A leading U.S. diversified energy holding company delivering reliable electricity, natural gas, and clean energy solutions to millions of customers across the Midwest and Great Lakes regions.
CMS Energy offers an attractive dividend yield backed by stable regulated utility cash flows and a growing renewable energy portfolio that aligns with long-term decarbonization trends. The company's diverse revenue streams across electricity, gas, and renewables provide defensive characteristics during economic downturns while offering growth potential from clean energy projects.
Investors should be cautious regarding the high level of total liabilities at $30.23 billion and current liabilities exceeding current assets, which could constrain financial flexibility if interest rates remain elevated. Regulatory pressure to retire coal plants and meet net-zero targets may lead to increased capital expenditure requirements that could compress margins in the near term.
CMS Energy (CMS) is a diversified energy holding company operating primarily in the United States through its two main subsidiaries, CMS Energy and DTE Energy. The company generates revenue by providing electric utility services, natural gas distribution, and renewable energy solutions to residential, commercial, and industrial customers across Michigan, Ohio, Indiana, Illinois, Wisconsin, and Pennsylvania.
The company demonstrated robust financial health with net income reaching $1.0 billion in 2025, up from $947 million the previous year, while revenue recovered to $8.54 billion after a period of stabilization. Strong operational cash flow of $2.23 billion supported significant capital investments and debt issuance of $3.61 billion, indicating a balanced approach to funding growth and maintaining liquidity.
The U.S. energy utility sector is currently undergoing a rapid transition from fossil fuels to renewable sources, driven by federal climate policies and shifting consumer demand for sustainable power. Companies with established nuclear and wind assets are well-positioned to capture value in this evolving landscape while managing the complexities of grid modernization.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.60B | $7.46B | $7.51B | $8.54B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $8.60B | $7.46B | $7.51B | $8.54B |
| Operating Expenses | $7.37B | $6.23B | $6.03B | $6.81B |
| Operating Income | $1.22B | $1.24B | $1.49B | $1.73B |
| D&A | $1.13B | $1.18B | $1.24B | $1.31B |
| Depreciation | $990.0M | $1.05B | $1.04B | $1.10B |
| Non-Operating Income | $-322.0M | $-281.0M | $-364.0M | $-479.0M |
| Interest Expense | $519.0M | $643.0M | — | — |
| Interest Income | $5.0M | — | — | — |
| Pre-Tax Income | $902.0M | $954.0M | $1.12B | $1.25B |
| Income Tax | $93.0M | $147.0M | $176.0M | $246.0M |
| Continuing Ops | $809.0M | $807.0M | $947.0M | $1.00B |
| Discontinued Ops | $4.0M | $1.0M | $0 | $0 |
| Net Income | $813.0M | $808.0M | $947.0M | $1.00B |
| Minority Interest | $-24.0M | $-79.0M | $-56.0M | $-69.0M |
| Net to Common | $837.0M | $887.0M | $1.00B | $1.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.43B | $2.84B | $2.79B | $3.47B |
| Cash & Equivalents | $164.0M | $227.0M | $103.0M | $509.0M |
| Accounts Receivable | $1.56B | — | — | — |
| Other Current Assets | $1.71B | $2.61B | $2.69B | $2.96B |
| Long-Term Assets | $27.92B | $30.68B | $33.13B | $36.47B |
| PP&E (Net) | $22.71B | $25.07B | $27.46B | $30.68B |
| Operating Leases | $31.0M | $26.0M | $24.0M | $22.0M |
| Other LT Assets | $5.11B | $5.50B | $5.58B | $5.71B |
| Total Assets | $31.35B | $33.52B | $35.92B | $39.94B |
| Current Liabilities | $2.98B | $2.90B | $3.52B | $3.55B |
| Accounts Payable | $928.0M | — | — | — |
| Current Debt | $1.09B | $975.0M | $1.19B | $950.0M |
| Current Leases | $4.0M | $4.0M | $3.0M | $3.0M |
| Other Current Liab | $963.0M | $1.92B | $2.33B | $2.60B |
| Long-Term Liabilities | $20.77B | $22.50B | $23.65B | $26.68B |
| Long-Term Debt | $13.12B | $14.51B | $15.19B | $17.81B |
| LT Operating Leases | $27.0M | $22.0M | $21.0M | $19.0M |
| Other LT Liab | $7.62B | $7.97B | $8.44B | $8.86B |
| Total Liabilities | $23.76B | $25.39B | $27.17B | $30.23B |
| Shareholders' Equity | $7.59B | $8.12B | $8.75B | $9.71B |
| Retained Earnings | $1.35B | $1.66B | $2.04B | $2.44B |
| AOCI | $-52.0M | $-46.0M | $-41.0M | $-36.0M |
| Total L&E | $31.35B | $33.52B | $35.92B | $39.94B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $813.0M | $808.0M | $947.0M | $1.00B |
| Non-Cash Adjustments | $-1.08B | $2.19B | $1.66B | $780.0M |
| Working Capital Changes | $1.12B | $-688.0M | $-232.0M | $453.0M |
| Cash from Operations | $855.0M | $2.31B | $2.37B | $2.23B |
| Capital Expenditures | $2.37B | — | — | — |
| Cash from Investing | $-2.48B | $-3.39B | $-3.05B | $-4.04B |
| Debt Issuances | $1.90B | $3.55B | $1.96B | $3.61B |
| Debt Repayments | $106.0M | $2.13B | $952.0M | $1.15B |
| Cash from Financing | $1.33B | $1.14B | $614.0M | $2.24B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-294.0M | $66.0M | $-70.0M | $437.0M |
| Beginning Cash | $476.0M | $182.0M | $248.0M | $178.0M |
| Ending Cash | $182.0M | $248.0M | $178.0M | $615.0M |
Electric Utilities (Generation and Distribution), Natural Gas Distribution and Marketing, Renewable Energy Development and Operations, and Nuclear Power Generation segments.
Regulatory changes impacting utility ratemaking and return on equity, adverse weather events affecting grid reliability and asset damage, volatile commodity prices influencing wholesale power costs, and accelerating decarbonization mandates requiring substantial capital investment.
Dominant regional market presence in the Midwest with a highly reliable distribution grid, significant renewable energy portfolio including wind and solar assets, and strong operational efficiency driven by nuclear generation capabilities.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.