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    EVRG
    Earnings call· Jun 2026(Q2 FY26)

    Evergy Q2 FY26 earnings call EVRG

    Aug 6, 2026 Source

    Executive summary

    Evergy Q2 FY26 — Strong Data Center Load Growth Drives EPS and Capital Plan Upside

    Evergy delivered solid Q2 FY26 results, driven by strong data center load growth and regulated investment recovery, reaffirming its full-year adjusted EPS guidance. The company significantly expanded its capital plan to support 3 GW of contracted large load, projecting a 12% rate base CAGR and long-term EPS growth exceeding 8% from 2028. Management remains focused on affordability, leveraging large load tariffs to benefit all customers while addressing specific infrastructure needs in Missouri West.

    Highlights

    5

    • Q2 adjusted EPS of $0.88, up from $0.82 YoY.

    • Reaffirmed full-year 2026 adjusted EPS guidance midpoint of $4.24.

    • Secured 3 GW of large load (data center) demand, driving 7-8% annual retail load growth through 2030.

    • Increased capital investment plan by $1 billion to $21.6 billion, raising rate base CAGR to 12% through 2030.

    • Utilized ATM program, pricing $425 million in forward equity sales, addressing over half of the year's equity needs.

    Concerns

    3

    • Higher operations and maintenance, depreciation, and interest expense partially offset Q2 EPS gains, resulting in an $0.08 decrease.

    • Missouri West customers may experience rate increases above inflation over the next 5 years due to infrastructure investment needs.

    • $0.02 dilution from convertible bonds in Q2.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full-year 2026 Adjusted EPS
    $4.14 to $4.34 per share
    high materiality
    High
    Long-term Adjusted EPS Growth Target
    6% to 8% plus
    high materiality
    High
    Annual Adjusted EPS Growth
    exceed 8% annually
    high materiality
    High
    Q3 Adjusted EPS
    50% to 53% as measured against the $4.24 midpoint of our 2026 adjusted EPS guidance range
    medium materiality
    High
    Retail Load Growth CAGR
    approximately 7% to 8%
    high materiality
    High
    Capital Investment Plan
    $21.6 billion
    high materiality
    High
    Incremental Capital Investment
    approximately $1 billion
    high materiality
    High
    Rate Base CAGR
    approximately 12%
    high materiality
    High
    FFO to Debt Ratio
    14% to 15%
    medium materiality
    High
    Equity Issuance
    $700 million to $900 million
    medium materiality
    High
    Residential Customer Rate Increases (Majority)
    in line with or below inflation
    medium materiality
    High
    Missouri West Residential Customer Rate Increases
    above inflation
    medium materiality
    Medium

    Operational metrics

    21
    Adjusted EPS
    $0.88up from $0.82 in Q2 FY25
    Q2 FY26

    Compared to $0.82 per share in the second quarter of 2025.

    EPS impact from margin from load growth
    $0.10increase
    Q2 FY26

    Margin from loan growth resulted in a $0.10 per share increase for the quarter.

    EPS impact from new large data center and Panasonic ramp
    $0.04benefit
    Q2 FY26

    Combined, these 2 customers had an approximate $0.04 benefit to EPS compared to the prior year quarter.

    Weather-normalized demand growth
    1.8%
    Q2 FY26

    Overall, weather-normalized demand grew 1.8%, primarily driven by commercial and industrial demand.

    Weather-normalized demand growth
    3.3%
    YTD FY26

    On a year-to-date basis, weather-normalized demand has grown 3.3% and remains on track with our full year expectations.

    Commercial demand growth
    4%
    YTD FY26

    Commercial demand grew 4%, reflecting the initial ramp-up and higher usage associated with data center projects.

    Industrial demand growth
    6.2%
    YTD FY26

    Industrial demand grew 6.2%, buoyed by Panasonic's continued ramp.

    EPS impact from regulated investments
    $0.10increase
    Q2 FY26

    recovery of and return on regulated investments, driven by new retail rates in our Kansas Central jurisdiction and FERC regulated investments contributed $0.10 of EPS.

    EPS impact from higher O&M, depreciation, interest expense
    $0.08decrease
    Q2 FY26

    Offsetting these favorable drivers the combination of higher O&M and increased depreciation and interest expense net of AFUDC drove an $0.08 decrease in EPS.

    EPS impact from other items
    $0.06decrease
    Q2 FY26

    And finally, other items netted a decrease of $0.06, inclusive of $0.02 of dilution from convertible bonds.

    EPS dilution from convertible bonds
    $0.02decrease
    Q2 FY26

    inclusive of $0.02 of dilution from convertible bonds.

    Large load customer steady-state peak load (ESAs)
    2.5 GW
    current

    These 5 ESAs include steady-state peak load of approximately 2.5 gigawatts

    Large load customer steady-state peak load (total)
    3 GW
    current

    the total reaches 3 gigawatts.

