With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

Based out of Jackson, Mich., the electric power provider supplies electric energy and natural gas to around 60% of Michigan's residences.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-443-CMS-Energy

Michigan-based CMS Energy owns electric and natural gas utility Consumers Energy, as well as independent power generation businesses.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fortune Global 500

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

CMS Energy is the parent to Consumers Energy, Michigan’s largest electric and natural gas utility that serves 6.8 million of the state’s 10 million residents. The company’s other arm, North Star Clean Energy, produces electricity, including solar power, in Michigan, Ohio, and Arkansas; owns natural gas and cogeneration plants in Michigan; and manages biomass operations in Michigan and North Carolina. It also partners with other companies on clean energy projects, such as a solar installation in Arkansas with General Motors. The CMS Energy holding company was created in 1987, but its history dates back to 1886, when the utility’s forerunner opened for business.

Q2 2026

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Q4 2024

CMS Energy (CMS): Company Profile, Stock Price, News, Rankings

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CMS Energy

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Good morning, everyone, and welcome to the CMS Energy 2026 first quarter results. The earnings news release issued earlier today and the presentation used in this webcast are available on CMS Energy's website in the Investor Relations section. This call is being recorded. After the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time. If at any time during the conference you need to reach an operator, please press the star zero. Just a reminder, there will be a rebroadcast of this conference call today beginning at 12:00 P.M. Eastern Time, running through May 5th. This presentation is also being webcast and is available on CMS Energy's website in the Investor Relations section. At this time, I would like to turn the call over to Mr. Jason Shore, Treasurer and Vice President of Investor Relations.

Thank you, Rob. Good morning, everyone, and thank you for joining us today. With me are Garrick Rochow, President and Chief Executive Officer, and Rejji Hayes, Executive Vice President and Chief Financial Officer. This presentation contains forward-looking statements which are subject to risks and uncertainties. Please refer to our SEC filings for more information regarding the risks and other factors that could cause our actual results to defer materially. This presentation also includes non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in the appendix and posted on our website. Now I'll turn the call over to Garrick.

Thank you, Jason, and thank you everyone for joining us today. Our investment thesis, which you see on Slide three, continues to stand the test of time. Whether it's our long capital runway, Michigan's top-tier regulatory jurisdiction, our ability to keep bills affordable for customers, or the strong economic growth across the state, this model works, and it works consistently. It drives a premium total shareholder return, 6%-8% adjusted EPS growth with annual compounding paired with approximately 3% dividend yield. It's a simple, durable formula, and it's why CMS Energy continues to be a smart, long-term investment, delivering for more than two decades with consistent industry-leading performance. Turning to Slide four, you'll see the outcome of our most recent electric rate case. The commission approved over 65% of our ask and maintained our 9.9% ROE in the electric business.

I continue to be pleased with our regulatory outcomes and most importantly, the support for our customer investments. On the graph to the left, what stands out is that consistent record of support, constructive outcomes we've seen across our electric rate case filings over the last several years. These outcomes reflect deliberate, customer-focused investments designed to deliver on Michigan's energy law and materially improve the reliability and resiliency of the electric grid. It's the investments approved in this rate case and previous cases that directly support better service. That includes everything from critical capital investments across the grid to advanced tree trimming on a five year cycle. Work that meaningfully reduces outages, restoration time, and customer costs. The commission's support reinforces that reliability and affordability can and should go hand in hand. That's good for our customers.

Our track record of consistent and constructive rate case outcomes is strong. That is possible through a deliberate process, a constructive environment, and focused work by the team. These strong outcomes aren't a one-off or by chance. They're the result of a very deliberate and disciplined regulatory strategy. It starts with Michigan's energy law and enabling legislation. From there, we build alignment, support, and pre-approvals through a coordinated set of filings, our integrated resource plan, renewable energy plan, and five year electric distribution plan. We also utilize proven regulatory mechanisms like the investment recovery mechanism that streamline proceedings, ensuring certainty of recovery and drive accountability. When you combine that framework with strong testimony and clear business cases, the result is exactly what you see here. Constructive outcomes that support needed customer investments while maintaining affordability. Looking forward to our upcoming regulatory agenda.

