8-K: Evergy Announces 2024 Results, Reaffirms 2025 Guidance, and Declares Quarterly Dividend

Evergy reports increased 2024 earnings, declares a quarterly dividend, raises its capital investment plan, and reaffirms its 2025 earnings guidance.

Summary

• Evergy announced its 2024 financial results, showing an increase in both GAAP and adjusted earnings per share compared to 2023.
• The company's 2024 GAAP EPS was $3.79, up from $3.17 in 2023, while adjusted EPS was $3.81, compared to $3.54 in the previous year.
• For the fourth quarter of 2024, GAAP earnings were $78.2 million ($0.34 per share), compared to $58.0 million ($0.25 per share) in the fourth quarter of 2023.
• Adjusted earnings for the fourth quarter of 2024 were $80.6 million ($0.35 per share), compared to $61.1 million ($0.27 per share) in the same period of 2023.
• Evergy's Board of Directors declared a quarterly dividend of $0.6675 per share, payable on March 21, 2025, to shareholders of record as of March 10, 2025.
• The company has raised its 2025E-2029E capital investment plan to $17.5 billion.
• Evergy reaffirmed its 2025 GAAP and adjusted EPS guidance of $3.92 to $4.12.
• The company also reaffirmed its long-term adjusted EPS annual growth target of 4% to 6% through 2029, based on the 2025 adjusted EPS guidance midpoint of $4.02.

Sentiment

Score: 7

Explanation: The sentiment is positive due to increased earnings, reaffirmed guidance, and a declared dividend. However, there are some offsetting factors like weather headwinds and increased expenses.

Positives

• Evergy's 2024 GAAP EPS increased to $3.79 from $3.17 in 2023.
• The company's 2024 Adjusted EPS (non-GAAP) increased to $3.81 from $3.54 in 2023.
• The company is in advanced negotiations with two large data center customers, reflecting the vitality of the region and exciting opportunities ahead.
• The passage of House Bill 2527 in Kansas reflects support for infrastructure investment to enable and advance economic development.
• The unanimous settlement agreement in the Missouri West rate case demonstrates regulatory execution and constructive relationships with stakeholders.

Negatives

• Full year 2024 adjusted earnings (non-GAAP) per share were partially offset by mild weather, higher depreciation and amortization expense, as well as higher operations and maintenance and interest expense.

Risks

• The forward-looking statements are subject to risks and uncertainties, including economic and weather conditions, changes in demand for electricity, regulatory actions, and the ability to manage costs and project development.
• Other risks include the impact of climate change, potential wildfires, market perception of the energy industry, and cybersecurity breaches.

Future Outlook

Evergy reaffirms its 2025 GAAP EPS and adjusted EPS guidance range of $3.92 to $4.12 and its long-term adjusted EPS annual growth target of 4% to 6% through 2029.

Management Comments

• Our financial results in 2024 were in line with expectations, thanks to the hard work of everyone on our team.
• Overcoming weather headwinds, we reported adjusted earnings per share (EPS) of $3.81 within our guidance range of $3.73 to $3.93, said David Campbell, chairman and chief executive officer.
• 2024 marked a turning point for our company, with the passage of House Bill 2527 in Kansas reflecting support for infrastructure investment to enable and advance economic development, and the unanimous settlement agreement in our Missouri West rate case demonstrating regulatory execution and constructive relationships with our stakeholders.
• Relative to our size, the backlog for large customers evaluating Kansas and Missouri is one of the most robust in the country.

Industry Context

Evergy's focus on infrastructure investment and renewable energy aligns with broader industry trends towards grid modernization and decarbonization. The company's success in attracting large data center customers highlights the growing demand for electricity in the digital economy.

Comparison to Industry Standards

• Evergy's long-term adjusted EPS growth target of 4% to 6% is comparable to other large utilities such as NextEra Energy (NEE) and Duke Energy (DUK), which also target similar growth rates.
• The capital investment plan of $17.5 billion over five years is significant and reflects a commitment to modernizing its infrastructure, similar to investments being made by companies like American Electric Power (AEP) and Southern Company (SO).
• Evergy's progress in transitioning to carbon-free energy sources aligns with industry-wide efforts to reduce emissions, with companies like Xcel Energy (XEL) also pursuing aggressive decarbonization goals.

Stakeholder Impact

• Shareholders will benefit from the increased earnings and the declared dividend.
• Customers may benefit from infrastructure investments and improved service reliability.
• Employees are recognized for their hard work in achieving the financial results.

Next Steps

• Evergy management will host a conference call on February 27, 2025, to discuss the results.

Key Dates