Evergy · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined Quarterly Report on Form 10-Q and the Evergy Companies' combined 2025 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.

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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).

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. An evidentiary hearing in the case is scheduled to occur in October 2026 and new rates are expected to be effective in January 2027.

Large Load Customers

In 2026, the Evergy Companies signed ESAs with multiple large load customers to serve data centers with a projected peak steady state load of approximately 2,600 MWs. The ESAs relate to three 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. The service of these large load customers, inclusive of an optional transitional load period not to exceed five years, has commenced or is expected to commence at dates ranging from 2026 to 2028.

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Convertible Note Repurchases

In January and February 2026, T1Evergy, Inc. repurchased $244.1 million aggregate principal amount of its $1.4 billion aggregate principal amount of Convertible Notes, under separate, privately negotiated repurchase agreements with certain holders of its Convertible Notes, for a total repurchase cost (including fees and excluding accrued and unpaid interest) of $309.5 million. After these January and February 2026 repurchases, $1,155.9 million aggregate principal amount of Convertible Notes remain outstanding as of June 30, 2026. See "Convertible Notes" in Note 8 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.

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 EPS.

Three Months Ended

Year to Date

Change

Change

(millions, except per share amounts)

Net income attributable to Evergy, Inc.

$

$

$

$

$

$

Earnings per common share, diluted

Net income attributable to Evergy, Inc. increased for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to new Evergy Kansas Central retail rates effective in October 2025, higher retail sales in the second quarter of 2026 driven by favorable weather and higher weather-normalized demand, and gains in 2026 compared to losses in 2025 from non-regulated investments in early-stage clean energy and energy solution companies; partially offset by higher interest, depreciation and operating and maintenance expense.

Diluted EPS increased for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to the increase in net income attributable to Evergy, Inc. discussed above, partially offset by a $0.02 per share decrease primarily due to dilution from Evergy's convertible notes.

Net income attributable to Evergy, Inc. increased year to date June 30, 2026, compared to the same period in 2025, primarily due to new Evergy Kansas Central retail rates effective in October 2025, higher retail sales in 2026 driven by higher weather-normalized demand, higher non-regulated energy marketing revenue, and gains in 2026 compared to losses in 2025 from non-regulated investments in early-stage clean energy and energy solution companies; partially offset by higher interest, depreciation and operating and maintenance expense.

Diluted EPS increased year to date June 30, 2026, compared to the same period in 2025, primarily due to the increase in net income attributable to Evergy, Inc. discussed above, partially offset by a $0.03 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

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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.

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 the three months ended and year to date June 30, 2026, were $208.5 million or $0.88 per share and $370.3 million or $1.57 per share, respectively. For the three months ended and year to date June 30, 2025, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $191.1 million or $0.82 per share and $318.9 million or $1.37 per share, respectively.

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.losses from the repurchase of a portion of Evergy's Convertible Notes; and

ii.investment gains and losses from non-regulated investments in early-stage clean energy and energy solution companies and costs related to the disposal of these investments.

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 performance or that can create period to period earnings volatility.

Adjusted 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.

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The following tables provide 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

Earnings per Diluted Share

Earnings

Earnings per Diluted Share

Three Months Ended June 30

(millions, except per share amounts)

Net income attributable to Evergy, Inc.

$

$

$

$

Non-GAAP reconciling items:

(Gains) losses from investments in early-stage clean energy and energy solution companies, pre-tax(b)

Income tax expense (benefit)(c)

—

Adjusted earnings (non-GAAP)

$

$

$

$

Earnings

Earnings per Diluted Share

Earnings

Earnings per Diluted Share

Year to Date June 30

(millions, except per share amounts)

Net income attributable to Evergy, Inc.

$

$

$

$

Non-GAAP reconciling items:

Losses from the repurchase of convertible notes, pre-tax(a)

—

—

(Gains) losses from investments in early-stage clean energy and energy solution companies, pre-tax(b)

Income tax expense (benefit)(c)

—

Adjusted earnings (non-GAAP)

$

$

$

$

(a)Reflects losses and fees of $10.3 million related to Evergy's repurchase of $244.1 million aggregate principal amount of its Convertible Notes in the first quarter 2026 that are included in interest expense on the consolidated statements of comprehensive income.

(b)Reflects net realized gains of $7.9 million and unrealized losses and impairment losses of $25.4 million for the three months ended June 30, 2026 and 2025, respectively, and net realized and unrealized gains of $8.1 million and unrealized losses and impairment losses of $29.0 million year to date June 30, 2026 and 2025, respectively, from non-regulated investments in early-stage clean energy and energy solution companies that are included in investment earnings on the consolidated statements of comprehensive income and $0.6 million year to date June 30, 2026, 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 is in the process of disposing of these investments.

