CMS Energy Corporation primarily operates within the electric and natural gas industries. Its core business is structured across three distinct segments: Electric ...
CMS Energy Corporation (CMS Energy) is a Michigan-based energy holding company, formed in 1987, with its headquarters in Jackson, Michigan. The company operates primarily through three segments: Electric Utility, Gas Utility, and NorthStar Clean Energy. The Electric Utility segment, under Consumers Energy, manages the generation, purchase, distribution, and sale of ...CMS Energy Corporation (CMS Energy) is a Michigan-based energy holding company, formed in 1987, with its headquarters in Jackson, Michigan. The company operates primarily through three segments: Electric Utility, Gas Utility, and NorthStar Clean Energy. The Electric Utility segment, under Consumers Energy, manages the generation, purchase, distribution, and sale of electricity, serving approximately 1.9 million electric customers. The Gas Utility segment handles the acquisition, transmission, storage, distribution, and retail of natural gas, serving around 1.8 million gas customers. NorthStar Clean Energy focuses on domestic independent power production, including renewable energy development and operation, as well as marketing independently generated power. CMS Energy employs over 8,000 people and is committed to serving its customers and communities. The company has a strong focus on sustainability, aiming to achieve net-zero emissions by 2040. Financially, CMS Energy has a market cap of over $6.6 billion (for the CMSC security), with revenue per share of $29.32 and a net profit margin of 11.6%. The company's financial metrics indicate a solid operational performance, with an EBITDA margin of 35.4% and a return on equity of 11%. CMS Energy is dedicated to providing reliable and affordable energy, investing in grid modernization and renewable energy projects. Under the leadership of CEO Garrick J. Rochow, the company continues to focus on customer satisfaction, environmental stewardship, and long-term shareholder value.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$8.5B
+13.6%
-33.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.1B
+6.8%
-64.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+60.9%
+42.6%
+76.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+20.2%
+2.2%
-19.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+12.5%
-6.0%
-47.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-1.6B
-145.2%
+579.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-18.6%
-115.8%
+815.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
207.1%
+2.7%
-0.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.98x
+23.5%
+3.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, everyone, and welcome to the CMS Energy 2026 Second 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. Just a reminder that there will be a rebroadcast of this conference call today beginning at 12:00 p.m. Eastern Time, running through August 4. 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.
Jason Shore: Thank you, Abby. Good morning, everyone, and thank you for joining us today. With me are Garrick Rochow, President and Chief Executive Officer; and Sri Maddipati, 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 differ 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. And now I'll turn the call over to Garrick.
Garrick Rochow: Thank you, Jason, and thank you, everyone, for joining us today. Our investment thesis remains consistent, focused and durable. It is a simple but powerful business model built on more than 2 decades of consistent performance, delivered execution, disciplined capital allocation and industry-leading results. With our long capital runway, top-tier regulatory environment, and our commitment to affordable customer bills through the CE Way plus digital and other cost savings, CMS Energy continues to deliver. This proven model drives a premium total shareholder return, made up of 6% to 8% adjusted EPS growth compounded annually and paired with an approximately 3% dividend yield. For you, our investors, it means predictable earnings growth, a competitive dividend and long-term shareholder value. Today, I'm going to share with you our plans to further simplify and strengthen our model as we plan to exit nonutility renewables development and focus on what we do best. Following a comprehensive strategic review of NorthStar, we are taking a deliberate step to simplify our business model and sharpen our focus on utility investment. We plan to exit nonutility renewable development while retaining a portfolio of Michigan-based assets, including Dearborn Industrial Generation, or DIG, several small gas peakers in 4 commercial solar projects, all of which generate strong cash flow and support our long-term growth strategy. Let me share a little more about how this plan benefits the company and our investors. First, we plan to reallocate capital away from NorthStar and exit nonutility renewables …
