Capital intensity remains elevated with a CapEx-to-OCF ratio of 147.4% in 2026Q1, necessitating continued reliance on external capital markets to fund infrastructure modernization.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 1.94B | 2.23B | 2.37B | 2.31B | 855M | 1.82B | 1.28B | 1.79B | 1.7B | 1.71B | 1.63B | 1.64B | 1.48B | 1.42B | 1.24B | 1.17B | 959M | 873M |
| Operating CF Growth % | -39.5% | -5.7% | 2.64% | 170.06% | -53% | 42.55% | -28.72% | 5.11% | -0.12% | 4.67% | -0.67% | 10.74% | 4.22% | 14.5% | 6.16% | 21.9% | 9.85% | - |
| Operating CF / Revenue % | 21.99% | 26.17% | 31.54% | 30.94% | 9.95% | 24.82% | 19.88% | 26.15% | 24.78% | 25.9% | 25.46% | 25.4% | 20.63% | 21.64% | 19.85% | 17.98% | 14.92% | 14.09% |
| Net Income | 1.11B | 1.07B | 1B | 886M | 833M | 751M | 158M | 680M | 657M | 460M | 551M | 523M | 477M | 452M | 382M | 415M | 340M | 364M |
| Depreciation & Amortization | 1.33B | 1.31B | 1.24B | 1.05B | 1.13B | 1.11B | 1.04B | 992M | 933M | 881M | 811M | 595M | 555M | 519M | 567M | 546M | 616M | 574M |
| Deferred Taxes | 82M | 202M | 142M | 0 | 89M | 249M | 170M | 150M | 182M | 417M | 264M | -247M | -227M | -268M | -227M | -167M | -227M | 0 |
| Other Non-Cash Items | -81M | -283M | -277M | -76M | -106M | -271M | -81M | 1M | 1.64B | 1.95B | 1.57B | 254M | 501M | 442M | 292M | 886M | 230M | 23M |
| Working Capital Changes | -375M | -61M | 262M | 416M | -1.11B | -46M | -25M | -33M | 105M | -174M | 7M | 248M | -66M | -6M | -43M | -511M | 864M | -88M |
| Capital Expenditures | -151M | -3.82B | -3.02B | -3.22B | -2.37B | -2.08B | -2.31B | -2.1B | -2.07B | -1.67B | -1.67B | -1.72B | -1.58B | -1.32B | -1.23B | -882M | -821M | 0 |
| CapEx / Revenue % | 34.48% | 44.78% | 40.16% | 43.14% | 27.62% | 28.33% | 36.01% | 30.74% | 30.18% | 25.29% | 26.13% | 26.61% | 21.97% | 20.18% | 19.62% | 13.57% | 12.77% | 0% |
| CapEx / D&A | 2.29x | 2.93x | 2.43x | 3.05x | 2.11x | 1.86x | 2.22x | 2.12x | 2.22x | 1.89x | 2.06x | 2.89x | 2.84x | 2.55x | 2.16x | 1.62x | 1.33x | 0.00x |
| CapEx Coverage (OCF/CapEx) | 0.64x | 0.58x | 0.79x | 0.72x | 0.36x | 0.88x | 0.55x | 0.85x | 0.82x | 1.02x | 0.97x | 0.95x | 0.94x | 1.07x | 1.01x | 1.33x | 1.17x | - |
| Cash from Investing | -4.19B | -4.04B | -3.05B | -3.38B | -2.47B | -1.23B | -2.84B | -2.82B | -2.61B | -1.87B | -1.92B | -2.06B | -1.9B | -1.53B | -1.35B | -1.06B | -1B | -823M |
| Acquisitions | 4M | 0 | 0 | 0 | 2M | 1M | 89M | 97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.15B | -214M | -36M | -161M | -102M | 843M | -614M | -809M | -532M | -203M | -243M | -346M | -321M | -207M | -123M | -176M | -182M | -823M |
| Cash from Financing | 1.99B | 2.24B | 614M | 1.14B | 1.32B | -296M | 1.59B | 1.01B | 874M | 110M | 255M | 463M | 462M | 190M | 41M | -199M | 202M | 0 |
| Dividends Paid | -675M | -663M | -626M | -579M | -546M | -509M | -467M | -436M | -407M | -377M | -347M | -320M | -293M | -271M | -252M | 0 | 0 | 0 |
| Dividend Payout Ratio % | - | 61.9% | 62.41% | 65.28% | 65.23% | 37.62% | 61.85% | 64.12% | 61.95% | 81.96% | 62.98% | 61.57% | 61.43% | 60.4% | 65.97% | 50.84% | 47.65% | - |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 0 |
| Stock Issued | 688M | 525M | 286M | 192M | 69M | 250M | 253M | 12M | 41M | 83M | 72M | 0 | 43M | 0 | 30M | 29M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -207M | 0 | -93M | -161M | -247M | 0 |
| Other Financing | -57M | -16M | -28M | 32M | -11M | -137M | 782M | 0 | 0 | 0 | 0 | 0 | -2M | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -263M | 437M | -70M | 66M | -294M | 427M | -108M | -17M | -25M | -55M | -34M | 39M | 77M | 79M | -68M | -86M | 247M | 50M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 136M | -136M | 1M | 204M | 257M | 288M | 0 | 0 | 0 | 0 | 2M | 89M | 0 |
| Cash at Beginning | 615M | 178M | 248M | 182M | 476M | 49M | 157M | 174M | 199M | 254M | 288M | 249M | 172M | 93M | 161M | 247M | 0 | 0 |