In April, we saw the MPSC staff position in our current gas rate case, recommending over 75% of our $240 million ask. Staff also supported nearly 95% of our gas infrastructure investments. These investments continue to ensure a safe and reliable natural gas system while balancing affordability for our customers. Much like electric, we continue to receive constructive outcomes that benefit our customers. We've settled four of the last five cases and continue to see support for our filings. In our electric business, we plan to file our 20 year integrated resource plan or IRP in June. Our IRP will include 1.5 GW of new gas capacity to replace existing retiring capacity, ensuring we have the supply to meet our customer load well into the future.

We'll include 13 GW of renewable and clean energy, much of which was already approved in our 20 year renewable energy plan. Our filing will also include a growth scenario, highlighting the need for additional capacity to ensure we are prepared for the growing customer base in Michigan as we see data center and manufacturing interests in our service territory. A portion of these renewables and the additional gas capacity are in our current five year plan, with more upside opportunity given additional storage and renewables to meet Michigan's energy law and customer load beyond the five year plan. We've identified that for every 1 GW of new large load, we could see capital opportunity of $2 billion-$5 billion. Again, those investments would be incremental to our current capital plan. Very proud of the team and the thoughtful work on these plans.

The comprehensive analysis and modeling takes months and is done with a deep commitment to building a plan that is best for our customers and our state. At CMS Energy, our customers are at the center of all we do, a promise to deliver safe, reliable, and affordable energy. While we are committed to the important and necessary investments in our electric and gas systems, we remain laser-focused on customer affordability. Our track record is strong. Customer savings driven through the CE Way and further optimized with digital automation. Episodic cost savings, load growth, and energy waste reduction as further examples. Our efforts here are meaningful and impactful. As a result, Michigan electric bills are the fourteenth lowest in the nation, well below the national average and also below the Midwest average.

In our bill growth, you see on the left side of the slide, among the lowest in the country. On the right side of the slide, looking forward, customer bills, electric and gas below the Energy CPI, while investing over $24 billion over our five year plan period. I am pleased with our progress. We're not done yet. We're sharply focused on continuing to bring down costs for our customers while delivering for those most in need. Additionally, affordability is supported by growth. Michigan continues to make headlines and top rankings nationwide as we see new or expanding load materialize in the state and supporting 2%-3% annual sales growth. This growth allows us to spread fixed costs over a larger customer base and improve affordability for all customers.

We have significant interest in our service territory with contracts for roughly 100 MW of new load signed last year, and we've exceeded that in just Q1 of this year. Approximately 110 MW of signed contracts year-to-date. This is all on top of the approximately 450 MW connected last year. As I've shared in many investor meetings, Michigan has more engineers per capita than any other state. We are the second most diverse state in agriculture. We have many aerospace and defense businesses and a rich automotive heritage. Our service territory is growing with manufacturing and industrial processing, bringing with it large investments, jobs, supply chains, and commercial and residential growth.

One of our larger recently signed contracts is with Michigan Potash and Salt Company, a strategic and critical mineral manufacturer and the only established and sustainable potash reserve in the U.S., expanding in our service territory, bringing with it roughly 130 jobs and over $1.3 billion of investment in Michigan. I love seeing growth like this and the value that it brings to Michigan, our customers, communities, and investors. There is also a diversity in this growth, which is important in the context of data centers, which I'll cover on the next slide. Moving on to our growth pipeline. You see that win here on Slide eight with Michigan Potash move through the funnel to a signed contract. There were also several other smaller customer expansions not shown on the slide that make up roughly 110 MW year-to-date.

In addition to strong manufacturing industrial processing, Michigan continues to attract data center interest, and I'm pleased with the progress we have made over the last quarter. Our announced data center continues to close in on final contract after reaching commercial terms on the extraordinary facilities agreement and now commercial terms on the rate contract. As I mentioned in our year-end call, another data center has continued to progress in advanced contract negotiations. I'm also pleased with the community engagement and the forward progress experienced at a local zoning level. Keep in mind, these data centers are not yet reflected in our five year customer investment plan, and associated additional investments will not be subsidized by existing customers. In fact, each gigawatt of new data center load that materializes in our service territory will reduce our average customer rate by 2% annually over a five year period.

