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CMS Energy Set to Benefit From Renewable Growth & Capital Deployment
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Key Takeaways
CMS plans $20B in capital expenditures from 2025 to 2029 to boost resiliency and customer service.
The company targets 9 GW solar and 2.8 GW wind capacity expansion through 2045.
Higher debt than cash reserves signals a weak solvency position for CMS.
CMS Energy Corporation (CMS - Free Report) is strengthening operations through strategic investments while maintaining reliable, high-quality customer service. The company is broadening its renewable energy portfolio while phasing out coal-generating units.
However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position and the unfavorable costs tied to shutting down solid waste disposal facilities for coal ash.
Key Catalysts for CMS Stock
CMS Energy is undertaking major investments in infrastructure modernization, system replacements and clean energy generation to boost reliability and customer satisfaction. Between 2025 and 2029, the company plans to allocate $20 billion toward capital expenditures.
The company plans to deploy nearly 3,000 line sensors, 100 automatic transfer reclosers and 1,200 iron utility poles to enhance electric reliability and reduce power outages. CMS Energy plans to expand its renewable portfolio by adding 9 gigawatts (GW) of solar and 2.8 GW of wind capacity between 2025 and 2045. The company announced an 85-megawatt (MW) solar project at the former D.E. Karn coal plant site, expected to be operational by 2026. These initiatives are anticipated to strengthen CMS Energy’s infrastructure resilience, support customer growth and diversify its renewable energy portfolio.
CMS has cut its coal-generating capacity to lower emissions from its generation assets. The company plans to retire the J.H. Campbell coal unit in 2025 and the D.E. Karn oil- and gas-fired unit in 2031. These actions support CMS’ goal of eliminating coal-fueled generation by 2025.
CMS Energy, through its subsidiary Consumers Energy, is making significant investments in energy storage projects to strengthen grid reliability and advance its clean energy transition. The company has secured agreements to acquire 700 MW of capacity from battery storage facilities planned across Michigan’s Lower Peninsula, with operations targeted to begin by 2028.
Potential Risks to CMS Stock
With carbon emission regulations in electricity generation becoming more stringent, concerns remain despite CMS’ efforts to adopt pollution-control measures. As of Dec. 31, 2024, coal still accounted for nearly 20% of its total generation. CMS incurs significant costs associated with the development, operation and closure of solid waste disposal facilities for coal ash. To comply with these laws, consumers expect the company to spend $237 million between 2025 and 2029.
As of June 30, 2025, CMS Energy had $0.93 billion in cash and equivalents, $16.92 billion in long-term debt and $1.13 billion in current debt, indicating a weak solvency position due to higher debt than cash reserves.
CMS Stock Price Movement
In the past three months, CMS shares have risen 5% compared with the industry’s growth of 1.7%.
FTS’ long-term (three to five years) earnings growth rate is 5.1%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $2.50, which calls for a year-over-year jump of 4.6%.
NGG’s long-term earnings growth rate is 8.4%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $5.25, which indicates a year-over-year improvement of 47.1%.
CTRI’s long-term earnings growth rate is 41.2%. The Zacks Consensus Estimate for its 2025 EPS stands at 63 cents, which implies a year-over-year rise of 96.9%.
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CMS Energy Set to Benefit From Renewable Growth & Capital Deployment
Key Takeaways
CMS Energy Corporation (CMS - Free Report) is strengthening operations through strategic investments while maintaining reliable, high-quality customer service. The company is broadening its renewable energy portfolio while phasing out coal-generating units.
However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position and the unfavorable costs tied to shutting down solid waste disposal facilities for coal ash.
Key Catalysts for CMS Stock
CMS Energy is undertaking major investments in infrastructure modernization, system replacements and clean energy generation to boost reliability and customer satisfaction. Between 2025 and 2029, the company plans to allocate $20 billion toward capital expenditures.
The company plans to deploy nearly 3,000 line sensors, 100 automatic transfer reclosers and 1,200 iron utility poles to enhance electric reliability and reduce power outages. CMS Energy plans to expand its renewable portfolio by adding 9 gigawatts (GW) of solar and 2.8 GW of wind capacity between 2025 and 2045. The company announced an 85-megawatt (MW) solar project at the former D.E. Karn coal plant site, expected to be operational by 2026. These initiatives are anticipated to strengthen CMS Energy’s infrastructure resilience, support customer growth and diversify its renewable energy portfolio.
CMS has cut its coal-generating capacity to lower emissions from its generation assets. The company plans to retire the J.H. Campbell coal unit in 2025 and the D.E. Karn oil- and gas-fired unit in 2031. These actions support CMS’ goal of eliminating coal-fueled generation by 2025.
CMS Energy, through its subsidiary Consumers Energy, is making significant investments in energy storage projects to strengthen grid reliability and advance its clean energy transition. The company has secured agreements to acquire 700 MW of capacity from battery storage facilities planned across Michigan’s Lower Peninsula, with operations targeted to begin by 2028.
Potential Risks to CMS Stock
With carbon emission regulations in electricity generation becoming more stringent, concerns remain despite CMS’ efforts to adopt pollution-control measures. As of Dec. 31, 2024, coal still accounted for nearly 20% of its total generation. CMS incurs significant costs associated with the development, operation and closure of solid waste disposal facilities for coal ash. To comply with these laws, consumers expect the company to spend $237 million between 2025 and 2029.
As of June 30, 2025, CMS Energy had $0.93 billion in cash and equivalents, $16.92 billion in long-term debt and $1.13 billion in current debt, indicating a weak solvency position due to higher debt than cash reserves.
CMS Stock Price Movement
In the past three months, CMS shares have risen 5% compared with the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are Fortis (FTS - Free Report) , National Grid (NGG - Free Report) and Centuri Holdings, Inc. (CTRI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FTS’ long-term (three to five years) earnings growth rate is 5.1%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $2.50, which calls for a year-over-year jump of 4.6%.
NGG’s long-term earnings growth rate is 8.4%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $5.25, which indicates a year-over-year improvement of 47.1%.
CTRI’s long-term earnings growth rate is 41.2%. The Zacks Consensus Estimate for its 2025 EPS stands at 63 cents, which implies a year-over-year rise of 96.9%.