[Management View]
Evergy reported a slight year-over-year increase in third quarter adjusted EPS, driven by recovery of regulated investments and weather-normalized demand growth. The company outlined a $17.5 billion capital plan through 2029 to support grid modernization and new generation, highlighting a significant pipeline of large load customers that could drive higher-than-expected demand growth. Regulatory progress in Kansas and Missouri has enabled timely cost recovery for major investments, while the pending LLPS tariff is designed to ensure new large customers bear a fair share of system costs. The board approved a 4% dividend increase for 2025, consistent with the updated growth outlook.

[Outlook]
Evergy narrowed its 2025 adjusted EPS guidance range to $3.92-$4.02 per share, reflecting weather-related headwinds. The company expects large load customers to significantly improve cash flows from operations beginning in 2026, potentially moderating future equity needs. A comprehensive five-year outlook, including revised load forecast and capital plan, will be detailed on the year-end call in February.

[Financial Performance]
Adjusted EPS for the third quarter was $2.03 per share, up from $2.02 per share a year ago. Year-to-date adjusted EPS was $3.41 per share, compared to $3.46 per share a year ago. The lower midpoint of the 2025 adjusted EPS guidance reflects a $0.13 per share negative impact from below-normal cooling degree days in the second and third quarters.

[Q&A Highlights]
Question 1: Have any priorities or anticipated efforts for 2026 in Missouri's legislative session that could influence the rate case cadence?

Answer: David Campbell explained that after a busy year with consequential legislation, 2026 might have a lighter calendar, focusing on implementing and following through on elements of SP4 related rule makings.

Question 2: Will the growth rate in the updated plan be linear or accelerate towards the end of the decade?

Answer: David Campbell indicated that the updated financial plan will outline the profile, emphasizing the multiple tailwinds driving growth in the region, including load growth and investments needed to serve that load.

Question 3: How much competition is there at the local level in terms of attracting large loads within your service territory?

Answer: David Campbell highlighted the collaborative approach within the Kansas City Area Development Council, representing counties on both sides of the state line, mitigating potential poaching across state lines.

Question 4: How much of the $17.5 billion CapEx would be subject to a typical rate case filing versus recovery without a regular rate case?

Answer: David Campbell explained that all investments are subject to reviews for prudence and reasonableness, with mechanisms like PISA and CWIP mitigating regulatory lag. Approximately one-third of the capital plan is in new generation, while two-thirds are in traditional categories like grid modernization and reliability.

[Sentiment Analysis]
Analysts and management expressed optimism about Evergy's strategic investments and the potential for large load customer growth. The tone was positive, with a focus on the benefits these developments will bring to the region and the company's financial outlook.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|--------|---------|---------|------------|
| Adjusted EPS | $2.03 | $2.02 | +$0.01 |
| Year-to-date Adjusted EPS | $3.41 | $3.46 | -$0.05 |

[Risks and Concerns]
Weather-related headwinds negatively impacted results by $0.13 per share. Higher interest and depreciation expenses, and dilution from convertible debt, also posed challenges. Regulatory and legislative changes could influence future rate case cadence and cost recovery mechanisms.

[Final Takeaway]
Evergy's strategic investments and focus on large load customer growth position the company for robust future performance. Despite weather-related headwinds, the company's long-term outlook remains strong, supported by a comprehensive capital plan and collaborative regulatory environment. The upcoming five-year outlook update will provide further insights into Evergy's growth trajectory and financial expectations.