On to the financials for the quarter. In the first quarter, we reported adjusted earnings per share of $1.13. We remain confident in this year's guidance and long-term outlook and are reaffirming all our financial objectives. Our full-year guidance remains at $3.83-$3.90 per share with continued confidence toward the high end. Longer term, we continue to guide toward the high end of our adjusted EPS growth range of 6%-8%. With that, I'll hand the call over to Rejji.

Thank you, Garrick, and good morning, everyone. On Slide 10, you'll see our standard waterfall chart, which illustrates the key drivers impacting our financial performance for the quarter and our year-to-go expectations. For clarification purposes, all of the variance analyses herein are in comparison to 2025, both on a first quarter and a nine months to go basis. In summary, through the first quarter of 2026, we delivered adjusted net income of $346 million or $1.13 per share, which compares favorably to the comparable period in 2025, largely due to NorthStar outperforming a relatively soft comp in the first quarter of last year, coupled with higher rate relief net investments at the utility. These sources of positive variance were partially offset by a significant ice storm in our electric service territory in March.

From a top-line perspective at the utility, heating degree days in Michigan ended up at relatively normal volumes for the quarter as a relatively warm March and February offset in a typically cold January. The impact of normal weather drove $0.01 per share of favorable variance versus the first quarter of 2025. Rate relief, net of investment-related expenses, resulted in $0.11 per share of positive variance due to the residual benefits of last year's constructive electric and gas rate orders, as well as earnings associated with ongoing renewable projects at the utility. Moving on to cost trends, as noted, we experienced an uptick in storm activity during the quarter, including a sizable ice storm in March, which was bigger than last year's storm.

As such, we saw $0.05 per share of negative variance for this cost category, which includes some positive offsets associated with our electric supply business. In our catch-all category represented by the final bucket in the actual section of the chart, you'll note a positive variance of $0.04 per share, largely driven by the impact of achieving key milestones for ongoing renewable projects at NorthStar and a reversal of last year's outage at DIG, partially offset by higher parent financing costs, namely a higher average share count. Looking ahead, we plan for normal weather as always, which equates to $0.23 per share of negative variance for the remaining nine months of the year, driven by the absence of favorable temperatures experienced in 2025, primarily in our electric business.

From a regulatory perspective, we're assuming $0.24 per share of positive variance, which is largely driven by the constructive electric rate order received from the Commission in March, ongoing benefits of renewable projects at the utility, and the assumption of a constructive outcome in our pending gas rate case. On the cost side, we anticipate lower overall O&M expense equating to $0.04 per share of positive variance at the utility for the remainder of the year, largely driven by expected cost performance through the CE Way and other cost reduction initiatives underway. In the penultimate bar on the right-hand side, you'll see an estimated range of $0.06-$0.13 per share of positive variance, which incorporates continued solid performance at NorthStar, partially offset by planned parent financing costs, including the effects of equity dilution.

Before moving on, I'll just note that our track record of delivering on our financial objectives over the last two decades, irrespective of the circumstances, speaks for itself. That said, we'll always do the worrying so you don't have to, and remain confident in our ability to deliver on our financial and operational objectives this year to the benefit of all stakeholders. Slide 11 offers an update to our funding needs in 2026 of the utility and the parent. As a reminder, the convertible debt that was opportunistically issued last November addressed a good portion of our financing needs at the parent for the year, while offering significant financial flexibility on our remaining needs.

From an equity needs perspective, given the trading performance of our stock during the first quarter versus our plan assumptions, we executed equity forward contracts totaling approximately $495 million, significantly de-risking our planned needs for the year. As you can see in the table on the slide, we settled approximately $142 million of said equity contracts during the quarter. As per our guidance, we'll plan to issue an aggregate amount of approximately $700 million over the course of the year. Finally, we'll look to complete the balance of our financing plan at the utility over the remainder of the year. As always, we'll be opportunistic and look to capitalize on strong market conditions.

Moving on to credit quality, I'm pleased to report that both Moody's and Fitch reaffirmed our credit ratings in March, as indicated at the bottom of the table on Slide 12. That said, it is worth noting that Moody's did move the utility to a negative outlook, largely due to the size of our five-year capital investment plan relative to the timing of cost recovery, particularly for large projects with protracted construction cycles. Needless to say, we are evaluating a variety of countermeasures to address Moody's concerns. As always, we'll continue to target solid investment-grade credit ratings, and we'll manage our key credit metrics accordingly as we balance the needs of the business. With that, I'll hand it back to Garrick for his final remarks before the Q&A session.

