CMS Energy · Earnings release

CMS Energy Announces Second

Quarter Results, Strategic Decision on NorthStar Clean Energy Services, Introduces Guidance for 2027

Energy announced today reported earnings per share of $0.37 for the second quarter of 2026, compared to $0.66 per share for 2025. The

company’s adjusted earnings per share for the second quarter were $0.37, compared to $0.71 per share for 2025. For the first six

months of the year, the company reported $1.47 per share compared to $1.67 per share for the same timeframe in 2025. On an adjusted earnings

per share basis year to date, the company reported $1.50 per share in 2026 compared to $1.73 per share in 2025.

CMS Energy also announced the completion of a strategic review at

NorthStar Clean Energy, and with Board approval, the company is exiting non-utility renewables development and retaining Michigan-based assets, including

Dearborn Industrial Generation (or DIG). This will simplify the business, reduce financing needs, and allow the company to focus more

fully on providing regulated energy services.

G1CMS Energy reaffirmed its 2026 adjusted earnings

guidance of $3.83 to $3.90 per share (*See below for important information about non-GAAP measures) and G2long-term adjusted EPS growth

of 6 to 8 percent, with continued confidence toward the high end. G3CMS Energy is introducing 2027 earnings guidance of $4.08 to $4.17.

CMS Energy (NYSE: CMS) is a Michigan-based energy

provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

# # #

CMS Energy will hold a webcast to discuss its 2026 second quarter

results and provide a business and financial outlook on Tuesday, July 28 at 10:00 a.m. (EDT). To participate in the webcast,

go to CMS Energy’s homepage (cmsenergy.com) and select “Events and Presentations.”

Important

information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles

(non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and

references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales,

impairments, restructuring costs, business optimization initiative, major enterprise resource planning software implementations, changes

in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains

or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items.

Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings

for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance.

Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably

or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing

a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information

to assist in understanding our business results, rather than as a substitute for the reported earnings.

This news release contains

"forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's

and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and

other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings.

Investors

and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations

section, www.cmsenergy.com/investor-relations, a channel of

distribution.

2

CMS ENERGY CORPORATION

Consolidated Statements of

Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

Operating revenue

$

$

$

$

Operating expenses

Operating Income

Other income

Interest charges

Income Before Income Taxes

Income tax expense

Net Income

Loss attributable to noncontrolling interests

)

(8

)

)

)

Net Income Attributable to CMS Energy

Preferred stock dividends

3

3

5

5

Net Income Available to Common Stockholders

$

$

$

$

Diluted Earnings Per Average Common Share

$

$

$

$

CMS ENERGY CORPORATION

Summarized Consolidated Balance

Sheets

(Unaudited)

In Millions

As of

Assets

Current assets

Cash and cash equivalents

$

$

Restricted cash and cash equivalents

Other current assets

Total current assets

Non-current assets

Plant, property, and equipment

Other non-current assets

Total Assets

$

$

Liabilities and Equity

Current liabilities (1)

$

$

Non-current liabilities (1)

Capitalization

Debt and finance leases (excluding securitization debt) (2)

Preferred stock and securities

Noncontrolling interests

Common stockholders' equity

Total capitalization (excluding securitization debt)

Securitization debt (2)

Total Liabilities and Equity

$

$

(1)

Excludes debt and finance leases.

(2)

Includes current and non-current portions.

CMS

ENERGY CORPORATION

Summarized

Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Six Months Ended

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

$

Net cash provided by operating activities

Net cash used in investing activities

)

)

Cash flows from operating and investing activities

)

)

Net cash provided by financing activities

Total Cash Flows

$

)

$

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

$

CMS ENERGY CORPORATION

Reconciliation of GAAP Net

Income to Non-GAAP Adjusted Net Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

Net Income Available to Common Stockholders

$

$

$

$

Reconciling items:

Other exclusions from adjusted earnings**

2

5

8

Tax impact

(1

)

(1

)

(4

)

(2

)

State tax policy change

-

-

Adjusted net income – non-GAAP

$

$

$

$

Average Common Shares Outstanding - Diluted

Diluted Earnings Per Average Common Share

Reported net income per share

$

$

$

$

Reconciling items:

Other exclusions from adjusted earnings**

*

Tax impact

(*

)

(*

)

)

(*

)

State tax policy change

-

-

Adjusted net income per share – non-GAAP

$

$

$

$

* Less than $0.5 million or $0.01 per share.

** Includes major enterprise resource planning software implementations and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the Company uses adjusted earnings to measure and assess performance. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, major enterprise resource planning software implementations, changes in accounting principles, voluntary separation program, changes in federal and state tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items. The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.