10-K – 2026-02-19 – evrg-20251231.htm

ITEM 1C. CYBERSECURITY
The Evergy Companies utilize an enterprise risk management framework to identify, evaluate and minimize risks. Risk management personnel meet annually with subject matter experts and each board member to identify and assess enterprise risk and also confer with each board member about the Evergy Companies' risk management profile. Evergy's Board has assigned primary oversight of enterprise risk management practices to the Audit Committee of the Evergy Board. At least annually, the Audit Committee reviews and discusses with management the Evergy Companies' enterprise risk management policies, processes, and frameworks, including conclusions reached regarding risk assessment and risk management.
Certain significant risks identified by the enterprise risk management process, such as cybersecurity, have a cross-functional team assigned to assess and manage the specific risk and may have oversight by a committee other than the Audit Committee. The Senior Vice President, Chief Technology Officer (CTO) and Senior Vice President, Chief Nuclear Officer (CNO), have overall accountability for the assessment, identification and management of cybersecurity risks on behalf of the Evergy Companies and Wolf Creek, respectively, subject to review by the Evergy Board and its committees. The CTO and CNO leverage the input and operations of the security management and operations team within each organizational structure. The security teams, comprised of cybersecurity professionals, lead the daily cyber risk mitigation efforts including cyber training of the workforce, threat monitoring, identification of potential cyber events and applicable compliance obligations. See Part I, Item 1, Business – Information about Evergy’s Executive Officers for a description of the CTO's and CNO's experience.
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The Evergy Board has assigned primary oversight of cybersecurity risk to the Operations Committee of the Evergy Board. At each Operations Committee meeting, the CTO presents the Evergy Companies' cybersecurity metrics and scorecard performance; global, industry and Evergy-specific cybersecurity news; third-party assessments of the Evergy Companies' cybersecurity program; and industry benchmarking results. The Operations Committee meets regularly throughout the year and may meet more frequently or otherwise be informed of cybersecurity risk and incident information as needed. The CNO discusses with the Operations Committee risks specific to Wolf Creek, including cybersecurity risk. At least once each year, the Evergy Board receives a report from management on key business and compliance risks and related mitigation plans, and management discusses cybersecurity matters with the Evergy Board in connection with this report. The Evergy Companies also have a Security and Business Continuity Committee made up of internal security experts and several Evergy corporate officers. This committee meets bi-monthly to discuss relevant security and business continuity issues.
The Evergy Companies' risk mitigation function utilizes the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF), the United States Department of Energy Cyber Capability Maturity Model (C2M2) standard and components of National Institute of Standards and Technology Risk Management Framework (NIST RMF) for a comprehensive, flexible and risk-based approach to managing risk from cybersecurity threats that integrates, security, privacy and cyber supply chain risk management activities. The NIST RMF considers effectiveness, efficiency and constraints due to applicable laws and regulations.
The Evergy Companies' cybersecurity organization uses the NIST CSF to model the security program. The Evergy Companies have implemented a layered defense model to protect against cyber intrusions and attacks. One layer of defense is Evergy's employees and their abilities to detect and respond to phishing attempts. Evergy conducts annual security awareness training and monthly phishing simulations. Employees that perform poorly in the phishing simulations are subject to additional training and disciplinary action. Other defense layers include firewalls at both the network and application layers, network segmentation, email scanning, multi-factor authentications, cloud security monitoring, in addition to other defensive layers. Several of the Evergy Companies' security tools employ AI and machine learning to enhance their respective capabilities. The Evergy Companies employ security practitioners with cybersecurity and information technology degrees and certifications and with extensive experience, with several holding federal government clearances. The Evergy Companies have a 24-hour Security Operations Center that monitors for security events and the Evergy Companies frequently engage with multiple third parties to analyze network traffic. Further, the Evergy Companies regularly and as needed engage cybersecurity consultants and third parties to assist with the identification, assessment and mitigation of cybersecurity risks and assessment of the Evergy Companies' risk mitigation practices . These services include, but are not limited to, the identification of vulnerabilities, penetration testing and assessment of the cybersecurity program to both validate effectiveness and also identify any areas for improvement.
Cybersecurity incidents are identified and mitigated by cybersecurity incident response plans that detail any actions to be taken when a cybersecurity incident occurs. The cybersecurity incident response plans define the organization, roles and responsibilities of the teams tasked with mitigating the impact of the cybersecurity incident. They define repeatable processes for responding to cybersecurity incidents; ensure communication to the CTO and CNO, as appropriate; minimize the impact to customer and business operations; coordinate response activities with external organizations; decrease the likelihood of reoccurrence and ensure regulatory reporting occurs, among other objectives. If warranted, the incident response plan may trigger the activation of the Crisis Management Team, a subset of officers who lead corporate functions and would collectively perform impact assessment and provide decision-making guidance as a component of the Crisis Management Plan within the Evergy Companies' business continuity and disaster recovery plans. Both the incident response plan and crisis management plan are practiced on an annual basis. In addition, the Evergy Companies share network traffic with federal and state agencies to assist with the identification and mitigation of cybersecurity incidents. The Evergy Companies participate in federal and industry information sharing programs, such as the Cybersecurity and Infrastructure Security Agency to assist in the exchange of cybersecurity-related information, analysis and incident mitigation techniques. On at least an annual basis, cross-functional teams and executive management participate in a simulated cybersecurity incident exercise and the Evergy Companies regularly simulate cybersecurity incidents, including phishing attacks, to assess organizational readiness. In addition to a bi-annual internal assessment, the NRC inspects Wolf Creek's processes to validate the effectiveness of the program to protect Wolf Creek from cybersecurity threats.
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In addition, the Evergy Companies review many third parties with whom the Evergy Companies do business to understand and evaluate potential cybersecurity risks of engaging the third party and work with the third party to appropriately mitigate identified risks, as needed. Among other measures, certain third parties are required to have processes in place to mitigate risk that data would be compromised, to become aware of cybersecurity incidents and to promptly notify the Evergy Companies of any cybersecurity incidents. Generally, the Evergy Companies retain the right to perform an assessment, audit, examination or review of all controls in the third parties' environment to monitor compliance with applicable cybersecurity agreements. The Evergy Companies may decide not to move forward with a third party that does not meet security requirements.
While the Evergy Companies have a cybersecurity program designed to protect and preserve the integrity of their information systems, the Evergy Companies also maintain cybersecurity insurance to manage financial statement risk resulting from specific cyber-attacks. Although the Evergy Companies maintain cybersecurity insurance, there can be no guarantee that the Evergy Companies' insurance coverage limits will protect against any future claims or that such insurance proceeds will be paid in a timely manner.
The Evergy Companies have been subjected to attempted cyber-attacks from time to time, and will likely continue to be subject to such attempted attacks, but these prior attacks have not had a material impact on the Evergy Companies' operations or financial results to date. However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent through the use of such tools as AI, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future. See Item 1A. Risk Factors – Operational Risks for additional information.
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ITEM 2. PROPERTIES
Generation Resources

Unit Capability (MW) By Owner (a)

Station Unit No. Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power
Renewable Generation:
Central Plains Kansas 2009 Wind 99 —  —  99  —  99 
Flat Ridge Kansas 2009 Wind 50 —  —  50  44  (b) 94 
Flat Ridge 3 Kansas 2021 Wind — —  —  —  128  (b) 128 
Western Plains Kansas 2017 Wind 281 —  —  281  —  281 
Meridian Way Kansas 2008 Wind —  —  —  —  96  (b) 96 
Ironwood Kansas 2012 Wind —  —  —  —  168  (b) 168 
Post Rock Kansas 2012 Wind —  —  —  —  201  (b) 201 
Cedar Bluff Kansas 2015 Wind —  —  —  —  199  (b) 199 
Kay Wind Oklahoma 2015 Wind —  —  —  —  200  (b) 200 
Soldier Creek Kansas 2020 Wind —  —  —  —  300  (b) 300 
Ninnescah Kansas 2016 Wind —  —  —  —  208  (b) 208 
Kingman 1 Kansas 2016 Wind —  —  —  —  37  (b) 37 
Kingman 2 Kansas 2016 Wind —  —  —  —  103  (b) 103 
Rolling Meadows Kansas 2010 Landfill Gas —  —  —  —  6  (b) 6 
Hutchinson Solar Kansas 2017 Solar —  —  —  —  1  (b) 1 
Ponderosa Oklahoma 2020 Wind —  —  —  —  178  (c) 178 
Cimarron II Kansas 2012 Wind —  —  —  —  131  (d) 131 
Cimarron Bend III Kansas 2020 Wind —  —  —  —  150  (e) 150 
Spearville 1 Kansas 2006 Wind —  101  —  101  —  101 
Spearville 2 Kansas 2010 Wind —  48  —  48  —  48 
Spearville 3 Kansas 2012 Wind —  —  —  —  101  (d) 101 
Gray County Kansas 2001 Wind —  —  —  —  110  (f) 110 
Ensign Kansas 2012 Wind —  —  —  —  99  (f) 99 
Waverly Kansas 2016 Wind —  —  —  —  200  (d) 200 
Slate Creek Kansas 2015 Wind —  —  —  —  150  (d) 150 
Rock Creek Missouri 2017 Wind —  —  —  —  300  (g) 300 
Osborn Missouri 2016 Wind —  —  —  —  201  (g) 201 
Pratt Kansas 2018 Wind —  —  —  —  243  (g) 243 
Greenwood Solar Missouri 2016 Solar —  —  3  3  —  3 
Prairie Queen Kansas 2019 Wind —  —  —  —  200  (g) 200 
St Joseph Landfill Missouri 2012 Landfill Gas —  —  2  2  —  2 
Persimmon Creek Oklahoma 2018 Wind 199  —  —  199  —  199 
Hawthorn Solar Missouri 2023 Solar —  7  3  10  —  10 
Total Renewable Generation: 629  156  8  793  3,754  4,547 

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Unit Capability (MW) By Owner (a)

Station Unit No. Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power
Nuclear:
Wolf Creek 1 (h) Kansas 1985 Uranium 553  553  —  1,106  —  1,106 
Total Nuclear: 553  553  —  1,106  —  1,106 
Coal:
Jeffrey Energy Center Kansas
Steam Turbines 1 - 3 (h) 1978, 1980 &1983 Coal 2,008  —  175  2,183  —  2,183 
Lawrence Energy Center Kansas
Steam Turbines 4 & 5 1960, 1971 Coal 488  —  —  488  —  488 
La Cygne Kansas
Steam Turbines 1 & 2 (h)(i) 1973, 1977 Coal 713  713  —  1,426  —  1,426 
Iatan Missouri
Steam Turbines 1 & 2 (h) 1980, 2010 Coal —  983  288  1,271  —  1,271 
Hawthorn Missouri
Steam Turbines 5 (j) 1969 Coal —  562  —  562  —  562 
Total Coal: 3,209  2,258  463  5,930  —  5,930 
Gas and Oil:
Emporia Energy Center Kansas
Combustion Turbines 1 - 7 2008 - 2009 Natural Gas 654  —  —  654  —  654 
Gordon Evans Energy Center Kansas
Combustion Turbines 1 - 3 2000 - 2001 Natural Gas 300  —  —  300  —  300 
Hutchinson Energy Center Kansas
Combustion Turbines 1 - 3 1974 Natural Gas 167 —  —  167  —  167 
4 1975 Oil 70 —  —  70  —  70 
Spring Creek Energy Center Oklahoma
Combustion Turbines 1 - 4 2001 Natural Gas 294 —  —  294  —  294 
State Line Missouri
Combined Cycle 1 - 3 (h) 2001 Natural Gas 211 —  —  211  —  211 
Hawthorn Missouri
Combined Cycle 6 & 9 2000 Natural Gas —  242  —  242  —  242 
Combustion Turbines 7 & 8 2000 Natural Gas —  157  —  157  —  157 
West Gardner Kansas
Combustion Turbines 1 - 4 2003 Natural Gas —  315  —  315  —  315 

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Unit Capability (MW) By Owner (a)

Station Unit No. Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power
Gas and Oil (continued):
Osawatomie Kansas
Combustion Turbines 1 2003 Natural Gas —  77  —  77  —  77 
Ralph Green Missouri
Combustion Turbines 3 1981 Natural Gas —  —  66  66  —  66 
Nevada Missouri
Combustion Turbines 1 1974 Oil —  —  16  16  —  16 
Lake Road Missouri
Combustion Turbines 1 - 3 1951, 1958 & 1962 Natural Gas —  —  49  49  —  49 
5 - 7 1974, 1989 & 1990 Oil —  —  106  106  —  106 
Steam Turbines 4 1967 Natural Gas —  —  95  95  —  95 
Northeast Missouri
Combustion Turbines 11 - 18 1972 - 1977 Oil —  394  —  394  —  394 

South Harper Missouri
Combustion Turbines 1 - 3 2005 Natural Gas —  —  321  321  —  321 
Greenwood Energy Center Missouri
Combustion Turbines 1 - 4 1975 - 1979 Natural Gas —  —  250  250  —  250 
Crossroads Energy Center Mississippi
Combustion Turbines 1 - 4 2002 Natural Gas —  —  300  300  —  300 
Dogwood Energy Center Missouri
Combined Cycle 1 - 3 (h) 2002 Natural Gas —  —  145  145  —  145 
Total Gas and Oil 1,696  1,185  1,348  4,229  —  4,229 
Total 6,087  4,152  1,819  12,058  3,754  15,812 
(a) Capability (except for wind generating facilities) represents estimated 2026 net generating capacity. Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,515 MWs of accredited generating capacity pursuant to SPP reliability standards.
(b) Evergy Kansas Central renewable power purchase agreement.
(c) Evergy Kansas Central and Evergy Metro renewable power purchase agreement.
(d) Evergy Metro renewable power purchase agreement.
(e) Evergy Kansas Central and Evergy Missouri West renewable power purchase agreement.
(f) Evergy Missouri West renewable power purchase agreement.
(g) Evergy Metro and Evergy Missouri West renewable power purchase agreement.
(h) Share of a jointly owned unit.
(i) In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2. Evergy and Evergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 19 to the consolidated financial statements for more information.
(j) Although the plant was completed in 1969, a new boiler, air quality control equipment and an uprated turbine were placed in service at the Hawthorn Generating Station in 2001.
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Transmission and Distribution Resources
Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers. Evergy has approximately 10,200 circuit miles of transmission lines, 44,600 circuit miles of overhead distribution lines and 16,700 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs. Management believes the current system has adequate capacity to serve customers.
General
Evergy's generating plants are located on property owned (or co-owned) by the Evergy Companies, except for certain facilities that are located on easements or are contractually controlled. Evergy's headquarters, service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy. Evergy's transmission and distribution systems are for the most part located above or underneath highways, streets, other public places or property owned by others. Evergy believes that it has satisfactory rights to use those places or properties in the form of permits, grants, easements, licenses or franchise rights; however, it has not necessarily undertaken efforts to examine the underlying title to the land upon which the rights rest.
Substantially all of the fixed property and franchises of the Evergy Companies, which consist principally of electric generating stations, electric transmission and distribution lines and systems, and buildings (subject to exceptions, reservations and releases), are subject to mortgage indentures pursuant to which bonds have been issued and are outstanding. See Note 12 to the consolidated financial statements for more information.