Thanks, Rejji. At CMS Energy, we deliver. 23 years now of consistent industry-leading performance, regardless of circumstances, year in and year out. You can count on CMS Energy to deliver for all of its stakeholders. With that, Rob, please open the lines for Q&A.

Thank you very much, Garrick. The question-and-answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star key followed by the one on your touch tone telephone. If you're using a speaker function, please make sure you pick up your headset. We'll proceed in the order you signal us, and we'll take as many questions as time permits. If you do find that your question has been answered, you may remove yourself by pressing the star key followed by the 1 on your touch tone telephone. We'll pause for just a second. Our first question comes from the line of Richard Sutherland from Truist. Your line is open.

Thank you. Thank you. You know, there's been a lot of attention on data centers, and I guess there's a lot to dig into here, but you talked about confidence in what you're seeing. I'm curious about the opportunities as it stands now relative to last quarter, and in particular, if you see both of these data centers come through, you know, what is the potential to defer, delay your electric rate case filing cadence on the back of that? Anything you can speak to there versus load ramp would be helpful. Thank you.

I am very pleased with the progress. Let me even take a step back. If I start with the pipeline, as we've shared historically, it's roughly about 9 GW. There are customers that are falling out of the pipeline and going through, like we saw with Michigan Potash, and having successful contracts. There's new companies coming in, the pipeline is strong and actually much larger than 9 GW. Those are the ones that are more qualified, you might say, in the process. As I shared in the Q4 call, I just continue to be pleased with the progress of the data centers, the hyperscalers that are in our service territory, and looking at different locations, multiple locations to locate those data centers.

As I shared, like, we've made great progress with the contractual piece with those companies. Pleased with that, pleased with the work the team's doing, and we're working through the zoning process here in Michigan. Again, I've seen those data center companies, they're out, they're meeting with the local planning commissions, they're meeting with the communities. We're standing side by side with them to be able to address those issues. A lot of positive progress. In the context of, you know, I hear you're referring to this kind of stay out here and referring to the DTE approach to this. I haven't seen their filing yet. I can't speak to the specifics of that and what they propose, just what's been in the media.

I will say this, in November, we put a tariff in place, a really great tariff that's been able to set the standard, really one of the best in the country. These hyperscalers have quickly adapted to it, they know what the hurdle rate looks like or the hurdle mark looks like. I'm very pleased with it. It speaks to how we protect existing customers, how we protect the business. It really provides a path for benefits to flow back to customers, which is, I think, critically important. It's also important to put this into context. We are investing. There's significant capital runway. Like, there's a lot of opportunities to invest in this business. We've talked about it. Those weren't just Excel exercises. This is like real stuff that's underway.

We're investing heavily in the electric grid to improve reliability and resiliency so it's better for our customers, 'cause I hate when a customer's without power and the cost and the impact of that. I appreciate the commissioner's comments on how affordability and reliability can go hand in hand. They're not opposed. We have this IRP, 20-year IRP, for the supply needs of the state. We have to meet the Michigan's energy law and the renewables, but we also have to think about those times when the sun is not shining or the wind's not blowing. Batteries make up a part of that, but we've got to introduce natural gas to replace some of our existing peaking. That's an important piece of investment right now. There's importance of the safety of the gas system.

You know, I can go on for hours about this, and I know you don't want me to do that, but, like, that's why we're in on annual rate cases. The biggest thing and the most important thing is affordability for our customers right now. We've talked about that through the CE Way, we've talked about that through episodic cost savings, but a big piece of this is growth, and that's how I tie it back to data centers. Whether that's internal focus or what we're doing externally, know this, that we're focused on the root cause. We got these important investments. We believe we can go in for annual rate cases and keep them close to the rate of inflation for our customers.

One thing that's important about annual rate cases is we pass along savings to our customers every single time, and that's what we're focused on. You know, the stats are we're the 14th lowest electric bill out there. That's still not good enough, because affordability is defined by our customers, and there are some customers that are out there that are struggling, and we need to help them. That's what we're focused on, affordability for our customers. Thanks for your question. Long answer, but there's a lot there.

