CMS Energy Q3 GAAP EPS Falls to $0.39 on $525M NorthStar Impairment
CMS is trading near its 52-week low of $62.285 (11% above the low) on light trading volume (0.3× avg).
Summary
CMS Energy's Q3 GAAP earnings fell to $0.39 a diluted share from $0.92 on $525 million of NorthStar Clean Energy exit charges, while the utility segments improved and cash flow held steady. The quarter also brought a $139 million Michigan gas rate order and a roughly $485 million court judgment against TAES.
Key Events · Earnings and Guidance · CMS
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Q3 GAAP EPS Falls on Impairment
Net income available to common stockholders was $121 million, or $0.39 a diluted share, versus $275 million and $0.92 in Q3 2025; nine-month EPS was $1.86 versus $2.59.
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$525M NorthStar Exit Charge
NorthStar Clean Energy impairment, disposal, and exit costs totaled $525 million, including $454 million of impairment on long-lived assets held for sale and a $15 million loss on the Delta Township solar sale.
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Utilities Improve on Rate Increases
Electric utility net income rose to $399 million from $326 million and gas utility to $13 million from zero, driven by rate increases and higher AFUDC.
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Michigan Gas Rate Order
The MPSC authorized a $139 million annual gas rate increase based on a 9.80% authorized return on equity, effective November 2026, against a revised $232 million request.
Analysis · CMS · Energy & Transportation
The headline adjusted EPS of $1.44 was already out this morning, but the 10-Q shows what sits underneath it: GAAP net income available to common stockholders fell to $121 million, or $0.39 a diluted share, from $275 million and $0.92 a year earlier. The entire gap is the $525 million of NorthStar Clean Energy impairment, disposal, and exit costs booked in the quarter as CMS exits non-utility renewables — $454 million of write-downs on projects held for sale plus a $15 million loss on the Delta Township solar sale. Utility operations actually improved: electric utility net income rose to $399 million from $326 million on rate increases and higher AFUDC, and gas utility contributed $13 million. Cash flow held up, with $1,798 million from operations over nine months versus $1,757 million, and $579 million of cash on hand. The quarter also carries real regulatory news: Michigan authorized a $139 million gas rate increase effective November 2026, well below the $232 million requested, and the court entered a roughly $485 million judgment against TAES in the Ludington dispute that CMS still has to collect through appeals.
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At the time of this filing, CMS was trading at $69.25 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $21.7B. The 52-week trading range was $62.29 to $80.36. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.