The leaders of Evergy Inc. have raised the company’s five-year forecast for rate-based growth to 8.5% annually from 8% thanks to the addition of several large new customers. And they say other digital and advanced manufacturing prospects for Evergy’s Kansas and Missouri territories could add to that number in coming quarters.
Speaking to analysts and investors after Evergy reported fourth-quarter results—net income of $78.2 million, up from $58.0 million in the last three months of 2023—Chairman and CEO David Campbell said his team continues to be in advanced talks with two potential customers about projects that would require a combined 1.6 gigawatts. On top of that, Campbell said other prospects representing nearly 3 gigawatts are also working with Evergy and have in some cases taken concrete steps involving property or letters of agreement.
“We’re very confident in the current plans,” Campbell said Feb. 27. “We see some really nice tailwinds behind them.”
Anchoring the current positive growth outlook are data centers from Google and Meta as well as a 4,000-job Panasonic electric-vehicle battery plant west of Kansas City. Those projects helped Campbell and his team last year raise their rate-based growth outlook to 8% from its historical 6% level. But even then, CFO Bryan Buckler said the Evergy team was “being conservative in our messaging” as it thought about growth steadily ramping up later this decade.
Those expectations also are evident in Evergy leaders’ projections for capital spending: From an estimated $2.5 billion this year, they’re expected to top $3.5 billion in 2027 and exceed $4 billion in both ensuing years. At nearly $17.5 billion, the latest plan from Campbell and his team is nearly $1.3 billion larger than last fall’s, with most of that increase coming from new generation capacity.
The Evergy team now expect transmission investments through 2029 to total nearly $3.3 billion, up about $70 million from three months ago. Transmission work is forecast to $4.7 billion, down from about $4.9 billion in the fall.
Executives expect sales growth in 2025 to be 2.4%, more than double last year’s rate. Industrial growth will lead the way at 5% while sales to commercial customers are expected to grow 2.9%.
Shares of Evergy (Ticker: EVRG) fell slightly on the earnings report Feb. 27 but have since more than recovered that ground. They closed trading March 3 at $69.52 and are now up about 16% over the past six months. That move has grown the company’s market capitalization to $16 billion.
