Evergy, Inc. Q2 FY2025 earnings call

• Adjusted earnings of $0.82 per share in Q2 2025 exceeded internal budget, with year-to-date results on track for full-year guidance.
• Demonstrated strong reliability performance with favorable SAIDI and SAIFI trends.
• Achieved important regulatory milestones in Kansas and Missouri, including settlement agreements in rate cases and approvals for new generation projects.
• Have an expanding 15 gigawatt plus economic development pipeline, with significant activity in Kansas and Missouri, including actively building and finalizing agreements with large customers.
• Reaffirmed long-term growth target of 4% to 6% through 2029 based on 2025 midpoint of $4.02 per share.
• Exited the Evergy Ventures business, recording losses related to those investments, and will use cash proceeds to reduce holding company debt.

In Q2 2025, Evergy reported adjusted earnings of $0.82 per share, exceeding internal budget and overcoming approximately $0.09 of unfavorable weather. Year-to-date, results put them on target for the midpoint of full-year 2025 adjusted EPS guidance of $3.92 to $4.12 per share. Compared to Q2 2024, which had adjusted earnings of $0.90 per share, Q2 2025 saw a decrease due to factors like cooler weather, higher O&M, and infrastructure investment impacts, but also had positive aspects like weather-normalized demand growth and recovery of regulated investments.

• Reaffirmed 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with year-to-date results on track for the midpoint.
• Reaffirmed long-term adjusted EPS growth target of 4% to 6% through 2029, expecting to be in the top half of this range from 2026 to 2029.
• No planned equity raise in 2025, with roughly $600 million per year needed in 2026 and 2027, and considering equity needs through tools like ATMs in the future.

• Regulatory uncertainties in rate cases and large load power service tariff proceedings.
• Potential delays or issues with the ramp-up of large customer projects, including Panasonic.
• Uncertainties related to renewables permitting and federal regulatory changes affecting project approvals and eligibility for tax credits.

Q: Expand on timing to derisk equity needs beyond '25 and if considering a forward sale this year.

A: David and Bryan discussed flexibility in approaching equity needs, with no planned raise in 2025, and considering a ratable ATM program with forward sales in the months ahead.

Q: Impact of Panasonic ramping below expectations on 4% to 5% load growth.

A: David noted a robust economic development pipeline with multiple customers, and while Panasonic's ramp is important, there are other customers in the queue, so 4% to 5% load growth remains achievable.

Q: Balance of large load customer pipeline and role of tariff proceedings.

A: David explained the pipeline has different stages, with actively building customers further along, and tariff proceedings are an important input but customers are moving forward with financial commitments.

Q: Earnings review surveillance in Kansas Central rate case as precedent.

A: David stated it's a settlement mechanism specific to the current agreement, reflecting a positive precedent for achieving authorized returns in Kansas Central.

Q: Gas generation buildout labor ramp, EPC strategy, and COD targets.

A: David discussed working with leading EPC providers, robust contractual arrangements, and confidence in the setup to achieve COD targets, leveraging the experience of the EPC provider and proven technology.