ITEM 3.  LEGAL PROCEEDINGS
The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  For information regarding material lawsuits and proceedings, see Notes 4 and 15 to the consolidated financial statements.  Such information is incorporated herein by reference.

ITEM 4.  MINE SAFETY DISCLOSURES
Not applicable.
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PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
EVERGY, INC.
Evergy's common stock is listed on the Nasdaq Stock Market LLC under the symbol "EVRG." At February 11, 2026, Evergy's common stock was held by 14,484 shareholders of record.
Purchases of Equity Securities
The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended December 31, 2025.

Issuer Purchases of Equity Securities
Month Total Number of
Shares (or Units)
Purchased (a)
Average Price
Paid per Share
(or Unit) Total Number of
Shares (or Units)
Purchased as
Part of Publicly
Announced Plans
or Programs Maximum
Number of
Shares (or Units)
that May Yet Be
Purchased Under the Plans or Programs
October 1 - 31 6,291  $76.35 —  — 
November 1 - 30 —  —  —  — 
December 1 - 31 2,520  $75.41 —  — 
Total 8,811  $76.08 —  — 

(a) Represents shares Evergy purchased for withholding taxes related to the vesting of restricted stock or restricted stock units.
Dividend Restrictions
For information regarding dividend restrictions, see Note 18 to the consolidated financial statements.

ITEM 6. RESERVED

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined MD&A should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself. The following MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 can be found in MD&A in Part II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31, 2024 and are incorporated herein by reference.
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EVERGY, INC.
EXECUTIVE SUMMARY
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.
• Evergy Kansas Central is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South.
• Evergy Metro is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
• Evergy Missouri West is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
• Evergy Transmission Company owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the SPP. Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,800 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
Strategy
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on enabling economic development across all of its service territories to strengthen the communities it serves and meet existing and future customer electricity demand growth through the continued evolution of its generation, transmission and distribution systems. Evergy will remain focused on consistently delivering on its affordability, reliability and sustainability objectives and delivering competitive long-term returns to shareholders, including growth in earnings per share and targeting a 50%-60% dividend payout ratio. The core tenets of Evergy's strategy are as follows:
• Affordability – maintaining affordable rates while investing in infrastructure and technology to support growth and prosperity;
• Reliability – targeting top-tier performance in reliability, customer service and generation; and
• Sustainability – advancing an "all-of-the-above" generation portfolio.
Significant elements of Evergy's plan to achieve its strategic objectives include:
• across the board, maintaining excellence in day-to-day operations. Safety-first, cost efficiency, infrastructure investment, new technology deployment and process improvement are crucial components of Evergy's vision and enable improvement in the important metrics of reliability, customer satisfaction and cost performance to the sustainable benefit of customers;
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• fostering economic development in Kansas and Missouri by supporting the attraction of new businesses and large load customers while ensuring protections for existing customers through key safeguards included in the LLPS rate plans;
• targeting approximately $21.6 billion of expected capital investments through 2030 including new generation of approximately $9.3 billion which is expected to be primarily natural gas, renewable generation and battery storage capacity in support of historic economic development opportunities in Kansas and Missouri. See "Liquidity and Capital Resources - Capital Expenditures," for further information regarding Evergy's projected capital expenditures through 2030;
• adding new highly-efficient natural gas generation resources, renewable generation and storage to support economic growth in the region and to enable the ongoing modernization of Evergy's generation fleet, consistent with Evergy's "all-of-the-above" strategy to leverage a diverse set of fuel sources. The trajectory and timing of achieving emissions reductions relative to 2005 levels and Evergy's long-term emissions reductions goal are expected to be dependent on enabling technology developments, trends in total demand for electricity, the reliability of the power grid, availability of transmission capacity and supportive energy policies and regulations, among other external factors. See "Modernizing and Expanding Evergy's Generation Fleet" in Part I, Item 1. Business, for additional information; and
• accessing debt and equity capital markets to support the Evergy Companies' capital investment plans.
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A. Risk Factors, for additional information.
Evergy Metro's 2026 Rate Case Proceeding
In February 2026, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of approximately $140 million. Evergy Metro's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend. New rates are expected to be effective in January 2027.
Evergy Kansas Central's 2025 Rate Case Proceeding
In January 2025, Evergy Kansas Central filed an application with the KCC to request an increase to its retail revenues of approximately $196 million. Evergy Kansas Central's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend.
In July 2025, Evergy Kansas Central, the KCC staff and other intervenors in the case reached a unanimous settlement agreement to settle all outstanding issues in the case. The unanimous settlement provides for an increase to retail revenues of $128.0 million after rebasing property tax expense and not including costs recoverable through KCC-approved riders for Evergy Kansas Central. In September 2025, the KCC approved the unanimous settlement agreement and new rates took effect in October 2025. See Note 4 to the consolidated financial statements for additional information.
Large Load Power Service Rate Plans and Executed Large Customer Agreements
In February 2025, Evergy Kansas Central and Evergy Metro filed an application with the KCC and Evergy Metro and Evergy Missouri West filed an application with the MPSC seeking expedited approval of new comprehensive LLPS rate plans. In August 2025, Evergy Kansas Central, Evergy Metro, the KCC staff and other intervenors reached a unanimous settlement agreement for the LLPS rate plan which the KCC approved in November 2025. In September 2025, Evergy Metro, Evergy Missouri West and other intervenors agreed to a non-unanimous global stipulation and agreement for the LLPS rate plan which the MPSC approved in November 2025.
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The LLPS rate plans are designed to establish a tariff framework for large load customers while including safeguards for existing customers to ensure that new large customers pay their cost of service and help defray costs that might be experienced by other customers. The provisions in the LLPS rate plans in both Kansas and Missouri apply to new or existing customers adding load in excess of 75 MWs. These plans have a term length of 12 years after a period of up to 5-years of transitional load. The minimum monthly bill requirement is set based on 80% of the customers' expected capacity demand and is applied to all demand-related bill elements and riders. Termination fees will be calculated as the minimum monthly bill requirement multiplied by the remaining months in the contract. New large load customers will also be required to post collateral equal to two years of minimum monthly bills at the time of signing the agreement, subject to established discounts based on creditworthiness. The Evergy Companies, at their discretion, may require additional collateral based on assessment of the overall creditworthiness of the counterparty.
In February 2026, the Evergy Companies signed electric service agreements (ESAs) with multiple large load customers to serve data centers with a projected peak steady state load of approximately 1,900 MWs. The ESAs relate to two new projects and the expansion of two separate projects previously announced. The ESAs' terms reflect the applicable provisions of the Evergy Companies’ LLPS rate plans and the service of these large load customers, inclusive of a 5-year transitional load period, is expected to begin at dates ranging from 2026 to 2028.
Federal Tax Reform
In July 2025, the OBBBA was signed into law by President Trump. The OBBBA contains a wide variety of tax reforms affecting businesses, including changes to clean energy production tax credits, which could impact the Evergy Companies' long-term generation resource planning. The Evergy Companies do not expect a material impact to their operations and consolidated financial results.
Missouri Legislation
In April 2025, Missouri Senate Bill (SB) 4 was signed into law by the Governor of Missouri. Most notably, SB 4 establishes new mechanisms for Missouri electric utilities to recover the costs associated with the construction of new natural gas-fired generating units. The utilities will be able to include certain costs of construction work in progress (CWIP) in rate base. The inclusion of CWIP will be in lieu of allowance for funds used during construction (AFUDC) applicable to the construction of the new natural gas-fired generating units. The MPSC will determine the amount of CWIP that may be included in rate base. Additionally, amounts collected arising from the inclusion of CWIP in rate base are subject to refund under certain circumstances. These provisions are scheduled to expire at the end of 2035.
Additionally, the law extends Missouri's existing PISA provisions to include certain natural gas-fired generating units as qualifying electric plant and extends the sunset date of these provisions through the end of 2035. These provisions allow electric utilities to defer to a regulatory asset for recovery in a subsequent general rate case 85% of depreciation expense and the associated return on investment for qualifying electric plant rate base additions for assets placed in-service between general rate cases.
Kansas Legislation
In April 2025, Kansas House Bill (HB) 2107 was signed into law by the Governor of Kansas. Most notably, HB 2107 establishes a two-year statute of limitations for wildfire-related claims against a Kansas electric public utility and a $5.0 million limit for punitive damages awarded under a fire claim. The law also requires the plaintiff to establish the burden of proof for fire claims by a preponderance of evidence.
Natural Gas Plant Investments
The Evergy Companies use IRPs, detailed analyses that estimate factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity. The most recent IRPs incorporate the latest SPP resource adequacy requirements and anticipated load growth. Based on these and other factors, the IRPs indicated the addition of new supply side resources, including combined and simple cycle natural gas plants, would be needed.
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In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants located in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly-own each plant and expect each plant to have an initial generating capacity of approximately 705 MWs. The first plant, a combined cycle gas turbine (CCGT) facility located in Sumner County, is expected to begin operations by spring of 2029 and the second plant, a CCGT facility located in Reno County, is expected to begin operations by spring of 2030.
Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri. The plant is expected to begin operations in 2030.
In 2024, Evergy Kansas Central and Evergy Missouri West requested predetermination from the KCC and a Certificate of Convenience and Necessity (CCN) from the MPSC, respectively, for their planned natural gas investments. In July 2025, the KCC approved a non-unanimous partial settlement agreement regarding Evergy Kansas Central's investments in its planned natural gas plants. In July 2025, the MPSC approved a non-unanimous stipulation and agreement regarding Evergy Missouri West's investments in its planned natural gas plants. See "Applications for Predetermination" and "Requests for Certificate of Convenience and Necessity" in Note 4 to the consolidated financial statements for additional information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and a CCN for their investments in these natural gas plants.
Renewable Plant Investments
Evergy Kansas Central intends to construct and own an approximately 159 MW solar generation facility, to be located in Douglas County Kansas, called Kansas Sky. In July 2024, a lawsuit was filed in the District Court of Douglas County, Grant Township, et al. v. Board of County Commissioners , requesting the court to overturn Douglas County's approval of the application to construct the solar generation facility. Due to the ongoing litigation, including the court's granting of an emergency injunction in December 2024 which temporarily prohibits the construction of the solar generation facility, Evergy Kansas Central is not able to estimate when the solar generation facility will begin operations. In July 2025, the KCC approved a unanimous partial settlement agreement for the Kansas Sky solar investment. See "Applications for Predetermination" in Note 4 to the consolidated financial statements for additional information regarding Evergy Kansas Central's application for predetermination for its investment in this renewable generating plant.
In 2024, Evergy Missouri West entered into agreements to own two solar generation facilities currently under development. The first facility, to be called Sunflower Sky, is a solar generation facility to be located in Kansas with an expected generating capacity of approximately 65 MWs. In September 2025, Evergy Missouri West acquired the Sunflower Sky solar facility assets from the developer and will complete construction of the facility. The second facility, to be called Foxtrot, is a solar generation facility to be located in Missouri with an expected generating capacity of approximately 100 MWs. In November 2025, Evergy Missouri West acquired the Foxtrot solar facility assets from the developer and will complete construction of the facility. The solar generation facilities are expected to begin operations by summer of 2027. In July 2025, the MPSC approved a unanimous stipulation and agreement regarding Evergy Missouri West's planned investments in the solar generation facilities. See "Requests for Certificate of Convenience and Necessity" in Note 4 to the consolidated financial statements for information regarding Evergy Missouri West's application for a CCN for its investment in these renewable generating plants.
Convertible Note Repurchases
In January and February 2026, Evergy, Inc. repurchased $244.1 million aggregate principal amount of its $1.4 billion aggregate principal amount of 4.50% Convertible Notes (Convertible Notes), under separate, privately negotiated repurchase agreements with certain holders of its Convertible Notes, for a total repurchase cost (excluding accrued and unpaid interest) of $308.6 million. After these January and February 2026 repurchases, $1,155.9 million aggregate principal amount of Convertible Notes remain outstanding. See "Convertible Notes" in Note 12 to the consolidated financial statements for additional information regarding Evergy, Inc.'s repurchase of Convertible Notes.
Regulatory Proceedings
See Note 4 to the consolidated financial statements for information regarding other regulatory proceedings.
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Wolf Creek Refueling Outage
Wolf Creek's most recent refueling outage began in October 2025 and the unit returned to service in November 2025. Wolf Creek's next refueling outage is planned to begin in the spring of 2027.
Earnings Overview
The following table summarizes Evergy's net income and diluted earnings per share (EPS).

