CMS

CMS Energy is a regulated Michigan electric-and-gas utility (Consumers Energy) showing the steady, capital-intensive economics typical of the sector. FY2025 revenue rose 13.5% to $8.30B and net income grew 6.8% to $1.07B, with diluted EPS up 6.0% to $3.53. Profitability is solid for a regulated name — operating margin 20.8%, net margin 12.9%, and ROE 11.7% — and net income has compounded reliably since 2022 ($837M to $1.07B) even as headline revenue stayed lumpy ($8.32B in 2022, dipping to $7.26B/$7.32B, then back to $8.30B). The reliability of earnings, not revenue, is the right lens here, and it points to a durable mid-single-digit grower.

The filing frames a credible long-term growth engine: Michigan's 2023 Energy Law mandates 60% renewables by 2035 and 100% clean energy by 2040, and Consumers' integrated resource plan turns that mandate into rate base — coal retirements (Karn, the 1,407 MW Campbell unit recovered at a 9.0% ROE via regulatory-asset treatment plus securitization), up to 4,000 MW of wind, up to 9,000 MW of solar, 850 MW of contracted storage, and the Covert plant. Crucially, Consumers earns its pre-tax WACC on new clean/storage PPAs, so even purchased capacity grows earnings. This is a constructive regulatory backdrop that supports years of rate-base-driven EPS growth.