- CMS Energy reported a rise in first-quarter profit and revenue, driven by increased power demand, particularly from data centres.
- The company noted that nearly 90% of its supply chain would be domestically sourced.
CMS Energy, the U.S. electric and gas utility based in Jackson, Michigan, reported a rise in first-quarter profit on Thursday, April 24. This was driven by higher electricity demand and strengthened supply chain sourcing.
The company earned a net income of $302 million, or $1.01 per share, up from $285 million, or 96 cents per share, in the same quarter last year. On an adjusted basis, CMS Energy matched analysts’ expectations, reporting earnings of $1.02 per share, according to data from LSEG.
Revenue climbed 12.4% to $2.45 billion, surpassing the average analyst estimate of $2.24 billion. Meanwhile, total operating expenses increased to $1.95 billion from $1.76 billion a year earlier, and the utility boosted its capital expenditure by 15%, reaching $23 billion.
CMS Energy attributed the growth to rising electricity demand, echoing a February forecast by the U.S. Energy Information Administration that projected record-high power demand in 2025 and 2026. The surge is driven mainly by expanding data centre operations, which support the growing artificial intelligence sector.
In response to previous supply-chain concerns linked to potential tariffs, CMS Energy said it now domestically sources nearly 90% of its supply chain.
Meanwhile, Ontario Premier Doug Ford announced in March that electricity producers in the Canadian province must impose a 25% surcharge on power exports to the U.S. This move responds to President Donald Trump’s newly imposed tariffs on Canadian goods. While Michigan relies minimally on Canadian electricity, the Canadian policy threatens the reliability of U.S. electrical grids, including those in CMS Energy’s service region.
As power companies across the U.S. work to reinforce grid resilience in the face of rising energy demands, CMS Energy continues investing in infrastructure upgrades to support future capacity and reliability.