2025 Change 2024
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 855.6  $ (17.9) $ 873.5 
Earnings per common share, diluted 3.66  (0.13) 3.79 

Net income attributable to Evergy, Inc. decreased in 2025, compared to the same period in 2024, primarily due to higher operating and maintenance, depreciation and interest expense, losses from non-regulated investments in early-stage clean energy and energy solution companies and lower proceeds from corporate-owned life insurance (COLI); partially offset by new Evergy Missouri West and Evergy Kansas Central retail rates effective in January and October 2025, respectively, and higher transmission revenues.
Diluted EPS decreased in 2025, compared to the same period in 2024, primarily due to the decrease in net income attributable to Evergy, Inc. discussed above in addition to a $0.05 per share decrease primarily due to dilution from Evergy's convertible notes.
For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.

Non-GAAP Measures
Evergy Utility Gross Margin (non-GAAP)
Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP.  Utility gross margin (non-GAAP), as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms.  As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO.  As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.
Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in fuel and purchased power costs and SPP network transmission costs.  Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board.  Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.
Utility gross margin (non-GAAP) differs from the GAAP definition of gross margin due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income tax. See the Evergy Companies' Results of Operations for a reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.
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Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assist in the comparability of results and are consistent with how management reviews performance.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2025, were $893.8 million or $3.83 per share. For 2024, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $877.9 million or $3.81 per share.
In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without:
i. the realized losses, unrealized losses and impairment losses from non-regulated investments in early-stage clean energy and energy solution companies and costs related to the disposal of these investments;
ii. the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of Jeffrey Energy Center (JEC); and
iii. the costs incurred in the fourth quarter 2024 resulting from the realignment of the executive operations corporate structure.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing perf ormance or that can create period to period earnings volatility.
Ad justed earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.

Earnings (Loss) Earnings (Loss) per Diluted Share Earnings (Loss) Earnings (Loss) per Diluted Share
2025 2024
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 855.6  $ 3.66  $ 873.5  $ 3.79 
Non-GAAP reconciling items:

Losses from investments in early-stage clean energy and energy solution companies, pre-tax (a)
49.0  0.22  —  — 
Mark-to-market impact of JEC economic hedges, pre-tax (b)
—  —  2.6  0.01 

Executive operations team realignment, pre-tax (c)
—  —  2.5  0.01 
Income tax benefit (d)
(10.8) (0.05) (0.7) — 

Adjusted earnings (non-GAAP) $ 893.8  $ 3.83  $ 877.9  $ 3.81 

(a) Reflects realized losses, unrealized losses and impairment losses of $48.7 million from non-regulated investments in early-stage clean energy and energy solution companies that are included in investment earnings (loss) on the consolidated statements of comprehensive
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income and $0.3 million of costs related to the disposal of these investments that are included in operating and maintenance expense on the consolidated statements of comprehensive income. Evergy has initiated a process to dispose of these investments.
(b) Reflects mark-to-market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's 8% ownership share of JEC that are included in operating revenues on the consolidated statements of comprehensive income.
(c) Reflects costs incurred associated with the realignment of the executive operations corporate structure that are included in operating and maintenance expense and taxes other than income tax on the consolidated statements of comprehensive income.
(d) Reflects an income tax effect calculated at a statutory rate of approximately 22%, with the exception of certain non-deductible items.

ENVIRONMENTAL MATTERS
See Note 15 to the consolidated financial statements for information regarding environmental matters.
RELATED PARTY TRANSACTIONS
See Note 17 to the consolidated financial statements for information regarding related party transactions.

CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate, or different estimates that could have been used, could have a material impact on Evergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board.
Pensions
Evergy incurs significant costs in providing non-contributory defined pension benefits. The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience.
Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments. In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the discount rates used in determining the projected benefit obligation and pension costs.
The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan. The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation. These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 9 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.
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The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only.

Impact on Impact on
Projected 2026
Change in Benefit Pension
Actuarial assumption Assumption Obligation Expense
(millions)
Discount rate 0.5  % increase $ (95.6) $ (10.0)
Rate of return on plan assets 0.5  % increase N/A (6.7)
Rate of compensation 0.5  % increase 22.2  4.7 
Discount rate 0.5  % decrease 105.9  11.0 
Rate of return on plan assets 0.5  % decrease N/A 6.7 
Rate of compensation 0.5  % decrease (20.9) (4.5)

Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC. The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate.
In 2025, Evergy's pension expense was $42.5 million under GAAP and $54.3 million for ratemaking. The impact on 2026 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense is deferred to a regulatory asset or liability for future ratemaking treatment. See Note 9 to the consolidated financial statements for additional information regarding the accounting for pensions.
Market conditions and interest rates significantly affect the future assets and liabilities of the plan. It is difficult to predict future pension costs, changes in pension liability and cash funding requirements due to the inherent uncertainty of market conditions.
Revenue Recognition
Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. Evergy's estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. Evergy's unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 to the consolidated financial statements for the balance of unbilled receivables for Evergy as of December 31, 2025 and 2024.
Regulatory Assets and Liabilities
Evergy has recorded assets and liabilities on its consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded under GAAP. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to Evergy; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. Evergy's continued ability to meet the criteria for recording regulatory
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assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to all or a portion of Evergy's operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. See Note 4 to the consolidated financial statements for additional information.
Impairments of Assets and Goodwill
Long-lived assets are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable as prescribed under GAAP.
Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from the merger that created Evergy was conducted as of May 1, 2025. The fair value of the reporting unit substantially exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.
The determination of fair value for the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit, which involves a significant amount of management judgment.
The discounted cash flow analysis is most significantly impacted by two assumptions: estimated future cash flows and the discount rate applied to those cash flows. Management determines the appropriate discount rate to be based on the reporting unit's weighted average cost of capital (WACC). The WACC takes into account both the return on equity authorized by the KCC and MPSC and after-tax cost of debt. Estimated future cash flows are based on Evergy's internal business plan, which assumes the occurrence of certain events in the future, such as the outcome of future rate filings, future approved rates of return on equity, anticipated returns of and earnings on future capital investments, continued recovery of cost of service and the renewal of certain contracts. Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events. Should the actual outcome of some or all of these assumptions differ significantly from the current assumptions, revisions to current cash flow assumptions could cause the fair value of the Evergy reporting unit under the income approach to be significantly different in future periods and could result in a future impairment charge to goodwill.
The market approach analysis is most significantly impacted by management's selection of relevant peer companies as well as the determination of an appropriate control premium to be added to the calculated invested capital of the reporting unit, as control premiums associated with a controlling interest are not reflected in the quoted market price of a single share of stock. Management determines an appropriate control premium by using an average of control premiums for recent acquisitions in the industry. Changes in results of peer companies, selection of different peer companies and future acquisitions with significantly different control premiums could result in a significantly different fair value of the Evergy reporting unit.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for NOLs, capital losses and tax credit carryforwards. Evergy is required to estimate the amount of taxes
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payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns. Actual results could differ from these estimates for a variety of reasons including changes in income tax laws, enacted tax rates and results of audits by taxing authorities. This process also requires management to make assessments regarding the timing and probability of the ultimate tax impact from which actual results may differ. Evergy records valuation allowances on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. See Note 20 to the consolidated financial statements for additional information.
Asset Retirement Obligations
Evergy has recognized legal obligations associated with the disposal of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. Concurrent with the recognition of the liability, the estimated cost of the ARO incurred at the time the related long-lived assets were either acquired, placed in service or when regulations establishing the obligation became effective is also recorded to property, plant and equipment, net, on the consolidated balance sheets. The recording of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or an offset to a regulatory liability.
Evergy initially records AROs at fair value for the estimated costs to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items. AROs refer to legal obligations to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence. The results of these assumptions are discounted using credit-adjusted risk-free rates (CARFR). The CARFR is determined as the current U.S. Treasury bonds rates corresponding to the period of expected settlement activities and is adjusted for the associated bond rates Evergy would be charged to borrow for the specific time period. Any change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets.
As of December 31, 2025 and 2024, Evergy had recorded AROs of $1,342.3 million and $1,297.0 million, respectively. See Note 6 to the consolidated financial statements for more information regarding Evergy's AROs.

EVERGY RESULTS OF OPERATIONS  
Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, level of capital investment, customer behavior and demand, the economy and competitive forces.
Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators and to mitigate the impacts of inflationary pressures.
Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather.
The Evergy Companies use coal, uranium and gas for the generation of electricity for their customers and also purchase power through renewable power purchase agreements or on the open market. The prices for fuel used in generation or the market price of power purchases can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.
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Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.
Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Evergy Kansas Central, Evergy Metro and Evergy Missouri West offer energy efficiency and demand side management programs to their respective Kansas and Missouri retail customers and recover program costs, throughput disincentive, and as applicable, certain earnings opportunities in retail rates through a rider mechanism.
The Evergy Companies' taxes other than income tax, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have property tax surcharges or trackers that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in property tax costs from the amounts set in base rates.
The following table summarizes Evergy's comparative results of operations.

2025 Change 2024
  (millions)
Operating revenues $ 5,961.6  $ 114.3  $ 5,847.3 
Fuel and purchased power 1,412.4  (67.5) 1,479.9 
SPP network transmission costs 438.0  67.1  370.9 
Operating and maintenance 995.3  33.4  961.9 
Depreciation and amortization 1,162.9  48.9  1,114.0 
Taxes other than income tax 420.1  (32.5) 452.6 

Income from operations 1,532.9  64.9  1,468.0 
Other income (expense), net (25.6) (28.7) 3.1 
Interest expense 616.3  53.2  563.1 
Income tax expense 29.9  (0.1) 30.0 
Equity in earnings of equity method investees, net of income taxes
6.8  (1.0) 7.8 
Net income 867.9  (17.9) 885.8 
Less: Net income attributable to noncontrolling interests
12.3  —  12.3 
Net income attributable to Evergy, Inc. $ 855.6  $ (17.9) $ 873.5 

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Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)
The following table summarizes Evergy's gross margin (GAAP) and MWhs sold and reconcile Evergy's gross margin (GAAP) to Evergy's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

Revenues and Expenses MWhs Sold
2025 Change 2024 2025 Change 2024
Retail revenues (millions) (thousands)
Residential $ 2,198.6  $ 12.0  $ 2,186.6  15,955  245  15,710 
Commercial 1,950.5  (13.2) 1,963.7  18,676  401  18,275 
Industrial 649.9  (32.1) 682.0  8,197  (191) 8,388 
Other retail revenues 45.7  2.4  43.3  91  (10) 101 
Total electric retail 4,844.7  (30.9) 4,875.6  42,919 445  42,474
Wholesale revenues 312.8  (7.7) 320.5  15,187  1,225  13,962 
Transmission revenues 520.6  38.0  482.6  N/A N/A N/A
Other revenues 283.5  114.9  168.6  N/A N/A N/A
Operating revenues 5,961.6  114.3  5,847.3  58,106 1,670  56,436
Fuel and purchased power (1,412.4) 67.5  (1,479.9)
SPP network transmission costs (438.0) (67.1) (370.9)
Operating and maintenance (a)
(521.7) 4.0  (525.7)
Depreciation and amortization (1,162.9) (48.9) (1,114.0)
Taxes other than income tax (420.1) 32.5  (452.6)
Gross margin (GAAP) 2,006.5   102.3   1,904.2  
Operating and maintenance (a)
521.7  (4.0) 525.7 
Depreciation and amortization 1,162.9  48.9  1,114.0 
Taxes other than income tax 420.1  (32.5) 452.6 
Utility gross margin (non-GAAP) $ 4,111.2   $ 114.7   $ 3,996.5  
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $473.6 million and $436.2 million for 2025 and 2024, respectively.

