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SEC filingStrong quarter driven by new Kansas retail rates and non-regulated energy marketing, though higher capex and interest expense tempered cash flow.
Revenue for the first quarter of 2026 was $1.44 billion, a 5.0% increase compared to $1.37 billion in the same period last year. The growth was primarily driven by new retail rates implemented at Evergy Kansas Central and contributions from non-regulated energy marketing activities. These factors more than offset the impact of lower residential usage due to milder weather.
Operating income increased 9.2% to $318.4 million, reflecting the revenue growth and effective cost management. Net income rose 21.2% to $151.5 million, benefiting from higher allowance for funds used during construction (AFUDC), proceeds from company-owned life insurance (COLI), and a lower income tax expense. Diluted earnings per share increased 18.5% to $0.64, in line with net income growth.
Net cash provided by operating activities was $362.5 million, compared to $449.6 million in the prior year, primarily due to changes in working capital, including higher coal inventory and timing of customer collections. Capital expenditures increased to $851.9 million from $592.8 million, reflecting ongoing investments in grid modernization and generation assets. As a result, free cash flow was negative $489.4 million. Evergy expects cash flows to be sufficient to meet existing short-term capital requirements.
Evergy continues to position for future demand growth, including through economic development agreements (ESAs) that reflect the applicable provisions of the company's LLPS rate plans. These agreements support the potential for significant load additions from data centers, aligning with the company's long-term growth strategy.