• Adjusted Earnings Per Share (EPS) 2024: $4.63, compared to $4.38 in 2023.
• 2024 Strategic Infrastructure Investment: Approximately $4.3 billion.
• 2025 Earnings Guidance: $4.85 to $5.05 per share, midpoint represents 7% growth from 2024.
• Dividend Increase: 6% increase, resulting in an annualized rate of $2.84 per share.
• Rate Base Growth Expectation: 9.2% compound annual growth rate from 2024 through 2029.
• Capital Expenditure Plan 2025-2029: $26.3 billion.
• Weather-Normalized Retail Sales Growth 2024: Approximately 2% across Ameren Missouri.
• 2025 Planned Infrastructure Investment: $4.2 billion.
• Equity Issuance Plan 2025-2029: Approximately $600 million annually.
• Debt Issuance Plan 2025: $500 million for Ameren Missouri, $650 million for Ameren Illinois, and $750 million for Ameren Parent.

• Warning! GuruFocus has detected 12 Warning Signs with AEE.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ameren Corp (NYSE:AEE) reported strong financial performance with 2024 adjusted earnings of $4.63 per share, surpassing the previous year's $4.38 per share.
• The company strategically invested approximately $4.3 billion in energy infrastructure, enhancing grid resilience and reliability.
• Ameren Corp (NYSE:AEE) achieved a compound annual growth rate of 7.6% in weather-normalized adjusted earnings per share since 2013.
• The company announced a quarterly dividend increase of approximately 6%, marking the 12th consecutive year of dividend growth.
• Ameren Corp (NYSE:AEE) has a robust pipeline of investment opportunities over $63 billion, supporting long-term growth and job creation.

Negative Points

• The company faces regulatory challenges, including the need for timely approvals and potential differences in return on equity expectations.
• Ameren Corp (NYSE:AEE) plans to issue approximately $600 million of equity annually from 2025 through 2029, which could dilute existing shareholders.
• The company is exposed to risks associated with the execution of its ambitious capital investment plan, including potential supply chain issues.
• Ameren Corp (NYSE:AEE) must navigate legislative uncertainties in Missouri, which could impact its regulatory framework and investment plans.
• The company's growth projections are contingent on successful execution of new generation projects and securing additional load growth.

Q & A Highlights

Q: Can you elaborate on Ameren's growth profile and how close you are to reaching the top end of your 6% to 8% earnings growth target? A: Martin Lyons, Chairman, President, and CEO, explained that Ameren is excited about the sales growth and capital plan outlined. The company aims to deliver at or above the midpoint of its earnings guidance range, with expectations to reach the upper end of the range in the mid- to latter part of the five-year plan, driven by sales growth and rate base growth.

Q: Regarding the updated resource plan, how much capacity headroom is there if demand exceeds expectations? A: Lyons stated that the updated Integrated Resource Plan (IRP) reflects what can realistically be achieved in the short term, including accelerated renewable investments and gas-fired generation. The plan supports serving 2 gigawatts of new demand by 2032, with potential for more thereafter.

Q: How is Ameren positioned in terms of its balance sheet and credit ratings with the increased capital plan? A: Michael Moehn, CFO, assured that Ameren's balance sheet is strong, with proactive equity issuance supporting a Baa1 credit rating. The company maintains metrics above the downgrade threshold set by Moody's and is closer to the upgrade threshold with S&P.

Q: Can you provide details on the large load tariffs being filed and their impact on existing customers? A: Lyons mentioned that discussions are ongoing with prospective customers to finalize the tariff, which will include typical contract items like revenue coverage and contract terms. The aim is to ensure that existing customers are at least neutral to the impact of new large loads.

Q: What are the expectations for regulatory lag and legislative outcomes affecting Ameren's investment cycle? A: Moehn highlighted that Ameren manages regulatory lag by aligning project timing with rate reviews and maintaining cost control. Lyons added that legislative initiatives in Missouri, such as extending PISA and supporting transmission development, are progressing and could support investment and economic growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.