Evergy's gross margin (GAAP) increased $102.3 million in 2025, compared to 2024, and Evergy's utility gross margin (non-GAAP) increased $114.7 million in 2025, compared to 2024, both measures were driven by:
• a $133.7 million increase from new retail rates consisting of $105.1 million from Evergy Missouri West retail rates effective in January 2025 and $28.6 million from Evergy Kansas Central retail rates effective in October 2025;
• a $38.0 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC transmission formula rate (TFR) effective in January 2025; and
• a $10.6 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased by 14%; partially offset by a 5% decrease in cooling degree days) and higher weather-normalized commercial demand; partially offset by
• a $40.4 million decrease in revenue from the Kansas property tax rider, which is offset in taxes other than income tax; and
• a $27.2 million decrease driven by items not included in fuel recovery mechanisms, including 2024 wholesale revenues related to Dogwood Energy Center (Dogwood), a higher portion of 2025 SPP transmission expenses, Crossroads Energy Center (Crossroads) transmission expenses and certain wholesale revenues at Evergy Kansas Central.
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Additionally, the increase in Evergy's gross margin (GAAP) was also impacted by:
• a $48.9 million increase in depreciation and amortization as further described below; partially offset by
• a $32.5 million decrease in taxes other than income tax as further described below; and
• a $4.0 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities.
Operating and Maintenance
Evergy's operating and maintenance expense increased $33.4 million in 2025, compared to 2024, primarily driven by:
• a $14.2 million increase in general and administrative labor and employee benefits expense, including higher medical claims;
• an $8.7 million increase in credit loss expense primarily due to lower levels of net write-offs incurred compared to estimates in 2024; and
• a $7.0 million increase in legal costs due to increased litigation activity in 2025.
Depreciation and Amortization
Evergy's depreciation and amortization increased $48.9 million in 2025, compared to 2024, primarily due to capital additions.
Taxes Other Than Income Tax
Evergy's taxes other than income tax decreased $32.5 million in 2025, compared to 2024, primarily driven by a decrease in Evergy Kansas Central's and Evergy Metro's 2025 amortization of the Kansas property tax rider.
Other Income (Expense), Net
Evergy's other income, net in 2024 became other expense, net in 2025 as a result of a $28.7 million increase in net other expense items, primarily driven by:
• $48.7 million of realized, unrealized and impairment losses from Evergy's non-regulated investments in early-stage clean energy and energy solution companies; and
• a $7.8 million increase primarily due to recording lower Evergy Kansas Central COLI benefits in 2025; partially offset by
• $11.8 million of income related to a commercial solar generation project completed in 2025;
• a $7.0 million decrease in pension non-service costs; and
• a $3.3 million increase in equity AFUDC primarily at Evergy Kansas Central and Evergy Missouri West primarily driven by lower short-term debt balances in 2025.
Interest Expense
Evergy's interest expense increased $53.2 million in 2025, compared to 2024, primarily driven by:
• a $78.3 million increase due to issuances of long-term debt; and
• a $4.9 million increase due to lower debt AFUDC driven by lower short-term interest rates in 2025; partially offset by
• a $19.4 million decrease in interest expense due to the repayment of long-term debt; and
• a $13.5 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to Evergy Kansas Central and Evergy Metro electing into Kansas PISA beginning July 2024.
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EVERGY SIGNIFICANT BALANCE SHEET CHANGES
(December 31, 2025 compared to December 31, 2024)
• Evergy's regulatory assets - current increased $36.5 million primarily driven by a $41.2 million increase related to Evergy Missouri West's fuel recovery mechanism under-collections.
• Evergy's nuclear decommissioning trusts increased $137.0 million primarily driven by realized and unrealized gains on investments at Evergy Kansas Central's and Evergy Metro's nuclear decommissioning trusts.
• Evergy's current maturities of long-term debt decreased $284.7 million primarily due to the repayments of Evergy Metro's $350.0 million of 3.65% Senior Notes in August 2025, Evergy Kansas Central's $250.0 million of 3.25% First Mortgage Bonds (FMBs) in December 2025 and Evergy Missouri West's $36.0 million of 3.49% Senior Notes in August 2025, partially offset by the reclassifications from long-term to current of Evergy Kansas Central's $350.0 million of 2.55% FMBs that mature in July 2026.
• Evergy's commercial paper increased $186.4 million driven by increases of $424.8 million at Evergy, Inc., $150.4 million at Evergy Missouri West and $86.6 million at Evergy Metro, partially offset by a $475.4 million decrease at Evergy Kansas Central. Increases and decreases in commercial paper borrowings were driven by capital expenditures, dividend payments, long-term debt issuances and repayments and other general corporate purposes.
• Evergy's regulatory liabilities - current decreased $32.2 million primarily driven by a $21.3 million decrease related to the refund of Evergy Missouri West's fuel recovery mechanism over-collections.
• Evergy's other liabilities - current increased $84.7 million primarily due to a $70.7 million increase in advances from customers for the prepayment of customer-funded construction projects.
• Evergy's long-term debt, net increased $1,230.0 million primarily driven by Evergy Metro's issuance of $400.0 million of 5.125% Mortgage Bonds in August 2025, Evergy Kansas Central's issuances of $300.0 million each of 5.25% FMBs in March and December 2025, respectively, Evergy Kansas Central's issuance of $300.0 million of 4.70% Notes in March 2025 and Evergy Missouri West's issuance of $300.0 million of 5.25% FMBs in November 2025; partially offset by the reclassification from long-term to current of Evergy Kansas Central's $350.0 million of 2.55% FMBs that mature in July 2026. See Note 12 to the consolidated financial statements for additional information.
• Evergy's pension and post-retirement liability decreased $92.6 million primarily due to an increase in the value of plan assets.

LIQUIDITY AND CAPITAL RESOURCES  
Evergy relies primarily upon cash from operations, short-term borrowings, debt, equity and hybrid security issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments and the payment of dividends to shareholders.
Capital Sources
Cash Flows from Operations
Evergy's cash flows from operations are driven by the regulated sale of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on weather and economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and storms. Evergy's cash flows from operations were $2,045.2 million, $1,983.7 million and $1,980.2 million in 2025, 2024 and 2023, respectively.
Short-Term Borrowings
As of December 31, 2025, Evergy had $1.1 billion of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $199.1 million for Evergy, Inc.,
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$476.1 million for Evergy Kansas Central, $253.6 million for Evergy Metro and $173.4 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 11 to the consolidated financial statements for more information regarding the master credit facility.
Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.
Long-Term Debt, Equity and Hybrid Security Issuances
From time to time, Evergy issues long-term debt, equity and hybrid securities to repay short-term debt, refinance maturing long-term debt and finance growth. In May 2025, Evergy entered into an equity distribution agreement, pursuant to which Evergy may sell, from time to time, up to an aggregate of $1.2 billion of its common stock through an At-the-Market Program (ATM Program), which may utilize forward sales agreements. Evergy subsequently entered into forward sale agreements under the ATM program which can be settled at Evergy's discretion on or prior to dates ranging from March 2027 to October 2027. As of December 31, 2025, the ATM Program had approximately $1.1 billion of common stock available for issuance.
As of December 31, 2025 and 2024, Evergy's capital structure, excluding short-term debt, was as follows:

December 31
2025 2024
Common equity 43% 44%
Long-term debt, including VIEs 57% 56%

Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2025, the Evergy Companies were in compliance with these covenants.
The Evergy Companies expect that cash generated from operations, proceeds from the issuance of long-term debt, equity and hybrid securities will be adequate to meet anticipated cash needs over the next five years.
Debt Issuances
Evergy expects to issue approximately $12.3 billion of securities, inclusive of hybrid debt securities with equity content attribution by the credit rating agencies, through debt capital markets between 2026 and 2030, subject to market conditions, which includes refinancing $3.9 billion of long-term debt maturities and open-market repurchases. See Note 12 to the consolidated financial statements for more information regarding significant debt issuances.
Equity Issuances
Evergy expects to issue $3.3 billion of equity between 2026 and 2030, subject to market conditions. At December 31, 2025, Evergy could have settled forward sale agreements outstanding through the ATM Program with physical delivery of 1.7 million shares of common stock to the respective counterparties in exchange for cash of $123.6 million. See Note 18 to the consolidated financial statements for more information.
Credit Ratings
The ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with
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respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under the master credit facility. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.
As of February 18, 2026, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.

Moody's S&P Global
Investors Service (a)
Ratings (a)

Evergy
Outlook Stable Stable
Corporate Credit Rating -- BBB+
Senior Unsecured Debt Baa2 BBB
Junior Subordinated Note Baa3 BBB-
Commercial Paper P-2 A-2

Evergy Kansas Central
Outlook Stable Stable
Corporate Credit Rating Baa1 BBB+
Senior Secured Debt A2 A
Senior Unsecured Debt Baa1 BBB+
Commercial Paper P-2 A-2

Evergy Kansas South
Outlook Stable Stable
Corporate Credit Rating Baa1 BBB+
Senior Secured Debt A2 A
Short-Term Rating P-2 A-2

Evergy Metro
Outlook Stable Stable
Corporate Credit Rating Baa1 A-
Senior Secured Debt A2 A
Senior Unsecured Debt Baa1 A-
Commercial Paper P-2 A-2

Evergy Missouri West
Outlook Stable Stable
Corporate Credit Rating Baa3 BBB+
Senior Secured Debt Baa1 A
Commercial Paper P-3 A-2

(a) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.
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Shelf Registration Statements and Regulatory Authorizations
Evergy
In August 2024, Evergy filed an automatic shelf registration statement on Form S-3 with the SEC. Under this Form S-3, which is uncapped, Evergy may issue debt and other securities, including common stock, in the future with the amounts, prices and terms to be determined at the time of future offerings. The automatic registration statement was filed to replace a similar Form S-3 upon expiration of its three-year term. The shelf registration statement expires in August 2027.
Evergy Kansas Central
In August 2024, Evergy Kansas Central filed an automatic shelf registration statement on Form S-3 with the SEC. Under this Form S-3, which is uncapped, Evergy Kansas Central may issue debt securities in the future with the amounts, prices and terms to be determined at the time of future offerings. The automatic registration statement was filed to replace a similar Form S-3 upon expiration of its three-year term. The shelf registration statement expires in August 2027.
Evergy Metro
In August 2024, Evergy Metro filed an automatic shelf registration statement on Form S-3 with the SEC. Under this Form S-3, which is uncapped, Evergy Metro may issue debt securities in the future with the amounts, prices and terms to be determined at the time of future offerings. The automatic registration statement was filed to replace a similar Form S-3 upon expiration of its three-year term. The shelf registration statement expires in August 2027.
The following table summarizes the regulatory short-term and long-term debt financing authorizations for Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West and the remaining amount available under these authorizations as of December 31, 2025.

Type of Authorization Commission Expiration Date Authorization Amount Available Under Authorization
Evergy Kansas Central (in millions)
Short-Term Debt FERC December 2026 $ 1,250.0  $ 928.1 
Evergy Kansas South
Short-Term Debt FERC December 2026 $ 1,000.0  $ 921.2 
Evergy Metro
Short-Term Debt FERC December 2026 $ 1,250.0  $ 1,004.7 
Evergy Missouri West
Short-Term Debt FERC December 2026 $ 750.0  $ 423.4 
Long-Term Debt FERC December 2026 $ 600.0  $ 300.0 

In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity. Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness.
Under the Mortgage and Deed of Trust dated July 1, 1939, as amended and supplemented (Evergy Kansas Central Mortgage Indenture), additional Evergy Kansas Central mortgage bonds may be issued on the basis of 70% of property additions or retired bonds. As of December 31, 2025, $2.3 billion principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
Under the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as amended and supplemented (Evergy Kansas South Mortgage Indenture), the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of
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bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2025, approximately $2.9 billion principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

Under the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as amended and supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2025, approximately $5.6 billion principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
Under the First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022, as supplemented (Evergy Missouri West Mortgage Indenture), additional Evergy Missouri West mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2025, approximately $2.1 billion principal amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage.

Cash and Cash Equivalents
As of December 31, 2025, Evergy had approximately $19.8 million of cash and cash equivalents on hand.
Nuclear Production Tax Credit
In 2022, the Inflation Reduction Act (IRA) was signed into law providing a transferable Production Tax Credit (PTC) for electricity produced by existing nuclear power plants. Beginning in 2024, nuclear units, including Wolf Creek, became eligible for a production tax credit through 2032. The credit may be used to offset Evergy's income tax liability or be transferred to an unrelated third party. The Evergy Companies have estimated the credit based on the existing Internal Revenue Service (IRS) regulations. The IRS may provide guidance regarding the type of revenue to be included in the computation of gross receipts in 2026 which may significantly reduce the amount of nuclear PTCs available to Evergy. If Evergy is able to monetize the nuclear PTCs, it could result in significant cash inflows. The tax benefits, if any, are expected to be returned to customers over time as a reduction to revenue in future regulatory proceedings. See Note 20 to the consolidated financial statements for more information regarding the nuclear PTC.
Capital Requirements
Capital Expenditures
Evergy expects to access the debt and equity markets for significant amounts of capital to fund the infrastructure investments outlined in the table below. The investments are part of Evergy's long-term strategy focused on affordability, reliability and sustainability, including the modernization and expansion of its generation fleet and in anticipation of growing demand in its service territory. These investments include other utility construction programs required to maintain Evergy's electric utility operations, ensure reliability and expand facilities related to providing electric service. These capital expenditures could include, but are not limited to, expenditures to develop new transmission lines and make improvements to or investments in power plants, transmission and distribution lines and equipment. Evergy's capital expenditures were $2,796.9 million, $2,336.6 million and $2,334.0 million in 2025, 2024 and 2023, respectively.
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Capital expenditures projected for the next five years, excluding AFUDC, including costs of removal and net of cash proceeds received from contributions in aid of construction, are detailed in the following table. This capital expenditure forecast is subject to management's discretion and continual review and could change. See Part I, Item 1A, Risk Factors for information regarding potential risks to Evergy's capital expenditure plan.

2026 2027 2028 2029 2030 Five-year total
(millions)
Generating facilities - new generation $ 1,473  $ 1,980  $ 2,004  $ 2,283  $ 1,604  $ 9,344 
Generating facilities - other 413  457  438  446  432  2,186 
Transmission facilities 664  842  786  789  802  3,883 
Distribution facilities 1,016  995  906  964  1,015  4,896 
General facilities 242  272  266  275  232  1,287 
Total capital expenditures $ 3,808  $ 4,546  $ 4,400  $ 4,757  $ 4,085  $ 21,596 

Significant Contractual Obligations and Other Commitments
In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on projections, not reflected in Evergy's underlying consolidated financial statements.
The information in the following table is provided to summarize Evergy's significant cash obligations and commercial commitments. For purchase commitments related to 'Generating facilities - new generation' included in the table above in the 'Capital Expenditures' section, see Note 15 to the consolidated financial statements.

