Evergy (NASDAQ:EVRG) raised its 2026 earnings guidance after warmer-than-normal weather and growing electricity demand helped lift third-quarter adjusted earnings, while the utility outlined further opportunities to serve large customers in Kansas and Missouri.
The company reported adjusted earnings of $610 million, or $2.58 per share, for the quarter, compared with $475 million, or $2.03 per share, a year earlier. Year-to-date adjusted earnings rose to $4.15 per share from $3.41 per share.
Evergy now expects 2026 adjusted earnings of $4.35 to $4.50 per share, up from its prior range of $4.14 to $4.34. Chairman and CEO David Campbell said the company also increased its quarterly dividend by 4%, bringing the annualized payout to $2.89 per share.
Weather and demand boost results
Chief Financial Officer Bryan Buckler said weather, demand and large-customer revenues contributed $0.46 per share to the year-over-year earnings increase. Cooling degree days were 31% higher than a year earlier and 26% above normal.
Recovery of regulated investments added $0.17 per share, while higher operating and maintenance costs, depreciation and interest expense reduced earnings by $0.15 per share, Buckler said. The updated annual guidance includes targeted fourth-quarter reliability spending on the distribution grid and generation fleet.
Weather-normalized retail electricity demand rose 4.5% in the quarter. Commercial demand increased 8.7%, helped by data center usage, while industrial demand rose 3%, primarily because of Panasonic’s continued operational ramp. Residential demand increased 0.8%.
Through September, weather-normalized demand was up 3.7%, in line with Evergy’s full-year expectation of 3% to 4% growth, Buckler said.
Large-customer agreements expand
Evergy announced amendments adding approximately 110 megawatts of peak load across two existing large-load electric service agreements. Its five executed agreements now represent approximately 2.6 gigawatts of steady-state peak load; including non-tariff large customers, the projects are expected to require about 3.1 gigawatts over time.
A separate amendment for a 140-megawatt expansion remains contingent on a transmission study expected by year-end. Campbell said Evergy also signed a letter of intent with Digital Realty for a potential 1.4-gigawatt expansion adjacent to an existing 600-megawatt project. Evergy expects to execute a service agreement for the expansion in the first half of 2027.
Buckler estimated that the Digital Realty expansion alone could require roughly $4 billion in capital investment, with Evergy anticipating ownership of most of the generation resources needed to serve it. Campbell said the bulk of the project’s load ramp would likely occur in 2030 and beyond.
The potential Digital Realty expansion and the contingent 140-megawatt amendment are not included in Evergy’s five-year financial plan. Campbell said the company remains confident it can ultimately secure 5 to 7 gigawatts of large-load customer agreements, though prospective projects require further agreements and, in some cases, permitting and infrastructure solutions.
Investment and earnings outlook
Based on signed agreements and announced large customers, Evergy forecasts annual retail demand growth of approximately 7% to 8% through 2030. Buckler said the company estimates five-year capital spending through 2030 at $22.5 billion, up from its $21.6 billion plan, as its latest resource plans add roughly $1 billion of investment.
The increased estimate raises projected annual rate-base growth through 2030 to approximately 12% from 11.5%. Evergy plans to update its capital plan on its fourth-quarter call in February.
The company reaffirmed its long-term adjusted earnings growth target of 6% to 8%-plus through 2030, measured from the original 2026 guidance midpoint of $4.24 per share. It continues to expect adjusted earnings growth above 8% annually from 2028 through 2030.
To fund investment, Evergy expects to use operating cash flow, reinvested earnings and a mix of debt and equity. Buckler said the company had priced approximately $700 million of common equity through its at-the-market program, compared with its forecast of $700 million to $900 million annually through 2029.
Rate reviews and tariff changes
In Missouri Metro, Evergy reached a partial revenue requirement settlement in October, although some matters, including return on capital, remain open for commission review. Campbell said that if the settlement is approved and the midpoint of staff testimony on return on capital is used, the expected revenue increase would be approximately $118 million before the impact of new large load.
A separate proposed settlement concerning the large-load tariff would provide approximately $60 million in net benefits from new large-customer revenues, resulting in a net revenue increase of about $58 million if approved, Campbell said. Evergy expects a commission order in December and new rates in January 2027.
In Kansas, Evergy has requested approval of a tariff enhancement that would include a rider to account for higher generation costs and nonrefundable advance payments from new large customers. Campbell said the company anticipates an order by mid-2027. He said the proposed changes are intended to protect existing customers while helping finance the infrastructure needed for growth.
About Evergy (NASDAQ:EVRG)
Evergy, Inc is an investor-owned electric utility that generates, transmits, distributes and sells electricity to residential, commercial, industrial and municipal customers. The company operates regulated utilities in Kansas and Missouri, providing electric service through its Kansas Central, Kansas South, Missouri Metro and Missouri West operations.
Evergy’s generation portfolio includes wind, solar, coal, natural gas and nuclear power. The company also owns an interest in the Wolf Creek Generating Station, a nuclear power plant in Kansas, and continues to invest in renewable energy, grid modernization and other infrastructure intended to support reliable electricity service.
Evergy was formed in 2018 through the merger of Westar Energy and Great Plains Energy, the parent company of Kansas City Power & Light.
