CMS Energy posts lower quarterly profit on higher operating costs

CMS Energy

06/02/2025 12:46

Feb 6 (Reuters) - U.S. electric and gas utility CMS
Energy  CMS.N  reported a drop in its fourth-quarter profit on
Thursday, hurt by higher operating expenses.
    U.S. natural gas futures  NGc1  rose 44.5% in 2024,
resulting in higher operating costs for utilities like CMS
Energy.
    Total operating expenses for the fourth quarter rose to
$1.56 billion from $1.54 billion in the year-ago period, the
company said.
    Additionally, higher for longer interest rates can push up
borrowing costs for utilities, which typically incur major
capital expenditures.
    The company's interest charges were at $180 million in the
quarter, 4.7% higher than a year earlier.
    Its revenue rose 2% from a year earlier to $1.99 billion in
the quarter ended December 31, but missed analysts' average
estimate of $2.22 billion, according to LSEG data.
    CMS Energy raised its 2025 forecast for adjusted earnings to
between $3.54 and $3.60 per share, versus $3.52 to $3.58
previously. Analysts had estimated them at $3.59 per share.
    The utility firm also increased its annual dividend by 11
cents to $2.17 per share.
    The Jackson, Michigan-based firm said net income available
to common stockholders fell to $262 million or 87 cents per
share in the fourth quarter, from $306 million or $1.05 per
share in the same period last year.

 (Reporting by Pooja Menon in Bengaluru; Editing by Milla Nissi)
 ((Pooja.Menon@thomsonreuters.com;))