Payment due by period 2026 2027 2028 2029 2030 After 2030 Total
Long-term debt (millions)
Principal $ 611.1  $ 1,795.7  $ 318.8  $ 819.8  $ 420.8  $ 9,473.5  $ 13,439.7 
Interest 580.1  563.2  484.1  473.4  450.8  4,698.1  7,249.7 

Pension and other post-retirement plans (a)
111.3  111.3  111.3  111.3  111.3  (a) 556.5 
Purchase commitments
Fuel 313.0  202.9  194.7  181.0  93.2  384.4  1,369.2 
Power 73.7  83.9  104.9  123.8  105.6  176.1  668.0 

(a)     Evergy expects to make contributions to the pension and other post-retirement plans beyond 2030 but the amounts are not yet determined.
Long-term debt includes current maturities and $192.9 million of tax-exempt bonds with interest rates that are determined each week. The bondholders of these tax-exempt bonds are permitted to tender the tax-exempt bonds to the issuer for purchase and, if tendered, the issuer is obligated to purchase any such bonds that cannot be remarketed to other investors. These tax-exempt bonds are classified as long-term debt due to the issuer's intent and ability to utilize such borrowings as long-term financing. Long-term debt principal excludes $109.6 million of unamortized net discounts and debt issuance costs and a $76.1 million fair value adjustment recorded in connection with purchase accounting for the merger that created Evergy in 2018. Variable rate interest obligations are based on rates as of December 31, 2025.
Evergy expects to contribute $111.3 million to the pension and other post-retirement plans in 2026, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2030 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2026 are estimates based on information available in determining the amount for 2026. Actual amounts for years after 2026 could be significantly different than the estimated amounts in the table above.
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Fuel commitments consist of commitments for nuclear fuel and coal in addition to coal and natural gas transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.
As of December 31, 2025, Evergy has other insignificant commitments as well as other insignificant long-term liabilities recorded on its consolidated balance sheet, which are not included in the table above.
Common Stock Dividends
The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 50%-60% . See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2026.
The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 18 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.

2025 2024
(millions)
Cash flows from operating activities $ 2,045.2  $ 1,983.7 
Cash flows used in investing activities (2,570.1) (2,261.8)
Cash flows from financing activities 522.0  280.3 

Cash Flows from Operating Activities
Evergy's cash flows from operating activities increased $61.5 million in 2025, compared to 2024, primarily driven by an increase in cash receipts for retail electric sales in 2025.
Cash Flows used in Investing Activities
Evergy's cash flows used in investing activities increased $308.3 million in 2025, compared to 2024, primarily driven by a $460.3 million increase in additions to property, plant and equipment driven by increased spending for a variety of capital projects, including infrastructure investments and construction of new generation facilities.
Cash Flows from Financing Activities
Evergy's cash flows from financing activities increased $241.7 million in 2025, compared to 2024, primarily driven by a $273.5 million increase in proceeds from long-term debt, net due to the issuance of $1,687.5 million of long-term debt in 2025, compared to the issuance of $1,414.0 million of long-term debt in 2024.
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EVERGY KANSAS CENTRAL, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Kansas Central's comparative results of operations.

2025 Change 2024
  (millions)
Operating revenues $ 3,060.3  $ 53.2  $ 3,007.1 
Fuel and purchased power 538.9  (18.2) 557.1 
SPP network transmission costs 438.0  67.1  370.9 
Operating and maintenance 478.8  2.8  476.0 
Depreciation and amortization 579.2  17.5  561.7 
Taxes other than income tax 223.7  (27.0) 250.7 
Income from operations 801.7  11.0  790.7 
Other income, net 15.7  3.0  12.7 
Interest expense 241.2  11.7  229.5 
Income tax expense 16.3  4.1  12.2 
Equity in earnings of equity method investees, net of income taxes 3.4  0.1  3.3 
Net income 563.3  (1.7) 565.0 
Less: Net income attributable to noncontrolling interests 12.3  —  12.3 
Net income attributable to Evergy Kansas Central, Inc. $ 551.0  $ (1.7) $ 552.7 

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Evergy Kansas Central Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)
The following table summarizes Evergy Kansas Central's gross margin (GAAP) and MWhs sold and reconciles Evergy Kansas Central's gross margin (GAAP) to Evergy Kansas Central's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

  Revenues and Expenses MWhs Sold
2025 Change 2024 2025 Change 2024
Retail revenues (millions) (thousands)
Residential $ 960.3  $ (23.2) $ 983.5  6,656  5  6,651 
Commercial 816.3  (26.4) 842.7  7,475  88  7,387 
Industrial 425.0  (23.9) 448.9  5,174  (112) 5,286 
Other retail revenues 24.3  (0.9) 25.2  36  (3) 39 
Total electric retail 2,225.9  (74.4) 2,300.3  19,341  (22) 19,363 
Wholesale revenues 266.2  29.0  237.2  9,721  747  8,974 
Transmission revenues 483.0  28.0  455.0  N/A N/A N/A
Other revenues 85.2  70.6  14.6  N/A N/A N/A
Operating revenues 3,060.3  53.2  3,007.1  29,062  725  28,337 
Fuel and purchased power (538.9) 18.2  (557.1)
SPP network transmission costs (438.0) (67.1) (370.9)
Operating and maintenance (a)
(231.2) 15.5  (246.7)
Depreciation and amortization (579.2) (17.5) (561.7)
Taxes other than income tax (223.7) 27.0  (250.7)
Gross margin (GAAP) 1,049.3   29.3   1,020.0  
Operating and maintenance (a)
231.2  (15.5) 246.7 
Depreciation and amortization 579.2  17.5  561.7 
Taxes other than income tax 223.7  (27.0) 250.7 
Utility gross margin (non-GAAP) $ 2,083.4   $ 4.3   $ 2,079.1  
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $247.6 million and $229.3 million in 2025 and 2024, respectively.

Evergy Kansas Central's gross margin (GAAP) increased $29.3 million in 2025, compared to 2024, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $4.3 million in 2025, compared to 2024, both measures were driven by:
• a $28.6 million increase from new Evergy Kansas Central retail rates effective in October 2025; and
• a $28.0 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2025; partially offset by
• a $33.4 million decrease in revenue from the Kansas property tax rider, which is offset in taxes other than income tax; and
• an $18.9 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased 14%, partially offset by an 18% increase in heating degree days); partially offset by higher weather-normalized residential and commercial demand.
Additionally, the increase in Evergy Kansas Central's gross margin (GAAP) was also impacted by:
• a $27.0 million decrease in taxes other than income tax as described further below; and
• a $15.5 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an $8.8 million decrease in transmission and distribution operating and maintenance expense as further described below; partially offset by
• a $17.5 million increase in depreciation and amortization as described further below.
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Evergy Kansas Central Operating and Maintenance
Evergy Kansas Central's operating and maintenance expense increased $2.8 million in 2025, compared to 2024, primarily driven by:
• an $8.8 million increase in general and administrative labor and employee benefits expense, including higher medical claims; and
• a $3.8 million increase in credit loss expense primarily due to lower levels of net write-offs incurred compared to estimates in 2024; partially offset by
• an $8.8 million decrease in transmission and distribution operating and maintenance expenses primarily driven by a $9.7 million decrease in non-labor expense.
Evergy Kansas Central Depreciation and Amortization
Evergy Kansas Central's depreciation and amortization expense increased $17.5 million in 2025, compared to 2024, primarily due to capital additions.
Evergy Kansas Central Taxes Other than Income Tax
Evergy Kansas Central's taxes other than income tax decreased $27.0 million in 2025, compared to 2024, primarily driven by a decrease in the 2025 amortization of the Kansas property tax rider.
Evergy Kansas Central Other Income, Net
Evergy Kansas Central's other income, net increased $3.0 million in 2025, compared to 2024, primarily driven by:
• a $4.8 million increase in investment earnings primarily driven by higher interest income;
• a $3.0 million increase in equity AFUDC driven by lower short-term debt balances in 2025; and
• a $2.5 million decrease in pension non-service costs; partially offset by
• a $7.5 million decrease due to recording lower Evergy Kansas Central COLI benefits in 2025.
Evergy Kansas Central Interest Expense
Evergy Kansas Central's interest expense increased $11.7 million in 2025, compared to 2024, primarily driven by:
• a $25.1 million increase due to issuances of long-term debt; and
• a $6.7 million increase due to lower debt AFUDC driven by lower short-term interest rates in 2025; partially offset by
• an $11.0 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to Evergy Kansas Central electing into Kansas PISA beginning July 2024.
Evergy Kansas Central Income Tax Expense
Evergy Kansas Central's income tax expense increased $4.1 million in 2025, compared to 2024, primarily driven by lower wind income tax credits in 2025.
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EVERGY METRO, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Metro's comparative results of operations.

2025 Change 2024
  (millions)
Operating revenues $ 1,916.1  $ 22.4  $ 1,893.7 
Fuel and purchased power 564.3  11.5  552.8 
Operating and maintenance 297.2  15.5  281.7 
Depreciation and amortization 408.8  8.2  400.6 
Taxes other than income tax 141.3  (6.1) 147.4 

Income from operations 504.5  (6.7) 511.2 
Other income, net 0.1  (1.2) 1.3 
Interest expense 139.9  (7.2) 147.1 
Income tax expense 44.2  3.3  40.9 
Net income $ 320.5  $ (4.0) $ 324.5 

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Evergy Metro Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)
The following table summarizes Evergy Metro's gross margin (GAAP) and MWhs sold and reconciles Evergy Metro's gross margin (GAAP) to Evergy Metro's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

  Revenues and Expenses MWhs Sold
2025 Change 2024 2025 Change 2024
Retail revenues (millions) (thousands)
Residential $ 750.6  $ 11.8  $ 738.8  5,610  135  5,475 
Commercial 781.5  4.8  776.7  7,464  94  7,370 
Industrial 131.8  (0.9) 132.7  1,696  (15) 1,711 
Other retail revenues 11.8  1.5  10.3  41  (4) 45 
Total electric retail 1,675.7  17.2  1,658.5  14,811  210  14,601 
Wholesale revenues 38.7  (43.9) 82.6  5,041  403  4,638 
Transmission revenues 25.7  5.8  19.9  N/A N/A N/A
Other revenues 176.0  43.3  132.7  N/A N/A N/A
Operating revenues 1,916.1  22.4  1,893.7  19,852  613  19,239 
Fuel and purchased power (564.3) (11.5) (552.8)
Operating and maintenance (a)
(201.0) (0.3) (200.7)
Depreciation and amortization (408.8) (8.2) (400.6)
Taxes other than income tax (141.3) 6.1  (147.4)
Gross margin (GAAP) 600.7   8.5   592.2  
Operating and maintenance (a)
201.0  0.3  200.7 
Depreciation and amortization 408.8  8.2  400.6 
Taxes other than income tax 141.3  (6.1) 147.4 
Utility gross margin (non-GAAP) $ 1,351.8   $ 10.9   $ 1,340.9  
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $96.2 million and $81.0 million in 2025 and 2024, respectively.

Evergy Metro's gross margin (GAAP) increased $8.5 million in 2025, compared to 2024, and Evergy Metro's utility gross margin (non-GAAP) increased $10.9 million in 2025, compared to 2024, both measures were driven by:
• a $12.2 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased 11% and cooling degree days increased 3%); and
• a $5.8 million increase in transmission revenue; partially offset by
• a $7.1 million decrease in revenue from the Kansas property tax rider, which is offset in taxes other than income tax; and
Additionally, the increase in Evergy Metro's gross margin (GAAP) was also impacted by:
• an $8.2 million increase in depreciation and amortization as further described below;
• a $0.3 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities; partially offset by
• a $6.1 million decrease in taxes other than income tax, as further described below.
Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense increased $15.5 million in 2025, compared to 2024, primarily driven by:
• a $7.0 million increase in general and administrative labor and employee benefits expense, including higher medical claims;
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• a $4.6 million increase in legal costs due to increased litigation activity in 2025; and
• a $2.3 million increase in credit loss expense primarily due to lower levels of net write-offs incurred compared to estimates in 2024.
Evergy Metro Depreciation and Amortization
Evergy Metro's depreciation and amortization expense increased $8.2 million in 2025, compared to 2024, primarily due to capital additions.
Evergy Metro Taxes Other than Income Tax
Evergy Metro's taxes other than income tax decreased $6.1 million in 2025, compared to 2024, primarily driven by a decrease in the 2025 amortization of the Kansas property tax rider.
Evergy Metro Interest Expense
Evergy Metro's interest expense decreased $7.2 million in 2025, compared to 2024, primarily driven by:
• an $11.3 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to a higher outstanding balance of qualified PISA additions and Evergy Metro electing into Kansas PISA beginning July 2024;
• a $5.6 million decrease in interest expense on short-term borrowings primarily due to lower weighted-average interest rates; and
• a $4.8 million decrease due to the repayment of long-term debt; partially offset by
• a $12.0 million increase due to issuances of long-term debt.
Evergy Metro Income Tax Expense
Evergy Metro's income tax expense increased $3.3 million in 2025, compared to 2024, primarily driven by lower income tax credits in 2025.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  
In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.
The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and security prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products, including natural gas and coal. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and non-qualified retirement benefits give rise to security price risk.
Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.
Hedging Strategies
From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying
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assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity as part of their regulated electric operations in addition to non-regulated energy marketing activities. These activities expose the Evergy Companies to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume, as well as the wholesale market prices received by the Evergy Companies' generation resources and the wholesale market prices paid to procure power to serve customer load or satisfy regulatory or contractual obligations. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results. The majority of derivative instruments used to manage Evergy's commodity price exposure are either not designated as hedges or do not qualify for hedge accounting. Mark-to-market changes for these instruments entered into by regulated businesses are reflected as regulatory assets or regulatory liabilities on Evergy's consolidated balance sheets. Derivative instruments entered into for non-regulated energy marketing activities are marked-to-market each period, with changes in the fair value of the derivative instruments reflected in earnings. See Note 13 to the consolidated financial statements for more information.
Value at Risk (VaR) Associated with Energy Marketing Activities
Management uses a risk measurement model, which calculates VaR to measure Evergy's commodity price risk associated with its trading portfolio related to non-regulated energy marketing activities. The VaR is calculated using historical 30-day exponentially weighted volatilities and correlations and assumes a 95% confidence level and a one-day holding period. Based on this VaR analysis, as of December 31, 2025, a near term typical change in commodity prices is not expected to materially impact net income, cash flows or financial position.
The following table shows the end, high, average and low market risk associated with its trading portfolio related to non-regulated energy marketing activities as measured by VaR for the periods indicated. The information includes non-regulated financial and physical transactions that are not considered derivatives under U.S. GAAP but economically offset derivatives also included in the VaR model.

