EVRG · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Evergy, Inc. · 2026-08-06 · Importance 31 · Surprise 32 · In source text

GAAP gross margin increased $34.4 million, or 7.4%, to $496.5 million in the second quarter and $68.9 million, or 8.0%, to $925.5 million year to date.

Key facts

• Utility gross margin (non-GAAP) for the three months ended June 30, 2026 was $1,052.8 million (increase of $61.1 million vs prior year quarter).
• For the three months ended June 30, 2026 Evergy's gross margin (GAAP) was $496.5 million (increase of $34.4 million vs prior year quarter).
• Evergy Kansas Central's utility gross margin (non-GAAP) year to date June 30, 2026 was $1,081.5 million (increase of $94.2 million vs prior year YTD).
• Wolf Creek's most recent refueling outage began in October 2025 and the unit returned to service in November 2025; next refueling outage is planned to begin in the spring of 2027.
• Other income (expense), net increased by $25.7 million turning other expense in 2025 to other income in 2026 for the quarter, primarily driven by $7.9 million net realized gains in Q2 2026 vs $25.4 million of unrealized losses and impairment losses in Q2 2025 and a $9.2 million increase in equity AFUDC.
• Operating and maintenance expense increased $5.8 million for the three months ended June 30, 2026 primarily driven by an $11.4 million increase in transmission and distribution O&M partly offset by a $3.8 million decrease in plant O&M at Wolf Creek.

Impact estimates