AI Takeaway
CMS Energy delivered strong FY2025 revenue growth of 13.6% to $8.54B, with operating income rising 16.1% to $1.73B, though net income grew more modestly at 6.8% to $1.07B amid a significant ramp-up in capital investment and long-term debt.
Revenue
$8.54B
++13.63% YoY
EPS (Basic)
$3.53
++5.69% YoY
Operating Income
$1.73B
++16.14% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
CMS Energy grew revenue by 13.6% year-over-year from $7.52B to $8.54B in FY2025, reflecting continued expansion in its regulated utility business and favorable rate structures supporting top-line growth.
Source: Source: 10-K Income Statement, Financial Data
Operating margin improved modestly from 19.79% to 20.22%, with operating income rising 16.1% to $1.73B, indicating disciplined cost management even as the company scaled its operations significantly.
Source: Source: 10-K Income Statement & Key Ratios, Financial Data
Investing cash outflows surged 32.2% to -$4.04B in FY2025, reflecting a major infrastructure investment cycle, consistent with regulated utility capital expenditure programs aimed at grid modernization and capacity expansion.
Source: Source: 10-K Cash Flow Statement, Financial Data
2 more insights available
Upgrade to unlockLong-term debt increased 17.2% to $17.81B in FY2025, representing a significant leverage burden relative to total assets of $39.94B. Rising interest rates could materially increase borrowing costs and pressure net income, which grew only 6.8% despite strong revenue gains.
Source: Source: 10-K Balance Sheet, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.94 versus the $0.95 analyst consensus — a -1.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.54B | $7.51B | +13.63% |
Operating Income | $1.73B | $1.49B | +16.14% |
Net Income | $1.07B | $1B | +6.78% |
EPS (Basic) | $3.53 | $3.34 | +5.69% |
EPS (Diluted) | $3.53 | $3.33 | +6.01% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $39.94B | $35.92B | +11.19% |
Current Assets | $3.47B | $2.79B | +24.44% |
Current Liabilities | $3.55B | $3.52B | +0.77% |
Stockholders' Equity | $9.14B | $8.23B | +11.11% |
Cash & Equivalents | $509M | $103M | +394.17% |
Long-Term Debt | $17.81B | $15.19B | +17.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.23B | $2.37B | -5.70% |
Investing Cash Flow | $-4.04B | $-3.05B | -32.22% |
Financing Cash Flow | $2.24B | $614M | +264.82% |
D&A | $1.31B | $1.24B | +5.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 20.2% | 19.8% | +0.44% |
Net Margin | 12.5% | — | — |
ROE | 11.7% | — | — |
ROA | 2.7% | — | — |
Current Ratio | $0.979 | — | — |
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CMS Energy's revenue grew 13.6% year-over-year to $8.54B in FY2025, up from $7.52B in the prior year. This growth reflects the company's regulated utility operations benefiting from rate structures and increased energy demand.
CMS Energy delivered solid top-line and operating income growth in FY2025, with revenue up 13.6% to $8.54B and operating income up 16.1% to $1.73B. However, net income grew more modestly at 6.8% to $1.07B, and the company significantly increased its long-term debt by 17.2% to $17.81B to fund a major capital investment program.
Based on the FY2025 financial data, key risks include rising long-term debt (up 17.2% to $17.81B), a current ratio below 1.0 at 0.979 indicating tight liquidity, and a significant free cash flow deficit as $4.04B in investing outflows far exceeded $2.24B in operating cash flow. Regulatory rate recovery risk is also a structural concern for the regulated utility business.
Yes, CMS Energy is profitable in FY2025, reporting net income of $1.07B and basic EPS of $3.53, both up from the prior year. Operating margin improved to 20.22%, and net margin stood at 12.54%, reflecting consistent earnings from its regulated utility operations.
CMS Energy's financial health in FY2025 shows a mixed picture: strong revenue and operating income growth, but elevated leverage with $17.81B in long-term debt and a current ratio of 0.979 that is slightly below 1.0. The company is in an active capital investment cycle, spending $4.04B in investing activities, which is being funded primarily through debt issuance as evidenced by financing cash inflows of $2.24B.