On August 9, 2024, Evergy Inc (EVRG, Financial) released its 8-K filing detailing the company's financial performance for the second quarter of 2024. Evergy, a regulated electric utility serving eastern Kansas and western Missouri, reported GAAP earnings of $207.0 million, or $0.90 per share, compared to $179.1 million, or $0.78 per share, for the same period in 2023.
Company Overview
Evergy Inc (EVRG, Financial) operates through major subsidiaries including Evergy Metro, Evergy Kansas Central, Evergy Missouri West, and Evergy Transmission Co. The utility boasts a combined rate base of approximately $19 billion, with about half in Kansas and the remainder split between Missouri and federal jurisdiction. Notably, Evergy is one of the largest wind energy suppliers in the U.S.
Performance and Challenges
Evergy's second quarter 2024 adjusted earnings (non-GAAP) were $207.0 million, or $0.90 per share, up from $186.1 million, or $0.81 per share, in 2023. This increase was driven by warmer than normal weather, growth in weather-normalized demand, new retail rates, and higher transmission margin. However, these gains were partially offset by higher operation and maintenance expenses, higher depreciation and amortization expenses, and increased interest expenses.
“The overall economic development pipeline remains robust in both Kansas and Missouri. Our focus on affordability and regional rate competitiveness is an important contributor to this large pipeline and provides a foundation of support for the tremendous potential in our states,” said David Campbell, Evergy chairman and chief executive officer.
Financial Achievements
Evergy's financial achievements are significant for a regulated utility company. The company reaffirmed its 2024 GAAP EPS guidance range of $3.73 to $3.93 and its long-term adjusted EPS (non-GAAP) annual growth target of 4% to 6% through 2026. These achievements underscore Evergy's ability to maintain stable and predictable earnings, which is crucial for investor confidence in the utility sector.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income (GAAP) | $207.0 million | $179.1 million |
| EPS (GAAP) | $0.90 | $0.78 |
| Adjusted Earnings (non-GAAP) | $207.0 million | $186.1 million |
| Adjusted EPS (non-GAAP) | $0.90 | $0.81 |
Analysis
Evergy's performance in Q2 2024 demonstrates its resilience and ability to capitalize on favorable weather conditions and demand growth. The reaffirmation of its 2024 guidance and long-term growth targets further solidifies its position as a stable investment in the regulated utilities sector. However, the company must continue to manage rising operational and maintenance costs to sustain its growth trajectory.
For more detailed financial information and to access the full earnings report, visit Evergy's investor relations page.
Explore the complete 8-K earnings release (here) from Evergy Inc for further details.
