CMS Energy Corporation - 5.625% NT REDEEM 15/03/2078 USD 25

Core strategy shift: exit NorthStar nonutility renewables development; simplify + refocus on regulated utility - CMS will exit nonutility renewable development after a strategic review of NorthStar, retaining Michigan-based assets: DIG (Dearborn Industrial Generation), several small gas peakers and 4 commercial solar projects. - Rationale: make the earnings stream higher quality and more rate-based; reduce complexity and better align capital deployment with the utility growth runway.

Capital/funding impact: materially lower parent funding needs through 2030 - Current 5-year plan includes ~$1.7B dedicated primarily to nonutility renewables; exiting that reallocates capital away from NorthStar. - CMS expects combined effects to reduce over $500M of funding through 2030 (parent external funding needs, including equity). - Kept assets are described as strong cash-flow generators that can help offset parent financing while enabling the $24B utility investment plan.

Guidance outlook reaffirmed + new 2027 guidance introduced - 1H 2026 adjusted EPS: $1.50 (reported $0.23 YoY unfavorable), driven mainly by: - Storm impacts (identified offsets include pending storm deferral filing). - Weather comps: slightly lower cooling/heating degree days in Q2 vs normal. - Some benefits in 1H 2025 from liability management already contemplated in the 2026 plan (so not a full “miss,” but explains the YoY comparison). - 2026 guidance reaffirmed: $3.83 to $3.90 adjusted EPS (management reiterated confidence toward the high end). - New 2027 guidance: $4.08 to $4.17 adjusted EPS, consistent with long-term 6%–8% growth (based on 2025 actuals), and presented as “no rebase” / visibility that growth remains durable post-NorthStar restructuring.