That certainly is a lot there and appreciate the comprehensive response. Also wanted to switch gears. You know, there have been some media reports out there around NorthStar. Maybe just to zoom out broadly across your portfolio, if you were to consider any transactions around the portfolio, do you have any sort of guiding lights around how you think about the qualitative versus quantitative aspects of a deal, and in particular, you know, accretion dilution, the prospects of, say, near-term dilution versus breakeven over the long term? Anything there would be helpful. Thank you.

Well, just to be clear about this, we have a long-standing company policy. We don't comment on M&A, period. What I've shared about NorthStar in the past, just consistent with, you know, other investor meetings or earnings calls. Look at the thermal assets, right? Dearborn Industrial Generation. Energy and capacity prices are increasing. We strike bilateral contracts. We layer them over time. They've been better than planned, and we've shown that in some of the slides before on some of that opportunity. In terms of the renewables, we've used this baseball analogy. We hit singles and doubles. We're not aiming for home runs, and so these are solid projects. We do one or two of them a year. Maybe in a busy year, we might do three. Utility-like returns are better with a contracted offtaker, long-term contracts.

We safe harbor the assets out in the 2028, 2029 timeframe. We look to recycle capital. That whole NorthStar mix is about 5% of our earnings mix. The rest of it's utility.

Your next question comes from the line of Shar Pourreza from Wells Fargo. Your line is open.

... on for Shar. Thanks for taking my question.

Thanks. Maybe building on the data center topic, what kind of specific color can you give us on what's going on with Gaines Township and the Microsoft data center? Anything on, like, the status there and how we should be thinking about public pushback?

My mom used to say good things come to those that wait, my mom was right. I, you know, I've talked about the contract in my prepared remarks, talked about the contract pieces, and I shared with you I'm pleased with the zoning piece. I think it's important for the investment community to understand Michigan's, like, units of government, local units of government. There are 2,800 forms of local units of government in Michigan. About 96% of the state is covered by some kind of township. In those townships, and we know this because we work with them all the time, there are planning commissions or planning boards, and they work through zoning, but they also work in looking at the site layout and other plans. There's a township board.

There are several steps in that approval process. I've been pleased because not only the data centers have been meeting with the township officials and the planning officials, we've been meeting with them and we've seen good progress. Also know that they're doing good due diligence, right? They're elected officials, and they're doing the right things, and they have to dig into what's the impact from a property tax perspective? How does this meet the zoning requirements? What does this mean for agriculture or industrial land? What does it mean for water? They're going through and making sure they're doing good due diligence. I appreciate the process. I'm familiar with the process because we go through it when we're doing big projects, whether it's a gas pipeline or whether it's a solar project.

Again, I feel good about where we're headed. My mom was right. Good things come to those that wait, and we're working through that process, and pleased with where it's headed.

Thanks. That's helpful. Then maybe following up on Richard's question on case cadence, are there any specific triggers that you'd point to or working towards that would increase the time between cases?

We've in terms of settlement, we've stayed out of cases before. That's not abnormal for us or unusual for us. I certainly would consider that as something, you know, in the future. I'd go back to my comments, like large capital runway and the ability to pass afford, you know, savings back to our customers. At the heart of it, this isn't about skipping cases and pushing a bow wave. It's about bringing affordability to our customers. That's where we're focused on.

Your next question comes from a line of James Ward from Jefferies. Your line is open.

Hi. Thank you. Garrick, given the Gaines Township tabling on April 15th, can you reaffirm the as early as 2028 online date for your final stages prospect, or has that timeline maybe softened a bit?

The project timelines are the same. 2028 is the timeline within the contracts. They'll ramp up early electrons, you might say, and then they ramp up over 2029, 2030. Those time frames are the same.

Terrific. Thank you for clarifying that. Second, just without naming the customer, is the prospect you've reached commercial agreement with, the same one tied to the Gaines process or a different site in your territory?

There are two, at least two hyperscalers that we're in advanced negotiation with, and I've shared that one, we're finalizing the contract with, and there are many more in the pipeline. I really cannot disclose that at this time.

