Evergy Inc

Strong Q1 earnings beat + key drivers (good) - Adjusted EPS: $0.69 vs $0.55 in Q1’25 (+$0.14 / share, ~$162M adjusted earnings vs ~$128M). - Main positives: weather-normalized demand +4.7%, growth in large-load revenues (including Panasonic + early start of a large data center in March), and recovery/return on regulated investments (~+$0.15 EPS). - Main negatives: mild winter weather hurt EPS by about ~$0.06 vs budget; O&M, depreciation, and net interest from infrastructure investments reduced EPS by about ~$0.10. - Company reaffirmed 2026 guidance midpoint: $4.24 adjusted EPS and provided Q2 adjusted EPS guidance of +17% to +19% vs the 2026 midpoint (i.e., strong seasonal run-rate).

Big strategic update: new “large customer” ESA + amendments (surprising/opportunity) - Evergy announced a 5th large customer electric service agreement and amendments to 2 prior ESAs. - Net effect: boosts 2026 margins (to offset mild-weather headwind) and improves the earnings/load outlook. - The new ESA is for a data center project in Kansas Central (details confidential; described as large, well-known developer with investment-grade credit working with the hyperscaler offtaker; more disclosures expected later).

Capital-intensive growth model looks stronger: load growth and earnings growth upgraded (good) - Total signed large-load framework: 5 ESAs with steady-state peak load of ~2.5 GW under LLPS tariff; including existing non-LLPS load (~450 MW) brings total to about ~3.0 GW. - Updated expectation: retail load growth CAGR ~7% to 8% through 2030 (up from prior forecast ~6%). - Large-load visibility: customers are under long-contract protections with minimum monthly bill payments; provides cash flow/visibility that supports earnings durability.