Evergy : Investor Supplement (043e25)

Published: 2026-05-07 07:26:25 ET EVRG

Published on 05/07/2026 at 07:26 am EDT

Consolidated Statements of Income 1

Consolidated Balance Sheets 2-3

Consolidated Statements of Cash Flows 4

Earnings Variances 5

Supplemental Data 6-7

Capitalization 8

Utility Gross Margin and Adjusted Earnings (Non-GAAP) 9-10

Peter Flynn

Senior Director - Investor Relations 816-652-1060

[email protected]

The Notes to the Unaudited Consolidated Financial Statements in Evergy's, Evergy Kansas Central's and Evergy Metro's combined Quarterly Report on Form 10-Q for the period ended March 31, 2026 should be read in conjunction with this financial information. The enclosed statements have been prepared for the purpose of providing information concerning Evergy, Evergy Kansas Central and Evergy Metro and not in connection with any sale, offer for sale, or solicitation to buy any securities.

‌Three Months Ended March 31 2026 2025 Change % Change

REVENUES: (millions, except per share amounts)

Residential

$ 482.7

$ 509.9

$ (27.2)

(5.3)

Commercial

440.1

436.5

3.6

0.8

Industrial

160.3

145.0

15.3

10.6

Other retail

11.4

10.1

1.3

12.9

Total electric retail

1,094.5

1,101.5

(7.0)

(0.6)

Wholesale

107.1

48.6

58.5

120.4

Transmission

133.6

134.0

(0.4)

(0.3)

Other

108.5

90.4

18.1

20.0

Total Revenues

1,443.7

1,374.5

69.2

5.0

OPERATING EXPENSES:

Fuel and purchased power

360.0

355.3

4.7

1.3

SPP network transmission costs

109.6

96.4

13.2

13.7

Operating and maintenance

243.2

232.0

11.2

4.8

Depreciation and amortization

305.3

288.1

17.2

6.0

Taxes other than income tax

107.2

111.1

(3.9)

(3.5)

Total Operating Expenses

1,125.3

1,082.9

42.4

3.9

INCOME FROM OPERATIONS

318.4

291.6

26.8

9.2

OTHER INCOME (EXPENSE):

Investment earnings

1.6

2.1

(0.5)

(23.8)

Other income

18.8

4.4

14.4

327.3

Other expense

(8.7)

(9.5)

0.8

8.4

Total Other Income (Expense), Net

11.7

(3.0)

14.7

N/M

Interest expense

174.5

152.5

22.0

14.4

INCOME BEFORE INCOME TAXES

155.6

136.1

19.5

14.3

Income tax expense

3.4

9.6

(6.2)

(64.6)

Equity in earnings of equity method investees, net of income taxes

2.4

1.6

0.8

50.0

NET INCOME

154.6

128.1

26.5

20.7

Less: Net income attributable to noncontrolling interests

3.1

NET INCOME ATTRIBUTABLE TO EVERGY, INC.

$ 151.5

$ 125.0

$ 26.5

21.2

BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC.

(See 10-Q Note 1)

Basic earnings per common share

$ 0.66

$ 0.54

$ 0.12

22.2

Diluted earnings per common share

$ 0.64

$ 0.54

$ 0.10

18.5

AVERAGE COMMON SHARES OUTSTANDING

Basic

230.7

230.4

0.3

0.1

Diluted

235.6

232.1

3.5

1.5

Effective income tax rate

2.2 %

7.0 %

The Notes to the Unaudited Consolidated Financial Statements in Evergy's Quarterly Report on Form 10-Q for the period ended March 31, 2026 should be read in conjunction with this financial information.