All good. Thanks. Last question for me, just off of feedback we've gotten last week, given some of the news out there and keeping in mind your comments earlier about company policy and so on, ask something broader and higher level. With where IPP multiples are trading and the DIG recontracting out to past 2030, has anything shifted in how you're thinking about NorthStar strategically, or is DIG still something that you see being a part of CMS well into the next decade?

I shared that in my response to Rich. Consistent with how we've talked about it in previous investor meetings and earnings call, I walked through the thermal units. There's really no change in how I talked about that. Same with the renewables.

Terrific. Thank you very much. Appreciate it.

Your next question comes from a line of Nicholas Campanella from Barclays.

Yeah, hey. Thanks for taking my questions, and thanks for the time. Hi, how are you? Look, there's two opportunities. We don't know who the commercial agreement specifically with. I understand from the prepared and responding to Richard's question, you're still working through the permit there. I'm just trying to understand at more granularity on what is needed for the permit, and then just your expectation to have that done by summer, or is this gonna go through the entire year-end to the end of this year? Thanks.

It varies depending on the location. I'm not trying to dodge your question, it's just that there are multiple townships, and these hyperscalers are pursuing, you know, investment in multiple properties in multiple areas of the state. I can't say it's like a blanket, Here's where we're at in the process. Again, there's steps. The first step is with the planning commission, and they see does it meet the zoning requirements of the state, and does there have to be a change? If there has to be a change. Then they've got to do a site layout, and that has to be approved by the planning board or planning commission. Then eventually it goes to the township. It varies in those places.

I would say the hyperscalers and are looking at multiple locations and are at multiple places in that process and have advanced, frankly, within that process. I would also say they're active in the communities. They're meeting with local officials, they're meeting with communities, and doing all the right things, which gives me a lot of optimism about the progress that's underway. Like, we've been in this process. Like, we know this process. When they pause and they do more due diligence, when they listen to their constituents, that goes back and forth. It would be, wouldn't be appropriate for me to jump ahead of that process and try to predict a date. They need it to work. Let those elected officials do their important work.

You'll be the one of the first ones to know, Nick, when we make the announcements.

Hey, thanks. I appreciate that. Just, you know, maybe because you've executed on bulk of 2026 equity needs, I know that there's still a little bit outstanding, but how are you kinda thinking about being proactive to de-risk 2027 and 2028? I just know the shaping of the CapEx, there might be, to my understanding, a little bit more front-end equity in this five year plan, if you could talk to that.

Yeah, Nick, it's Reggie. Appreciate the question. Just to get everyone regrounded on the five year equity needs that we walked through on our fourth quarter call. We talked about in our prepared remarks the fact that we're planning for $700 million this year. That is still the plan. On average, thereafter for the next four years, it'll be $750 million, but it's far from linear. That's just a simple average. As you rightly noted, it is a bit more front-end loaded, so we do expect the majority of the equity needs to be issued in the first three years of this plan, really commensurate with the capital plan. We are, have been big proponents of the equity forward product, which we've used to good effect in this first quarter.

As I noted, we've already priced just under half a billion to take that risk off the table. We did settle a small portion in the first quarter. That will be the bias going forward. As I've said on many occasions, I do believe we are undervalued quite a bit. That said, there's valuation, and then there's what's in our plan. We did see the stock trading at levels that were above our plan or above the assumptions in our plan over the course of the quarter, and so we were opportunistic there.

If we do see the stock continue to trade at levels that are better, not just in our plan assumptions this year, but also in subsequent years, we may look to, you know, execute on equity forwards for to de-risk 2027 and beyond. First and foremost, we're gonna prioritize our needs in 2026, excuse me, address those, and then we'll see where we're at by the second half of the year. Is that helpful?

Yeah, that's helpful. I appreciate that color. Thank you very much. If I could squeeze one more in. I'm just reflecting a little bit on, you know, past efforts in this management team on portfolio rotation. I know that when you did the EnerBank sale, you were able to overcome the impact of the near-term numbers through the last IRP process and, you know, ultimately, you know, still do the high end of that six to eight forecast

Strategically, is there appetite to do something like that again? Or do you guys continue to have just very clear line of sight to the growth rate at the high end, 2026, 2027 and 2028? Thank you.

Thanks, Nick. No comments on M&A, and we're providing guidance on the call.

Your next question comes from the line of Jeremy Tonet from JPMorgan. Your line is open.

