Evergy 2025 Q1 Earnings Misses Targets, Net Income Grows 1.8%

Evergy Inc (EVRG, Financial) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company's GAAP earnings per share (EPS) of $0.54 fell short of analyst expectations, which predicted an EPS of $0.64. Despite missing the mark on EPS, Evergy reaffirmed its 2025 GAAP and adjusted EPS guidance range of $3.92 to $4.12, showing commitment to its financial targets. The company’s long-term adjusted EPS growth target remains at 4% to 6% through 2029.

Revenue

Evergy reported a total revenue increase of 3.3% to $1.37 billion for Q1 2025, up from $1.33 billion in the same period last year. The electric retail segment generated $1.10 billion, with residential sales contributing $509.90 million and commercial sales at $436.50 million. Industrial sales came in at $145 million, while other retail sales accounted for $10.10 million. Wholesale revenue reached $48.60 million, and transmission services brought in $134 million. The industrial steam and other segment added $10.40 million, with other revenues at $80 million, leading to a total operating revenue of $1.37 billion.

Earnings/Net Income

Evergy's EPS rose to $0.54 in 2025 Q1 from $0.53 in the previous year, with net income increasing by 1.8% to $128.10 million. This performance marks continued earnings growth, reflecting stable business operations. Despite the slight increase in EPS, the results were below analyst expectations, indicating room for improvement.

Price Action

The stock price of Evergy has edged down 2.98% during the latest trading day, has edged down 2.73% during the most recent full trading week, and has climbed 3.42% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring Evergy shares post-revenue increase quarter-over-quarter and holding for 30 days has yielded a 15.76% return over the past five years. This compares to a benchmark return of 44.71%, resulting in an excess return of -28.95%. The strategy's compound annual growth rate (CAGR) stood at 6.44%, with a maximum drawdown of -23.47%. While this approach provided some risk-adjusted returns, it significantly underperformed the benchmark, highlighting both the potential and limitations of this investment strategy.

CEO Commentary

David Campbell, Chairman and Chief Executive Officer of Evergy, stated, “The first quarter marked several important steps forward in advancing constructive policies that will enable and support economic prosperity in our region. We also made progress in seeking approval for new generation projects in Kansas... Our long-term outlook remains bright - relative to our size, the backlog for large customers evaluating Kansas and Missouri is one of the most robust in the country.” He emphasized the company's commitment to delivering affordable and reliable electric service while reaffirming the financial targets set for 2025.

Guidance

Evergy reaffirmed its 2025 GAAP EPS and adjusted EPS guidance range of $3.92 to $4.12. The company maintains its long-term adjusted EPS annual growth target of 4% to 6% through 2029, with expectations for growth in the upper half of this range beginning in 2026.

Additional News

In recent developments, Evergy announced the renewal of its Hometown Grants for 2025 on April 7, offering grants of up to $10,000 for community improvement projects. On March 26, Evergy disclosed plans to develop a 440 MW natural gas power plant in Nodaway County, Missouri, aimed at meeting the state’s growing energy needs and enhancing reliability. Furthermore, on March 20, Evergy outlined its capital expenditure plan at a Missouri stakeholder meeting, emphasizing infrastructure investment to benefit local stakeholders through the use of the Policy Infrastructure Stabilization Act (PISA).