CMS Energy (NYSE: CMS) reported a dominant fourth-quarter and full-year 2025 performance on February 5, 2026, surpassing Wall Street expectations on both the top and bottom lines. Driven by robust operational execution and a constructive regulatory landscape in Michigan, the utility giant capped off the year by raising its 2026 outlook and extending its two-decade streak of dividend growth.
Financial Performance Q4 2025
Earnings Per Share (EPS):
CMS Energy delivered fourth-quarter 2025 adjusted EPS of $0.95, which beat the consensus estimate of $0.94 and rose approximately 9% year-over-year from $0.87 in Q4 2024.
Revenue Growth:
The company reported Q4 operating revenues of $2.23 billion, surpassing expectations and marking a healthy double-digit year-over-year increase from $1.99 billion.
Year-End 2025 Results:
For the full fiscal year, CMS Energy posted adjusted EPS of $3.61, up from $3.34 in 2024, exceeding its full-year guidance range. Total operating revenues for 2025 increased to about $8.54 billion, reflecting broad growth across segments.
Capital Plan Expansion: The $24B Roadmap
One of the most significant takeaways from the results was the expansion of the company’s five-year customer investment plan. CMS has raised its capital outlay to $24 billion, a $4 billion increase from its previous plan.
Renewable Energy Pivot: The company highlighted its 20-year renewable energy plan, which identifies a $14 billion investment opportunity through 2040 to meet Michigan’s aggressive clean energy standards.
Reliability Investment: Approximately $1.2 billion in additional capital has been allocated to the “Electric Reliability Roadmap,” focusing on grid hardening and storm resilience.
Gas Infrastructure: Despite the electric pivot, CMS increased gas investments by $400 million to address rising transmission demand.
The “Data Center Surge”
CMS Energy is positioning itself as a primary beneficiary of the national data center expansion.
1 GW Milestone: CEO Garrick Rochow confirmed that the company has secured a large-load agreement with a new data center expected to add up to 1 gigawatt (GW) of load.
Large Load Tariff: The company praised the November approval of its “Large Load Tariff,” which allows it to serve massive industrial customers without shifting costs to residential ratepayers, a key regulatory victory.
Dividend and Shareholder Returns
Reflecting its financial health, the Board of Directors increased the quarterly dividend to 57 cents per share ($2.28 annualized), representing the 20th consecutive annual increase.
Conference Call Highlights & Management Commentary
During the earnings call, management emphasized the balance between “affordability and reliability” in the face of extreme weather events.
Garrick Rochow, President and CEO said, “2025 marks our twenty-third year of industry-leading performance. We are delivering on our promises to stakeholders while keeping Michigan’s energy affordable. Our team’s ability to navigate generations-worst winter weather while maintaining solid cost performance is a testament to the ‘CE Way’ of operating.”
Key Strategic Gains:
Storm Deferral Mechanism: Management lauded the first-ever “storm deferral mechanism,” approved in June, which provides earnings stability by allowing the utility to defer and recover costs associated with major weather events.
Operational Savings: The “CE Way” program generated over $100 million in savings in 2025 alone.
Investor Outlook: 2026 and Beyond
CMS Energy enters 2026 with a “bullish” stance, raising its full-year guidance based on visible load growth and regulatory certainty.
2026 Adjusted EPS Guidance: Raised to $3.83-$3.90 from $3.80-$3.87).
Growth Target: Reaffirmed long-term adjusted EPS growth of 6% to 8%, with management signaling confidence in the high end of that range.
Rate Base Growth: Projected at a compound annual growth rate CAGR of 10.5% through 2030.
Conclusion
CMS Energy continues to prove why it is a favorite for utility-focused investors. By successfully balancing a massive clean energy transition with the immediate power demands of the AI/Data Center era, all while maintaining a 20-year dividend streak, CMS is arguably the most stable “Growth Utility” in the Midwest.