CMS Energy Announces Second Quarter Results, Strategic Decision on NorthStar Clean Energy Services, Introduces Guidance for 2027

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/26

6/30/25

6/30/26

6/30/25

Operating revenue

$

1,829

$

1,838

$

4,559

$

4,285

Operating expenses

1,565

1,521

3,805

3,474

Operating Income

264

317

754

811

Other income

75

137

150

187

Interest charges

210

199

413

385

Income Before Income Taxes

129

255

491

613

Income tax expense

33

62

118

125

Net Income

96

193

373

488

Loss attributable to noncontrolling interests

(24)

(8)

(87)

(17)

Net Income Attributable to CMS Energy

120

201

460

505

Preferred stock dividends

3

3

5

5

Net Income Available to Common Stockholders                 

$

117

$

198

$

455

$

500

Diluted Earnings Per Average Common Share

$

0.37

$

0.66

$

1.47

$

1.67

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

6/30/26

12/31/25

Assets

Current assets

Cash and cash equivalents

$

241

$

509

Restricted cash and cash equivalents

104

106

Other current assets

2,521

2,857

Total current assets

2,866

3,472

Non-current assets

Plant, property, and equipment

32,329

30,680

Other non-current assets

5,710

5,789

Total Assets

$

40,905

$

39,941

Liabilities and Equity

Current liabilities ⁽¹⁾

$

2,193

$

2,592

Non-current liabilities ⁽¹⁾

9,012

8,740

Capitalization

Debt and finance leases (excluding securitization debt) ⁽²⁾

18,776

18,313

Preferred stock and securities

224

224

Noncontrolling interests

625

567

Common stockholders' equity

9,550

8,920

Total capitalization (excluding securitization debt)

29,175

28,024

Securitization debt ⁽²⁾

525

585

Total Liabilities and Equity

$

40,905

$

39,941

⁽¹⁾ Excludes debt and finance leases.

⁽²⁾ Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Six Months Ended

6/30/26

6/30/25

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

615

$

178

Net cash provided by operating activities 

1,327

1,414

Net cash used in investing activities

(2,093)

(1,880)

Cash flows from operating and investing activities

(766)

(466)

Net cash provided by financing activities

496

1,213

Total Cash Flows

$

(270)

$

747

End of Period Cash and Cash Equivalents, Including Restricted Amounts 

$

345

$

925

CMS ENERGY CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/26

6/30/25

6/30/26

6/30/25

Net Income Available to Common Stockholders                    

$

117

$

198

$

455

$

500

Reconciling items:

Other exclusions from adjusted earnings**

2

5

13

8

Tax impact

(1)

(1)

(4)

(2)

State tax policy change

-

12

-

12

Adjusted net income – non-GAAP

$

118

$

214

$

464

$

518

Average Common Shares Outstanding - Diluted

310.8

299.1

308.9

299.0

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.37

$

0.66

$

1.47

$

1.67

Reconciling items:

Other exclusions from adjusted earnings**

 *  

0.01

0.04

0.02

Tax impact

 (*) 

 (*) 

(0.01)

(*)

State tax policy change

-

0.04

-

0.04

Adjusted net income per share – non-GAAP

$

0.37

$

0.71

$

1.50

$

1.73

*

Less than $0.5 million or $0.01 per share.

**

Includes major enterprise resource planning software implementations and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors.  Internally, the Company uses adjusted earnings to measure and assess performance.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, major enterprise resource planning software implementations, changes in accounting principles, voluntary separation program, changes in federal and state tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.