CMS announces earnings rise, leadership changes, dividend

JACKSON–CMS Energy (NYSE: CMS), the utility holding company and parent of Consumers Energy, reported net income for the full year 2023 of $877 million or $3.01 a share, up from $827 million or $2.85 a share in 2022.

Revenue for the year was $7.462 billion, down from $8.596 billion a year earlier.

For the fourth quarter, CMS reported revenue of $1.95 billion, down from $2.278 billion a year earlier. Net income was $306 million, or $1.05 a share, up from $168 million, or 58 cents a share, a year earlier.

The reason for improved profitability in both the quarter and the year was a sharp decline in operating expenses. They fell from $7.372 billion in 2022 to $6.227 billion in 2023, and from $2.007 billion in the fourth quarter of 2022 to $1.544 billion in the fourth quarter of 2023.

The company also raised its 2024 earnings guidance to a range of $3.29 to $3.35 a share, up from the previous guidance of $3.27 to $3.33 per share.

“In a challenging year with unfavorable weather and significant storms, we responded and delivered for our customers, communities and investors,” said Garrick Rochow, president and CEO of CMS Energy and Consumers Energy. “I’m proud of the team’s efforts in 2023 and our success positions CMS Energy well for the long-term.”

To listen to a replay of a conference call discussing these results, visit www.cmsenergy.com.

CMS also announced the retirement of Tim Sparks, vice president of electric supply, after more than 30 years with the company.

Sri Maddipati has been named vice president of electric supply. Maddipati is responsible for electric supply operations, generation engineering and electric supply strategy.

Maddipati joined CMS Energy in 2014 and previously served as treasurer, vice president of finance and investor relations. He also chaired the Benefit Administration Committee, which is responsible for managing employee benefit plan investments. He earned bachelor’s and master’s degrees in enginering from the University of Michgan.

Jason Shore has replaced Maddipati as treasurer and vice president of investor relations. He is responsible for managing investor relations, corporate liquidity and financing and maintaining relationships with commercial and investment banks and the credit rating agencies. He previously served as executive director of treasury and capital markets. Shore joined the company in 1998 and has held numerous accounting and finance leadership roles, including director of general accounting and executive director of budget, planning and analysis. Shore earned a bachelor’s degree in accounting from Michigan State University.

Finally, CMS’ board increased the quarterly dividend on the company’s common stock from 48.75 cents a share to 51.5 cents a share. The dividend will be payable Feb. 29 to shareholders of record as of Feb. 12.

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