Loading...
•
Mar 31
Evergy Q1 2025 Earnings Report
Evergy reported an increase in net income and diluted EPS for Q1 2025, driven by new retail rates, higher transmission revenues, and favorable weather, partially offset by increased interest and depreciation expenses and lower investment earnings.
Key Takeaways
Evergy, Inc. reported a net income of $128.1 million and diluted EPS of $0.54 for the three months ended March 31, 2025. This represents an increase from the same period in 2024, primarily due to new Evergy Missouri West retail rates, higher transmission revenues, and favorable weather, partially offset by higher interest and depreciation expense and lower investment earnings.
Net income attributable to Evergy, Inc. increased to $125.0 million from $122.7 million in the prior year period.
Diluted EPS increased to $0.54 from $0.53 in the prior year period.
Operating revenues for Evergy increased to $1,374.5 million from $1,331.0 million in the prior year period.
Evergy's utility gross margin (non-GAAP) increased by $40.9 million, driven by new retail rates and higher transmission revenues.
Evergy
Evergy
Evergy Revenue by Segment
Revenue by Segment
Residential Revenue
CapyFin.comCommercial Revenue
CapyFin.comIndustrial Revenue
CapyFin.comOther retail Revenue
CapyFin.comWholesale Revenue
CapyFin.comTransmission Revenue
CapyFin.comIndustrial steam and other Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Evergy's forward guidance indicates continued investment in natural gas and renewable energy plants, with expected operational dates in the late 2020s and early 2030s. Regulatory approvals and rate adjustments are key to these plans, with ongoing legal and regulatory proceedings potentially impacting costs and operations.
Positive Outlook
- New Missouri S.B. 4 establishes mechanisms for electric utilities to recover costs associated with new natural gas-fired generating units, allowing CWIP in rate base.
- Missouri S.B. 4 extends PISA provisions for natural gas-fired generating units, allowing deferral of depreciation expense and return on investment.
- Evergy Kansas Central's 2025 Rate Case Proceeding requests a $196 million increase in retail revenues, reflecting a 10.5% return on equity and recovery of infrastructure investments.
- Evergy Kansas Central's updated TFR is expected to increase annual retail revenues by $55.9 million.
- Evergy Missouri West's new rates, effective January 2025, provide for an increase in retail revenues of approximately $55 million.
Challenges Ahead
- Uncertainty regarding the implementation of final GHG rules, ongoing judicial review, and potential reconsideration could materially impact operations and financial results.
- The cost to comply with proposed determinations for Coal Combustion Residuals (CCRs) regulations could be material.
- Litigation related to the Montrose Station coal ash landfill could result in unspecified damages.
- The impact of the EPA's disapproval of the Kansas ITSIP could have a material impact on operations.
- The cost to comply with lower PM2.5 NAAQS could be material due to uncertainty of attainment status and potential reconsideration.