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CMS Energy Poised to Gain From Renewable Expansion & Investments
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Key Takeaways
CMS relies on regulated Michigan utilities for more than 95% of earnings, providing stable, low-risk revenues.
CMS plans $20B in capital spending from 2025-2029 to modernize infrastructure and expand clean energy.
CMS Energy aims to add 9 GW of solar, 4 GW of wind and 850 MW of battery storage by 2030.
CMS Energy Corporation (CMS - Free Report) is enhancing its operations through strategic investments while continuing to deliver reliable, high-quality customer service. The company is also expanding its renewable energy portfolio.
However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position and the unfavorable costs associated with shutting down solid waste disposal facilities for coal ash.
Key Growth Drivers for CMS Stock
CMS Energy benefits from stable, regulated utility operations in Michigan, supported by a strong capital investment plan centered on infrastructure modernization and the transition to clean energy, along with a favorable regulatory environment. More than 95% of its earnings are generated by regulated electric and gas utilities, providing a low-risk and steady revenue base.
CMS Energy is making significant investments in infrastructure modernization, system replacements, and clean energy generation to enhance reliability and customer satisfaction, with planned capital expenditures of $20 billion between 2025 and 2029.
CMS Energy plans to significantly expand its renewable generation portfolio by adding 9 gigawatts (GW) of solar and 4 GW of wind capacity over the next two decades, along with more than 850 megawatts (MW) of battery storage by 2030. Under its renewable energy plan, its subsidiary Consumers Energy has already acquired three wind projects totaling 517 MW of nameplate capacity since 2020. The updated renewable energy plan also calls for up to 9,000 MW of purchased and owned solar resources and as much as 2,800 MW of new, competitively bid wind energy resources.
Factors That May Pressure CMS Stock
Despite CMS Energy’s efforts to implement pollution-control measures, rising stringency in carbon-emission regulations for electricity generation remains a concern. As of Dec. 31, 2024, coal still represented nearly 20% of the company’s total generation, exposing it to regulatory and environmental risks. CMS also faces substantial costs related to the development, operation and closure of coal-ash solid waste disposal facilities. To comply with these laws, consumers expect the company to spend $240 million between 2025 and 2029.
As of Sept. 30, 2025, CMS Energy had $362 million in cash and equivalents, $16.77 billion in long-term debt and $1.16 billion in current debt, indicating a weak solvency position due to higher debt than cash reserves.
CMS Stock Price Movement
In the past year, CMS shares have risen 4.5% compared with the industry’s growth of 20.2%.
AEE’s long-term (three to five years) earnings growth rate is 8.52%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $5.01, which calls for a year-over-year jump of 8.2%.
OGE’s long-term earnings growth rate is 6.97%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.28, which indicates a year-over-year improvement of 4.1%.
NI’s long-term earnings growth rate is 7.93%. The Zacks Consensus Estimate for its 2025 EPS stands at $1.88, which implies a year-over-year rise of 7.4%.
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CMS Energy Poised to Gain From Renewable Expansion & Investments
Key Takeaways
CMS Energy Corporation (CMS - Free Report) is enhancing its operations through strategic investments while continuing to deliver reliable, high-quality customer service. The company is also expanding its renewable energy portfolio.
However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position and the unfavorable costs associated with shutting down solid waste disposal facilities for coal ash.
Key Growth Drivers for CMS Stock
CMS Energy benefits from stable, regulated utility operations in Michigan, supported by a strong capital investment plan centered on infrastructure modernization and the transition to clean energy, along with a favorable regulatory environment. More than 95% of its earnings are generated by regulated electric and gas utilities, providing a low-risk and steady revenue base.
CMS Energy is making significant investments in infrastructure modernization, system replacements, and clean energy generation to enhance reliability and customer satisfaction, with planned capital expenditures of $20 billion between 2025 and 2029.
CMS Energy plans to significantly expand its renewable generation portfolio by adding 9 gigawatts (GW) of solar and 4 GW of wind capacity over the next two decades, along with more than 850 megawatts (MW) of battery storage by 2030. Under its renewable energy plan, its subsidiary Consumers Energy has already acquired three wind projects totaling 517 MW of nameplate capacity since 2020. The updated renewable energy plan also calls for up to 9,000 MW of purchased and owned solar resources and as much as 2,800 MW of new, competitively bid wind energy resources.
Factors That May Pressure CMS Stock
Despite CMS Energy’s efforts to implement pollution-control measures, rising stringency in carbon-emission regulations for electricity generation remains a concern. As of Dec. 31, 2024, coal still represented nearly 20% of the company’s total generation, exposing it to regulatory and environmental risks. CMS also faces substantial costs related to the development, operation and closure of coal-ash solid waste disposal facilities. To comply with these laws, consumers expect the company to spend $240 million between 2025 and 2029.
As of Sept. 30, 2025, CMS Energy had $362 million in cash and equivalents, $16.77 billion in long-term debt and $1.16 billion in current debt, indicating a weak solvency position due to higher debt than cash reserves.
CMS Stock Price Movement
In the past year, CMS shares have risen 4.5% compared with the industry’s growth of 20.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , OGE Energy, Corp. (NGG - Free Report) and NiSource, Inc. (NI - 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.
AEE’s long-term (three to five years) earnings growth rate is 8.52%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $5.01, which calls for a year-over-year jump of 8.2%.
OGE’s long-term earnings growth rate is 6.97%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.28, which indicates a year-over-year improvement of 4.1%.
NI’s long-term earnings growth rate is 7.93%. The Zacks Consensus Estimate for its 2025 EPS stands at $1.88, which implies a year-over-year rise of 7.4%.