Evergy Inc (NASDAQ:EVRG) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance against analyst expectations. The utility's adjusted earnings per share (EPS) for the quarter came in below estimates, while its full-year guidance for 2026 and a newly announced long-term growth target appear to be the focal points for investors, as reflected in the stock's positive price action following the announcement.
Earnings and Revenue Versus Estimates
For the fourth quarter of 2025, Evergy's financial results presented a clear miss on key consensus metrics. The company reported adjusted EPS of $0.42, which fell short of the analyst estimate of $0.58. This shortfall was driven by several factors outlined by management.
On the revenue front, the company reported quarterly sales of $1.34 billion. This figure also missed the mark, coming in below the analyst estimate of $1.46 billion. Management attributed the softer full-year 2025 results to milder-than-normal weather and demand headwinds, which offset benefits from recovery of regulated investments and growth in weather-normalized demand.
Key quarterly comparisons:
- Reported Adjusted EPS: $0.42
- Analyst Estimate for EPS: $0.58
- Reported Revenue: $1.34 billion
- Analyst Estimate for Revenue: $1.46 billion
For the full year 2025, Evergy reported adjusted EPS of $3.83, a slight increase from $3.81 in 2024.
Market Reaction and Forward Guidance
Despite the quarterly earnings and revenue miss, Evergy's stock saw positive movement. This reaction is largely attributed to the company's forward-looking statements, which provided a more optimistic picture for the coming years.
The cornerstone of the announcement was the establishment of 2026 adjusted EPS guidance in a range of $4.14 to $4.34. Using the midpoint of $4.24, this represents a significant year-over-year growth of approximately 10.7% from the 2025 adjusted EPS of $3.83. Furthermore, the company introduced a long-term annual adjusted EPS growth target of 6% to 8%+ through 2030, with growth expected to exceed 8% beginning in 2028.
This outlook appears robust when placed in context. Analyst estimates for Evergy's full-year 2026 revenue currently stand at $6.39 billion, with an EPS estimate of $4.37. The company's guidance midpoint of $4.24 is slightly below this consensus, but the formal establishment of a multi-year growth trajectory seems to have reassured investors about the company's fundamental path.
Strategic Developments and Dividend
Beyond the numbers, Evergy highlighted significant regulatory and business development progress. CEO David Campbell emphasized the approval of new Large Load Power Service (LLPS) tariffs in Kansas and Missouri, which create a framework for new industrial customers to pay premium rates. The company has already signed electric service agreements with two new large customer projects and secured expansions with two existing projects under this framework. Management positioned these developments as key drivers for future growth and affordability benefits for existing customers.
In a move consistent with its utility profile, Evergy's Board of Directors declared a quarterly dividend of $0.695 per share, payable in March 2026. This continues the company's practice of returning capital to shareholders.
Conclusion
Evergy's fourth-quarter earnings release tells a story of a challenging period in 2025 giving way to a more confident outlook. While the company failed to meet quarterly estimates due to weather and demand issues, the market's focus quickly shifted to the newly articulated growth plan for 2026 and beyond. The combination of specific EPS guidance, a clear long-term growth target, and tangible progress on attracting large industrial load appears to have outweighed the near-term earnings miss in the eyes of investors.
For a detailed look at upcoming earnings dates and analyst estimates for Evergy, you can review the information available here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
