CMS Energy (NYSE:CMS) reported weaker-than-expected second-quarter results on Tuesday, missing Wall Street estimates for both earnings and revenue, although the utility reaffirmed its full-year outlook and outlined strategic changes aimed at simplifying its business.
Shares fell 3.07% in pre-market trading following the earnings release.
Adjusted earnings per share came in at $0.37, well below the analyst consensus estimate of $0.76.
Revenue totalled $1.83 billion, down 0.5% from $1.84 billion a year earlier and below analysts’ expectations of $1.92 billion.
Company Reaffirms 2026 Outlook and Introduces 2027 Guidance
Despite the weaker quarterly performance, CMS Energy reaffirmed its 2026 adjusted earnings per share guidance of between $3.83 and $3.90. The midpoint of $3.87 is in line with the current analyst consensus.
The company also introduced its initial 2027 adjusted EPS forecast of $4.08 to $4.17 per share. The midpoint of $4.13 is slightly below Wall Street expectations of $4.17.
CMS maintained its long-term target of delivering annual adjusted earnings per share growth of between 6% and 8%, while expressing confidence that results can remain towards the upper end of that range.
Strategic Review Refocuses Business on Regulated Operations
CMS Energy announced the completion of a strategic review of its NorthStar Clean Energy business.
Following the review, the company will exit its non-utility renewable energy development activities while retaining its Michigan-based assets, including Dearborn Industrial Generation.
Management said the move is intended to simplify operations, lower financing requirements and sharpen the company’s focus on its regulated utility business.
First-Half Earnings Decline
For the first six months of 2026, CMS Energy reported adjusted earnings of $1.50 per share, down from $1.73 per share in the corresponding period of 2025.
Second-quarter operating income also declined, falling to $264 million from $317 million a year earlier.