VaR Model Trading Portfolio
Year Ended Year Ended
December 31, 2025 December 31, 2024
End High Average Low End High Average Low
(millions) (millions)
$ 0.7  $ 2.8  $ 0.9  $ 0.1  $ 1.1  $ 3.6  $ 0.7  $ 0.1 

Management back-tests VaR results against performance due to actual price movements. Based on the assumed 95% confidence interval, the performance due to actual price movements would be expected to exceed the VaR at least once every 20 trading days.
Interest Rate Risk
Evergy manages interest rate risk and short and long-term liquidity by limiting its exposure to variable interest rate debt and debt-like financial instruments to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. As of December 31, 2025, 10.0% of Evergy's total debt (including short-term borrowings consisting of short-term debt in excess of utility construction work in progress balances that is not eligible for capitalization as AFUDC and borrowings under Evergy's receivable sale facilities) were exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in
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interest rates for variable rate debt, short-term borrowings and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
As of December 31, 2025, Evergy had $1,524.6 million of short-term borrowings, variable rate debt and current maturities of fixed rate debt exposed to variable interest rate sensitivity. A 100-basis-point change in interest rates applicable to this debt would impact Evergy's income before income taxes basis by approximately $13.2 million, net of AFUDC borrowed funds which represents the allowed cost of capital used to finance utility construction activity and is a reduction of interest expense.
Credit Risk
Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure. The credit risk associated with new large load customers is partially mitigated by the requirement that new large load customers post collateral equal to two years of minimum monthly bills at the time of signing the agreement, subject to established discounts based on creditworthiness. The Evergy Companies, at their discretion, may require additional collateral based on assessment of the overall creditworthiness of the counterparty. Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. See Note 13 to the consolidated financial statements for more information on potential loss on counterparty exposure for derivative instruments as of December 31, 2025.
Investment Risk
Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2025, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory liability for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.
In addition to Evergy's investments in debt and equity securities in its nuclear decommissioning and pension trusts, Evergy has also historically made limited non-regulated equity and debt investments in early-stage energy solution companies. These limited investments are often in privately-owned companies that do not have readily determinable fair values. However, from time to time, these investments could have changes in fair value as a result of bankruptcies, acquisitions, mergers, initial public offerings, or observable market transactions for similar investments. In 2025, Evergy initiated a process to dispose of these investments and could experience changes in their value upon their ultimate liquidation. See Note 1 to the consolidated financial statements for more information on these investments as of and for the year ended December 31, 2025.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Evergy, Inc.
67

Evergy Kansas Central, Inc.
69

Evergy Metro, Inc.
71

Evergy, Inc.
Consolidated Statements of Comprehensive Income
73

Consolidated Balance Sheets
74

Consolidated Statements of Cash Flows
76

Consolidated Statements of Changes in Equity
77

Evergy Kansas Central, Inc.
Consolidated Statements of Income
78

Consolidated Balance Sheets
79

Consolidated Statements of Cash Flows
81

Consolidated Statements of Changes in Equity
82

Evergy Metro, Inc.
Consolidated Statements of Comprehensive Income
83

Consolidated Balance Sheets
84

Consolidated Statements of Cash Flows
86

Consolidated Statements of Changes in Equity
87

Combined Notes to Consolidated Financial Statements

Note 1: Summary of Significant Accounting Policies
88

Note 2: Revenue
98

Note 3: Receivables
101

Note 4: Rate Matters and Regulation
103

Note 5: Goodwill
110

Note 6: Asset Retirement Obligations
110

Note 7: Property, Plant & Equipment
111

Note 8: Jointly-Owned Electric Utility Plants
112

Note 9: Pension Plans and Post-Retirement Benefits
113

Note 10: Equity Compensation
127

Note 11: Short-Term Borrowings and Short-Term Bank Lines of Credit
129

Note 12: Long-Term Debt
130

Note 13: Derivative Instruments
134

Note 14: Fair Value Measurements
139

Note 15: Commitments and Contingencies
144

Note 16: Guarantees
150

Note 17: Related Party Transactions and Relationships
150

Note 18: Shareholders' Equity
152

Note 19: Variable Interest Entities
153

Note 20: Taxes
155

Note 21: Leases
160

Note 22: Segment Information
165

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 18, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to wholesale regulation by the Federal Energy Regulatory Commission and rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules
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to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Because the Commissions set the rates, the Company is allowed to charge customers based on allowable costs, including a reasonable return on equity, and the Company applies accounting standards that require the financial statements to reflect the effects of rate regulation, including the recording of regulatory assets and liabilities. The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve: (1) full recovery of the costs of providing utility service or (2) full recovery of amounts invested in the utility business and a reasonable return on that investment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and (2) refunds or future rate reduction to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
• We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
• We tested the effectiveness of management's controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
• We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
• We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, as well as other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.
• We evaluated management's analysis, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
/s/ DELOITTE & TOUCHE LLP
Kansas City, Missouri  
February 18, 2026 

We have served as the Company's auditor since 2002.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Kansas Central, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to wholesale regulation by the Federal Energy Regulatory Commission and rate regulation by the Kansas Corporation Commission (the "Commission"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
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The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Because the Commission sets the rates, the Company is allowed to charge customers based on allowable costs, including a reasonable return on equity, and the Company applies accounting standards that require the financial statements to reflect the effects of rate regulation, including the recording of regulatory assets and liabilities. The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commission will not approve: (1) full recovery of the costs of providing utility service or (2) full recovery of amounts invested in the utility business and a reasonable return on that investment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and (2) refunds or future rate reduction to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commission included the following, among others:
• We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
• We tested the effectiveness of management's controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
• We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
• We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commission for the Company and other public utilities in Kansas, as well as other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commission's treatment of similar costs under similar circumstances.
• We evaluated management's analysis regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
/s/ DELOITTE & TOUCHE LLP
Kansas City, Missouri  
February 18, 2026  

We have served as the Company's auditor since 2002.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Metro, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to wholesale regulation by the Federal Energy Regulatory Commission and rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules
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to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Because the Commissions set the rates, the Company is allowed to charge customers based on allowable costs, including a reasonable return on equity, and the Company applies accounting standards that require the financial statements to reflect the effects of rate regulation, including the recording of regulatory assets and liabilities. The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs and factors such as changes in applicable regulatory and political environments. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of amounts invested in the utility business and a reasonable return on that investment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and (2) refunds or future rate reduction to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
• We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
• We tested the effectiveness of management's controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
• We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
• We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, as well as other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.
• We evaluated management's analysis regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery, or a future reduction in rates.
/s/ DELOITTE & TOUCHE LLP
Kansas City, Missouri  
February 18, 2026  

We have served as the Company's auditor since 2002.
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EVERGY, INC.
Consolidated Statements of Comprehensive Income

Year Ended December 31 2025 2024 2023
(millions, except per share amounts)
OPERATING REVENUES $ 5,961.6   $ 5,847.3   $ 5,508.2  
OPERATING EXPENSES:
Fuel and purchased power 1,412.4   1,479.9   1,494.8  
SPP network transmission costs 438.0   370.9   302.6  
Operating and maintenance 995.3   961.9   945.3  
Depreciation and amortization 1,162.9   1,114.0   1,076.5  
Taxes other than income tax 420.1   452.6   406.6  

Total Operating Expenses 4,428.7   4,379.3   4,225.8  
INCOME FROM OPERATIONS 1,532.9   1,468.0   1,282.4  
OTHER INCOME (EXPENSE):
Investment earnings (loss) ( 35.0 ) 4.6   29.7  
Other income 46.4   38.9   40.6  
Other expense ( 37.0 ) ( 40.4 ) ( 75.1 )
Total Other Income (Expense), Net ( 25.6 ) 3.1   ( 4.8 )
Interest expense 616.3   563.1   525.8  
INCOME BEFORE INCOME TAXES
891.0   908.0   751.8  
Income tax expense 29.9   30.0   15.6  
Equity in earnings of equity method investees, net of income taxes 6.8   7.8   7.4  
NET INCOME 867.9   885.8   743.6  
Less: Net income attributable to noncontrolling interests 12.3   12.3   12.3  
NET INCOME ATTRIBUTABLE TO EVERGY, INC. $ 855.6   $ 873.5   $ 731.3  
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)

Basic earnings per common share $ 3.71   $ 3.79   $ 3.18  
Diluted earnings per common share $ 3.66   $ 3.79   $ 3.17  
AVERAGE COMMON SHARES OUTSTANDING
Basic 230.5   230.3   230.0  
Diluted 233.6   230.6   230.5  
COMPREHENSIVE INCOME
NET INCOME $ 867.9   $ 885.8   $ 743.6  
Derivative hedging activity
Gain on derivative hedging instruments 0.6   —   —  
Income tax expense ( 0.1 ) —   —  
Net gain on derivative hedging instruments 0.5   —   —  
Reclassification to expenses, net of tax 5.4   5.4   5.4  
Derivative hedging activity, net of tax 5.9   5.4   5.4  
Defined benefit pension plans
Net gain (loss) arising during period 0.2   0.7   ( 0.5 )
Income tax (expense) benefit ( 0.1 ) ( 0.1 ) 0.1  
Net gain (loss) arising during period, net of tax 0.1   0.6   ( 0.4 )
Amortization of net gains included in net periodic benefit costs, net of tax ( 0.2 ) ( 0.2 ) ( 0.1 )
Change in unrecognized pension expense, net of tax ( 0.1 ) 0.4   ( 0.5 )
Total other comprehensive income 5.8   5.8   4.9  
Comprehensive income 873.7   891.6   748.5  
Less:  Comprehensive income attributable to noncontrolling interest 12.3   12.3   12.3  
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. $ 861.4   $ 879.3   $ 736.2  

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
Consolidated Balance Sheets

December 31
  2025 2024
ASSETS (millions, except share amounts)
CURRENT ASSETS:  
Cash and cash equivalents $ 19.8   $ 22.0  

Receivables, net of allowance for credit losses of $ 15.3 and $ 15.7 , respectively
214.2   245.4  
Accounts receivable pledged as collateral 402.0   401.0  
Fuel inventory and supplies 828.9   867.4  
Income taxes receivable 8.2   11.1  
Regulatory assets, includes $ 16.7 and $ 15.9 related to variable interest entity, respectively
217.4   180.9  
Prepaid expenses 77.9   66.1  
Other 47.4   45.4  
Total Current Assets 1,815.8   1,839.3  
PROPERTY, PLANT AND EQUIPMENT, NET, includes $ 119.4 and $ 126.5 related to variable interest entity, respectively
26,301.5   24,930.9  

OTHER ASSETS:    
Regulatory assets, includes $ 277.9 and $ 294.5 related to variable interest entity, respectively
1,885.3   1,719.3  
Nuclear decommissioning trust 1,016.8   879.8  
Goodwill 2,336.6   2,336.6  
Other 592.5   576.2  
Total Other Assets 5,831.2   5,511.9  
TOTAL ASSETS $ 33,948.5   $ 32,282.1  

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
Consolidated Balance Sheets

December 31
  2025 2024
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:    
Current maturities of long-term debt, includes $ 17.0 and $ 16.2 related to variable interest entity, respectively
$ 367.0   $ 651.7  

Commercial paper 1,394.0   1,207.6  
Collateralized note payable 402.0   401.0  
Accounts payable 654.3   613.8  

Accrued taxes 169.4   159.0  
Accrued interest, includes $ 1.3 and $ 1.3 related to variable interest entity, respectively
158.3   136.4  
Regulatory liabilities 141.6   173.8  
Asset retirement obligations 34.2   28.7  

Other 375.1   290.4  
Total Current Liabilities 3,695.9   3,662.4  
LONG-TERM LIABILITIES:    
Long-term debt, net, includes $ 279.2 and $ 295.7 related to variable interest entity, respectively
13,039.2   11,809.2  
Deferred income taxes 2,020.7   2,035.7  
Unamortized investment tax credits 155.8   162.8  
Regulatory liabilities 2,824.6   2,672.0  
Pension and post-retirement liability 278.7   371.3  
Asset retirement obligations 1,308.1   1,268.3  
Other 357.7   311.2  
Total Long-Term Liabilities 19,984.8   18,630.5  
Commitments and Contingencies (Note 15)

EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value
230,262,674 and 229,983,615 shares issued, stated value
7,273.1   7,245.9  
Retained earnings 2,966.2   2,732.9  
Accumulated other comprehensive loss ( 18.0 ) ( 23.8 )
Total Evergy, Inc. Shareholders' Equity 10,221.3   9,955.0  
Noncontrolling Interests 46.5   34.2  
Total Equity 10,267.8   9,989.2  
TOTAL LIABILITIES AND EQUITY $ 33,948.5   $ 32,282.1  

