Evergy Raises 2026 Adjusted EPS Guidance as Large-Customer Demand Grows

Evergy Inc. raised its 2026 adjusted earnings guidance after third-quarter profit increased, supported by warmer weather, recovery of regulated investments and growing electricity demand from large customers, including data centers.

The utility now expects 2026 adjusted earnings per share of $4.35 to $4.50, up from its previous range of $4.14 to $4.34. Evergy also retained its target for adjusted EPS growth of 6% to 8% or more through 2030, measured from the original 2026 estimated midpoint of $4.24. Management expects annual adjusted EPS growth to exceed 8% from 2028 through 2030.

Third-quarter GAAP EPS was $2.59, while adjusted EPS rose to $2.58 from $2.03 a year earlier. For the first nine months of 2026, adjusted EPS increased to $4.15 from $3.41.

Weather, demand and large-customer revenue added $0.46 per share to third-quarter adjusted earnings compared with the prior-year period. Recovery of regulated investments and expenses contributed another $0.17. Those benefits were partly offset by a combined $0.15-per-share impact from operations and maintenance costs, depreciation and amortization, interest expense and allowance for funds used during construction.

Cooling degree days were 31% higher than in the third quarter of 2025 and 26% above normal. Evergy estimated the weather benefit relative to normal at about $0.30 per share for the quarter and $0.25 for the year to date.

Large-customer demand supports load outlook

Weather-normalized retail electricity sales increased 4.5% from a year earlier in the third quarter. Commercial demand rose 8.7%, supported by data center project ramps, while industrial sales increased 3%, primarily reflecting Panasonic’s continued ramp-up. Residential demand grew 0.8%. Year-to-date weather-normalized retail sales were 3.7% higher.

During the quarter, Evergy amended two large-load power service agreements, adding about 110 megawatts of incremental demand. A third agreement signed in early November covers an approximately 140 MW expansion, subject to final transmission-study results expected by the end of 2026.

The company also signed a letter of intent with Digital Realty covering a potential 1.4-gigawatt expansion and expects to execute an electric service agreement in the first half of 2027. The proposed expansion is not included in Evergy’s current five-year load profile.

Evergy said active operations and signed agreements represent about 3.1 GW of potential steady-state peak demand, including roughly 1.7 GW from announced projects with executed agreements. Its broader pipeline includes 2.0 GW to 2.5 GW of expansion opportunities with existing customers, 1.0 GW to 2.0 GW of projects in advanced discussions and more than 10 GW of less-developed opportunities.

The company projects weather-normalized retail demand will grow at a compound annual rate of about 7% to 8% from 2025 through 2030, compared with the 6% estimate presented in February 2026. Its current profile indicates approximately 2.15 GW to 2.35 GW of served large-load capacity by 2030, with contracted projects expected to reach about 3.1 GW at peak during the 2030s.

Capital spending and financing

Evergy’s financial plan includes $21.6 billion of capital expenditures from 2026 through 2030 and targets rate-base growth of about 11.5% between 2025 and 2030. The company said its 2026 integrated resource plans would add approximately $1 billion of investment beyond the $21.6 billion capital plan presented in February.

The resource plans outline 5,053 MW of additions, comprising 3,720 MW of natural-gas generation, 774 MW of solar capacity and 559 MW of battery storage. Additional customer agreements beyond the roughly 3.1 GW signed to date would require further generation or transmission resources.

To support the capital program, Evergy plans $3.3 billion of common-equity financing through 2030. About $700 million had been priced as of Sept. 30, including $321 million of net proceeds from the settlement of 3.9 million shares. The company expects average annual equity issuance of $700 million to $900 million from 2026 through 2029, with no issuance planned for 2030 under the current financing outlook.

Evergy also increased its annualized dividend by 4% to $2.89 per share. Future dividend decisions remain subject to board approval, and the company continues to target a long-term payout ratio of 50% to 60%.

Regulatory decisions remain pending

In Evergy Missouri Metro’s rate review, settlements filed in October would provide a $60 million offset from large-customer revenue if approved. The company said this would benefit other customers under its large-load tariff. A Missouri commission order is anticipated in December, with new rates expected in January 2027.

Evergy is also pursuing regulatory approvals involving natural-gas, solar and battery-storage resources, as well as tariff provisions that would permit advance payments from large customers. Outcomes remain subject to state commission decisions and, in some cases, transmission studies.

The outlook depends on Evergy’s ability to complete generation and transmission projects, obtain regulatory approval and recover investments while maintaining customer affordability. The presentation also identified risks from changes in electricity demand, customer contract performance, construction costs and delays, financing conditions, weather, fuel and power prices, regulation, cybersecurity incidents and the availability of labor, equipment and capital.