    Large load ESA contract duration
    16 to 17 years
    current

    contractually requiring minimum monthly bill provisions spanning 16 to 17 years

    Large load expansion opportunities
    2.0 to 2.5 GWup from 1 to 1.5 GW last quarter
    future

    approximately 2.0 to 2.5 gigawatts of expansion opportunities, up from the 1 to 1.5 gigawatts we disclosed last quarter.

    Tier 2 new customer opportunities
    1 to 2 GW
    future

    advanced discussions with multiple new customers in our Tier 2 category, representing approximately 1 or 2 gigawatts.

    Remaining large load pipeline
    well over 10 GW
    future

    The remaining pipeline totaling well over 10 additional gigawatts highlights a robust activity and sustained interest in our region.

    New resource additions (total)
    5 GW
    through 2032

    In total, the preferred plans through 2032 include more than 5 gigawatts of new additions with approximately 3.9 gigawatts of natural gas, nearly 800 megawatts of solar and 450 megawatts of battery storage.

    Missouri Metro rate case revenue requirement reduction
    $25 million15% decrease
    current filing

    In our Missouri Metro rate case, as part of our initial filing, we actually reduced the revenue requirement we would otherwise have requested by $25 million, about a 15% decrease in our requested revenue requirement because of data centers.

    Equity priced through ATM forward sales
    $425 million
    YTD FY26

    having priced approximately $425 million through forward sales agreements as of June 30 that will be settled later in 2026.

    Delta between rate base growth and EPS growth
    250
    long-term

    we continue to forecast an approximate 250 basis point delta between rate base growth and EPS growth

    Industry KPIs

    5
    MetricValueDetails
    Ffo to debt14% to 15%%
    Retail sales growth1.8%%
    Regulatory rate base growth12%%
    New gas generation builds upgrades3.9 GWGW
    Contracted large load capacity esas loas3 GWGW

    Orderbook & backlog

    4
    Contracted Large Load Capacity (ESAs & other)3 GWQ2 FY26

    Includes 2.5 GW from 5 executed ESAs and 500 MW from non-LLPS large customers (e.g., Panasonic). Projects already in operation or progressing towards steady state (1.3 GW) and additional projects with executed ESAs (1.7 GW) with 16-17 year minimum monthly bill provisions.

    Large Load Expansion Opportunities2.0 to 2.5 GWQ2 FY26

    up from 1 to 1.5 GW last quarter

    Opportunities at or adjacent to existing customer sites; not incorporated in 5-year financial plan, potential upside near-term and into 2030s.

    Tier 2 New Customer Opportunities1 to 2 GWQ2 FY26

    Advanced discussions with customers who have acquired land/rights and signed letters of agreement; primarily beyond 2030.

    Remaining Large Load Pipelinewell over 10 GWQ2 FY26

    Highlights robust activity and sustained interest; serving this load requires creative solutions and prioritization.

    Deals & partnerships

    5
    GoogleEnergy Supply Agreement (ESA) for data center load16 to 17 years

    Two ESAs with Google for data center projects under LLPS tariffs.

    MetaEnergy Supply Agreement (ESA) for data center load16 to 17 years

    One ESA with Meta for a data center project under LLPS tariffs.

    Digital RealtyEnergy Supply Agreement (ESA) for data center load16 to 17 years

    One ESA with Digital Realty, a data center developer, for a project under LLPS tariffs.

    BellEnergy Supply Agreement (ESA) for data center load16 to 17 years

    One ESA with Bell, an enterprise with experience in data centers, for a project under LLPS tariffs.

    PanasonicRamp-up of operations for existing large customer

    Continued ramp of operations for Panasonic, contributing to industrial demand growth.

    Capital programs

    4
    Multi-year Capital Investment Planunderway$21.6 billion
    Funding: prudent mix of debt and equity financing
    Start: FY26

    Benefit: Supports 12% rate base CAGR through 2030; includes over 5 GW of new generation resources through 2032.

    Consistent with February 2026 CapEx plan, with $1 billion incremental capital for generation resources to serve secured customer agreements.

    Kansas Generation Resource Additionsplanned

    Benefit: New natural gas plant, a solar farm, and a battery storage facility.

    Planned for predetermination application filing later this year, consistent with 2026 IRP preferred plan.

    Missouri Generation Resource Additionsplanned

    Benefit: New natural gas plant, a solar farm, and a battery storage facility.

    Related to an upcoming Certificate of Convenience and Necessity Request (CCN).

    Mullen Creek #2 Facilitypending CCN request

    Benefit: 440-megawatt simple cycle gas turbine

    Located in Notaway County, Missouri. STAT report due September 15, settlement conference September 22, hearings beginning October 19.