‌March 31 December 31

2026 2025

ASSETS (millions, except share amounts)

CURRENT ASSETS:

Cash and cash equivalents

$ 18.4

$ 19.8

Receivables, net of allowance for credit losses of $11.1 and $15.3, respectively

201.2

214.2

Accounts receivable pledged as collateral

402.0

Fuel inventory and supplies

853.6

828.9

Income taxes receivable

8.2

Regulatory assets, includes $16.9 and $16.7 related to variable interest entity, respectively

261.2

217.4

Prepaid expenses

79.2

77.9

Other

63.6

47.4

Total Current Assets

1,879.2

1,815.8

PROPERTY, PLANT AND EQUIPMENT, NET, includes $117.6 and $119.4 related to variable interest entity, respectively

26,803.9

26,301.5

OTHER ASSETS:

Regulatory assets, includes $273.6 and $277.9 related to variable interest entity, respectively

1,913.5

1,885.3

Nuclear decommissioning trust

995.3

1,016.8

Goodwill

2,336.6

Other

553.0

592.5

Total Other Assets

5,798.4

5,831.2

TOTAL ASSETS

$ 34,481.5

$ 33,948.5

March 31

December 31

2026

2025

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

(millions, except

share amounts)

Current maturities of long-term debt, includes $17.0 and $17.0 related to variable interest entity, respectively

$ 367.0

Commercial paper

1,960.3

1,394.0

Collateralized note payable

402.0

Accounts payable

431.8

654.3

Accrued taxes

287.6

169.4

Accrued interest, includes $5.2 and $1.3 related to variable interest entity, respectively

211.5

158.3

Regulatory liabilities

148.4

141.6

Asset retirement obligations

37.5

34.2

Customer advances for construction

196.3

161.6

Other

175.6

213.5

Total Current Liabilities

4,218.0

3,695.9

LONG-TERM LIABILITIES:

Long-term debt, net, includes $279.2 and $279.2 related to variable interest entity, respectively

13,147.0

13,039.2

Deferred income taxes

2,000.8

2,020.7

Unamortized investment tax credits

154.1

155.8

Regulatory liabilities

2,809.6

2,824.6

Pension and post-retirement liability

266.4

278.7

Asset retirement obligations

1,320.0

1,308.1

Other

359.4

357.7

Total Long-Term Liabilities

20,057.3

19,984.8

Commitments and Contingencies (See 10-Q Note 10)

EQUITY:

Evergy, Inc. Shareholders' Equity:

Common stock - 600,000,000 shares authorized, without par value 230,510,138 and 230,262,674 shares issued, stated value

7,217.2

7,273.1

Retained earnings

2,956.0

2,966.2

Accumulated other comprehensive loss

(16.6)

(18.0)

Total Evergy, Inc. Shareholders' Equity

10,156.6

10,221.3

Noncontrolling Interests

49.6

46.5

Total Equity

10,206.2

10,267.8

TOTAL LIABILITIES AND EQUITY

$ 34,481.5

$ 33,948.5

‌Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended March 31

2026

2025

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

(millions)

Net income

$ 154.6

$ 128.1

Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization

305.3

288.1

Amortization of nuclear fuel

16.7

16.2

Amortization of deferred refueling outage

9.8

4.2

Amortization of corporate-owned life insurance

8.2

6.6

Stock compensation

5.6

4.5

Net deferred income taxes and credits

(9.5)

(8.9)

Allowance for equity funds used during construction

(10.4)

(2.5)

Payments for asset retirement obligations

(0.6)

(3.5)

Equity in earnings of equity method investees, net of income taxes

(2.4)

(1.6)

Income from corporate-owned life insurance

(8.0)

(1.3)

(Gains) losses from investments in early-stage clean energy and energy solution companies

(0.2)

3.6

Losses on induced conversion of convertible notes

10.3

Other

0.3

Changes in working capital items:

Accounts receivable

3.9

41.6

Fuel inventory and supplies

(24.6)

(0.2)

Prepaid expenses and other current assets

(39.3)

(31.9)

Accounts payable

(191.8)

(155.3)

Accrued taxes

126.4

116.9

Other current liabilities

25.2

60.6

Changes in other assets

(8.7)

19.6

Changes in other liabilities

(8.3)

(35.5)

Cash Flows from Operating Activities

362.5

449.6

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Additions to property, plant and equipment

