Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

Core Insights - Evergy, Inc. (EVRG) reported fourth-quarter 2025 operating earnings per share (EPS) of 42 cents, missing the Zacks Consensus Estimate of 57 cents by 26.3% [1]. - Full-year 2025 adjusted EPS increased to $3.83 from $3.81 in the previous year, driven by recovery in regulated investments and increased weather-normalized demand [1]. Revenue Performance - Quarterly revenues reached $1.34 billion, exceeding the Zacks Consensus Estimate of $1.29 billion by 4.3% [2]. - Full-year 2025 revenues totaled $5.96 billion, up from $5.85 billion in the prior year [2]. Expense Overview - Fuel and purchased power costs for the year were $1.41 billion, a decrease of 4.6% from $1.48 billion last year [3]. - Operating and maintenance expenses rose to $995.3 million, an increase of 3.5% from $961.9 million in the previous year [3]. - Interest expenses increased by 9.4% year over year, totaling $616.3 million [3]. Financial Position - As of December 31, 2025, cash and cash equivalents were $19.8 million, down from $22 million a year earlier [4]. - Long-term debt increased to $13.04 billion from $11.81 billion as of December 31, 2024 [4]. - Cash provided by operating activities in 2025 was $2.05 billion, compared to $1.98 billion in the previous year [4]. Future Guidance - Evergy provided 2026 adjusted EPS guidance in the range of $4.14-$4.34, with the Zacks Consensus Estimate at $4.27, near the upper end of the guidance [5]. - The company targets an annual adjusted EPS growth of 6-8% through 2030 [5]. Market Position - Evergy currently holds a Zacks Rank 4 (Sell) [6].

Core Viewpoint - Evergy, Inc. is positioned as a promising utility company with strategic investments and a positive outlook from analysts, indicating potential growth in stock price and earnings [2][4][6] Group 1: Financial Performance - Evergy's strategic investments and new rates are projected to lead to a 63% year-over-year increase in earnings per share [2][6] - The company has a substantial $17.5 billion capital plan, which is expected to support a 6% annual growth in adjusted earnings per share through 2028 [3][6] - The average price target for Evergy has increased to $83.4, reflecting growing confidence in its performance compared to the previous quarter [3] Group 2: Market Sentiment - The consensus price target for Evergy has shown a positive trend, with the average price target rising from $81.92 a year ago to $86 last month [2][4] - Evergy is currently trading at a 13% discount to its fair value, which presents an attractive opportunity for investors [4] - Analysts have expressed optimism about Evergy's future prospects, as indicated by the upward trend in the consensus price target [5][6]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted earnings of $894 million, or $3.83 per share, compared to $878 million, or $3.81 per share for the same period last year, reflecting a slight increase in earnings despite challenges [26] - The company raised its long-term adjusted EPS growth target to 6%-8%+ through 2030, with expectations of exceeding 8% annually beginning in 2028 [5][43] - The financial results in 2025 were negatively impacted by weather and weak industrial demand, leading to a decrease in EPS by $0.43 due to higher operation and maintenance costs and depreciation [6][27] Business Line Data and Key Metrics Changes - The company executed a capital investment plan of $2.8 billion in 2025 to modernize infrastructure and improve reliability, despite facing challenges from weather and demand [6][9] - New electric service agreements for four major data center projects were announced, representing 1.9 GW of steady-state peak demand, which is expected to increase total peak system demand by nearly 20% [10][11] Market Data and Key Metrics Changes - The company has grown its pipeline to over 15 GW, with significant legislative support in Missouri and Kansas for infrastructure investment [6][8] - The approval of new large load power service tariffs in both Kansas and Missouri is expected to drive affordability benefits for existing customers while supporting economic growth [7][15] Company Strategy and Development Direction - The company aims to maintain competitive and affordable rates, with a focus on cost discipline and infrastructure investment to support economic development in Kansas and Missouri [20][23] - A rolling five-year investment plan totaling approximately $21.6 billion is set to drive 11.5% annualized rate base growth through 2030, with a significant portion allocated to new generation investments [22][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated financial outlook, which has been tested against various outcomes, and emphasized the importance of consistent financial performance for long-term value creation [6][43] - The company expects a return to normal residential load growth in 2026, with strong early indications for industrial demand compared to 2025 [27][83] Other Important Information - The company raised its dividend by 4% to an annualized $2.78, with expectations for the payout ratio to decline over time to a revised target of 50%-60% [9][37] - The LLPS tariffs established a framework for new large customers to pay a premium demand rate, which will generate significant benefits for existing customers [15][17] Q&A Session Summary Question: Can you discuss the equity issuances planned for 2030? - Management indicated no planned equity issuances for 2030 due to expected improvements in cash flow, but noted that additional capital opportunities may arise [49][51] Question: What is the potential for additional electric service agreements (ESAs)? - Management expects at least one more executed ESA in 2026, with potential for additional sizable opportunities beyond that [55][56] Question: How does incremental load growth affect CapEx and earnings? - Management stated that each ESA will depend on negotiations with customers, and historically, a 50/50 debt-equity funding approach is used for incremental capital [94]