Hey, good morning. This is actually Aidan Kelly on Jeremy. Thanks for the time today.

Yeah. Just wanna hone in on the political backdrop in the state. How are you thinking about affordability going into the elections? I guess, you know, what is the level of understanding from the candidates over the possibility that utilities could lower rates with new data center load? Just any kind of thoughts there would be great.

There's an important slide in our deck. It's one of my favorite. It's just this consistent growth over 23 years, multiple different CEOs, different governors, Republicans, Democrats, different commissions, different legislators or policymakers. We've delivered. The sweet spot of that or the secret sauce to that is really being an honest broker and focused on what's best for Michigan and what's best for our customers. Listening to policymakers and politicians to see what do they really want to get done and how we can be a solution provider. I was with a governor candidate last night. That's what we were talking about. How can we be a solution provider? What's important to you? How do we work together? That's this honest broker piece. You stay in that. It's hard to stay in that space, right?

You want to think about the business or the financials, but staying grounded in our customers is where we get the honest broker, where they get the trust and respect to have the conversations. You know, there's a lot going on. It's an election year. We're a purple state. That's important to know. It's a purple state. We're used to a lot of back and forth, particularly as people try to jockey for votes. You know what? I sleep well at night, and it's not because I'm arrogant or because I know how this is gonna play out. It's because we have a good team, and if you go back to being an honest broker and being focused on the customers, you build trust, and you can find solutions in that.

Like I shared earlier, my comments and prepared remarks, when you're focused on affordability, even though you're the fourteenth lowest state, you can present the data to the people running for governor or the policymakers, and that's great. The reality, affordability is defined by the end user. My affordability is different than Rejji's. It's different than one of our low to moderate income customers. We got to keep working on that, right? Some of that's internal, you know the tools we use there, and some of it's external. I talked about in our last call, I walk around with two pages of ideas for policymakers. Some of them are adopted. Some of them might actually be bills that are being tossed around, right? We meet with all these governors, governor candidates, gubernatorial candidates.

We know them, and you know, we provided a slide in the deck on that. We don't just approach it from energy perspective. Like, we're a business leader. We talk about what's going on in the economy. I will tell you, every one of these candidates is about how to grow Michigan. We talk about data centers. The three leading candidates are supportive of data centers in a thoughtful way, right? In a comprehensive way. We talked about how that can shape affordability for customers. You know, they're concerned about education. We help have those conversations because we're concerned about education. I can go on and on here. We get to energy, right? When I look at their platforms, every one of the platforms for the governor, we can work with all three of the leading candidates.

Be an honest broker, focus on the customer, listen to what they're trying to get done. Their approach looks different. Some want to focus on low to moderate income. Some want to focus on the business environment. We can do both, right? Really provide good solutions for our customers to help from an affordability perspective.

Yeah. All I would add, Aiden, to Garrick's very good remarks is, well, first and foremost, I aspire to have his point of view on affordability at some point, just given the example he offered up, when it comes to just personal finances. That's thing one. Thing two, just to reemphasize and remind you all of the flywheel and the algorithm when it comes to our financial planning process. As we've talked about before, I think Garrick alluded to this very well, is that affordability remains one of the key governors in our financial planning process.

For 20+ years now, really almost 25 years, we do not take a plan, financial plan that is, to our board, let alone to the street, unless it passes the laugh test from an affordability perspective, unless it passes our hurdle rates from a balance sheet perspective, also can we get the work done. When it comes to affordability, the dimensions are quite broad. It's first, we certainly look at the compound annual growth of our rates over the planning period, we also benchmark it versus the region, versus the country, we also take into account both rates and bills. It's a really broad lens through which we look at affordability, again, to make sure that the plan not just delivers for the investors, but also for customers and all stakeholders.

I do think it's really important to recognize that while we've grown the rate base. Historically high single digits, now low double digits based on our forecast. We are still self-funding two thirds to three quarters of that rate-based growth with, as Garrick noted, CE Way, episodic cost reductions, energy waste reduction over time. We hope it'll be sales growth as well as we continue to execute on this economic development pipeline. That's how even though you're growing the rate base high-single-digit, low-double-digit, you're keeping the bills and rates in at low-single-digit levels. By doing that year in and year out and having the discipline of incorporating that into your planning process, that's how you perpetuate this success irrespective of who's running the state. Just wanted to just add an additional financial lens to that.