(c)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 11 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 12 to the consolidated financial statements for information regarding related party transactions.

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EVERGY RESULTS OF OPERATIONS

The following table summarizes Evergy's comparative results of operations.

Three Months Ended

Year to Date

Change

Change

(millions)

Operating revenues

$

$

$

$

$

$

Fuel and purchased power

SPP network transmission costs

Operating and maintenance

Depreciation and amortization

Taxes other than income tax

Income from operations

Other income (expense), net

Interest expense

Income tax expense

Equity in earnings of equity method investees, net of income taxes

Net income

Less: Net income attributable to noncontrolling interests

—

—

Net income attributable to Evergy, Inc.

$

$

$

$

$

$

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Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)

The following tables summarize 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", above for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

Revenues and Expenses

MWhs Sold

Three Months Ended June 30

Change

Change

Retail revenues

(millions)

(thousands)

Residential

$

$

$

Commercial

Industrial

Other retail revenues

(2)

Total electric retail

Wholesale revenues

Transmission revenues

N/A

N/A

N/A

Other revenues

N/A

N/A

N/A

Operating revenues

Fuel and purchased power

SPP network transmission costs

Operating and maintenance(a)

Depreciation and amortization

Taxes other than income tax

Gross margin (GAAP)

Operating and maintenance(a)

Depreciation and amortization

Taxes other than income tax

Utility gross margin (non-GAAP)

$

$

$

(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 $115.9 million and $118.3 million for the three months ended June 30, 2026 and 2025, respectively.

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Revenues and Expenses

MWhs Sold

Year to Date June 30

Change

Change

Retail revenues

(millions)

(thousands)

Residential

$

$

$

Commercial

Industrial

Other retail revenues

(6)

Total electric retail

Wholesale revenues

Transmission revenues

N/A

N/A

N/A

Other revenues

N/A

N/A

N/A

Operating revenues

Fuel and purchased power

SPP network transmission costs

Operating and maintenance(a)

Depreciation and amortization

Taxes other than income tax

Gross margin (GAAP)

Operating and maintenance(a)

Depreciation and amortization

Taxes other than income tax

Utility gross margin (non-GAAP)

$

$

$

(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 $226.5 million and $221.2 million year to date June 30, 2026 and 2025, respectively.

Evergy's gross margin (GAAP) increased $34.4 million for the three months ended June 30, 2026, compared to the same period in 2025 and Evergy's utility gross margin (non-GAAP) increased $61.1 million for the three months ended June 30, 2026, compared to the same period in 2025, both measures were driven by:

•a $30.8 million increase primarily due to favorable weather (cooling degree days increased by 25%) and T2higher weather-normalized demand driven by a data center customer that began taking service in 2026 and higher demand from a large load industrial customer; and

•a $30.3 million increase from new Evergy Kansas Central retail rates effective in October 2025.

Additionally, the increase in Evergy's gross margin (GAAP) was also impacted by:

•a $15.9 million increase in depreciation and amortization as further described below;

•an $8.2 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an increase in transmission and distribution operating and maintenance expense as further described below; and

•a $2.6 million increase in taxes other than income tax.

Evergy's gross margin (GAAP) increased $68.9 million year to date June 30, 2026, compared to the same period in 2025 and Evergy's utility gross margin (non-GAAP) increased $112.4 million year to date June 30, 2026, compared to the same period in 2025, both measures were driven by:

•T3a $65.7 million increase from new Evergy Kansas Central retail rates effective in October 2025;

•a $31.1 million increase primarily due to higher weather-normalized demand from commercial and industrial customers, including a data center customer that began taking service in 2026 and higher demand from a large load industrial customer; and

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•a $15.6 million increase in revenue related to non-regulated energy marketing activity at Evergy Kansas Central.

Additionally, the increase in Evergy's gross margin (GAAP) was also impacted by:

•a $33.1 million increase in depreciation and amortization as further described below; and

•an $11.7 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an increase in transmission and distribution operating and maintenance expense as further described below; partially offset by

•a $1.3 million decrease in taxes other than income tax.

Operating and Maintenance

Evergy's operating and maintenance expense increased $5.8 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily driven by:

•T4an $11.4 million increase in transmission and distribution operating and maintenance expenses primarily driven by an $8.3 million increase in non-labor expense primarily due to higher contractor costs related to storms and vegetation management costs; partially offset by

•a $3.8 million decrease in plant operating and maintenance expense at Wolf Creek including lower labor and contractor costs.

