CMS ENERGY CORPCMS
CMS ENERGY CORP Segments Disclosure
Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy’s and Consumers’ chief operating decision-maker is the CEO. The chief operating decision-maker evaluates segment performance and profitability using net income available to CMS Energy’s common stockholders. This metric provides a clear, consistent basis for analyzing the financial results of each segment and supports decision-making regarding the allocation of resources.
Resource allocation to CMS Energy’s and Consumers’ segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The budget incorporates key financial and operational inputs, including anticipated revenues, expenses, and capital requirements, aligning with CMS Energy’s and Consumers’ strategic objectives and regulatory obligations. The chief operating decision-maker reviews budget-to-actual variances on a monthly basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely and effective response to changing conditions. For the electric utility and gas utility segments, the chief operating decision-maker uses this assessment to determine whether the segments are achieving their regulatory authorized return on equity.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
CMS Energy
The segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
•NorthStar Clean Energy, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
| In Millions | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | Electric Utility | Gas Utility | NorthStar Clean Energy | Segments Total | Other Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||||
| CMS Energy, including Consumers | ||||||||||||||||||||||||||||||||||||||
| Operating revenue | $ | 5,638 | $ | 2,493 | $ | 408 | $ | 8,539 | $ | — | $ | 8,539 | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
Power supply cost1 | 2,193 | — | 264 | 2,457 | — | 2,457 | ||||||||||||||||||||||||||||||||
| Cost of gas sold | — | 803 | 6 | 809 | — | 809 | ||||||||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,146 | 468 | 100 | 1,714 | 13 | 1,727 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 903 | 350 | 52 | 1,305 | 1 | 1,306 | ||||||||||||||||||||||||||||||||
| General taxes | 297 | 201 | 14 | 512 | 1 | 513 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 4,539 | 1,822 | 436 | 6,797 | 15 | 6,812 | ||||||||||||||||||||||||||||||||
| Operating Income (Loss) | 1,099 | 671 | (28) | 1,742 | (15) | 1,727 | ||||||||||||||||||||||||||||||||
Other income2 | 124 | 83 | 17 | 224 | 86 | 310 | ||||||||||||||||||||||||||||||||
| Interest charges | 353 | 206 | (7) | 552 | 237 | 789 | ||||||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 870 | 548 | (4) | 1,414 | (166) | 1,248 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 150 | 138 | (4) | 284 | (38) | 246 | ||||||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations | 720 | 410 | — | 1,130 | (128) | 1,002 | ||||||||||||||||||||||||||||||||
Other segment items3 | (1) | (1) | 71 | 69 | (10) | 59 | ||||||||||||||||||||||||||||||||
| Net Income (Loss) Available to Common Stockholders | $ | 719 | $ | 409 | $ | 71 | $ | 1,199 | $ | (138) | $ | 1,061 | ||||||||||||||||||||||||||
| Property, plant, and equipment, gross | $ | 21,871 | 4 | $ | 14,218 | 4 | $ | 1,649 | $ | 37,738 | $ | 25 | $ | 37,763 | ||||||||||||||||||||||||
| Investments in equity method investees | — | — | 61 | 61 | — | 61 | ||||||||||||||||||||||||||||||||
| Total assets | 22,760 | 4 | 14,188 | 4 | 2,496 | 39,444 | 497 | 39,941 | ||||||||||||||||||||||||||||||
Capital expenditures5 | 2,408 | 6 | 1,064 | 6 | 498 | 3,970 | — | 3,970 | ||||||||||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $5 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
| In Millions | ||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | Electric Utility | Gas Utility | Segments Total | Other Reconciling Items | Consolidated | |||||||||||||||||||||||||||
| Consumers | ||||||||||||||||||||||||||||||||
| Operating revenue | $ | 5,638 | $ | 2,493 | $ | 8,131 | $ | 1 | $ | 8,132 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||
Power supply cost1 | 2,193 | — | 2,193 | — | 2,193 | |||||||||||||||||||||||||||
| Cost of gas sold | — | 803 | 803 | — | 803 | |||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,146 | 468 | 1,614 | — | 1,614 | |||||||||||||||||||||||||||
| Depreciation and amortization | 903 | 350 | 1,253 | 1 | 1,254 | |||||||||||||||||||||||||||
| General taxes | 297 | 201 | 498 | 1 | 499 | |||||||||||||||||||||||||||