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
Consolidated Statements of Cash Flows

Year Ended December 31 2025 2024 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)
Net income $ 867.9   $ 885.8   $ 743.6  
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 1,162.9   1,114.0   1,076.5  
Amortization of nuclear fuel 55.2   56.5   62.4  
Amortization of deferred refueling outage 11.7   17.2   18.2  
Amortization of corporate-owned life insurance 26.6   23.8   25.1  
Stock compensation 20.7   15.2   17.7  
Net deferred income taxes and credits 20.9   ( 8.6 ) ( 16.6 )
Allowance for equity funds used during construction ( 22.9 ) ( 19.6 ) ( 10.8 )
Payments for asset retirement obligations ( 13.3 ) ( 12.1 ) ( 21.8 )
Equity in earnings of equity method investees, net of income taxes ( 6.8 ) ( 7.8 ) ( 7.4 )
Income from corporate-owned life insurance ( 8.6 ) ( 18.5 ) ( 30.0 )
(Gains) losses from investments in early-stage clean energy and energy solution companies 48.7   —   —  
Other 1.5   —   1.5  
Changes in working capital items:
Accounts receivable 19.9   16.7   54.5  
Accounts receivable pledged as collateral ( 1.0 ) ( 59.0 ) 17.0  
Fuel inventory and supplies 38.9   ( 89.2 ) ( 102.4 )
Prepaid expenses and other current assets ( 18.2 ) 156.5   136.6  
Accounts payable ( 6.8 ) 46.0   ( 47.2 )
Accrued taxes 13.4   2.7   ( 8.6 )
Other current liabilities ( 49.5 ) ( 80.7 ) ( 43.8 )
Changes in other assets ( 11.6 ) 8.1   21.7  
Changes in other liabilities ( 104.4 ) ( 63.3 ) 94.0  
Cash Flows from Operating Activities 2,045.2   1,983.7   1,980.2  
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:    
Additions to property, plant and equipment ( 2,796.9 ) ( 2,336.6 ) ( 2,334.0 )
Acquisition of Persimmon Creek, net of cash acquired —   —   ( 217.9 )
Purchase of securities - trusts ( 335.6 ) ( 175.5 ) ( 58.7 )
Sale of securities - trusts 292.3   138.5   35.1  
Proceeds from nonrefundable contributions in aid of construction 170.0   —   —  
Investment in corporate-owned life insurance ( 15.3 ) ( 15.6 ) ( 16.0 )
Proceeds from investment in corporate-owned life insurance 54.0   101.6   118.7  

Other investing activities 61.4   25.8   1.1  
Cash Flows used in Investing Activities ( 2,570.1 ) ( 2,261.8 ) ( 2,471.7 )
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:    
Short-term debt, net 186.4   255.8   ( 381.9 )

Repayment of term loan facility —   —   ( 500.0 )
Collateralized short-term borrowings, net 1.0   59.0   ( 17.0 )
Issuance of common stock 1.1   —   —  
Proceeds from long-term debt 1,687.5   1,414.0   2,444.8  

Retirements of long-term debt ( 751.1 ) ( 811.5 ) ( 439.5 )

Borrowings against cash surrender value of corporate-owned life insurance 48.5   51.5   53.2  
Repayment of borrowings against cash surrender value of corporate-owned life insurance ( 43.8 ) ( 76.1 ) ( 89.8 )
Proceeds from refundable advances for construction 27.0   —   —  

Cash dividends paid ( 613.1 ) ( 596.7 ) ( 569.6 )

Other financing activities ( 21.5 ) ( 15.7 ) ( 6.2 )
Cash Flows from Financing Activities 522.0   280.3   494.0  
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 2.9 ) 2.2   2.5  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period 29.9   27.7   25.2  
End of period $ 27.0   $ 29.9   $ 27.7  

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
Consolidated Statements of Changes in Equity

Evergy, Inc. Shareholders
Common stock shares Common stock Retained earnings AOCI Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2022 229,546,105   $ 7,219.7   $ 2,298.5   $ ( 34.5 ) $ 9.6   $ 9,493.3  
Net income —  —  731.3   —  12.3   743.6  

Issuance of stock compensation and reinvested dividends, net of tax withholding 183,191   ( 2.5 ) —  —  —  ( 2.5 )

Dividends declared on common stock ($ 2.48 per share)
—  —  ( 569.6 ) —  —  ( 569.6 )
Dividend equivalents declared —  —  ( 2.4 ) —  —  ( 2.4 )
Stock compensation —  17.5   —  —  —  17.5  
Unearned compensation

Compensation expense recognized —  0.2   —  —  —  0.2  
Derivative hedging activity, net of tax —  —  —  5.4   —  5.4  
Change in unrecognized pension expense, net of tax —  —  —  ( 0.5 ) —  ( 0.5 )

Balance as of December 31, 2023 229,729,296   7,234.9   2,457.8   ( 29.6 ) 21.9   9,685.0  
Net income
—  —  873.5   —  12.3   885.8  

Issuance of stock compensation and reinvested dividends, net of tax withholding 254,319   ( 4.8 ) —  —  —  ( 4.8 )

Dividends declared on common stock ($ 2.595 per share)
—  —  ( 596.7 ) —  —  ( 596.7 )
Dividend equivalents declared —  —  ( 1.7 ) —  —  ( 1.7 )
Stock compensation —  15.2   —  —  —  15.2  

Derivative hedging activity, net of tax
—  —  —  5.4   —  5.4  
Change in unrecognized pension expense, net of tax
—  —  —  0.4   —  0.4  
Other —  0.6   —  —  —  0.6  
Balance as of December 31, 2024 229,983,615   7,245.9   2,732.9   ( 23.8 ) 34.2   9,989.2  
Net income
—  —  855.6   —  12.3   867.9  
Issuance of stock, net of issuance costs 127,295   8.9   —  —  —  8.9  
Issuance of stock compensation and reinvested dividends, net of tax withholding
151,764   ( 3.1 ) —  —  —  ( 3.1 )

Dividends declared on common stock ($ 2.6975 per share)
—  —  ( 620.8 ) —  —  ( 620.8 )
Dividend equivalents declared
—  —  ( 1.5 ) —  —  ( 1.5 )
Stock compensation —  20.7   —  —  —  20.7  

Derivative hedging activity, net of tax
—  —  —  5.9   —  5.9  
Change in unrecognized pension expense, net of tax
—  —  —  ( 0.1 ) —  ( 0.1 )
Other —  0.7   —  —  —  0.7  
Balance as of December 31, 2025 230,262,674   $ 7,273.1   $ 2,966.2   $ ( 18.0 ) $ 46.5   $ 10,267.8  

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income

Year Ended December 31 2025 2024 2023
(millions)
OPERATING REVENUES $ 3,060.3   $ 3,007.1   $ 2,698.4  
OPERATING EXPENSES:
Fuel and purchased power 538.9   557.1   592.6  
SPP network transmission costs 438.0   370.9   302.6  
Operating and maintenance 478.8   476.0   477.3  
Depreciation and amortization 579.2   561.7   515.5  
Taxes other than income tax 223.7   250.7   219.8  
Total Operating Expenses 2,258.6   2,216.4   2,107.8  
INCOME FROM OPERATIONS 801.7   790.7   590.6  
OTHER INCOME (EXPENSE):
Investment earnings 7.5   2.7   3.4  
Other income 25.4   28.7   34.3  
Other expense ( 17.2 ) ( 18.7 ) ( 38.7 )
Total Other Income (Expense), Net 15.7   12.7   ( 1.0 )
Interest expense 241.2   229.5   214.6  
INCOME BEFORE INCOME TAXES
576.2   573.9   375.0  
Income tax expense (benefit) 16.3   12.2   ( 5.9 )
Equity in earnings of equity method investees, net of income taxes 3.4   3.3   3.6  
NET INCOME 563.3   565.0   384.5  
Less: Net income attributable to noncontrolling interests 12.3   12.3   12.3  
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $ 551.0   $ 552.7   $ 372.2  

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets

December 31
  2025 2024
ASSETS (millions, except share amounts)
CURRENT ASSETS:  
Cash and cash equivalents $ 5.3   $ 3.7  
Receivables, net of allowance for credit losses of $ 7.3 and $ 7.8 , respectively
136.6   133.1  
Related party receivables 59.8   23.4  
Accounts receivable pledged as collateral 213.0   215.0  
Fuel inventory and supplies 437.9   472.5  
Income taxes receivable —   11.4  
Regulatory assets 76.7   79.7  
Prepaid expenses 36.9   30.2  
Other 17.5   9.2  
Total Current Assets 983.7   978.2  
PROPERTY, PLANT AND EQUIPMENT, NET, includes $ 119.4 and $ 126.5 related to variable interest entity, respectively
13,460.1   12,880.1  

OTHER ASSETS:    
Regulatory assets 523.8   446.6  
Nuclear decommissioning trust 466.0   407.9  
Other 340.0   296.3  
Total Other Assets 1,329.8   1,150.8  
TOTAL ASSETS $ 15,773.6   $ 15,009.1  

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets

December 31
  2025 2024
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:    
Current maturities of long-term debt $ 350.0   $ 250.0  

Commercial paper 321.9   797.3  
Collateralized note payable 213.0   215.0  
Accounts payable 256.4   281.5  
Related party payables 27.9   36.7  

Accrued taxes 134.6   109.7  
Accrued interest 96.2   79.2  
Regulatory liabilities 64.7   76.6  
Asset retirement obligations 18.3   16.5  

Other 199.2   165.6  
Total Current Liabilities 1,682.2   2,028.1  
LONG-TERM LIABILITIES:    
Long-term debt, net 4,883.1   4,333.5  
Deferred income taxes 760.9   805.6  
Unamortized investment tax credits 48.7   52.4  
Regulatory liabilities 1,557.9   1,475.8  
Pension and post-retirement liability 171.7   218.2  
Asset retirement obligations 654.0   631.3  
Other 176.9   179.3  
Total Long-Term Liabilities 8,253.2   7,696.1  
Commitments and Contingencies (Note 15)

EQUITY:  
Evergy Kansas Central, Inc. Shareholder's Equity:    
Common stock - 1,000 shares authorized, $ 0.01 par value, 1 share issued
2,737.6   2,737.6  
Retained earnings 3,054.1   2,513.1  
Total Evergy Kansas Central, Inc. Shareholder's Equity 5,791.7   5,250.7  
Noncontrolling Interests 46.5   34.2  
Total Equity 5,838.2   5,284.9  
TOTAL LIABILITIES AND EQUITY $ 15,773.6   $ 15,009.1  

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows

Year Ended December 31 2025 2024 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)
Net income $ 563.3   $ 565.0   $ 384.5  
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 579.2   561.7   515.5  
Amortization of nuclear fuel 27.4   28.1   30.9  
Amortization of deferred refueling outage 5.9   8.6   9.1  
Amortization of corporate-owned life insurance 26.6   23.8   25.1  
Net deferred income taxes and credits ( 17.9 ) 1.3   ( 38.4 )
Allowance for equity funds used during construction ( 15.5 ) ( 12.5 ) ( 6.4 )
Payments for asset retirement obligations ( 7.8 ) ( 7.4 ) ( 9.8 )
Equity in earnings of equity method investees, net of income taxes ( 3.4 ) ( 3.3 ) ( 3.6 )
Income from corporate-owned life insurance ( 8.6 ) ( 18.5 ) ( 30.0 )
Other ( 5.5 ) ( 5.5 ) ( 5.5 )
Changes in working capital items:
Accounts receivable ( 42.8 ) 30.6   70.6  
Accounts receivable pledged as collateral 2.0   ( 49.0 ) 19.0  
Fuel inventory and supplies 35.0   ( 60.2 ) ( 61.5 )
Prepaid expenses and other current assets 3.7   73.1   65.3  
Accounts payable ( 57.1 ) 42.4   ( 26.4 )
Accrued taxes 36.3   ( 1.3 ) ( 25.9 )
Other current liabilities ( 32.5 ) ( 105.8 ) ( 26.0 )
Changes in other assets ( 25.3 ) ( 15.4 ) 4.6  
Changes in other liabilities ( 34.1 ) ( 15.7 ) 126.8  
Cash Flows from Operating Activities 1,028.9   1,040.0   1,017.9  
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:    
Additions to property, plant and equipment ( 1,298.3 ) ( 1,274.6 ) ( 1,196.8 )
Acquisition of Persimmon Creek, net of cash acquired —   —   ( 217.9 )
Purchase of securities - trusts ( 244.5 ) ( 52.5 ) ( 25.6 )
Sale of securities - trusts 208.6   19.1   8.3  
Proceeds from nonrefundable contributions in aid of construction 88.4   —   —  
Investment in corporate-owned life insurance ( 14.6 ) ( 15.6 ) ( 16.0 )
Proceeds from investment in corporate-owned life insurance 52.6   97.6   117.4  

Other investing activities 31.1   28.8   13.3  
Cash Flows used in Investing Activities ( 1,176.7 ) ( 1,197.2 ) ( 1,317.3 )
CASH FLOWS FROM FINANCING ACTIVITIES:    
Short-term debt, net ( 475.4 ) 566.9   ( 542.4 )
Collateralized short-term debt, net ( 2.0 ) 49.0   ( 19.0 )
Proceeds from long-term debt 971.1   —   690.5  
Retirements of long-term debt ( 325.5 ) —   ( 50.0 )

Net money pool borrowings —   ( 261.4 ) 261.4  

Borrowings against cash surrender value of corporate-owned life insurance 45.5   48.3   50.2  
Repayment of borrowings against cash surrender value of corporate-owned life insurance ( 42.5 ) ( 72.2 ) ( 88.6 )

