Utility Evergy beats second-quarter profit estimates on robust power demand

Electric utility Evergy beat Wall Street estimates for second-quarter profit on Thursday, helped by robust electricity demand and higher revenues from large customers such as data centers.

Electricity demand in the U.S. has been rising at an unprecedented pace, largely driven by power-hungry data centers dedicated to AI and as homes and businesses reduce the use of fossil fuels for heat and transportation.

Here are more details:

• The company posted an adjusted profit of 88 cents per share in the second quarter, compared with analysts' estimates of 83 cents per share, according to LSEG data.
• Evergy said it benefited from the recovery of regulated investments, growth in weather-normalized demand and higher large customer revenues, partially offset by higher operations and maintenance expenses.
• Total retail sales for the second quarter rose to $1.22 billion from $1.13 billion, led by an uptick in residential, commercial and industrial revenues.
• Total operating expenses for the quarter ended June 30 rose to $1.12 billion, from $1.09 billion a year ago.
• On a call with analysts, CEO David Campbell said Evergy was in discussions with multiple new customers representing about 1-2 gigawatts of additional opportunity, adding that it expects to execute at least one more electric service agreement (ESA) in 2026.
• Evergy has signed a total of five ESAs with Google, Meta Platforms, Digital Realty and Beale Infrastructure.
• These ESAs are expected to support load growth of 7%-8% through 2030, with additional agreements further extending that forecast.
• Evergy sees an additional investment opportunity of $1 billion to its $21.6 billion capital spending plan, finance chief Bryan Bucker said.
• Evergy provides power to 1.7 million customers in Kansas and Missouri through its operating subsidiaries Evergy Kansas Central, Evergy Metro and Evergy Missouri West.