| Total operating expenses | 4,539 | 1,822 | 6,361 | 2 | 6,363 | |||||||||||||||||||||||||||
| Operating Income (Loss) | 1,099 | 671 | 1,770 | (1) | 1,769 | |||||||||||||||||||||||||||
| Other income | 124 | 83 | 207 | 1 | 208 | |||||||||||||||||||||||||||
| Interest charges | 353 | 206 | 559 | 1 | 560 | |||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 870 | 548 | 1,418 | (1) | 1,417 | |||||||||||||||||||||||||||
| Income tax expense | 150 | 138 | 288 | — | 288 | |||||||||||||||||||||||||||
| Net Income (Loss) | 720 | 410 | 1,130 | (1) | 1,129 | |||||||||||||||||||||||||||
Other segment items2 | (1) | (1) | (2) | — | (2) | |||||||||||||||||||||||||||
| Net Income (Loss) Available to Common Stockholder | $ | 719 | $ | 409 | $ | 1,128 | $ | (1) | $ | 1,127 | ||||||||||||||||||||||
| Property, plant, and equipment, gross | $ | 21,871 | 3 | $ | 14,218 | 3 | $ | 36,089 | $ | 31 | $ | 36,120 | ||||||||||||||||||||
| Total assets | 22,814 | 3 | 14,229 | 3 | 37,043 | 48 | 37,091 | |||||||||||||||||||||||||
Capital expenditures4 | 2,408 | 5 | 1,064 | 5 | 3,472 | — | 3,472 | |||||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
| In Millions | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | Electric Utility | Gas Utility | NorthStar Clean Energy | Segments Total | Other Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||||
| CMS Energy, including Consumers | ||||||||||||||||||||||||||||||||||||||
| Operating revenue | $ | 5,061 | $ | 2,138 | $ | 316 | $ | 7,515 | $ | — | $ | 7,515 | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
Power supply cost1 | 1,867 | — | 161 | 2,028 | — | 2,028 | ||||||||||||||||||||||||||||||||
| Cost of gas sold | — | 637 | 3 | 640 | — | 640 | ||||||||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,066 | 454 | 101 | 1,621 | 17 | 1,638 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 865 | 325 | 49 | 1,239 | 1 | 1,240 | ||||||||||||||||||||||||||||||||
| General taxes | 281 | 188 | 12 | 481 | 1 | 482 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 4,079 | 1,604 | 326 | 6,009 | 19 | 6,028 | ||||||||||||||||||||||||||||||||
| Operating Income (Loss) | 982 | 534 | (10) | 1,506 | (19) | 1,487 | ||||||||||||||||||||||||||||||||
Other income2 | 126 | 86 | 14 | 226 | 118 | 344 | ||||||||||||||||||||||||||||||||
| Interest charges | 324 | 192 | 4 | 520 | 188 | 708 | ||||||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 784 | 428 | — | 1,212 | (89) | 1,123 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 102 | 99 | (5) | 196 | (20) | 176 | ||||||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations | 682 | 329 | 5 | 1,016 | (69) | 947 | ||||||||||||||||||||||||||||||||
Other segment items3 | (1) | (1) | 58 | 56 | (10) | 46 | ||||||||||||||||||||||||||||||||
| Net Income (Loss) Available to Common Stockholders | $ | 681 | $ | 328 | $ | 63 | $ | 1,072 | $ | (79) | $ | 993 | ||||||||||||||||||||||||||
| Property, plant, and equipment, gross | $ | 20,137 | 4 | $ | 13,268 | 4 | $ | 1,506 | $ | 34,911 | $ | 21 | $ | 34,932 | ||||||||||||||||||||||||
| Investments in equity method investees | — | — | 64 | 64 | — | 64 | ||||||||||||||||||||||||||||||||
| Total assets | 20,710 | 4 | 13,247 | 4 | 1,893 | 35,850 | 70 | 35,920 | ||||||||||||||||||||||||||||||
Capital expenditures5 | 1,871 | 6 | 1,141 | 6 | 288 | $ | 3,300 | 1 | 3,301 | |||||||||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
| In Millions | ||||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | Electric Utility | Gas Utility | Segments Total | Other Reconciling Items | Consolidated | |||||||||||||||||||||||||||
| Consumers | ||||||||||||||||||||||||||||||||
| Operating revenue | $ | 5,061 | $ | 2,138 | $ | 7,199 | $ | 1 | $ | 7,200 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||
Power supply cost1 | 1,867 | — | 1,867 | — | 1,867 | |||||||||||||||||||||||||||
| Cost of gas sold | — | 637 | 637 | — | 637 | |||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,066 | 454 | 1,520 | — | 1,520 | |||||||||||||||||||||||||||
| Depreciation and amortization | 865 | 325 | 1,190 | 1 | 1,191 | |||||||||||||||||||||||||||
| General taxes | 281 | 188 | 469 | 1 | 470 | |||||||||||||||||||||||||||
| Total operating expenses | 4,079 | 1,604 | 5,683 | 2 | 5,685 | |||||||||||||||||||||||||||
| Operating Income (Loss) | 982 | 534 | 1,516 | (1) | 1,515 | |||||||||||||||||||||||||||
| Other income | 126 | 86 | 212 | — | 212 | |||||||||||||||||||||||||||
