Revenue growth of 13.6% year-over-year reflects successful rate case realizations, though operating margins remain sensitive to regulatory oversight at 20.22%.
| 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 |
|---|
| Revenue | 8.82B | 8.54B | 7.51B | 7.46B | 8.6B | 7.33B | 6.42B | 6.84B | 6.87B | 6.58B | 6.4B | 6.46B | 7.18B | 6.57B | 6.25B | 6.5B | 6.43B | 6.2B |
| Revenue Growth % | 13.31% | 13.63% | 0.71% | -13.19% | 17.29% | 14.19% | -6.24% | -0.41% | 4.41% | 2.88% | -0.88% | -10.07% | 9.34% | 5.01% | -3.81% | 1.14% | 3.71% | - |
| Cost of Revenue | 5.71B | 6.3B | 5.55B | 5.78B | 6.96B | 5.79B | 4.83B | 5.27B | 5.41B | 4.96B | 4.04B | 4.27B | 5.09B | 4.56B | 4.42B | 5.29B | 5.31B | 5.3B |
| Gross Profit | 3.11B | 2.24B | 1.97B | 1.68B | 1.64B | 1.53B | 1.59B | 1.57B | 1.47B | 1.62B | 2.36B | 2.19B | 2.09B | 2B | 1.83B | 1.21B | 1.12B | 900M |
| Gross Margin % | 35.22% | 26.23% | 26.2% | 22.54% | 19.03% | 20.94% | 24.73% | 22.97% | 21.32% | 24.64% | 36.85% | 33.92% | 29.1% | 30.52% | 29.27% | 18.58% | 17.45% | 14.52% |
| Gross Profit Growth % | - | 13.76% | 17.06% | 2.81% | 6.58% | -3.28% | 0.95% | 7.3% | -9.68% | -31.21% | 7.67% | 4.83% | 4.24% | 9.51% | 51.49% | 7.66% | 24.67% | - |
| Operating Expenses | 1.38B | 513M | 482M | 447M | 412M | 389M | 357M | 333M | 303M | 284M | 1.1B | 1.01B | 937M | 850M | 820M | 205M | 210M | 217M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 2.85B | 2.83B | 2.73B | 2.42B | 2.35B | 2.26B | 2.27B | 2.23B | 2.1B | 2.22B | 1.95B | 1.77B | 1.71B | 1.66B | 1.57B | 1.55B | 1.49B | 1.25B |
| EBITDA Margin % | 32.34% | 33.18% | 36.29% | 32.36% | 27.34% | 30.84% | 35.42% | 32.59% | 30.48% | 33.71% | 30.41% | 27.46% | 23.78% | 25.3% | 25.11% | 23.83% | 23.15% | 20.22% |
| EBITDA Growth % | 0.85% | 3.89% | 12.92% | 2.77% | 3.98% | -0.57% | 1.88% | 6.49% | -5.59% | 14.03% | 9.76% | 3.87% | 2.77% | 5.8% | 1.36% | 4.1% | 18.75% | - |
| Depreciation & Amortization | 1.13B | 1.11B | 1.24B | 1.18B | 1.13B | 1.11B | 1.04B | 992M | 933M | 881M | 690M | 595M | 555M | 519M | 567M | 546M | 576M | 570M |
| D&A / Revenue % | 12.81% | 12.95% | 16.5% | 15.81% | 13.1% | 15.2% | 16.25% | 14.49% | 13.57% | 13.38% | 10.78% | 9.22% | 7.73% | 7.9% | 9.07% | 8.4% | 8.96% | 9.2% |
| Operating Income (EBIT) | 1.72B | 1.73B | 1.49B | 1.24B | 1.22B | 1.15B | 1.23B | 1.24B | 1.16B | 1.34B | 1.26B | 1.18B | 1.15B | 1.14B | 1B | 1B | 912M | 683M |
| Operating Margin % | 19.53% | 20.22% | 19.79% | 16.55% | 14.24% | 15.64% | 19.16% | 18.1% | 16.91% | 20.33% | 19.63% | 18.25% | 16.05% | 17.39% | 16.04% | 15.43% | 14.19% | 11.02% |
| Operating Income Growth % | - | 16.14% | 20.4% | 0.9% | 6.81% | -6.83% | -0.73% | 6.63% | -13.15% | 6.53% | 6.62% | 2.26% | 0.88% | 13.86% | 0% | 9.98% | 33.53% | - |