Evergy (NasdaqGS:EVRG) Q4 2025 Earnings call February 19, 2026 09:00 AM ET Company ParticipantsBryan Buckler - EVP and CFODavid Campbell - Chairman, President, and CEOPeter Flynn - Senior Director, Investor Relations and InsuranceConference Call ParticipantsAndrew Cadavion - VP and Equity Research AnalystAnthony Crowdell - Managing Director and Senior Analyst, U.S. Energy and Electric UtilitiesMichael Sullivan - Managing Director and Equity Research AnalystPaul Fremont - Managing Director and Equity Researc ...

Evergy (NasdaqGS:EVRG) Q4 2025 Earnings call February 19, 2026 09:00 AM ET Speaker5Good day, and thank you for standing by. Welcome to Evergy's Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your questio ...

Fourth Quarter 2025 Earnings and Business Update Call February 19, 2026 Agenda David Campbell, Chairman & CEO Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy's strategic plan, including, without limitation, those related to earnings per share, dividend, operating ...

Core Viewpoint - Evergy forecasts 2026 profit below Wall Street estimates and introduces a new five-year capital spending plan of $21.6 billion to meet increasing electricity demand from large commercial and industrial customers [1] Group 1: Financial Performance - Evergy reported an adjusted profit of 42 cents per share, missing analysts' estimates of 57 cents per share [1] - The company forecasts 2026 adjusted profit to be between $4.14 and $4.34 per share, with a midpoint of $4.24, which is below the analysts' average estimate of $4.28 per share [1] Group 2: Capital Expenditure and Growth Strategy - Evergy's new capital expenditure plan is $21.6 billion, an increase from the previously announced $17.5 billion for 2025–2029 [1] - The utility has signed electric service agreements for four large customer projects, including two new customers and the expansion of two existing projects, under newly approved large load power service tariffs in Kansas and Missouri [1] Group 3: Market Position and Future Outlook - Evergy's strategy reflects a broader shift among regulated utilities to position for sustained demand growth linked to economic development and data center expansion [1] - The company expects adjusted profit growth to exceed 8% starting in 2028 and continuing through 2030 [1]

NEWS RELEASE Exhibit 99.1 Evergy Releases 2025 Results, Announces New Large Customers, Declares Quarterly Dividend and Establishes 2026 Guidance KANSAS CITY, MO., February 19, 2026 – Evergy, Inc. (NASDAQ: EVRG) today announced full year 2025 GAAP earnings of $855.6 million, or $3.66 per share, compared to GAAP earnings of $873.5 million, or $3.79 per share, for the full year 2024. Fourth quarter 2025 GAAP earnings were $84.3 million, or $0.36 per share, compared to earnings of $78.2 million, or $0.34 per sh ...

Table of Contents For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ | Exact name of registrant as specified in its charter, | | | | --- | --- | --- | | Commission | state of incorporation, address of princip ...