| Interest charges | 324 | 192 | 516 | 2 | 518 | |||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 784 | 428 | 1,212 | (3) | 1,209 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 102 | 99 | 201 | (1) | 200 | |||||||||||||||||||||||||||
| Net Income (Loss) | 682 | 329 | 1,011 | (2) | 1,009 | |||||||||||||||||||||||||||
Other segment items2 | (1) | (1) | (2) | — | (2) | |||||||||||||||||||||||||||
| Net Income (Loss) Available to Common Stockholder | $ | 681 | $ | 328 | $ | 1,009 | $ | (2) | $ | 1,007 | ||||||||||||||||||||||
| Property, plant, and equipment, gross | $ | 20,137 | 3 | $ | 13,268 | 3 | $ | 33,405 | $ | 29 | $ | 33,434 | ||||||||||||||||||||
| Total assets | 20,767 | 3 | 13,289 | 3 | 34,056 | 32 | 34,088 | |||||||||||||||||||||||||
Capital expenditures4 | 1,871 | 5 | 1,141 | 5 | 3,012 | — | 3,012 | |||||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
| In Millions | ||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | Electric Utility | Gas Utility | NorthStar Clean Energy | Segments Total | Other Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||||
| CMS Energy, including Consumers | ||||||||||||||||||||||||||||||||||||||
| Operating revenue | $ | 4,745 | $ | 2,420 | $ | 297 | $ | 7,462 | $ | — | $ | 7,462 | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||
Power supply cost1 | 1,841 | — | 170 | 2,011 | — | 2,011 | ||||||||||||||||||||||||||||||||
| Cost of gas sold | — | 897 | 5 | 902 | — | 902 | ||||||||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,075 | 511 | 88 | 1,674 | 13 | 1,687 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 797 | 338 | 43 | 1,178 | 2 | 1,180 | ||||||||||||||||||||||||||||||||
| General taxes | 260 | 176 | 10 | 446 | 1 | 447 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 3,973 | 1,922 | 316 | 6,211 | 16 | 6,227 | ||||||||||||||||||||||||||||||||
| Operating Income (Loss) | 772 | 498 | (19) | 1,251 | (16) | 1,235 | ||||||||||||||||||||||||||||||||
Other income2 | 131 | 77 | 12 | 220 | 142 | 362 | ||||||||||||||||||||||||||||||||
| Interest charges | 285 | 161 | 2 | 448 | 195 | 643 | ||||||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 618 | 414 | (9) | 1,023 | (69) | 954 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 67 | 98 | 4 | 169 | (22) | 147 | ||||||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations | 551 | 316 | (13) | 854 | (47) | 807 | ||||||||||||||||||||||||||||||||
Other segment items3 | (1) | (1) | 80 | 78 | (8) | 70 | ||||||||||||||||||||||||||||||||
| Net Income (Loss) Available to Common Stockholders | $ | 550 | $ | 315 | $ | 67 | $ | 932 | $ | (55) | $ | 877 | ||||||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise income from discontinued operations, net of tax, loss attributable to noncontrolling interests, and preferred stock dividends.
| In Millions | ||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | Electric Utility | Gas Utility | Segments Total | Other Reconciling Items | Consolidated | |||||||||||||||||||||||||||
| Consumers | ||||||||||||||||||||||||||||||||
| Operating revenue | $ | 4,745 | $ | 2,420 | $ | 7,165 | $ | 1 | $ | 7,166 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||
Power supply cost1 | 1,841 | — | 1,841 | — | 1,841 | |||||||||||||||||||||||||||
| Cost of gas sold | — | 897 | 897 | — | 897 | |||||||||||||||||||||||||||
| Maintenance and other operating expenses | 1,075 | 511 | 1,586 | — | 1,586 | |||||||||||||||||||||||||||
| Depreciation and amortization | 797 | 338 | 1,135 | 2 | 1,137 | |||||||||||||||||||||||||||
| General taxes | 260 | 176 | 436 | 1 | 437 | |||||||||||||||||||||||||||
| Total operating expenses | 3,973 | 1,922 | 5,895 | 3 | 5,898 | |||||||||||||||||||||||||||
| Operating Income (Loss) | 772 | 498 | 1,270 | (2) | 1,268 | |||||||||||||||||||||||||||
| Other income | 131 | 77 | 208 | — | 208 | |||||||||||||||||||||||||||
| Interest charges | 285 | 161 | 446 | 2 | 448 | |||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 618 | 414 | 1,032 | (4) | 1,028 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 67 | 98 | 165 | (4) | 161 | |||||||||||||||||||||||||||
| Net Income | 551 | 316 | 867 | — | 867 | |||||||||||||||||||||||||||
Other segment items2 | (1) | (1) | (2) | — | (2) | |||||||||||||||||||||||||||
| Net Income Available to Common Stockholder | $ | 550 | $ | 315 | $ | 865 | $ | — | $ | 865 | ||||||||||||||||||||||
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 6, 2020 | |
| 2018 | Feb 5, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 7, 2017 | |
| 2015 | Feb 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.