Evergy reports a solid Q2, driven by data center and Panasonic load, and largely reaffirms guidance. The management focus is emphatically on a massive, accelerating pipeline of new large-load customers, which they claim will drive 7-8% retail load growth and >8% EPS growth starting in 2028. Q2 adjusted EPS of $0.88, up 6 cents year-over-year, driven by load growth and related revenues.
Evergy reports a solid Q2, driven by data center and Panasonic load, and largely reaffirms guidance. The management focus is emphatically on a massive, accelerating pipeline of new large-load customers, which they claim will drive 7-8% retail load growth and >8% EPS growth starting in 2028. Q2 adjusted EPS of $0.88, up 6 cents year-over-year, driven by load growth and related revenues.
Management reported strong demand momentum, with 3 gigawatts of large customer load already contracted under ESAs and an additional 2.0-2.5 gigawatts of expansion opportunities at existing sites, up from prior guidance. They are highly confident of signing at least one more ESA…
Management reported strong demand momentum, with 3 gigawatts of large customer load already contracted under ESAs and an additional 2.0-2.5 gigawatts of expansion opportunities at existing sites, up from prior guidance. They are highly confident of signing at least one more ESA…
Management raised its capital plan by approximately $1 billion to support generation resources needed for signed customer agreements, increasing the 5-year plan to $21.6 billion through 2030. They plan to update the capital plan in February 2027, with further upside expected as…
Guidance tone
Management reported strong demand momentum, with 3 gigawatts of large customer load already contracted under ESAs and an additional 2.0-2.5 gigawatts of expansion opportunities at existing sites, up from prior guidance. They are highly confident of signing at least one more ESA in 2026 and expect momentum to continue into 2027. The pipeline includes over 10 additional gigawatts of potential large
Management raised its capital plan by approximately $1 billion to support generation resources needed for signed customer agreements, increasing the 5-year plan to $21.6 billion through 2030. They plan to update the capital plan in February 2027, with further upside expected as more ESAs are signed. New generation additions include significant natural gas, solar, and battery storage to support loa
Management repeatedly expressed high confidence in the growth plan, citing strong customer momentum, signed ESAs, and reaffirmed long-term EPS growth targets.
“As outlined in our capital plan, we will continue to invest in grid modernization to ensure reliability, as well as grid resiliency, strong customer service, and generation availability.”
“Additionally, we are in advanced discussions with multiple new customers in our tier two category, representing approximately one or 2.0 gigawatts.”
“...we continue to forecast an approximate 250 basis point delta between rate-based growth and EPS growth, which is now compared against the 12% rate-based CAGR discussed earlier.”
“The preferred plans through 2032 include more than 5 gigawatts of new additions with approximately 3.9 gigawatts of natural gas, nearly 800 megawatts of solar, and 450 megawatts of battery storage.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $4.14–$4.34 | $4.24 | MAINTAINED |
Panasonic's operational ramp is directly contributing to Evergy's earnings and load growth, indicating strong industrial demand in the region.
“We recorded higher revenues this year from the March 2026 start of operations of a large data center and from Panasonic's ramp of operations.”
… you, Pete. And good morning, everyone. Let's begin on slide 12 with a review of our results. For the second quarter of 2026, Evergy delivered adjusted earnings of $209 million or $0.88 per share, compared to $191 million or $0.82 per share in the second quarter of 2025. As shown on the slide from left to right, the year-over-year drivers are as follows. First, margin from load growth resulted in a $0.10 per share increase for the quarter. We recorded higher revenues this year from the March 2026 start of operations of a large data center and from Panasonic's ramp of operations. Combined, these two customers had an approximate $0.04 benefit to EPS compared to the prior year quarters. Overall, weather normalized demand grew 1.8%, primarily driven by commercial and industrial demand. We also had a warmer start to the summer, resulting in an increase in cooling degree days compared to prior year, with weather essentially normal in the second quarter compared to the mild weather in Q2 2025. Next, recovery of and return on regulated investments driven by new retail rates in our Kansas Central jurisdiction and FERC regulated investments contributed 10 cents of EPS. Offsetting these …
Digital Realty is a significant counterparty under Evergy's Large Load tariff, representing a substantial and growing revenue stream.
“We've got two ESAs with Google, one with Meta, one with Digital Realty, which is a very large data center developer”
Hi, team. Actually, it's Andrew Cadavion for Char. I was wondering, could you maybe characterize the customer profile for the pending 2026 ESA? Is it another hyperscaler? Go ahead.
