We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Economic Development Drive EVRG's Long-Term Earnings Growth?
Read MoreHide Full Article
Key Takeaways
Evergy sees large-load demand reaching 2.05-2.25 GW by 2030 as data centers and industrial projects ramp.
EVRG plans nearly $21.6 billion of investment through 2030, supporting about 12% annual rate-base growth.
Evergy projects 6-8% EPS growth, with annual growth expected to exceed 8% from 2028 through 2030.
Evergy, Inc. (EVRG - Free Report) continues to benefit from strong economic development in its service areas, including data centers, manufacturing and industrial projects. Rising electricity demand could support higher capital investment and rate-base growth.
The company’s large and diverse customer base directly aids its long-term financial growth. These customers can create incremental electricity demand while supporting investment in generation and transmission infrastructure.
Evergy recorded 3.3% year-to-date weather-normalized retail sales growth, supported by data-center project ramps and Panasonic’s continued industrial expansion. The company expects large-load demand to grow to about 2.05-2.25 gigawatts by 2030, while total electricity demand is projected to increase at a 7-8% compound annual growth rate through 2030. Evergy continues to witness strong interest from large customers across Kansas and Missouri and plans to add at least one new electric service agreement in 2026.
EVRG plans to invest nearly $21.6 billion through 2030, supporting significant rate-base expansion. This investment is expected to drive around 12% annual rate-base growth and 6-8% EPS growth, with EPS growth projected to exceed 8% annually from 2028 through 2030.
Overall, strong economic development and rising demand from large customers could drive higher electricity sales and encourage additional infrastructure investment. This combination is expected to provide a stronger foundation for Evergy’s long-term earnings growth.
Economic development can strengthen utility growth as new businesses, manufacturing facilities, data centers and electric vehicle adoption increase electricity consumption. Rising demand encourages infrastructure investment, expands the regulated rate base and creates opportunities for sustainable earnings growth and long-term shareholder value.
PPL Corporation (PPL - Free Report) : Growing economic activity across Pennsylvania and Kentucky is driving data-center and large-load demand, supporting potential generation investments of $10-$12 billion through 2032.
Alliant Energy (LNT - Free Report) : Strong economic development, including three data centers moving through construction, could help drive 60% load growth by 2031 and support higher investment and earnings.
EVRG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 7.06%, respectively, year over year.
Image Source: Zacks Investment Research
EVRG’s Stock Trading at a Premium
EVRG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.21X compared with the industry average of 15.05X.
Image Source: Zacks Investment Research
EVRG’s Stock Price Performance
In the past year, the company’s shares have risen 12.5% compared with the industry’s 10% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can Economic Development Drive EVRG's Long-Term Earnings Growth?
Key Takeaways
Evergy, Inc. (EVRG - Free Report) continues to benefit from strong economic development in its service areas, including data centers, manufacturing and industrial projects. Rising electricity demand could support higher capital investment and rate-base growth.
The company’s large and diverse customer base directly aids its long-term financial growth. These customers can create incremental electricity demand while supporting investment in generation and transmission infrastructure.
Evergy recorded 3.3% year-to-date weather-normalized retail sales growth, supported by data-center project ramps and Panasonic’s continued industrial expansion. The company expects large-load demand to grow to about 2.05-2.25 gigawatts by 2030, while total electricity demand is projected to increase at a 7-8% compound annual growth rate through 2030. Evergy continues to witness strong interest from large customers across Kansas and Missouri and plans to add at least one new electric service agreement in 2026.
EVRG plans to invest nearly $21.6 billion through 2030, supporting significant rate-base expansion. This investment is expected to drive around 12% annual rate-base growth and 6-8% EPS growth, with EPS growth projected to exceed 8% annually from 2028 through 2030.
Overall, strong economic development and rising demand from large customers could drive higher electricity sales and encourage additional infrastructure investment. This combination is expected to provide a stronger foundation for Evergy’s long-term earnings growth.
Strong Economic Growth Fuels Long-Term Utility Growth
Economic development can strengthen utility growth as new businesses, manufacturing facilities, data centers and electric vehicle adoption increase electricity consumption. Rising demand encourages infrastructure investment, expands the regulated rate base and creates opportunities for sustainable earnings growth and long-term shareholder value.
PPL Corporation (PPL - Free Report) : Growing economic activity across Pennsylvania and Kentucky is driving data-center and large-load demand, supporting potential generation investments of $10-$12 billion through 2032.
Alliant Energy (LNT - Free Report) : Strong economic development, including three data centers moving through construction, could help drive 60% load growth by 2031 and support higher investment and earnings.
EVRG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 7.06%, respectively, year over year.
Image Source: Zacks Investment Research
EVRG’s Stock Trading at a Premium
EVRG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.21X compared with the industry average of 15.05X.
Image Source: Zacks Investment Research
EVRG’s Stock Price Performance
In the past year, the company’s shares have risen 12.5% compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
EVRG’s Zacks Rank
EVRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.