third quarter of 2026
Filed Oct 27, 2026CMS Energy Announces Third Quarter Results, Reaffirms 2026 and 2027 Adjusted EPS Guidance
Third-quarter GAAP diluted EPS was $0.39 versus $0.92, reflecting NorthStar Clean Energy asset impairment and restructuring activities, while adjusted diluted EPS increased to $1.44 from $0.93 and the company reaffirmed 2026 and 2027 adjusted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 operating revenueGAAP | $2.18B | – | – |
| Q3 operating expensesGAAP | $2.14B | – | – |
| Q3 operating incomeGAAP | $47M | – | – |
| Q3 other incomeGAAP | $54M | – | – |
| Q3 interest chargesGAAP | $214M | – | – |
| Q3 income (loss) before income taxesGAAP | −$113M | – | – |
| Q3 income tax expense (benefit)GAAP | −$22M | – | – |
| Q3 net income (loss)GAAP | −$91M | – | – |
| Q3 loss attributable to noncontrolling interestsGAAP | −$214M | – | – |
| Q3 net income attributable to CMS EnergyGAAP | $123M | – | – |
| Q3 preferred stock dividendsGAAP | $2M | – | – |
| Q3 net income available to common stockholdersGAAP | $121M | – | – |
| Q3 diluted earnings per average common shareGAAP | $0.39 | – | – |
| Q3 adjusted net incomenon-GAAP | $451M | – | – |
| Q3 adjusted net income per sharenon-GAAP | $1.44 | – | – |
| Q3 asset impairment and restructuring activities per sharenon-GAAP | $1.08 | – | – |
| Q3 other per-share adjustmentnon-GAAP | $(0.03) | – | – |
| Q3 average common shares outstanding - dilutedGAAP | 313.2M | – | – |
| Nine months operating revenueGAAP | $6.74B | – | – |
| Nine months operating expensesGAAP | $5.94B | – | – |
| Nine months operating incomeGAAP | $801M | – | – |
| Nine months other incomeGAAP | $204M | – | – |
| Nine months interest chargesGAAP | $627M | – | – |
| Nine months income before income taxesGAAP | $378M | – | – |
| Nine months income tax expenseGAAP | $96M | – | – |
| Nine months net incomeGAAP | $282M | – | – |
| Nine months loss attributable to noncontrolling interestsGAAP | −$301M | – | – |
| Nine months net income attributable to CMS EnergyGAAP | $583M | – | – |
| Nine months preferred stock dividendsGAAP | $7M | – | – |
| Nine months net income available to common stockholdersGAAP | $576M | – | – |
| Nine months diluted earnings per average common shareGAAP | $1.86 | – | – |
| Nine months adjusted net incomenon-GAAP | $915M | – | – |
| Nine months adjusted net income per sharenon-GAAP | $2.95 | – | – |
| Nine months asset impairment and restructuring activities per sharenon-GAAP | $1.09 | – | – |
| Nine months other per-share adjustmentnon-GAAP | $(0.00) | – | – |
| Nine months average common shares outstanding - dilutedGAAP | 310.4M | – | – |
2026 and 2027 outlook
- Note2026 adjusted earnings guidance of $3.83 to $3.90 per share
- Note2027 adjusted earnings guidance of $4.08 to $4.17
- Notelong-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end
What drove it
- Both the quarter and year-to-date GAAP results reflect asset impairment and restructuring activities associated with NorthStar Clean Energy.
- CMS Energy described the NorthStar Clean Energy restructuring as strengthening its utility-focused business model, enhancing earnings quality and providing greater financial flexibility.
- Other exclusions from adjusted earnings include major enterprise resource planning software implementations and unrealized gains or losses from mark-to-market adjustments recognized in net income related to NorthStar Clean Energy's interest expense.
Concerns
- Q3 operating income was $47 million, compared to $481 million.
- Q3 GAAP diluted earnings per average common share was $0.39, compared to $0.92.
- Nine-month GAAP diluted earnings per average common share was $1.86, compared to $2.59.
- Nine-month net cash used in investing activities was $(3,111) million.
What to watch
- Execution of the NorthStar Clean Energy restructuring and its effect on reported results.
- Progress toward 2026 adjusted earnings guidance of $3.83 to $3.90 per share.
- Progress toward 2027 adjusted earnings guidance of $4.08 to $4.17.
- Long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.
- Operating cash flow and investment activity following nine-month net cash provided by operating activities of $1,798 million and net cash used in investing activities of $(3,111) million.
Balance sheet and cash flow
- Cash and cash equivalents as of 9/30/26: $451 million; as of 12/31/25: $509 million.
- Restricted cash and cash equivalents as of 9/30/26: $102 million; as of 12/31/25: $106 million.
- Assets held for sale, current, as of 9/30/26: $43 million; as of 12/31/25: -.
- Other current assets as of 9/30/26: $2,610 million; as of 12/31/25: $2,857 million.
