Nasdaq:EVRG
Evergy, Inc.
A diversified utility provider serving the Midwest with a focus on reliable electricity and natural gas distribution for over 1.7 million customers.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Evergy for its defensive utility profile combined with exposure to the renewable energy transition, offering stable dividends and potential for regulated return growth. The company's large installed wind capacity provides a competitive moat against natural gas price volatility, ensuring long-term margin stability in an increasingly green energy market. With consistent capital expenditure programs funded by manageable debt levels relative to cash flow, Evergy is well-positioned to capture value from infrastructure investment mandates.
Bear Case
The high level of interest expense and significant long-term debt create vulnerability if rates remain elevated or credit spreads widen, potentially compressing earnings before tax. Regulatory uncertainty in multiple jurisdictions introduces non-operational volatility that can delay expected rate recovery plans and impact the cost of capital for major projects. Additionally, the heavy reliance on capital-intensive grid upgrades may strain free cash flow, limiting flexibility for share buybacks or aggressive dividend growth in a high-rate environment.
About Evergy, Inc.
Evergy, Inc. (EVRG) is a diversified utility holding company serving approximately 1.7 million customer accounts across Kansas, Missouri, Iowa, and Nebraska. The company generates revenue primarily through regulated electric distribution and generation operations, alongside natural gas distribution services. Evergy invests heavily in grid modernization and renewable energy integration to support its customers' transition to cleaner power sources.
Analysis
Management Discussion
Evergy reported revenue of $5.96B in 2025, reflecting a modest recovery from the prior year's dip while maintaining net profit near $868M despite higher interest costs. Operating cash flow remains strong at $2.05B, though heavy capital expenditures of $2.80B required significant financing through debt issuances and commercial paper to fund grid upgrades. The company successfully managed working capital changes and maintained a healthy liquidity position with cash equivalents near $20M, even as it navigated the challenging interest rate environment.
Industry Overview
The utility industry is characterized by regulated monopolies where companies earn a guaranteed return on invested capital subject to government oversight and public scrutiny. This sector faces a structural shift toward decarbonization, requiring massive capital investment in renewable generation and smart grid technologies while maintaining reliability for growing populations. Utilities like Evergy are under pressure to balance these modernization costs with shareholder expectations for consistent dividend yields and inflation-linked earnings growth.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.86B | $5.51B | $5.85B | $5.96B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $5.86B | $5.51B | $5.85B | $5.96B |
| Operating Expenses | $4.59B | $4.23B | $4.38B | $4.43B |
| Operating Income | $1.27B | $1.28B | $1.47B | $1.53B |
| Stock-Based Comp | $18.8M | $17.7M | $15.2M | $20.7M |
| D&A | $929.4M | $1.08B | $1.11B | $1.16B |
| Depreciation | $836.1M | $943.3M | $965.9M | $944.2M |
| Non-Operating Income | $-462.0M | $-530.6M | $-560.0M | $-641.9M |
| Interest Expense | $404.0M | $525.8M | $563.1M | $616.3M |
| Pre-Tax Income | $805.2M | $751.8M | $908.0M | $891.0M |
| Income Tax | $47.5M | $15.6M | $30.0M | $29.9M |
| Continuing Ops | $757.7M | $736.2M | $878.0M | $861.1M |
| Discontinued Ops | $7.3M | $7.4M | $7.8M | $6.8M |
| Net Income | $765.0M | $743.6M | $885.8M | $867.9M |
| Minority Interest | $12.3M | $12.3M | $12.3M | $12.3M |
| Net to Common | $752.7M | $731.3M | $873.5M | $855.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.84B | $1.79B | $1.84B | $1.82B |
