CMS Energy Corporation Q2 FY2025 earnings call

• Reached an agreement with a new data center expected to add up to 1 gigawatt of load, part of a 9-gigawatt pipeline. Early ramp expected in the latter portion of the 5-year plan.
• Michigan has strong growth indicators: Grand Rapids ranked #1 city on the rise, Michigan ranked top 10 best state for doing business, and strong housing starts, alterations, upgrades, and relocations. Long-term annual sales growth estimates 2% to 3%.
• Integrated Resource Plan (IRP) to be filed in mid-2026, anticipates additional storage and gas capacity, with an early estimate of ~$5B of opportunity outside the 5-year plan.
• Complying with DOE order to operate J.H. Campbell coal facility, filing for cost recovery from MISO customers. Minimal exposure to auto industry tariff impacts.
• Electric rate case filing is $460M revenue increase for reliability improvements. Gas case had constructive staff recommendation supporting ~80% of revised ask and ~95% of capital. Renewable Energy Plan (REP) expected to have order by mid-September.
• Commission approved first-ever storm deferral, supportive of Liberty audit of distribution system, and welcomed new Commissioner Shaquila Myers.

North Star makes up approximately 5% of the earnings mix, with the majority of growth at Dearborn Industrial Generation (DIG) related to energy and capacity sales. The renewables portion of North Star is very small, with 1 to 2 solar projects typically completed annually with utility-like returns or better.

• Full year adjusted EPS guidance $3.54 to $3.60, reaffirming financial objectives. Confident in high end of range. Long-term adjusted EPS growth range 6% to 8%.
• On track to complete ~$700M of tax credit transfers in the 5-year plan, leveraging tax credit support for renewables and storage.

• Federal environment changes impacting regulatory outcomes and investments.
• Weather variability potentially affecting financial performance.
• Uncertainty in rate case outcomes and regulatory proceedings.

Q: About the 1 gigawatt data center ramp and how it fits into the resource mix.

A: Ramp in 2029 or 2030, with flexibility in resource mix including storage, gas capacity build-out. The 9-gigawatt pipeline continues to fill, with data center tariff key for additional conversions.

Q: Interaction of 1 gigawatt data center with $5B CapEx upside in IRP.

A: Incremental load may adjust the $5B number, with updates in Q4 call and filings. Long-term sales outlook may adjust with load growth.

Q: View on gas case and settlement.

A: Good progress, 80% of revised ask supported, open to settlement, comfortable with fully adjudicated order if needed.

Q: 2026 financing derisking.

A: Keeping options open, considering pulling ahead financing needs for 2026, with good funding environment.