CMS Energy Restores Adjusted Earnings After NorthStar Charges

The Tip Desk · November 8, 2026 · 3 min read

Adjusted earnings were $1.44 a share in the third quarter, and the company kept 2026 guidance at $3.83 to $3.90 a share.

CMS Energy (CMS) reported adjusted earnings of $1.44 a share for the third quarter of 2026, reversing the $0.37 adjusted result of the second quarter and restoring the pace set in the first quarter.

Reported earnings were $0.39 a share, compared with $0.92 a year earlier. The company said both the quarter and year-to-date GAAP results reflect asset impairment and restructuring associated with NorthStar Clean Energy.

The Michigan-based energy provider recorded $456 million of asset impairment and restructuring activities in the quarter, a $1.45 a share pre-tax add-back and $1.08 after tax, versus none a year earlier. Adjusted net income was $451 million, or $1.44 a share, compared with $279 million, or $0.93 a share, a year earlier.

Operating revenue rose to $2.183 billion from $2.021 billion a year earlier. Operating expenses increased to $2.136 billion from $1.540 billion, compressing operating income to $47 million from $481 million. Net income attributable to CMS Energy declined to $123 million from $277 million; net income available to common stockholders was $121 million versus $275 million.

President and Chief Executive Officer Garrick Rochow said the company was pleased with progress in the NorthStar restructuring and that the move further strengthens the utility-focused business model, enhances earnings quality, and provides greater financial flexibility.

The company said more than 35% of NorthStar assets were at signed agreement or closed, with the majority of remaining assets in exclusivity with buyers. It said it had exited renewables development, was on track to complete the restructuring by year-end, and expected nearly 100% utility-based earnings after 2027. It also said the shift of capital reduces Parent funding needs, including debt and equity, and that more than $500 million of funding needs are reduced within the current plan through 2030.

CMS Energy reaffirmed 2026 adjusted earnings guidance of $3.83 to $3.90 a share, 2027 adjusted earnings guidance of $4.08 to $4.17 a share, and long-term adjusted EPS growth of 6% to 8%, with continued confidence toward the high end.

For the first nine months of 2026, reported earnings were $1.86 a share, compared with $2.59 a share for the same period in 2025. Adjusted earnings were $2.95 a share, compared with $2.66 a share. The company said the remaining three months of 2026 are expected to contribute 0 to (7) cents of adjusted EPS, versus 29 cents in the first nine months.

The 2026 integrated resource plan called for about $27 billion of capital-expenditure opportunity and about $125 million of fuel-and-power cost mitigation in 2031 and later, including 15.8 gigawatts of clean energy resources by 2040, 4.1 gigawatts of battery storage by 2040, and 1.4 gigawatts of gas simple-cycle capacity by 2031.

Michigan regulatory outcomes in 2026 included a $57 million storm deferral for first-quarter storms, a gas order supporting about 60% of the company’s final ask, and a revised electric position of $443 million at a 10.25% return on equity in docket U-22070 after an October 15 order of $139 million at 9.8% in U-21981.

The utility capital plan for 2026-2030 was $24 billion, with a $2.28 annual dividend per share and about a 55% payout over time. The 2026 financing update showed $1.750 billion of Consumers Energy first mortgage bonds, $1.000 billion of CMS Energy November 2025 convertibles, and about $495 million of equity, with about $2.6 billion of net liquidity.

Cash and cash equivalents, including restricted amounts, ended the nine months at $579 million. Debt and finance leases excluding securitization debt stood at $19.728 billion as of Sept. 30, 2026.