You see the mix of customers we have today. We've got Two ESAs with Google, one with Meta, one with Digital Realty, which is a very large data center developer, one with Beale, which is an enterprise with a lot of experience in this arena. I think we won't get ahead of saying what customers are signing. We've got high interest from all of our customers and expansion opportunities. I think if you consider what our Tier 1 expansions and Tier 2 profile looks like, it's probably a mix that's reasonably consistent with the mix we've had today. high-quality hyperscaler counterparties or data center developers who are experienced in this space. And we have visibility that they're obviously aligned with hyperscale customers on their own. That's confidential. We won't share it, but we've got visibility in the customers they're serving. So I think you can view the profile that we've disclosed today to the customers that we've signed up, and going forward, it'll be a similar kind of profile.
Google's multiple ESAs with Evergy signal continued hyperscale data center expansion in the Kansas/Missouri region and a key anchor for future load growth.
“We've got two ESAs with Google, one with Meta, one with Digital Realty”
Hi, team. Actually, it's Andrew Cadavion for Char. I was wondering, could you maybe characterize the customer profile for the pending 2026 ESA? Is it another hyperscaler? Go ahead.
You see the mix of customers we have today. We've got Two ESAs with Google, one with Meta, one with Digital Realty, which is a very large data center developer, one with Beale, which is an enterprise with a lot of experience in this arena. I think we won't get ahead of saying what customers are signing. We've got high interest from all of our customers and expansion opportunities. I think if you consider what our Tier 1 expansions and Tier 2 profile looks like, it's probably a mix that's reasonably consistent with the mix we've had today. high-quality hyperscaler counterparties or data center developers who are experienced in this space. And we have visibility that they're obviously aligned with hyperscale customers on their own. That's confidential. We won't share it, but we've got visibility in the customers they're serving. So I think you can view the profile that we've disclosed today to the customers that we've signed up, and going forward, it'll be a similar kind of profile.
Evergy is in advanced discussions with multiple new Tier 2 customers representing 1-2 GW of additional demand, coming primarily beyond 2030, signifying a durable multi-decade demand outlook. — Long-term contracted demand visibility reduces merchant volatility and underpins continued grid and generation investment, which is a positive for regional suppliers.
… or excuse me, future agreements related to these opportunities would require amending load ramps and existing ESAs or new ESAs and we are working on the transmission and generation solutions to enable them. And to be clear, our five-year financial plan does not incorporate any impact from these potential expansion projects, which would create upside in the near term and well into the 2030s, depending on individual project timing. Additionally, we are in advanced discussions with multiple new customers in our tier two category, representing approximately one or 2.0 gigawatts. These customers have acquired land or land rights, signed letters of agreement, and we are actively reviewing Transmission and Generation Capacity Solutions. The opportunity from these customers is primarily beyond 2030. Taken collectively, the Tier 1 expansions and Tier 2 customer opportunities reflect strong momentum with multiple additional projects that would further extend our exceptional earnings and load growth well into the next decade. The remaining pipeline, totaling well over 10 additional gigawatts, highlights a robust activity and sustained interest in our region. Serving this load will …
Management expects $1 billion of incremental capital from the 2026 IRP, including 3.9 GW of natural gas, indicating a renewed focus on dispatchable power. — This points to a broad trend among utilities to rebalance towards firm power sources, placing a premium on gas suppliers and EPC contractors.
… addition that will support this load growth. First, the resource additions reflected in the table are consistent with our February 2026 CapEx plan of $21.6 billion over the next five years. informed by our 2026 IRP preferred plans in Kansas and Missouri, we now expect approximately $1 billion of incremental capital driven by the generation resources needed to serve the customer agreements we have secured. In total, the preferred plans through 2032 include more than 5 gigawatts of new additions with approximately 3.9 gigawatts of natural gas, nearly 800 megawatts of solar, and 450 megawatts of battery storage. This resource mix reflects an all-of-the-above approach that supports reliability, affordability, and long-term customer needs while positioning Evergy to serve significant economic development across Kansas and Missouri. Of note, additional load beyond the 3 gigawatts signed to date is expected to require incremental generation resource needs and incremental capex as a result. The 2026 IRP planning process involved identifying the most cost-effective plan that reliably serves our customers across uncertain future scenarios. These natural gas additions, combined with solar …
The 250 basis point spread between 12% rate base growth and 8% EPS growth is expected to hold, implying heavy capital investment temporarily dilutes returns. — For grid equipment suppliers like Eaton, this signals a robust multi-year procurement pipeline, as utilities spend aggressively on generation and grid upgrades.