Evergy, Inc. Earnings Call Highlights Stability and Growth

Evergy, Inc. ((EVRG)) has held its Q3 earnings call. Read on for the main highlights of the call.

Evergy, Inc.’s recent earnings call conveyed a generally positive sentiment, marked by stable earnings and a dividend increase, alongside robust operational performance and notable economic development and regulatory progress. However, the company faced challenges such as weather impacts, higher expenses, and dilution from convertible debt.

Stable Earnings Per Share

Evergy reported third-quarter adjusted earnings of $2.03 per share, a slight increase from $2.02 per share a year ago. This stability in earnings underscores the company’s ability to maintain financial performance despite external challenges.

Dividend Increase

The company announced a 4% increase in its quarterly dividend, now at $2.78 per share on an annualized basis. This move reflects Evergy’s commitment to returning value to shareholders and confidence in its financial health.

Operational Performance

Evergy demonstrated strong operational and reliability performance through September, with generation availability and grid reliability both meeting or exceeding targets. This operational strength is a testament to the company’s effective management and infrastructure.

Economic Development Opportunities

The company highlighted a robust economic development pipeline with opportunities exceeding 15 gigawatts, including 4 to 6 gigawatts from large new customer loads. This positions Evergy for significant growth and expansion in the coming years.

Regulatory Progress

Evergy achieved regulatory milestones, including approval to own shares of new natural gas units and a solar farm in Kansas, along with successful settlement agreements in Missouri for new generating resources. These developments are crucial for the company’s strategic expansion and sustainability initiatives.

Weather Impact on Earnings

Adverse weather conditions, particularly below-normal cooling degree days, negatively impacted earnings by $0.13 per share. This highlights the vulnerability of utility companies to weather fluctuations.

Interest and Depreciation Expenses

Higher interest and depreciation expenses partially offset the earnings growth, indicating areas where cost management remains a focus for Evergy.

Convertible Debt Impact

Dilution from convertible notes resulted in a $0.03 decrease in EPS for the quarter, presenting a financial challenge that the company needs to address.

Forward-Looking Guidance

Evergy provided updated guidance for 2025, narrowing its adjusted EPS range to $3.92 to $4.02 per share, reflecting weather-related headwinds and mitigating actions. Year-to-date adjusted earnings were slightly down from the previous year, but the company remains optimistic about its growth outlook, with plans to update its financial outlook in February.

In summary, Evergy’s earnings call reflected a balanced sentiment with a mix of positive achievements and challenges. The company demonstrated resilience with stable earnings, a dividend increase, and strategic regulatory progress, while also acknowledging the impacts of weather and financial expenses. Looking forward, Evergy aims to continue its growth trajectory with a focus on economic development and operational excellence.