It's not like it's not an accident. It's really hard work, and that's why you see the data points we have on Slide six.

Yeah, makes sense. Appreciate the insight there. I just have one separate question on CapEx upside. Could you just remind us what the underlying assumptions are in the, like, 1 GW equals $2 billion-$5 billion of CapEx? Maybe just anything that drives the low and high end of these ranges.

Yeah. Aiden happened to do that. For the low end of that sensitivity, which is around $2 billion, what you have in there is an assumption of storage resources as well as our current estimates for what a simple cycle combustion turbine would cost. There's also a little bit of infrastructure costs, so substation work, the wires, all that's incorporated into the low end of $2 billion. As you get to the higher end of that range, we'll see a couple of things. First, likely a change in resource, and so going from simple cycle to, again, if the cup runneth over and we start to see, you know, a highly successful conversion of that economic development backlog, we would potentially look at combining cycle gas.

That's what starts to get you towards that upper range. It probably warrants additional infrastructure in terms of substation work and wires. Again, this is if you start to see additional economic development opportunities come to fruition. It's also important to note that we do have to comply with the Clean Energy Law requirements, which are predicated on sales, that's what also adds to the high end of that equation. That's really what drives that range.

Great. Thanks for running down that. I'll leave it there. Thanks.

Your next question comes from a line of Michael Sullivan from Wolfe Research. Your line is open.

Hey, Garrick. Hey, hey, Rejji. I wanted to just ask on this EC customer pipeline that you've got. You talked to kind of the incremental CapEx upside that's not in the plan. As we just think about your earnings trajectory, is this something that can contribute in the next five years if you're able to bring these over the finish line?

Yeah, Michael, appreciate the question. I would say it really is a function of the load ramp. I do believe that the reality is that most of the opportunities in our backlog that we're looking at today, particularly those that are sort of in that advanced to final stages, the load ramps really start to materialize, as Garrick noted, for sort of most likely opportunity in the 2028 time frame. Some of the more, or some that are slightly lower in probability of conversion are kind of 2029, 2030, and the material ramp is really in the next decade. The supply needs will increase commensurately with that load ramp.

While we certainly would see additional capital investment opportunities, come likely in the next five year plan that we roll out, I think it's a little early to suggest whether or not it would put upward growth on our EPS growth. Now that said, you know, job one is to convert these opportunities, and so we're focused on that right now. If we start to see some success in converting on this backlog, it should drive or will drive additional capital investment opportunities. Again, given the load ramp, we'll see what happens over the next five to 10 years. I think it's premature to say whether it would immediately increase the EPS growth at this point.

Totally fair. Looking ahead to the IRP filing that you have coming up here in a couple of weeks, I think you mentioned something about a growth scenario, highlighting the need for additional capacity. Maybe tying that into kind of all these beating around the bush questions around NorthStar, is there any world where DIG can be used as a solution? I know it's been tried in the past, but any sense of a change in appetite there to use that asset to meet additional demand growth?

Well, you captured it, Mike. Going back to our last integrated resource plan, we attempted to bring that into the utility. It was just from an affiliate transaction perspective, too big of a hurdle to go through. We don't see proposing that in this next integrated resource plan to bring that into the utility. If I would step back and look broader at this IRP, as I shared, I'm pleased with the team's work there. 1.5 GW of natural gas to replace existing. Also when you think about the reliability or resource adequacy of the grid, got the renewables, the batteries at times and periods of the day and of the year where you need natural gas to peak.

Karn 3 and 4, which is some old oil-fired and gas-fired peaking units, this really works to replace those almost, you know, almost megawatt for megawatt from a capacity perspective. You know the renewable story, much of it's approved in the IRP. Remember this REP, I should say. As part of this IRP, we're looking out 20+ years. It will give some color and context too for other investments that are beyond the five year capital plan out in the 10 year window as well. Remember in this IRP, we have to do multiple scenarios. One of those is a growth scenario. Just given the interest, both manufacturing, industrial processing, data centers, that's an important scenario to develop in this process, which would mean more batteries, more renewables, and potentially other assets.

CMS Energy (CMS) Q1 2026 Earnings Call Transcript

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