| Interest Expense | 4M | 789M | 708M | 643M | 519M | 500M | 505M | 519M | 458M | 438M | 435M | 396M | 407M | 398M | 389M | 415M | 431M | 435M |
| Interest Coverage | - | 2.42x | 2.59x | 2.48x | 2.74x | 2.65x | 2.60x | 2.60x | 2.69x | 3.02x | 3.00x | 2.94x | 2.83x | 2.87x | 2.58x | 2.46x | 2.37x | 1.77x |
| Interest / Revenue % | 0.05% | 9.24% | 9.42% | 8.62% | 6.04% | 6.82% | 7.87% | 7.58% | 6.66% | 6.65% | 6.8% | 6.13% | 5.67% | 6.06% | 6.22% | 6.38% | 6.71% | 7.02% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 1.25B | 1.25B | 1.12B | 954M | 902M | 823M | 809M | 829M | 774M | 886M | 826M | 796M | 729M | 756M | 622M | 606M | 590M | 335M |
| Pretax Margin % | 14.19% | 14.62% | 14.94% | 12.78% | 10.49% | 11.23% | 12.61% | 12.11% | 11.26% | 13.46% | 12.91% | 12.33% | 10.15% | 11.51% | 9.95% | 9.32% | 9.18% | 5.4% |
| Income Tax | 268M | 246M | 176M | 147M | 93M | 95M | 115M | 147M | 115M | 424M | 273M | 271M | 250M | 302M | 245M | 191M | 224M | 115M |
| Effective Tax Rate % | 21.41% | 19.71% | 15.67% | 15.41% | 10.31% | 11.54% | 14.22% | 17.73% | 14.86% | 47.86% | 33.05% | 34.05% | 34.29% | 39.95% | 39.39% | 31.52% | 37.97% | 34.33% |
| Net Income | 1.11B | 1.07B | 1B | 887M | 837M | 1.35B | 755M | 680M | 657M | 460M | 551M | 523M | 477M | 452M | 382M | 415M | 340M | 229M |
| Net Margin % | 12.55% | 12.54% | 13.35% | 11.89% | 9.74% | 18.46% | 11.76% | 9.93% | 9.56% | 6.99% | 8.61% | 8.1% | 6.64% | 6.88% | 6.11% | 6.38% | 5.29% | 3.69% |
| Net Income Growth % | 8.53% | 6.78% | 13.08% | 5.97% | -38.14% | 79.21% | 11.03% | 3.5% | 42.83% | -16.52% | 5.35% | 9.64% | 5.53% | 18.32% | -7.95% | 22.06% | 48.47% | - |
| EPS (Diluted) | 3.60 | 3.53 | 3.33 | 3.01 | 2.85 | 4.66 | 2.64 | 2.39 | 2.32 | 1.64 | 1.98 | 1.89 | 1.74 | 1.66 | 1.40 | 1.65 | 1.36 | 0.96 |
| EPS Growth % | 7.1% | 6.01% | 10.63% | 5.61% | -38.84% | 76.52% | 10.46% | 3.02% | 41.46% | -17.17% | 4.76% | 8.62% | 4.82% | 18.57% | -15.15% | 21.32% | 41.67% | - |
| EPS (Basic) | - | 3.53 | 3.34 | 3.01 | 2.86 | 4.66 | 2.65 | 2.40 | 2.33 | 1.64 | 1.98 | 1.89 | 1.74 | 1.66 | 1.39 | 1.65 | 1.36 | 0.96 |
| Diluted Shares Outstanding | 307.27M | 300.4M | 298.3M | 291.7M | 290M | 289.5M | 286.3M | 284.3M | 282.9M | 280.8M | 278.9M | 276.5M | 274.6M | 271.9M | 268.6M | 250.8M | 250.8M | 250.2M |
Regulatory and Political Sensitivity
According to recent quarterly filings, CMS Energy reported a notable 13.6% year-over-year revenue growth, largely underpinned by aggressive capital deployment into the regulated rate base and successful rate case realizations within the Michigan jurisdiction, which appear to be effectively offsetting the inherent volatility of weather-dependent volumetric demand.