| Cash at End | 263M | 615M | 178M | 248M | 182M | 476M | 49M | 157M | 174M | 199M | 254M | 288M | 249M | 172M | 93M | 161M | 247M | 50M |
| Free Cash Flow | 1.79B | -1.59B | -648M | -910M | -1.52B | -257M | -1.03B | -314M | -371M | 40M | -43M | -78M | -96M | 96M | 14M | 287M | 138M | 873M |
| FCF Growth % | 331.08% | -145.22% | 28.79% | 40.09% | -491.05% | 75.17% | -229.62% | 15.36% | -1027.5% | 193.02% | 44.87% | 18.75% | -200% | 585.71% | -95.12% | 107.97% | -84.19% | - |
| FCF Margin % | 20.28% | -18.61% | -8.62% | -12.2% | -17.67% | -3.51% | -16.13% | -4.59% | -5.4% | 0.61% | -0.67% | -1.21% | -1.34% | 1.46% | 0.22% | 4.41% | 2.15% | 14.09% |
| FCF / Net Income % | 161.61% | -148.37% | -64.61% | -102.59% | -181.48% | -18.99% | -137.09% | -46.18% | -56.47% | 8.7% | -7.8% | -14.91% | -20.13% | 21.24% | 3.66% | 69.16% | 40.59% | 381.22% |
Regulatory Recovery Lag
As evidenced by the quarterly cash flow data, CMSD consistently maintains a high CapEx-to-OCF ratio, peaking at 147.4% in 2026Q1, which confirms that the company is aggressively reinvesting operating cash flows into the regulated rate base to drive long-term infrastructure modernization and renewable energy transition.
The persistent negative free cash flow is a structural feature of the company's growth strategy rather than a sign of operational distress. Investors should interpret this high investment intensity as a necessary precursor to future rate base expansion, provided the MPSC continues to authorize timely recovery of these capital outlays.
Based on the reported financial statements, the company frequently relies on net stock issuance and debt markets to bridge the recurring free cash flow deficit, with net stock issuance reaching $356 million in 2025Q3 to support the ongoing capital-intensive investment cycle required by the utility's regulatory mandate.
The reliance on external financing suggests that the company's ability to fund its growth is tethered to capital market conditions and investor appetite for utility equity. Any tightening in credit markets or a decline in equity valuation could potentially constrain the pace of planned infrastructure projects.
According to the provided quarterly metrics, the company maintains a robust OCF-to-dividend coverage ratio, which fluctuated between 1.7x and 6.1x over the last ten quarters, suggesting that the dividend remains well-supported by core operating cash flows despite the significant capital expenditure requirements of the business.
This coverage ratio appears to provide a buffer for shareholders, indicating that management prioritizes dividend stability even during periods of heavy investment. However, the sustainability of this payout remains contingent upon the regulatory commission's continued support for rate structures that allow for consistent cash generation.
As indicated by the historical cash flow data, the timing of regulatory asset recognition often creates significant volatility in reported free cash flow, which may obscure the underlying cash-generating capacity of the utility's core operations during periods of intense grid modernization and coal-fired plant retirement.
The discrepancy between GAAP net income and actual cash flow warrants further investigation into the specific regulatory mechanisms governing cost recovery. Investors should monitor whether the current rate case environment allows for the timely conversion of these regulatory assets into tangible cash, as delays could exacerbate the existing financing burden.
Quick answers to the most common questions about buying CMSD stock.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) generated $2.23B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) reported negative free cash flow of $1.59B in 2025, indicating capital requirements exceeded cash from operations.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) spent $3.82B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) returned $663.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.