Evergy, Inc. Q1 FY2025 earnings call

• Adjusted earnings per share for Q1 2025 were $0.54, same as the prior year, driven by recovery of regulated investments but offset by lower industrial demand and higher interest/depreciation expenses.
• Retail demand grew 2.7% but margin wasn't realized due to declining block pricing in winter and impacts from heavy snow events and an industrial customer outage (since resolved).
• Generation team performed well through extreme weather, setting a new winter peak load record. Constructive legislation in Kansas and Missouri supports infrastructure investment and attracts new businesses.
• The 2025 Integrated Resource Plan was filed, adding ~2.1 GW of new generation from 2025-2035, and an all-source RFP was issued. Regulatory updates include ongoing rate cases in Kansas and Missouri and pending requests for projects.

In the first quarter of 2025, Evergy reported adjusted earnings of $0.54 per share, consistent with the prior year. Absolute retail demand grew 2.7%, but margin was impacted by declining block pricing in winter months and a large industrial customer outage. There is no specific breakdown of product segments as the transcript focuses on overall earnings and operational performance.

• Reaffirmed 2025 adjusted EPS guidance range of $3.92 to $4.12 per share (midpoint $4.02).
• Long-term earnings growth target of 4%-6% through 2029. Anticipate being in the top half of this range from 2026-2029 with large new customers.
• First quarter was $0.05 below expectations before mitigating actions, but expect to meet the midpoint of $4.02 with mitigation efforts.

• Risks associated with older generation plants, including limited replacement parts and potential investment requirements to maintain reliability.
• Competition in economic development projects, where not all pipeline projects may materialize.

Q: Quick clarification on the quarter itself. Bryan mentioned $0.05 below expectations.

A: Bryan explained it's before mitigating items, and they expect to meet the midpoint of $4.02 for the full year.

Q: Color on timing of the 1.3 GW contracts.

A: David said timing is linked to large load tariff proceedings, likely end of Q3/Q4.

Q: Quantify equity sensitivity to sales growth.

A: Bryan said load growth could reduce equity issuances by hundreds of millions over a 5-year period based on a $17.5 billion capital plan.

Q: Coal plant retirement rationale.

A: David discussed risks with older units, limited replacement parts, and potential investment requirements, but some flexibility exists with these plants.

Q: O&M levers to meet 2025 guidance.

A: David said the team can manage with flexibility, confident in meeting the 2025 EPS guidance targets.

Q: Large load tariff parties and interests.

A: David said wide participation in proceedings, constructive dialog with large customers, and transparency in the process.

Q: Equity issuance in 2025.

A: Bryan said no dilution from new equity issuances in 2025, with issuances settling in 2026/2027.