AMEREN Q4 FY25 earnings call AEE

Ameren reported 2025 adjusted EPS of $5.03, an 8.6% increase from $4.63 in 2024. The company invested over $4 billion in electric, natural gas, and transmission infrastructure, including 26,000 electric distribution poles and 283 miles of upgraded lines. Constructive regulatory orders were received in Missouri and Illinois, and Missouri Senate Bill 4 was enacted to support economic development. Ameren supported over 70 economic development projects, bringing an estimated $3.6 billion in capital investment and 3,700 jobs to its service territory. Grid reliability remained strong, with investments preventing over 56 million minutes of potential customer outages.

Ameren Missouri executed electric service agreements (ESAs) with large load customers representing 2.2 gigawatts of new demand, which provides upside to existing sales and earnings forecasts. The Missouri PSC approved a new rate structure for large load customers, requiring them to pay for connection costs and their fair share of service, with a base rate of approximately $0.062 per kilowatt-hour. This structure includes terms such as a 12-year service commitment, an 80% minimum demand charge, termination provisions, and collateral requirements to protect existing customers. The total pipeline for potential new demand includes 3.4 GW in Missouri and 850 MW in Illinois, with $46 million in nonrefundable payments received from developers for transmission upgrades.

The company rolled forward its 5-year investment plan, now totaling $31.8 billion from 2026 through 2030, marking a 21% increase compared to the prior year's plan. This robust investment is expected to drive a 10.6% compound annual rate base growth over the same period. The increase is primarily attributed to significant generation investments needed to serve anticipated load growth and ensure system reliability. The plan also includes critical upgrades to strengthen and maintain the aging grid across all jurisdictions and expanded transmission capabilities.

Ameren is making strong progress on its 5.3 gigawatts new generation plan for 2025-2030, with nearly 2.7 GW currently in progress. This includes placing a 50 MW solar facility (Vandalia Energy Center) in service in December and two other solar energy centers (Bowling Green and Split Rail) totaling 350 MW beginning final testing in January. Dual fuel conversion work at Audrain Energy Center is expected to add 700 MW of capacity by year-end. The Missouri PSC approved the 800 MW Big Hollow Natural Gas Energy Center and a 400 MW battery storage facility, both scheduled for service in 2028. The company plans to file its triennial Missouri IRP by late September and a CCN request for a 2.1 GW combined cycle facility for 2031.

Ameren plans to issue approximately $4 billion of equity from 2026 through 2030 to fund its investment plan, with $600 million for 2026 already covered by forward sales agreements. The company expects to issue approximately $2.85 billion in long-term debt in 2026. Hybrid debt securities may also be utilized as part of the financing strategy. The Board of Directors approved a 5.6% quarterly dividend increase, bringing the annualized rate to $3 per share, marking the 13th consecutive year of increases. The dividend payout ratio is targeted to be maintained within a range of 50% to 60%.

In November 2025, the Illinois Commerce Commission approved a $79 million annual rate increase for Ameren Illinois' natural gas distribution segment, reflecting a higher return on equity of 9.6% and a 50% equity ratio, with new rates effective in December. In December, the ICC also approved a $48 million reconciliation adjustment to the 2024 revenue requirement, effective January 2026. Ameren Illinois filed its required multiyear grid plan for 2028 through 2031 with the ICC in January, outlining continued infrastructure investments, with an order expected later this year.