Evergy Inc Earnings Overview
Evergy Inc. recently announced its earnings for the fiscal year 2024, demonstrating a commendable financial performance characterized by growth in both revenue and earnings. Despite facing certain operational challenges, the company reported strong results that met or exceeded expectations. This article examines Evergy's financial metrics, revenue performance, strategic initiatives, and future projections, offering an insight into its robust annual performance.
Evergy Inc 2024 Earnings Summary
The year 2024 marked a significant financial milestone for Evergy Inc. with its earnings reflecting positive trends across multiple key performance indicators. The company reported a full year GAAP earnings of $873.5 million, or $3.79 per share, up from $731.3 million, or $3.17 per share, in 2023. The adjusted earnings (non-GAAP) for the same period also saw an increase to $877.9 million, or $3.81 per share, compared to $815.6 million, or $3.54 per share in the previous year.
Table 1: Evergy Inc Key Financial Metrics
| Financial Metric | FY 2024 | FY 2023 | YoY Change (%) |
|---|---|---|---|
| GAAP Earnings (million $) | $873.5 | $731.3 | +19.4% |
| GAAP EPS ($) | $3.79 | $3.17 | +19.6% |
| Adjusted Earnings (million $) | $877.9 | $815.6 | +7.6% |
| Adjusted EPS ($) | $3.81 | $3.54 | +7.6% |
In addition to these impressive figures, the fourth quarter of 2024 specifically demonstrated year-over-year growth, with GAAP earnings at $78.2 million or $0.34 per share, up from $58.0 million or $0.25 per share in 2023's fourth quarter. Adjusted earnings for this quarter also rose to $80.6 million or $0.35 per share, compared to $61.1 million or $0.27 in the same quarter the previous year.
Revenue Breakdown and Segment Performance
Evergy's revenue success in 2024 was driven by several essential components, including new retail rates, growth in regulated investments, and an increase in weather-normalized demand. However, this performance faced partial offset due to mild weather conditions and rising costs in depreciation, amortization, operations, maintenance, and interest. While detailed segment-specific revenue figures were not provided, the overall contribution of new rates and investments highlights strategic growth efforts.
Under the guidance of effective regulatory frameworks, particularly in Kansas and Missouri, Evergy continues to build strong operational relationships. The passage of House Bill 2527 in Kansas and the unanimous settlement agreement in a Missouri West rate case accentuates Evergy's ability to execute its strategy effectively while fostering economic development and infrastructure investment.
Key Developments
Several notable developments occurred during the fiscal year, supporting Evergy's strategic growth and operational efficiency. One of the significant highlights was the advancement of Evergy's capital investment plan for the years 2025 to 2029, increased to $17.5 billion, reinforcing the company's focus on infrastructure expansion and modernization.
Additionally, Evergy plans to leverage its sizable project pipeline, which includes ongoing negotiations with large data center clients in the Kansas and Missouri regions, showcasing the growing demand and economic prospects in these areas. These advancements reflect Evergy's commitment to enhancing energy delivery, reliability, and sustainability.
Executive Comments
Chairman and CEO David Campbell articulated the company's financial and strategic achievements: "Our financial results in 2024 were in line with expectations, thanks to the hard work of everyone on our team. Overcoming weather headwinds, we reported adjusted earnings per share (EPS) of $3.81 – within our guidance range of $3.73 to $3.93." Furthermore, Campbell emphasized Evergy's pivotal year marked by legislative support and robust customer engagement in the regions served.
Dividends and Shareholder Returns
Evergy maintained its commitment to delivering shareholder value through its dividend policy by declaring a quarterly dividend of $0.6675 per share, payable on March 21, 2025. This policy underscores a sustainable approach to returning capital to shareholders and reinforces confidence in the company's financial stability and future growth trajectory.
Forecast and Stock Outlook
As Evergy continues to solidify its strategic and operational footing, the stock forecast remains favorable. The company reaffirmed its 2025 GAAP EPS and adjusted EPS guidance range of $3.92 to $4.12 while projecting a long-term adjusted EPS growth of 4% to 6% through 2029. The promising financial performance and robust strategic planning bolster Evergy's market position, providing an optimistic stock outlook. High projections for the company's stock could approach $52, driven by strategic initiatives and overall market optimism, while conservative estimates suggest a lower bound around $45, reflecting operational risks and market volatility.
Conclusion
Evergy Inc. has demonstrated resilience and growth through strategic planning and effective execution, as evidenced by its 2024 earnings report. With forward-thinking investments, legislative support, and a commitment to enhancing shareholder value, Evergy appears well-positioned for continued success and stability. As the company moves forward, investors can anticipate further value creation and robust financial performance in the years to come.
