CMS Energy Corporation - 5.875% NT REDEEM 15/10/2078 USD 25

NorthStar restructuring: exit non-utility renewables development; keep retained Michigan generation - CMS will exit nonutility renewable development after a strategic review of NorthStar, while retaining Michigan-based assets: Dearborn Industrial Generation (DIG), small gas peakers (Kalamazoo and Livingston), and 4 commercial solar projects. - Management frames this as simplifying the business and shifting growth to a higher-quality utility, rate-based earnings profile. - Timing/implementation: restructuring targeted to be completed by end of 2026, with interim updates expected on future calls.

Capital reallocation & improved parent financing needs (key driver of “why now”) - Current 5-year plan has ~$1.7B dedicated primarily to nonutility renewables; CMS expects to reallocate away from that spend. - Management estimates the plan reduces external parent funding needs by >$500M through 2030 (including less equity need), improving balance-sheet flexibility and the ability to fund the utility capital program.

Guidance: confirms 2026 outlook and introduces 2027 EPS guidance - 1H 2026 adjusted EPS: $1.50, down $0.23 YoY; headwinds mainly storm impacts (with offsets expected), plus a weather comp headwind vs last year. - Full-year 2026 adjusted EPS guidance reaffirmed: $3.83–$3.90 (management “confident toward the high end”). - New full-year 2027 adjusted EPS guidance: $4.08–$4.17, positioned as maintaining the company’s long-term 6%–8% annual growth trajectory from 2025 actuals. - Key mechanics to watch into 2H: storm deferral docket outcome assumptions, ongoing execution on rate orders net of investment costs, and conservatism on non-weather sales.