- Total current assets as of 9/30/26: $3,206 million; as of 12/31/25: $3,472 million.
- Plant, property, and equipment as of 9/30/26: $31,940 million; as of 12/31/25: $30,680 million.
- Assets held for sale, non-current, as of 9/30/26: $783 million; as of 12/31/25: -.
- Other non-current assets as of 9/30/26: $5,754 million; as of 12/31/25: $5,789 million.
- Total assets as of 9/30/26: $41,683 million; as of 12/31/25: $39,941 million.
- Liabilities held for sale, current, as of 9/30/26: $14 million; as of 12/31/25: -.
- Other current liabilities as of 9/30/26: $2,116 million; as of 12/31/25: $2,592 million.
- Total current liabilities as of 9/30/26: $2,130 million; as of 12/31/25: $2,592 million.
- Liabilities held for sale, non-current, as of 9/30/26: $87 million; as of 12/31/25: -.
- Other non-current liabilities as of 9/30/26: $8,964 million; as of 12/31/25: $8,740 million.
- Total non-current liabilities as of 9/30/26: $9,051 million; as of 12/31/25: $8,740 million.
- Debt and finance leases, excluding securitization debt, as of 9/30/26: $19,728 million; as of 12/31/25: $18,313 million.
- Preferred stock and securities as of 9/30/26: $224 million; as of 12/31/25: $224 million.
- Noncontrolling interests as of 9/30/26: $569 million; as of 12/31/25: $567 million.
- Common stockholders' equity as of 9/30/26: $9,502 million; as of 12/31/25: $8,920 million.
- Total capitalization, excluding securitization debt, as of 9/30/26: $30,023 million; as of 12/31/25: $28,024 million.
- Securitization debt as of 9/30/26: $479 million; as of 12/31/25: $585 million.
- Total liabilities and equity as of 9/30/26: $41,683 million; as of 12/31/25: $39,941 million.
- Nine months net cash provided by operating activities: $1,798 million; prior-year period: $1,757 million.
- Nine months net cash used in investing activities: $(3,111) million; prior-year period: $(2,926) million.
- Nine months cash flows from operating and investing activities: $(1,313) million; prior-year period: $(1,169) million.
- Nine months net cash provided by financing activities: $1,277 million; prior-year period: $1,423 million.
- Nine months total cash flows: $(36) million; prior-year period: $254 million.
- End of period cash and cash equivalents, including restricted amounts: $579 million; prior-year period: $432 million.
Analysis
CMS Energy reported a sharp divergence between GAAP and adjusted third-quarter performance. Operating revenue was $2,183 million, compared to $2,021 million, but operating income was $47 million versus $481 million. GAAP diluted EPS was $0.39, compared to $0.92, while adjusted diluted EPS was $1.44, compared to $0.93. The company stated that both quarterly and year-to-date GAAP results reflect asset impairment and restructuring activities associated with NorthStar Clean Energy.
The adjusted result reflects substantial exclusions. Q3 adjusted net income was $451 million versus $279 million, and the company reported a $1.08 per-share impact from asset impairment and restructuring activities. The reconciliation also identified other exclusions from adjusted earnings, including major enterprise resource planning software implementations and unrealized gains or losses from mark-to-market adjustments recognized in net income related to NorthStar Clean Energy's interest expense.
For the first nine months, operating revenue was $6,742 million versus $6,306 million, while operating income was $801 million versus $1,292 million. Nine-month GAAP diluted EPS was $1.86 versus $2.59, whereas adjusted diluted EPS was $2.95 versus $2.66. Interest charges were $627 million versus $588 million. These figures place the NorthStar-related charges and the separation between reported and adjusted earnings at the center of the period's financial read.
Cash generation remained positive, with nine-month net cash provided by operating activities of $1,798 million versus $1,757 million. Investment activity used $(3,111) million, and debt and finance leases excluding securitization debt stood at $19,728 million as of 9/30/26, compared with $18,313 million as of 12/31/25. CMS Energy reaffirmed 2026 adjusted earnings guidance of $3.83 to $3.90 per share, 2027 adjusted earnings guidance of $4.08 to $4.17, and long-term adjusted EPS growth of 6 to 8 percent with continued confidence toward the high end.
Management, verbatim
I’m pleased with the progress in the restructuring of NorthStar Clean Energy. This restructuring further strengthens our utility-focused business model, enhances earnings quality, provides greater financial flexibility, and positions us to make the long-term utility investments needed to serve our customers and grow our communities.
Garrick Rochow, President and CEO of CMS Energy and Consumers Energy
Not in the filing
stated, not guessed- Segment revenue and segment-level operating results
- Gross margin
- Free cash flow
- Dividend declarations or payments
- Share repurchases
- Reported GAAP earnings guidance
- Revenue, gross-margin, operating-expense and tax-rate guidance
- Prior-outlook section for comparison with current actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.