(851.9)

(592.8)

Purchase of securities - trusts

(29.6)

(26.8)

Sale of securities - trusts

25.6

21.9

Proceeds from nonrefundable contributions in aid of construction

48.8

Investment in corporate-owned life insurance

(1.9)

(4.2)

Proceeds from investment in corporate-owned life insurance

49.6

0.7

Other investing activities

2.8

2.3

Cash Flows used in Investing Activities

(756.6)

(598.9)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Short-term debt, net

66.3

(264.0)

Proceeds from term loan facility

555.0

Repayment of term loan facility

(55.0)

Issuance of common stock

0.4

Proceeds from long-term debt

348.0

594.2

Retirements of long-term debt

(309.5)

Borrowings against cash surrender value of corporate-owned life insurance

0.7

Repayment of borrowings against cash surrender value of corporate-owned life insurance

(39.9)

Proceeds from refundable advances for construction

6.8

Cash dividends paid

(157.6)

(153.6)

Other financing activities

(14.5)

(5.7)

Cash Flows from Financing Activities

400.7

171.6

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

6.6

22.3

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:

Beginning of period

27.0

29.9

End of period

$ 33.6

$ 52.2

‌Earnings Variances

Evergy, Inc

First Quarter 2026 vs. 2025

Change

(dollars in millions) ($ per share)

2025 net income attributable to Evergy, Inc.

$ 125.0 $

0.54

Favorable/(Unfavorable )

Utility gross margin(a)

51.3 A

0.22

Operating and maintenance

(11.2) B

(0.05)

Depreciation and amortization

(17.2) C

(0.07)

Taxes other than income tax

3.9 D

0.02

Other income (expense), net

14.7 E

0.05

Interest expense

(22.0) F

(0.09)

Income tax expense

6.2 G

0.03

Equity in earnings of equity method investees, net of income taxes

0.8

Net income attributable to noncontrolling interests

Change in shares outstanding

(0.01)

2026 net income attributable to Evergy, Inc.

$ 151.5 $

0.64

(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin in the Utility Gross Margin (Non-GAAP) section below.

Major factors influencing the period to period change in EPS-- Favorable/(Unfavorable)

A Due primarily to an increase from new Evergy Kansas Central retail rates effective in October 2025 - $40.0M; an increase in revenue related to non-regulated energy marketing activity at Evergy Kansas Central - $16.6M; partially offset by a decrease driven by unfavorable weather, partially offset by higher weather-normalized demand - ($5.3M).

Due primarily to an increase in general and administrative labor and employee benefits expense, primarily due to higher medical claims - ($6.7M); and an increase in transmission and distribution operating and maintenance expenses primarily at Evergy Kansas Central related to an increase in non-labor expense including higher contractor costs - ($2.4M).

Due primarily to capital additions - ($17.2M).

Due primarily to a decrease at Evergy Kansas Central primarily driven by a decrease in the 2026 amortization of the Kansas property tax rider - $3.9M.

Due primarily to an increase in equity allowance for funds used during construction (AFUDC) primarily at Evergy Kansas Central and Evergy Missouri West - $7.9M; and an increase due to higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2026 - $6.4M.

Due primarily to issuances of long-term debt - ($18.9M); an increase related to Evergy's repurchase of a portion of its convertible notes in 2026 - ($10.3M); and an increase in interest expense on short-term borrowings - ($2.8M); partially offset by a decrease due to the repayment of long-term debt - $6.9M; and a decrease due to higher debt AFUDC primarily at Evergy Missouri West - $5.0M.

Due primarily to a decrease related to higher energy production and other income tax credits in 2026 - $4.0M.

‌Supplemental Data

Evergy, Inc.

