Evergy's Q2 2025 Earnings Call: Unpacking Contradictions in Load Growth, Capital Structure, and Rate Base Expectations

Load growth expectations, capital structure and equity needs, large load tariff proceedings, capital structure and equity needs, and rate base growth and earnings growth are the key contradictions discussed in Evergy's latest 2025Q2 earnings call.



Earnings and Load Growth:
- Evergy, Inc. reported adjusted earnings of $0.82 per share for Q2 2025, which exceeded their internal budget for the quarter, overcoming approximately $0.09 of unfavorable weather.
- The company is targeting the midpoint of full year 2025 adjusted EPS guidance of $3.92 to $4.12 per share.
- The earnings growth was driven by strong operational performance across the nuclear, fossil, and renewables fleet, economic development activities, and regulatory outcomes.

Regulatory Milestones and Investments:
- Evergy achieved several important regulatory milestones, including approvals for new natural gas plants and solar farms in Kansas and Missouri.
- The company filed a unanimous settlement agreement in its Kansas Central rate case, which includes a 9.7% return on equity and a mechanism for sharing excess earnings with customers.
- These outcomes reflect Evergy's successful collaboration with stakeholders to support economic development and advance its all-of-the-above generation strategy.

Economic Development Pipeline:
- Evergy's economic development pipeline, particularly the top 3 categories, represents a 4 to 6 gigawatt opportunity for new large customer load.
- The company is working closely with these customers to develop transmission and generation solutions, which will significantly contribute to regional and community benefits.
- The robust pipeline reflects the competitive advantages of the region and Evergy's strong credit profile, supported by the PISA natural gas CWIP provisions.

Financial Outlook and Capital Investment:
- Evergy reaffirmed its long-term growth target of 4% to 6% through 2029, with expectations of being in the top half of this range from 2026 to 2029.
- The company anticipates significant tailwinds from potential large new customers and investments to serve them.
- The strategic investments are aimed at enhancing affordability and reliability by spreading system costs over a broader load base and modernizing the grid.