CMS Energy beats quarterly profit estimates on higher power demand

CMS Energy

31/07/2025 12:22

Corrects to second quarter, from first quarter, in paragraph 6

July 31 (Reuters) - U.S. electric and gas utility CMS Energy CMS.N on Thursday beat Wall Street estimates for second-quarter profit, driven by increased power demand.

Utility companies in the U.S. are experiencing a surge in demand as AI usage drives up the need for more power-guzzling data centers.

Residences and businesses have also been using more electricity for heating and transportation purposes.

The U.S. Energy Information Administration in February forecast power demand to hit record highs in 2025 and 2026.

CMS Energy also announced an agreement with a new data center that is expected to add up to 1 gigawatt of load growth in its service territory, along with additional economic benefits for Michigan.

Its revenue rose 14.4% to $1.84 billion in the second quarter from a year earlier.

However, the company's total quarterly operating expenses rose to $1.52 billion from $1.32 billion a year ago.

The Jackson, Michigan-based firm earned 71 cents per share on an adjusted basis in the quarter, compared with analysts' estimates of 69 cents per share, according to LSEG data.

 (Reporting by Katha Kalia in Bengaluru; Editing by Vijay Kishore)

 ((Katha.Kalia@thomsonreuters.com;))