CMS Energy raises dividend, lifts 2026 adjusted EPS guidance after NorthStar outperformance

CMS Energy raises dividend and lifts 2026 adjusted outlook after clean‑energy outperformance

Dividend boost signals utility confidence amid NorthStar strength

CMS Energy is increasing its annual dividend and nudging up its 2026 adjusted earnings outlook after stronger-than-expected performance at its NorthStar Clean Energy unit. The Michigan‑based utility reports full‑year 2025 diluted EPS of $3.53 and adjusted EPS of $3.61, above the prior year, and the board raises the annual dividend by $0.11 to $2.28 for 2026 — the 20th consecutive yearly increase. The quarterly payout rises to $0.57 per share, with the first‑quarter dividend payable Feb. 27 to holders of record Feb. 17.

Operational drivers underpin shareholder return and guidance

Company management attributes the beat to NorthStar outperformance, constructive regulatory outcomes and solid cost control at Consumers Energy, CMS’s principal utility business. CMS raises its 2026 adjusted EPS guidance to $3.83–$3.90 from $3.80–$3.87 and reaffirms long‑term adjusted EPS growth of 6–8%, signaling confidence in reaching the higher end of that range. President and CEO Garrick Rochow frames the dividend increase and guidance lift as evidence of the company’s strategic execution while emphasizing that customers remain the top priority.

Capital allocation balances returns and flexibility

The board frames the dividend action as a commitment to return capital while retaining financial flexibility to invest in utility operations and independent power generation assets. CMS notes the increment equals a $0.11 annualized increase and underscores the board’s intent to sustain predictable cash returns alongside continued investment in clean energy and grid performance. Management highlights that adjusted measures are central to internal performance assessment and external communications as the company advances its transition and reliability work in Michigan.

Non‑GAAP adjustments and guidance caveats

CMS emphasizes that adjusted earnings are a non‑GAAP measure and lists potential adjustment items such as discontinued operations, asset sales, impairments, restructuring, regulatory items and mark‑to‑market gains or losses. Because the company cannot reliably estimate the impact of future specific items, it is not providing reported earnings guidance or a reconciliation for comparable future periods.

Investor outreach and next steps

CMS Energy schedules a webcast on Feb. 5, 2026 at 10:00 a.m. ET to discuss year‑end results and outlook; additional dividend tax details and investor materials are available on the company website, which also offers email alerts and historical payout information.