CMS Energy Corporation 5.6% JRSUB NT 78 Q2 FY2025 earnings call

• Reached an agreement with a new data center expected to add up to 1 gigawatt of load, with early ramp expected in the latter portion of the 5-year plan. • Michigan is seeing positive momentum with 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. • Upcoming integrated resource plan filing to address capacity needs, anticipating additional storage and gas capacity, with an early estimate of $5 billion of opportunity outside the 5-year plan. • North Star business with renewables projects safe harbor through 2027. • Complying with DOE order to continue operating J.H. Campbell coal facility and filing for cost recovery. • Minimal exposure to auto industry with limited tariff impact. • Favorable regulatory environment in Michigan, including first-ever storm deferral and support for Liberty audit. • Electric rate case filing for $460 million revenue increase to improve reliability, gas case with constructive staff recommendation.

North Star business makes up approximately 5% of the earnings mix. The renewables portion of North Star is very small, with typically 1 to 2 solar projects completed annually with utility-like returns or better. On the electric side, the current rate case filing is a $460 million revenue increase to significantly improve reliability. On the gas side, staff supported approximately 80% of the revised ask and about 95% of the capital.

• Full year guidance remains at $3.54 to $3.60 per share with confidence toward the high end. • Longer term, continue to guide toward the high end of the adjusted EPS growth range of 6% to 8%.

• Federal environment evolution risk. • Compliance risk related to DOE order to operate coal facility. • Potential tariff impact risk from auto industry exposure.

Q: Could you elaborate more on the 1 gigawatt data center agreement, including load ramp and resource mix?

A: The team has made progress with the data center agreement, with early megawatts expected to show up in 2029 or 2030, and ramp rate still being determined. From a resource mix perspective, there is flexibility with capacity build-out including storage, renewables, and gas capacity preparations.

Q: How is the 9 gigawatt pipeline evolving and when might materialization occur?

A: The 9 gigawatt pipeline continues to fill, with additional customers potentially converting once the data center tariff is finalized. Materialization is expected toward the tail end of the period or beyond.

Q: How do you feel about the gas case and financing for 2026?

A: The gas case is in a great spot with staff support, and for 2026, they are keeping options open for financing, considering second half 2025 funding needs and front half 2026 needs, with the funding environment being good.