Financial Results, Revenue and Sales

Three Months Ended March 31

2026

2025

2026

2025

2026

2025

2026

2025

(Dollars in millions)

Operating revenues

$ 1,443.7

$ 1,374.5

$ 773.1

$ 709.1

$ 445.4

$ 427.7

$ 236.2

$ 241.8

Fuel and purchased power

360.0

355.3

130.7

126.5

152.7

137.8

87.6

95.2

SPP network transmission costs

109.6

96.4

109.6

96.4

Operating and maintenance

243.2

232.0

120.9

109.5

72.1

70.5

45.6

48.0

Depreciation and amortization

305.3

288.1

153.0

142.1

107.3

103.8

45.5

43.1

Taxes other than income tax

107.2

111.1

57.2

60.8

36.2

36.7

13.7

13.6

Income from operations

318.4

291.6

201.7

173.8

77.1

78.9

43.8

41.9

Other income (expense), net

11.7

(3.0)

10.9

0.6

(0.8)

0.9

2.6 (0.3)

Interest expense

174.5

152.5

64.2

59.3

37.3

36.3

24.3

22.8

Income tax expense

3.4

9.6

2.4

4.9

2.8

6.6

1.9

2.1

Equity in earnings of equity method investees, net of income taxes

2.4

1.6

1.0

0.7

Net income

154.6

128.1

147.0

110.9

36.2

36.9

20.2

16.7

Less: net income attributable to noncontrolling interests

3.1

Net income attributable to controlling interest

$ 151.5

$ 125.0

$ 143.9

$ 107.8

$ 36.2

$ 36.9

$ 20.2

$ 16.7

Reconciliation of gross margin (GAAP) to utility gross margin (non-GAAP):

Operating revenues

$ 1,443.7

$ 1,374.5

$ 773.1

$ 709.1

$ 445.4

$ 427.7

$ 236.2

$ 241.8

Fuel and purchased power

(360.0)

(355.3)

(130.7) (126.5)

(152.7) (137.8)

(87.6) (95.2)

SPP network transmission costs

(109.6)

(96.4)

(109.6) (96.4)

Operating and maintenance(a)

(132.6)

(129.1)

(60.9) (56.7)

(51.2) (51.3)

(20.4) (20.9)

Depreciation and amortization

(305.3)

(288.1)

(153.0) (142.1)

(107.3) (103.8)

(45.5) (43.1)

Taxes other than income tax

(107.2)

(111.1)

(57.2) (60.8)

(36.2) (36.7)

(13.7) (13.6)

Gross margin (GAAP)

429.0

394.5

261.7

226.6

98.0

98.1

69.0

Operating and maintenance(a)

132.6

129.1

60.9

56.7

51.2

51.3

20.4

20.9

Depreciation and amortization

305.3

288.1

153.0

142.1

107.3

103.8

45.5

43.1

Taxes other than income tax

107.2

111.1

57.2

60.8

36.2

36.7

13.7

13.6

Utility gross margin (non-GAAP)

$ 974.1

$ 922.8

$ 532.8

$ 486.2

$ 292.7

$ 289.9

$ 148.6

$ 146.6

Revenues

(Dollars in millions)

Residential

$ 482.7 $

509.9

$ 217.3

$ 223.7

$ 155.4

$ 166.9

$ 110.0

$ 119.3

Commercial

440.1

436.5

188.5

183.6

169.4

171.7

82.2

81.2

Industrial

160.3

145.0

108.7

96.1

29.5

28.3

22.1

20.6

Other retail revenues

11.4

10.1

5.8

6.1

2.8

2.3

2.8

1.7

Total electric retail

1,094.5

1,101.5

520.3

509.5

357.1

369.2

217.1

222.8

Wholesale revenues

107.1

48.6

86.6

72.5

21.9 (29.0)

9.7

9.3

Transmission

133.6

134.0

124.7

123.2

6.3

7.4

2.6

3.5

Other

108.5

90.4

41.5

3.9

60.1

80.1

6.8

6.2

Operating revenues

$ 1,443.7

$ 1,374.5

$ 773.1

$ 709.1

$ 445.4

$ 427.7

$ 236.2

$ 241.8

Electricity Sales

(MWh in thousands)

Residential

3,821

4,055

1,488

1,607

1,365

1,433

968

1,015

Commercial

4,507

4,425

1,721

1,709

1,820

1,846

966

870

Industrial

2,073

1,878

1,305

1,180

423

393

345

304

Other retail revenues

Total electric retail

10,421

10,382

4,521

4,506

3,618

3,682

2,282

2,194

Wholesale revenues

3,163

3,595

2,197

2,161

1,066

1,299

113

135

Total electricity sales

13,584

13,977

6,718

6,667

4,684

4,981

2,395

2,329

(a)Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP.

