Can Economic Development Drive EVRG's Long-Term Earnings Growth?

Evergy, Inc. EVRG continues to benefit from strong economic development in its service areas, including data centers, manufacturing and industrial projects.  Rising electricity demand could support higher capital investment and rate-base growth.

The company’s large and diverse customer base directly aids its long-term financial growth. These customers can create incremental electricity demand while supporting investment in generation and transmission infrastructure. 

Evergy recorded 3.3% year-to-date weather-normalized retail sales growth, supported by data-center project ramps and Panasonic’s continued industrial expansion. The company expects large-load demand to grow to about 2.05-2.25 gigawatts by 2030, while total electricity demand is projected to increase at a 7-8% compound annual growth rate through 2030. Evergy continues to witness strong interest from large customers across Kansas and Missouri and plans to add at least one new electric service agreement in 2026.

EVRG plans to invest nearly $21.6 billion through 2030, supporting significant rate-base expansion. This investment is expected to drive around 12% annual rate-base growth and 6-8% EPS growth, with EPS growth projected to exceed 8% annually from 2028 through 2030.

Overall, strong economic development and rising demand from large customers could drive higher electricity sales and encourage additional infrastructure investment. This combination is expected to provide a stronger foundation for Evergy’s long-term earnings growth.

Strong Economic Growth Fuels Long-Term Utility Growth

Economic development can strengthen utility growth as new businesses, manufacturing facilities, data centers and electric vehicle adoption increase electricity consumption. Rising demand encourages infrastructure investment, expands the regulated rate base and creates opportunities for sustainable earnings growth and long-term shareholder value.

PPL Corporation PPL: Growing economic activity across Pennsylvania and Kentucky is driving data-center and large-load demand, supporting potential generation investments of $10-$12 billion through 2032.

Alliant Energy LNT: Strong economic development, including three data centers moving through construction, could help drive 60% load growth by 2031 and support higher investment and earnings.

EVRG’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 7.06%, respectively, year over year.

Image Source: Zacks Investment Research

EVRG’s Stock Trading at a Premium

EVRG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.21X compared with the industry average of 15.05X.

Image Source: Zacks Investment Research

EVRG’s Stock Price Performance

In the past year, the company’s shares have risen 12.5% compared with the industry’s 10% growth.

Image Source: Zacks Investment Research

EVRG’s Zacks Rank

EVRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research