Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 3 of last 7 quarters
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Evergy's continued ESA signings and expanding pipeline reinforce its position as a direct beneficiary of the AI infrastructure buildout, with contracted large load of 3 GW and expansion opportunities of 2–2.5 GW. The company's ~$1B incremental generation investment and 12% rate base CAGR signal sustained capital deployment to support data center power demand, which could drive further upside as additional ESAs are signed.
Evergy reported Q2 2026 adjusted EPS of $0.88, up from $0.82 a year ago, driven by regulated investment recovery, load growth, and large load revenues, partially offset by higher O&M and depreciation. Weather-normalized demand grew 3.3% year-to-date, with commercial up 4% and industrial up 6.2% on Panasonic's ramp. The company has executed ESAs for 5 data center projects totaling ~2.5 GW, plus 500 MW from non-LLPS large customers, including Panasonic and smaller data centers, and raised its expansion opportunity estimate to 2–2.5 GW. Management reaffirmed guidance and highlighted a ~$1B incremental capital investment from the 2026 IRPs, raising rate base CAGR to ~12%. They also noted a strong storm season, restoring power to 300,000 customers in June.
Management reaffirmed 2026 adjusted EPS guidance of $4.14–$4.34 (midpoint $4.24) and the long-term EPS growth target of 6–8%+ through 2030, with growth exceeding 8% annually beginning in 2028. They expect to execute at least one additional ESA in 2026, with momentum continuing into 2027, and see expansion opportunities (2–2.5 GW) and Tier 2 prospects (1–2 GW) as upside beyond the current plan. The 5-year capital plan remains $21.6B, with ~$1B incremental generation investment from the 2026 IRPs, and they plan to update the capital plan in February. Management expects residential rate increases in line with or below inflation for most customers, with Missouri West potentially above inflation in the next 5 years. They projected FFO-to-debt of 14–15% for 2026–2028 and expect to issue $700–900M of equity in 2026, with no block issuance planned.
“We continue to make progress towards agreements on expansion projects and are highly confident that we'll execute at least one more ESA in 2026.”
on ESA pipeline
“Our large load tariff framework is well aligned with the principles in the pledge and is designed to ensure that new large customers pay their fair share of the infrastructure and generation costs required to serve them while at the same time helping to protect affordability for existing customers.”
on Ratepayer protection
“As our capital investment plan grows, we will utilize a prudent mix of debt and equity financing to support our strong investment-grade credit rating and FFO to debt that we currently project to be in the range of 14% to 15% from 2026 to 2028 with further strength in the outer years.”
on Financing and credit
Can you quantify the potential capital and rate base growth from additional ESAs in the Tier 1 bucket?
David Campbell noted expansion opportunities of 2–2.5 GW at or adjacent to existing sites, with at least one additional ESA expected in 2026. He said incremental load would require additional generation resources and meaningful capital, with cost trends in line with industry. He emphasized the LLPS tariff ensures customers pay a premium rate, and most customers seek firm power from Evergy resources.
Could you characterize the customer profile for the pending 2026 ESA? Is it another hyperscaler?
David Campbell said the mix of customers to date includes Google, Meta, Digital Realty, and Beale, and the pending ESA is likely to be a similar profile—high-quality hyperscaler or experienced data center developer. He declined to name the customer but indicated the profile would be consistent with prior signings.
Can you go over the rate increase impacts and clarify the Missouri West situation?
David Campbell explained that residential rate increases are expected to be in line with or below inflation for most customers, based on modeling. Missouri West, with the lowest rates, may see increases above inflation due to needed infrastructure investment and market energy exposure, but rates should remain regionally competitive. He also noted a $25 million reduction in the Missouri Metro rate case request due to data center benefits.