    Risks & headwinds

    5
    Higher Operations and Maintenance, Depreciation, and Interest ExpenseQ2 FY26

    $0.08 per share decrease in Q2 FY26 adjusted EPS

    Dilution from Convertible BondsQ2 FY26

    $0.02 per share decrease in Q2 FY26 adjusted EPS

    Missouri West Rate Increases Above Inflationnext 5 years

    rate increases above inflation

    Mitigation: Investments will reduce reliance on market-provided energy, making rates more stable; rates will remain regionally competitive.

    Political Sensitivity/Moratoria Campaigns on Data Centersongoing

    discussed_not_quantified

    Mitigation: Working with high-quality developers who understand community receptiveness; both Kansas gubernatorial candidates supportive of economic development; LLPS tariff ensures fair share payment.

    Lag between Investments and Earnings Realizationlong-term

    250 basis point delta between rate base growth and EPS growth

    Mitigation: Steady load growth helps maintain a stable relationship; annual guidance provided as specific projects come online.

    What to watch in Q3 FY26

    5

    Additional ESA signing

    2026 (by Q3 call in November)
    Current5 ESAs signed, 3 GW total load
    TargetAt least 1 additional ESA signed

    Why it matters

    Signals continued momentum in data center growth and potential for further capital plan upside.

    We continue to make progress towards agreements on expansion projects and are highly confident that we'll execute at least 1 more ESA in 2026. We anticipate providing more details on our third quarter call in November.

    Q&A highlights

    6

    Analyst asked for more detail on the generation and capital requirements for potential new ESA signings this year and how that would impact rate base growth beyond the current 12% CAGR.

    David Campbell explained that the 2-2.5 GW expansion opportunities at existing sites and 1-2 GW from Tier 2 customers represent meaningful upside, primarily beyond 2030. He confirmed that new ESAs would drive incremental capital, mainly for generation, and that most customers seek firm power. He noted that the company expects to sign at least one more ESA in 2026, which would lead to further capital requirements.

    “To serve incremental load, we do expect that there are going to be additional resource requirements, primarily generation-related. We're seeing cost trends that are in line with what you're seeing for other utilities. So the capital investment that would follow is pretty meaningful. So it would drive, we expect incremental CapEx.”

    asked by Stephen D’Ambrisi · answered by David Campbell

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance and Full-Year Outlook

    Evergy reported Q2 adjusted EPS of $0.88, up from $0.82 in Q2 2025, driven by regulated investment recovery and large load customer revenues. This performance keeps the company on track for the midpoint of its full-year 2026 adjusted EPS guidance of $4.24. The company also reaffirmed its long-term adjusted EPS growth target of 6% to 8% plus through 2030, with growth expected to exceed 8% annually from 2028.

    02

    Transformative Data Center Growth

    The company has executed ESAs for 5 data center projects, totaling 2.5 GW of steady-state peak load, which combined with other large customers, reaches 3 GW. This demand is expected to drive 7-8% annual retail load growth through 2030. An additional 2.0-2.5 GW of expansion opportunities exist at or adjacent to current sites, and 1-2 GW from new Tier 2 customers are in advanced discussions, primarily impacting beyond 2030.

    03

    Capital Investment and Resource Additions

    Evergy's capital investment plan has increased by $1 billion to $21.6 billion over the next 5 years, primarily for generation resources to serve contracted load. This raises the rate base CAGR to 12% through 2030. The 2026 IRP preferred plan includes over 5 GW of new additions through 2032, comprising 3.9 GW of natural gas, 800 MW of solar, and 450 MW of battery storage, reflecting an "all-of-the-above" approach for reliability and affordability.

    04

    Regulatory Initiatives

    In Kansas, Evergy plans to file a predetermination application for a new natural gas plant, a solar farm, and a battery storage facility later this year. In Missouri, the metro rate case is progressing with rebuttal testimony due August 11 and settlement conferences starting September 23. Separately, a CCN request for a new natural gas plant, solar farm, and battery facility, as well as the Mullen Creek #2 facility (440 MW simple cycle gas turbine), are also underway.

    05

    Customer Affordability and Rate Competitiveness

    Evergy emphasizes its commitment to affordability, noting that average residential customer rates are below national and Midwest averages. The large load tariff framework ensures new large customers pay their fair share, helping to spread system costs and protect existing customers. While most residential rates are expected to rise in line with or below inflation, Missouri West customers may see increases above inflation due to needed infrastructure investments.

    06

    Financing Strategy

    To support its growing capital plan and maintain strong investment-grade credit ratings, Evergy projects FFO to debt in the 14-15% range from 2026-2028. The company has already priced approximately $425 million through forward sales agreements via its ATM program, covering over half of the $700 million to $900 million equity expected to be issued in 2026, with no plans for a block issuance.

    AI-generated summary of the company’s earnings call. Not investment advice.