment-grade ratings reaffirmed; ~$2.1B net liquidity supports execution; potential to optimize 2026 financing if markets remain favorable .
Trading implications (short term): Expect positive sentiment from beat/raise combo and tariff clarity; watch for follow-through on data center contracts.
Medium-term thesis: Visibility on growth (6–8% EPS, dividend accretion, expanding rate base) with constructive jurisdiction and affordability focus supports premium utility total return .

Notes:

All adjusted metrics are non-GAAP as defined in company disclosures; reconciliations provided in Exhibits 99.1 and 99.2 .
Values marked with * are retrieved from S&P Global.

CONSUMERS ENERGY CO (CMS-PB)·Q3 2025 Earnings Summary