The revenue trajectory suggests that the company is successfully converting infrastructure investment into top-line growth through the MPSC regulatory framework. Investors should monitor whether this growth remains durable or if it becomes increasingly dependent on future rate case outcomes to sustain the current momentum.
As reported in financial statements, the company maintains an operating margin of 20.22%, reflecting a disciplined approach to O&M cost management that appears designed to preserve authorized returns while navigating the complexities of the Michigan regulatory compact and the ongoing transition toward a cleaner generation fleet.
The consistency in operating margins suggests that the utility is effectively managing regulatory lag, though the gap between authorized and earned ROE warrants further investigation. Any compression in this margin could signal deteriorating regulatory relationships or unexpected cost pressures that the current rate structure fails to fully mitigate.
Based on the company's reported figures, fuel and purchased power costs function primarily as pass-through items, which protects earnings power from commodity price spikes while simultaneously inflating revenue and COGS, a dynamic that appears to be a standard feature of the firm's regulated cost recovery mechanism.
This structure effectively insulates the bottom line from commodity volatility, provided the MPSC continues to allow timely recovery of these expenses. However, the reliance on these mechanisms implies that any regulatory shift toward disallowing certain fuel costs could introduce significant working capital strain and earnings risk.
As indicated by the quarterly data, reported EPS growth has shown significant variance, ranging from a 15.4% decline to a 79.3% surge, suggesting that headline figures may be heavily influenced by non-recurring items, weather normalization adjustments, and the timing of regulatory asset recognition rather than pure operational performance.
The volatility in EPS growth may mask the underlying regulated earnings power, making it difficult to discern the true trajectory of the core business. Analysts should scrutinize the impact of regulatory asset deferrals, as these items may artificially smooth earnings while potentially creating future cash flow headwinds.
According to the provided financial data, the company is in the midst of a significant capital expenditure cycle, which appears to be the primary engine for long-term earnings growth as these investments are systematically integrated into the rate base under the oversight of the Michigan Public Service Commission.
The current CAPEX cycle appears to represent a strategic step-change in earnings potential rather than mere maintenance, provided the company can execute these projects within budget. The conversion of construction work in progress into rate base assets remains a critical milestone for sustaining the projected earnings growth rate.
Based on the reported figures, the anomalous debt-to-equity ratio of 1.95% warrants immediate investigation, as it may suggest either a significant data reporting error or complex accounting treatments that obscure the true leverage profile and long-term financial obligations inherent in the company's capital-intensive utility operations.
The income statement may also be masking long-term liabilities related to decommissioning costs for retiring coal assets, which are not yet fully reflected in current earnings. Investors should remain skeptical of the sustainability of current ROE levels if political pressure in Michigan leads to more adversarial rate case outcomes.
Quick answers to the most common questions about buying CMSD stock.
For fiscal year 2025, CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) reported total revenue of $8.54B. This represents a 37.8% increase compared to $6.20B in 2009.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) is profitable, generating $1.07B in net income for the fiscal year ending 2025 with a net profit margin of 12.5%.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) reported an operating income of $1.73B, resulting in an operating profit margin of 20.2%. This margin reflects the operational efficiency of the business before interest and taxes.
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 (CMSD) generated $2.24B in gross profit for the year, representing a gross profit margin of 26.2%. This demonstrates the company's core pricing power and production efficiency.