April 24 (Reuters) - U.S. electric and gas utility CMS Energy CMS.N on Thursday reported a rise in first-quarter profit, helped by higher power demand.
The U.S. Energy Information Administration in February forecast power demand to hit record highs in 2025 and 2026, as electric companies are seeing a surge in data center demand.
The company said nearly 90% of supply chain will be domestically sourced after it warned of supply-chain issues from potential tariffs in the last quarter.
Ontario Premier Doug Ford said in March that electricity producers in the province will be required to add a 25% surcharge on power exported to the U.S., in response to President Donald Trump's tariffs on Canada.
Despite Michigan's minimal reliance on Canadian electricity, Ontario's threat could risk the reliability of U.S. electrical grids.
CMS Energy's revenue rose 12.4% to $2.45 billion for the first quarter, beating analysts' average estimate of $2.24 billion, according to data compiled by LSEG.
Total quarterly operating expenses rose to $1.95 billion from $1.76 billion a year-ago, while the utility increased its capital expenditure by 15% to $23 billion.
U.S. power companies are upgrading grid resiliency amid rising power demand from data centers to cater to the artificial intelligence wave.
CMS Energy's first-quarter net income attributable to shareholders rose to $302 million, or $1.01 per share, from $285 million, or 96 cents per share, a year ago.
The Jackson, Michigan-based firm earned $1.02 per share on adjusted basis in the first quarter, in line with analysts' expectation of $1.02, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Shreya Biswas)
((Pooja.Menon@thomsonreuters.com;))
Comments