| Cash & Equivalents | $25.2M | $27.7M | $22.0M | $19.8M |
| Accounts Receivable | $315.3M | $256.9M | $245.4M | $214.2M |
| Prepaid Expenses | $47.8M | $51.3M | $66.1M | $77.9M |
| Other Current Assets | $1.45B | $1.45B | $1.51B | $1.50B |
| Long-Term Assets | $27.65B | $29.19B | $30.44B | $32.13B |
| PP&E (Net) | $22.14B | $23.60B | $24.93B | $26.30B |
| Goodwill | $2.34B | $2.34B | $2.34B | $2.34B |
| Operating Leases | $77.4M | $71.1M | $58.3M | $62.0M |
| Other LT Assets | $3.10B | $3.18B | $3.12B | $3.43B |
| Total Assets | $29.49B | $30.98B | $32.28B | $33.95B |
| Current Liabilities | $3.49B | $3.51B | $3.66B | $3.70B |
| Accounts Payable | $600.8M | $616.9M | $613.8M | $654.3M |
| Current Debt | $439.1M | $800.0M | $651.7M | $367.0M |
| Current Leases | $16.1M | $18.1M | $14.6M | $16.4M |
| Other Current Liab | $2.44B | $2.08B | $2.38B | $2.66B |
| Long-Term Liabilities | $16.50B | $17.78B | $18.63B | $19.98B |
| Long-Term Debt | $9.91B | $11.05B | $11.81B | $13.04B |
| LT Operating Leases | $60.0M | $53.3M | $43.1M | $44.6M |
| Other LT Liab | $6.54B | $6.67B | $5.57B | $5.51B |
| Total Liabilities | $20.00B | $21.29B | $22.29B | $23.68B |
| Shareholders' Equity | $9.49B | $9.69B | $9.99B | $10.27B |
| Retained Earnings | $2.30B | $2.46B | $2.73B | $2.97B |
| AOCI | $-34.5M | $-29.6M | $-23.8M | $-18.0M |
| Total L&E | $29.49B | $30.98B | $32.28B | $33.95B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $765.0M | $743.6M | $885.8M | $867.9M |
| Non-Cash Adjustments | $913.6M | $1.44B | $1.35B | $1.29B |
| Working Capital Changes | $123.3M | $-207.6M | $-257.0M | $-114.5M |
| Cash from Operations | $1.80B | $1.98B | $1.98B | $2.05B |
| Capital Expenditures | $2.17B | $2.33B | $2.34B | $2.80B |
| Cash from Investing | $-2.15B | $-2.47B | $-2.26B | $-2.57B |
| Debt Issuances | $567.7M | $2.44B | $1.41B | $1.69B |
| Debt Repayments | $410.9M | $439.5M | $811.5M | $751.1M |
| Dividends Paid | $534.8M | $569.6M | $596.7M | $613.1M |
| Cash from Financing | $349.3M | $494.0M | $280.3M | $522.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-1.0M | $2.5M | $2.2M | $-2.9M |
| Beginning Cash | $26.2M | $25.2M | $27.7M | $29.9M |
| Ending Cash | $25.2M | $27.7M | $29.9M | $27.0M |
Frequently Asked Questions
How does Evergy, Inc. make money?
The company operates through two main business segments: Electric Operations, which includes both generation and regulated distribution activities in Kansas, Missouri, Iowa, and Nebraska; and Gas Operations, providing natural gas distribution services to residential and commercial customers in the same regions. A third component is Corporate & Other, which encompasses corporate headquarters functions and investments in affiliates that contribute to the consolidated financial results.
What are the main risks for EVRG?
Regulatory risk remains paramount as Evergy's returns are subject to approval by state public utility commissions, which could alter the cost of capital or delay rate increases needed for infrastructure investments. Interest rate sensitivity poses a significant threat given the company's substantial long-term debt load of over $13 billion and high interest expense exceeding $600 million annually. Operational risks include severe weather events that can damage grid assets and interrupt service, as well as cybersecurity threats targeting critical infrastructure.
What is EVRG's competitive advantage?
Evergy benefits from strong regulated rate bases in multiple Midwest states, providing stable cash flows and predictable earnings growth tied to inflation and population growth. The company has a significant advantage in its extensive renewable energy portfolio, having developed one of the largest wind farms in the world, which hedges against volatile fossil fuel prices. Its robust balance sheet allows for continued capital expenditures in grid hardening and modernization without relying heavily on equity dilution.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.