Cash dividends paid ( 10.0 ) ( 172.0 ) —  

Other financing activities ( 11.8 ) ( 6.9 ) ( 2.2 )
Cash Flows from Financing Activities 149.4   151.7   299.9  
NET CHANGE IN CASH AND CASH EQUIVALENTS 1.6   ( 5.5 ) 0.5  
CASH AND CASH EQUIVALENTS:
Beginning of period 3.7   9.2   8.7  
End of period $ 5.3   $ 3.7   $ 9.2  

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity

Evergy Kansas Central, Inc. Shareholder
Common stock shares Common stock Retained earnings Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2022 1   $ 2,737.6   $ 1,760.2   $ 9.6   $ 4,507.4  
Net income
—  —  372.2   12.3   384.5  

Balance as of December 31, 2023 1   2,737.6   2,132.4   21.9   4,891.9  
Net income
—  —  552.7   12.3   565.0  
Dividends declared on common stock —  —  ( 172.0 ) —  ( 172.0 )

Balance as of December 31, 2024 1   2,737.6   2,513.1   34.2   5,284.9  
Net income
—  —  551.0   12.3   563.3  
Dividends declared on common stock —  —  ( 10.0 ) —  ( 10.0 )

Balance as of December 31, 2025 1   $ 2,737.6   $ 3,054.1   $ 46.5   $ 5,838.2  

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income

Year Ended December 31 2025 2024 2023
(millions)
OPERATING REVENUES $ 1,916.1   $ 1,893.7   $ 1,889.0  
OPERATING EXPENSES:    
Fuel and purchased power 564.3   552.8   530.9  
Operating and maintenance 297.2   281.7   284.1  
Depreciation and amortization 408.8   400.6   416.6  
Taxes other than income tax 141.3   147.4   132.8  

Total Operating Expenses 1,411.6   1,382.5   1,364.4  
INCOME FROM OPERATIONS 504.5   511.2   524.6  
OTHER INCOME (EXPENSE):
Investment earnings 5.5   4.9   3.8  
Other income 6.1   8.9   5.6  
Other expense ( 11.5 ) ( 12.5 ) ( 27.0 )
Total Other Income (Expense), Net 0.1   1.3   ( 17.6 )
Interest expense 139.9   147.1   135.8  
INCOME BEFORE INCOME TAXES
364.7   365.4   371.2  
Income tax expense 44.2   40.9   39.2  
NET INCOME $ 320.5   $ 324.5   $ 332.0  
COMPREHENSIVE INCOME
NET INCOME $ 320.5   $ 324.5   $ 332.0  
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax ( 0.3 ) ( 0.3 ) ( 0.3 )
Derivative hedging activity, net of tax ( 0.3 ) ( 0.3 ) ( 0.3 )
Total other comprehensive loss ( 0.3 ) ( 0.3 ) ( 0.3 )
COMPREHENSIVE INCOME $ 320.2   $ 324.2   $ 331.7  

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Balance Sheets

December 31
  2025 2024
ASSETS (millions, except share amounts)
CURRENT ASSETS:  
Cash and cash equivalents $ 3.3   $ 3.7  
Receivables, net of allowance for credit losses of $ 5.7 and $ 5.8 , respectively
45.9   58.1  
Related party receivables 125.3   126.1  
Accounts receivable pledged as collateral 139.0   136.0  
Fuel inventory and supplies 279.9   283.8  

Regulatory assets 42.6   42.7  
Prepaid expenses 30.6   25.6  
Other 23.1   25.5  
Total Current Assets 689.7   701.5  
PROPERTY, PLANT AND EQUIPMENT, NET 8,448.9   8,292.4  
OTHER ASSETS:    
Regulatory assets 538.6   429.4  
Nuclear decommissioning trust 550.8   471.9  
Other 124.2   81.5  
Total Other Assets 1,213.6   982.8  
TOTAL ASSETS $ 10,352.2   $ 9,976.7  

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Balance Sheets

December 31
  2025 2024
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:    
Current maturities of long-term debt $ —   $ 350.0  
Commercial paper 245.3   158.7  
Collateralized note payable 139.0   136.0  
Accounts payable 257.9   252.8  
Related party payables 23.2   0.2  
Accrued taxes 42.1   52.4  
Accrued interest 35.4   32.1  
Regulatory liabilities 38.0   38.5  
Asset retirement obligations 15.0   11.8  

Customer advances for construction 75.9   42.4  
Other 69.8   65.0  
Total Current Liabilities 941.6   1,139.9  
LONG-TERM LIABILITIES:    
Long-term debt, net 3,271.4   2,873.4  
Deferred income taxes 743.8   755.3  
Unamortized investment tax credits 104.8   108.0  
Regulatory liabilities 1,141.3   1,008.4  
Pension and post-retirement liability 91.4   137.0  
Asset retirement obligations 506.5   490.9  
Other 95.0   87.6  
Total Long-Term Liabilities 5,954.2   5,460.6  
Commitments and Contingencies (Note 15)

EQUITY:    
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value
1,563.1   1,563.1  
Retained earnings 1,890.2   1,809.7  
Accumulated other comprehensive income 3.1   3.4  
Total Equity 3,456.4   3,376.2  
TOTAL LIABILITIES AND EQUITY $ 10,352.2   $ 9,976.7  

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Statements of Cash Flows

Year Ended December 31 2025 2024 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)
Net income $ 320.5   $ 324.5   $ 332.0  
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 408.8   400.6   416.6  
Amortization of nuclear fuel 27.8   28.4   31.5  
Amortization of deferred refueling outage 5.8   8.6   9.1  
Net deferred income taxes and credits 24.4   ( 0.4 ) 22.3  
Allowance for equity funds used during construction ( 4.9 ) ( 7.1 ) ( 4.4 )
Payments for asset retirement obligations ( 5.3 ) ( 4.3 ) ( 8.6 )

Other ( 0.4 ) ( 0.4 ) ( 0.4 )
Changes in working capital items:
Accounts receivable 28.1   10.7   ( 0.2 )
Accounts receivable pledged as collateral ( 3.0 ) ( 10.0 ) ( 2.0 )
Fuel inventory and supplies 3.9   ( 19.2 ) ( 24.0 )
Prepaid expenses and other current assets ( 2.4 ) ( 0.5 ) ( 15.3 )
Accounts payable 37.6   4.2   ( 7.3 )
Accrued taxes ( 10.3 ) 6.7   5.4  
Other current liabilities 13.8   2.3   ( 19.8 )
Changes in other assets ( 25.9 ) ( 13.1 ) 14.2  
Changes in other liabilities ( 19.8 ) ( 9.0 ) ( 5.9 )
Cash Flows from Operating Activities 798.7   722.0   743.2  
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:    
Additions to property, plant and equipment ( 737.6 ) ( 619.7 ) ( 757.4 )
Purchase of securities - trusts ( 91.1 ) ( 123.0 ) ( 33.1 )
Sale of securities - trusts 83.7   119.5   26.8  
Proceeds from nonrefundable contributions in aid of construction 50.7   —   —  
Net money pool lending —   —   31.0  
Other investing activities 3.0   3.6   3.5  
Cash Flows used in Investing Activities ( 691.3 ) ( 619.6 ) ( 729.2 )
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:    
Short-term debt, net 86.6   ( 264.6 ) 312.3  
Collateralized short-term debt, net 3.0   10.0   2.0  
Proceeds from long-term debt 418.9   296.8   375.2  
Retirements of long-term debt ( 373.4 ) —   ( 379.5 )

Cash dividends paid ( 240.0 ) ( 141.0 ) ( 325.0 )
Other financing activities ( 2.9 ) ( 3.2 ) 1.2  
Cash Flows used in Financing Activities ( 107.8 ) ( 102.0 ) ( 13.8 )
NET CHANGE IN CASH AND CASH EQUIVALENTS ( 0.4 ) 0.4   0.2  
CASH AND CASH EQUIVALENTS:
Beginning of period 3.7   3.3   3.1  
End of period $ 3.3   $ 3.7   $ 3.3  

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC
Consolidated Statements of Changes in Equity

 Common stock shares  Common Stock  Retained earnings  AOCI - Net gains (losses) on cash flow hedges  Total Equity
 (millions, except share amounts)
Balance as of December 31, 2022 1   $ 1,563.1   $ 1,619.2   $ 4.0   $ 3,186.3  
Net income —  —  332.0   —  332.0  
Dividends declared on common stock —  —  ( 325.0 ) —  ( 325.0 )
Derivative hedging activity, net of tax —  —  —  ( 0.3 ) ( 0.3 )
Balance as of December 31, 2023 1   1,563.1   1,626.2   3.7   3,193.0  
Net income
—  —  324.5   —  324.5  
Dividends declared on common stock —  —  ( 141.0 ) —  ( 141.0 )
Derivative hedging activity, net of tax —  —  —  ( 0.3 ) ( 0.3 )
Balance as of December 31, 2024 1   1,563.1   1,809.7   3.4   3,376.2  
Net income
—  —  320.5   —  320.5  
Dividends declared on common stock —  —  ( 240.0 ) —  ( 240.0 )
Derivative hedging activity, net of tax —  —  —  ( 0.3 ) ( 0.3 )
Balance as of December 31, 2025 1   $ 1,563.1   $ 1,890.2   $ 3.1   $ 3,456.4  

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
EVERGY KANSAS CENTRAL, INC.
EVERGY METRO, INC.
Combined Notes to Consolidated Financial Statements
The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.
• Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).
• Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
• Evergy Missouri West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
• Evergy Transmission Company, LLC (Evergy Transmission Company) owns 13.5 % of Transource Energy, LLC (Transource) with the remaining 86.5 % owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50 % interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108 -mile, 345 kilovolt (kV) double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,800 megawatts (MWs) of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri.
Principles of Consolidation
Each of Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis.  Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
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Evergy Metro elected not to apply "push-down accounting" related to the merger that created Evergy in 2018, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for Evergy Metro, as well as those related to the other acquired assets and liabilities from the merger are only reflected on Evergy's consolidated financial statements.
Use of Estimates
The process of preparing financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.
Cash, Cash Equivalents and Restricted Cash
Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition. Evergy has restricted cash included in Other Current Assets and Other Non-current Assets on Evergy's consolidated balance sheets to facilitate the servicing of Evergy Missouri West Storm Funding I, LLC's (Evergy Missouri West Storm Funding) debt and the funding requirements for a jointly-owned generation facility. See Note 19 for additional information on the VIE. The following table summarizes the cash, cash equivalents and restricted cash included on Evergy's consolidated balance sheets.

December 31
2025 2024
Evergy (millions)
Current assets
Cash and cash equivalents $ 19.8   $ 22.0  
Other 5.6   6.2  
Other assets
Other 1.6   1.7  
Total cash, cash equivalents and restricted cash $ 27.0   $ 29.9  

Fuel Inventory and Supplies
The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.

December 31
2025 2024
Evergy (millions)
Fuel inventory $ 218.6   $ 264.2  
Supplies 610.3   603.2  
Fuel inventory and supplies $ 828.9   $ 867.4  
Evergy Kansas Central
Fuel inventory $ 114.9   $ 154.2  
Supplies 323.0   318.3  
Fuel inventory and supplies $ 437.9   $ 472.5  
Evergy Metro
Fuel inventory $ 69.6   $ 71.9  
Supplies 210.3   211.9  
Fuel inventory and supplies $ 279.9   $ 283.8  

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Property, Plant and Equipment
The Evergy Companies record the value of property, plant and equipment, including that of VIEs, at cost. For plant, cost includes contracted services, direct labor and materials, indirect charges for engineering and supervision and an allowance for funds used during construction (AFUDC). AFUDC represents the allowed cost of capital used to finance utility construction activity. AFUDC equity funds are included as a non-cash item in other income and AFUDC borrowed funds are a reduction of interest expense. AFUDC is computed by applying a composite rate to qualified construction work in progress (CWIP). The rates used to compute gross AFUDC are compounded semi-annually.
The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table.

2025 2024 2023
Evergy (millions)
AFUDC borrowed funds $ 36.9   $ 41.8   $ 39.3  
AFUDC equity funds 22.9   19.6   10.8  
Total $ 59.8   $ 61.4   $ 50.1  
Evergy Kansas Central
AFUDC borrowed funds $ 18.0   $ 24.7   $ 22.2  
AFUDC equity funds 15.5   12.5   6.4  
Total $ 33.5   $ 37.2   $ 28.6  
Evergy Metro
AFUDC borrowed funds $ 9.1   $ 11.6   $ 11.8  
AFUDC equity funds 4.9   7.1   4.4  
Total $ 14.0   $ 18.7   $ 16.2  

The average rates used in the calculation of AFUDC are detailed in the following table.

2025 2024 2023
Evergy Kansas Central 4.6 % 5.2 % 5.7 %
Evergy Metro 3.9 % 5.8 % 5.2 %
Evergy Missouri West 5.1 % 5.1 % 5.6 %

When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the incremental maintenance cost incurred for such outages is deferred and amortized to expense ratably over the period between planned outages.
Depreciation and Amortization
Depreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3 %. See Note 7 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity.
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The depreciable lives of Evergy's, Evergy Kansas Central's and Evergy Metro's property, plant and equipment are detailed in the following table.

Evergy Evergy Kansas Central Evergy Metro
(years)
Generating facilities 5 to 66 5 to 66 7 to 58
Transmission facilities 27 to 66 29 to 63 27 to 64
Distribution facilities 10 to 63 13 to 61 10 to 54
Other 5 to 57 5 to 57 8 to 37