Degree Days

Cooling

2026

2025/ Normal

Change

% Change

Actual compared to last year

N/M

Actual compared to normal

N/M

Heating

Actual compared to last year

2,132

2,666

(534)

(20.0)

Actual compared to normal

2,132

2,516

(384)

(15.3)

(dollars in millions, except per share amounts)

Current maturities of long-term debt

$ 367.0

Long-term debt, net

13,147.0

13,039.2

Total long-term debt

13,514.0

57.0 %

13,406.2

56.6 %

Common equity

10,156.6

42.8 %

10,221.3

43.2 %

Noncontrolling interests

49.6

0.2 %

46.5

0.2 %

Total capitalization

$ 23,720.2

100.0 %

$ 23,674.0

100.0 %

GAAP Book value per share

$ 44.06

$ 44.39

Period end shares outstanding

230,510,138

230,262,674

Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP. Utility gross margin (non-GAAP), as used by Evergy, Evergy Kansas Central and Evergy Metro (collectively, the Evergy Companies), is defined as operating revenues less fuel and purchased power costs and amounts billed by the Southwest Power Pool, Inc. (SPP) for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP Regional Transmission Organization (RTO). As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board. Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.

Utility gross margin (non-GAAP) differs from the GAAP definition of gross margin due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income tax. See page 6 for the reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure, for the three months ended March 31, 2026 and 2025.

Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assist in the comparability of results and are consistent with how management reviews performance.

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2026 were $161.8 million or $0.69 per share. For the three months ended March 31, 2025, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were recast to conform to the current year calculation of adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), resulting in adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) of $127.8 million or $0.55 per share.

In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without:

losses from the repurchase of a portion of Evergy's Convertible Notes; and

unrealized gains and losses from non-regulated investments in early-stage clean energy and energy solution companies and costs related to the disposal of these investments.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance or that can create period to period earnings volatility.

(non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

‌The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.

(millions, except per share amounts)

Net income attributable to Evergy, Inc.

$ 151.5

$ 0.64

$ 125.0

$ 0.54

Non-GAAP reconciling items:

Losses from the repurchase of convertible notes, pre-tax(a)

10.3

0.05

Losses from investments in early-stage clean energy and energy solution companies, pre-tax(b)

0.4

3.6

0.01

Income tax benefit(c)

(0.4)

(0.8)

Adjusted earnings (non-GAAP)

$ 161.8

$ 0.69

$ 127.8

$ 0.55

‌(a) Reflects losses and fees of $10.3 million related to Evergy's repurchase of $244.1 million aggregate principal amount of its Convertible Notes in the first quarter 2026 that are included in interest expense on the consolidated statements of comprehensive income.

(b) Reflects unrealized gains of $0.2 million and unrealized losses of $3.6 million for the three months ended March 31, 2026 and 2025, respectively, from non-regulated investments in early-stage clean energy and energy solution companies that are included in investment earnings on the consolidated statements of comprehensive income and $0.6 million for the three months ended March 31, 2026, of costs related to the disposal of these investments that are included in operating and maintenance expense on the consolidated statements of comprehensive income. Adjustments for the three months ended March 31, 2025, have been recast to conform to the current year calculation of adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) that exclude these amounts. Evergy is in the process of disposing these investments.

(c) Reflects an income tax effect calculated at a statutory rate of approximately 22%, with the exception of certain non-deductible items.

Disclaimer

Evergy Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:23 UTC.