CMS Energy narrows focus to utility assets as earnings dip
The energy provider reported second-quarter adjusted earnings of $0.37 a share, down from $0.71 a year earlier.
CMS Energy (CMS) reported a decline in second-quarter adjusted earnings as the company began a strategic pivot toward its core utility operations. The energy provider is shifting away from non-utility renewables development to stabilize its earnings profile.
Adjusted earnings per share for the second quarter were $0.37, compared to $0.71 for the same period in 2025. Reported earnings per share fell to $0.37 from $0.66 in the prior-year quarter. For the first six months of 2026, year-to-date adjusted EPS was $1.50, down from $1.73 in 2025.
Operating revenue for the quarter was $1,829 million, a slight decrease from the $1,838 million reported in the second quarter of 2025. Operating income fell to $264 million from $317 million during the same period last year.
CMS will exit non-utility renewables development at NorthStar Clean Energy, retaining only its Michigan-based assets, including DIG. The company intends to move toward a structure where nearly 100% of earnings are utility-based after 2027. This restructuring is expected to reduce funding requirements by more than $500 million through 2030.
To support its utility growth, the company outlined a five-year investment plan of $24 billion between 2026 and 2030. CMS projected a rate base growth of 10.5% per year, which would increase the rate base from $28.4 billion in 2025 to $46.8 billion by 2030.
CMS reaffirmed its 2026 adjusted earnings guidance of $3.83 to $3.90 a share, a range that had been raised from $3.80 to $3.87 in February. The company also introduced new earnings guidance for 2027, projecting between $4.08 and $4.17 a share.