- Third Quarter 2024 GAAP EPS of $2.02, compared to $1.53 in 2023
- Third Quarter 2024 Adjusted EPS (Non-GAAP) of $2.02, compared to $1.88 in 2023
- Increases quarterly dividend 4% to $0.6675 per share
- Introduces 2025E-2029E capital investment plan of $16.2 billion
- Reaffirms 2024 GAAP and Adjusted (Non-GAAP) EPS guidance of $3.73 to $3.93
- Establishes 2025 GAAP and Adjusted (Non-GAAP) EPS guidance of $3.92 to $4.12
Evergy, Inc. (NASDAQ: EVRG) announced third quarter 2024 GAAP earnings of $465.6 million, or $2.02 per share, compared to GAAP earnings of $351.6 million, or $1.53 per share, for the third quarter 2023.
Evergy’s third quarter 2024 adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $465.6 million and $2.02, respectively, compared to $432.3 million and $1.88 in 2023. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are reconciled to GAAP earnings in the financial table included in this release.
Third quarter 2024 adjusted earnings (non-GAAP) per share were higher than last year due primarily to new retail rates, FERC regulated investments and growth in weather-normalized demand, partially offset by cooler summer weather and higher depreciation and amortization expense.
"We were pleased to announce a unanimous settlement agreement in our Missouri West rate case which, if approved by the Missouri Public Service Commission (MPSC), delivers a constructive outcome for our Missouri West customers," said David Campbell, Evergy chairman and chief executive officer. "We also recently announced the sites of two 705 megawatt combined-cycle natural gas plants that will help us meet the growing energy needs in our region, while creating jobs and tax dollars and ensuring we can attract and serve new businesses to our area given the historic opportunities ahead of us in Kansas and Missouri."
"We're also excited to announce our 2025E-2029E capital investment plan of $16.2 billion, which reflects the infrastructure investment needed to enable these opportunities," continued Campbell. "This update incorporates a significant portion of the new generation needed to serve our growing customer base as outlined in our 2024 Integrated Resource Plans, along with other beneficial projects to modernize our transmission and distribution systems to deliver affordable, reliable and sustainable power to the communities we serve."
"We are reaffirming our 2024 adjusted earnings per share (EPS) guidance range of $3.73 to $3.93 and establishing 2025 adjusted EPS guidance of $3.92 to $4.12. Based on our updated financial outlook, we expect long-term adjusted EPS growth in the upper half of our 4% to 6% range starting in 2026.”
Earnings Guidance
The Company reaffirmed its 2024 GAAP EPS guidance range of $3.73 to $3.93, along with its 2024 adjusted EPS (non-GAAP) guidance range to $3.73 to $3.93. Additionally, the Company established its 2025 GAAP EPS guidance range of $3.92 to $4.12, along with its 2025 adjusted EPS (non-GAAP) guidance range of $3.92 to $4.12. The Company also established its long-term adjusted EPS (non-GAAP) annual growth target of 4% to 6% through 2029 based on the 2025 adjusted EPS (non-GAAP) guidance midpoint of $4.02. The Company expects adjusted EPS growth in the upper half of the 4% to 6% range beginning in 2026. Adjusted EPS (non-GAAP) guidance is reconciled to GAAP EPS guidance in the financial table included in this release.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s common stock of $0.6675 per share payable on December 20, 2024. The dividends are payable to shareholders of record as of November 21, 2024.
Earnings Conference Call
Evergy management will host a conference call Thursday, November 7, with the investment community at 9:00 a.m. ET (8:00 a.m. CT). To view the webcast and presentation slides, please go to investors.evergy.com. To access via phone, investors and analysts will need to register using this link where they will be provided a phone number and access code.
Adjusted Earnings (non-GAAP) and Adjusted Earnings Per Share (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assist in the comparability of results and are consistent with how management reviews performance.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date September 30, 2024 were $465.6 million or $2.02 per share and $797.3 million or $3.46 per share, respectively. For the three months ended and year to date September 30, 2023, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $432.3 million or $1.88 per share and $754.5 million or $3.27 per share, respectively.
In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without:
- the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC;
- the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event;
- the second quarter 2023 recognition of a regulatory liability for the refund to customers of revenues previously collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order; and
- the recognition of a regulatory liability for future refund of amounts of revenues previously collected from customers related to COLI rate credits in accordance with a September 2023 KCC rate case unanimous settlement agreement.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance or that can create period to period earnings volatility.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.
