Evergy Inc.
EVRGBusiness Overview
ticker: EVRG step: 01 generated: 2026-05-13 source: quick-research
Evergy, Inc. (EVRG) — Business Overview
Business Description
Evergy is a Kansas City-based regulated electric utility formed in 2018 through the merger of Westar Energy and Kansas City Power & Light. It serves approximately 1.7 million customers across Kansas and Missouri through three operating subsidiaries: Evergy Kansas Central, Evergy Metro, and Evergy Missouri West. With a 12,500 MW generation fleet that is 35% renewable, a $21.6B long-term capital plan, and an economic development pipeline exceeding 15 GW of potential new load (primarily data centers), Evergy is repositioning from a slow-growth Midwest utility to a data center–driven growth story.
Revenue Model
Evergy earns authorized returns on rate base through tariff rates set by the Kansas Corporation Commission (KCC) and Missouri Public Service Commission (MPSC). Over 95% of revenue comes from regulated retail electricity sales to residential, commercial, and industrial customers. The remaining ~5% comes from wholesale energy. Rate cases in both states translate capital investments into earnings; Evergy implemented $105M in new Missouri West rates and $128M in new Kansas Central rates in 2025.
Products & Services
- Electric generation — coal (retiring), natural gas, wind, solar (35% renewable as of 2024)
- Transmission and distribution — 10,000+ circuit miles of transmission in Kansas and Missouri
- Retail electric service — 1.7M residential, commercial, and industrial customers
- Large-load / data center supply — ~1,900 MW in signed Electric Service Agreements; >15 GW economic development pipeline
- Wholesale energy — limited unregulated trading (~5% of revenue)
Customer Base & Go-to-Market
Evergy serves 1.7 million captive regulated customers in Kansas and Missouri. The growth inflection comes from data centers: the company has signed ESAs for ~1,900 MW of peak load (17% of 2026 projected peak demand) and has a development pipeline exceeding 15 GW — placing it among the larger Midwest utility data center opportunity sets. Load growth is forecast at ~6% CAGR through 2030.
Competitive Position
Evergy is a regulated monopoly in its Kansas and Missouri territories. The 2018 Westar/KCPL merger created scale efficiencies and a unified Midwest presence. Kansas and Missouri are increasingly attractive for data center development given land costs, cooling climate, and central US network connectivity. Key strategic question is whether Evergy — having been explored as an acquisition target in 2020-2021 by Elliott Management — could be taken private or merged in the ongoing utility consolidation wave.
Key Facts
- Founded: 2018 (merger of Westar Energy + Kansas City Power & Light; roots to 1882)
- Headquarters: Kansas City, Missouri
- Employees: ~5,100
- Exchange: NASDAQ
- Sector / Industry: Utilities / Electric Utilities
- Market Cap: ~$14.5B (at ~$63/share, ~230M shares)
Financial Snapshot
ticker: EVRG step: 04 generated: 2026-05-13 source: quick-research
Evergy, Inc. (EVRG) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$5.2B | $5.51B | $5.85B | +6.2% |
| Operating Margin | ~20% | ~19% | ~21% | +2pp |
| Net Income | $753M | $731M | $874M | +19.5% |
| EPS (adj. non-GAAP) | $3.71 | $3.54 | $3.81 | +7.6% |
FY2025: New rates in effect (Missouri West +$105M, Kansas Central +$128M); Q1 2025 EPS beat consensus
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$1.4B |
| Free Cash Flow | Negative (heavy capex cycle) |
| Capital Expenditures | ~$2.0B |
| Cash & Equivalents | ~$150M |
| Total Debt | ~$9B |
Note: Evergy has planned $3.3B in equity issuances to fund the capital program — significant dilution risk that offsets EPS growth from rate base expansion.
Key Ratios (approximate)
- P/E: ~17x (adj.) | EV/EBITDA: ~11x | Dividend Yield: ~4.0%
- Adj. EPS CAGR target: 6–8%+ through 2030 (Citi estimate) | Load growth CAGR: ~6%
Growth Profile
Evergy's adj. EPS dipped in 2023 due to rate timing and weather, then recovered sharply in 2024. New rate orders in 2025 ($233M combined) provide a meaningful earnings floor reset. The $21.6B long-term capital plan, 1,900 MW in signed data center ESAs, and a >15 GW economic development pipeline underpin Citi's upgraded 6–8%+ long-term EPS growth view. However, $3.3B in planned equity issuances (~22% of market cap) represent meaningful EPS dilution that investors must model carefully.
Forward Estimates
- FY2025: Rate revenue increase of ~$233M in effect; load growth ~6% CAGR expected
- Long-term EPS CAGR: 6–8%+ through 2030 (Citi; raised from prior target)
- Capital plan: $21.6B long-term; ~$14B through 2028
- Data center ESAs: ~1,900 MW signed; >15 GW pipeline
- Planned equity: $3.3B (dilutive; partially offsets rate base EPS growth)
- Citi price target: $95 (Buy); UBS downgraded on valuation
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $EVRG.