CMS Energy Q3 Adjusted EPS Rises; 2026 Outlook Targets High End

CMS Energy (NYSE: CMS) said third-quarter adjusted earnings increased sharply from a year earlier, while a large NorthStar Clean Energy impairment and restructuring charge weighed on its GAAP results. The company maintained 2026 adjusted EPS guidance of $3.83 to $3.90 and said it remains confident in delivering toward the high end of that range.

For the quarter ended Sept. 30, CMS Energy reported net income available to common stockholders of $121 million, or $0.39 per diluted share, compared with $275 million, or $0.92 per share, a year earlier. Adjusted net income rose to $451 million, or $1.44 per share, from $279 million, or $0.93 per share.

The difference between reported and adjusted results primarily reflected $456 million of asset impairment and restructuring costs, partly offset by a $117 million tax benefit. On a per-share basis, those items reduced reported earnings by a net $1.08.

For the first nine months of 2026, reported net income fell to $576 million, or $1.86 per share, from $775 million, or $2.59 per share, in the prior-year period. Adjusted net income increased to $915 million, or $2.95 per share, from $797 million, or $2.66 per share. CMS attributed the 29-cent year-over-year improvement in adjusted EPS to contributions from rates, renewables and investment, along with reliability, storm-related items and productivity, partly offset by weather and parent financing, tax and other factors.

NorthStar restructuring advances

CMS said the restructuring of NorthStar Clean Energy remains on track for completion by year-end. More than 35% of its assets are covered by signed agreements or have closed, while a majority of the remaining assets are in exclusivity periods with potential buyers. The company has also exited renewables development.

The restructuring is expected to leave CMS with nearly 100% utility-based earnings after 2027 while retaining operating assets in Michigan that generate cash flow. CMS plans to reallocate capital to the parent company for potential future deployment into the utility, reducing planned parent funding requirements—including debt and equity—by more than $500 million through 2030. Its 2027 adjusted EPS guidance of $4.08 to $4.17 includes the NorthStar restructuring.

Utility investment and load growth

CMS continues to target adjusted EPS growth of 6% to 8% and a dividend payout ratio of about 55% over time. Its current utility capital plan calls for $24 billion of investment from 2026 through 2030, with an update scheduled for the fourth-quarter earnings call.

Consumers Energy’s 2026 Integrated Resource Plan identifies approximately $27 billion of capital opportunities and about $125 million of financial compensation mechanism earnings in 2031 and beyond. The plan includes 15.8 gigawatts of clean-energy resources by 2040, 4.1 GW of battery storage by that year and 1.4 GW of simple-cycle natural-gas capacity by 2031. It is designed to support Michigan targets of roughly 60% renewable energy by 2035 and 100% clean energy by 2040.

The company is also pursuing new electric and gas demand from manufacturing, semiconductor and data-center projects in Michigan. Approximately 450 megawatts of new load is online, about 195 MW was signed year to date, and anticipated demand at full ramp-up totals roughly 745 MW, excluding a signed large-load agreement. CMS projects combined electric and gas sales growth of 2% to 3% annually through 2030.

On the regulatory front, the presentation highlighted an October gas rate order authorizing $139 million and a 9.8% return on equity. Consumers Energy also filed a revised position seeking $443 million in an electric rate proceeding, excluding a $25 million deferral surcharge, with an order expected by April 2, 2027. A separate order approved a $57 million deferral for storms in the first quarter of 2026.

CMS reported approximately $2.6 billion of net liquidity, consisting of $2.18 billion in unreserved revolving credit capacity and $431 million of unrestricted cash. The company said its financing program supports customer investments, while its balance-sheet strengths include fixed-rate debt, limited near-term maturities and investment-grade credit ratings.

The outlook depends in part on completing the NorthStar restructuring, securing regulatory decisions and executing the utility investment program. CMS said its forward-looking statements remain subject to the risks and uncertainties described in the regulatory filings of CMS Energy and Consumers Energy.