Evergy's operating and maintenance expense increased $17.0 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•a $13.8 million increase in transmission and distribution operating and maintenance expenses primarily driven by an $11.5 million increase in non-labor expense primarily due to higher contractor and vegetation management costs; and

•a $4.2 million increase in general and administrative labor and employee benefits expense, primarily due to higher medical claims.

Depreciation and Amortization

Evergy's depreciation and amortization increased $15.9 million for the three months ended June 30, 2026 and $33.1 million year to date June 30, 2026, compared to the same periods in 2025, primarily due to capital additions.

Other Income (Expense), Net

Evergy's other expense, net for the three months ended June 30, 2025, became other income, net for the three months ended June 30, 2026, as a result of a $25.7 million increase in net other income items, primarily driven by:

•T5$33.3 million of gains in 2026 compared to losses in 2025 related to Evergy's non-regulated investments in early-stage clean energy and energy solution companies driven by $25.4 million of unrealized losses and impairment losses in the second quarter of 2025 and $7.9 million of net realized gains in the second quarter of 2026; and

•a $9.2 million increase in equity AFUDC primarily at Evergy Kansas Central and Evergy Missouri West primarily driven by higher average construction work in progress (CWIP) balances in the second quarter of 2026; partially offset by

•$11.6 million of income related to a commercial solar generation project completed in the second quarter of 2025; and

•a $5.2 million decrease primarily due to lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits in the second quarter of 2026.

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Evergy's other expense, net year to date June 30, 2025, became other income, net year to date June 30, 2026, as a result of a $40.4 million increase in net other income items, primarily driven by:

•$37.1 million of gains in 2026 compared to losses in 2025 related to Evergy's non-regulated investments in early-stage clean energy and energy solution companies driven by $29.0 million of unrealized losses and impairment losses in the second quarter of 2025 and $8.1 million of net realized and unrealized gains in the second quarter of 2026; and

•a $17.0 million increase in equity AFUDC primarily at Evergy Kansas Central and Evergy Missouri West primarily driven by higher average CWIP balances in 2026; partially offset by

•$11.6 million of income related to a commercial solar generation project completed in 2025.

Interest Expense

T6Evergy's interest expense increased $12.1 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily driven by:

•a $19.1 million increase due to issuances of long-term debt; and

•a $10.1 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances in the second quarter of 2026; partially offset by

•an $8.8 million decrease due to the repayment of long-term debt; and

•a $6.9 million decrease due to higher debt AFUDC primarily at Evergy Missouri West driven by higher average CWIP balances in the second quarter of 2026.

Evergy's interest expense increased $34.1 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•a $38.0 million increase due to issuances of long-term debt;

•a $12.9 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances in 2026; and

•a $10.3 million increase related to Evergy's repurchase of a portion of its Convertible Notes in 2026; partially offset by

•a $16.0 million decrease due to the repayment of long-term debt; and

•an $11.9 million decrease due to higher debt AFUDC primarily at Evergy Missouri West driven by higher average CWIP balances in 2026.

Income Tax Expense

Evergy's income tax expense increased $6.4 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily driven by:

•an $11.0 million increase primarily due to higher pre-tax income in the second quarter of 2026; partially offset by

•a $2.1 million decrease primarily due to higher nontaxable AFUDC equity; and

•a $1.2 million decrease primarily related to higher energy production income tax credits in the second quarter of 2026.

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. Evergy expects cash flows to be sufficient to meet existing short-term capital

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requirements. See the Evergy Companies' combined 2025 Form 10-K for more information on Evergy's sources and uses of cash.

Short-Term Borrowings

In June 2026, Evergy entered into a $3.5 billion master credit facility which expires in June 2031. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. As of June 30, 2026, Evergy had $1,648.4 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $513.5 million for Evergy, Inc., $394.0 million for Evergy Kansas Central, $537.4 million for Evergy Metro and $203.5 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 7 to the consolidated financial statements for additional information regarding the master credit facility.

In January 2026, Evergy, Inc. entered into a $55.0 million unsecured Term Loan Credit Agreement with an expiration date in January 2027. In February 2026, Evergy, Inc. entered into a $500.0 million unsecured Term Loan Credit Agreement with an expiration date in February 2027. Evergy's borrowings under the $500.0 million unsecured Term Loan Credit Agreement were used for, among other things, the repayment in full of all borrowings under the $55.0 million Term Loan Credit Agreement and the partial repurchase of Evergy's Convertible Notes as further described in Note 8 to the consolidated financial statements.

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 may also utilize these short-term borrowings to repay maturing long-term debt until the long-term debt is able to be refinanced.

Long-Term Debt

In April 2026, Evergy Missouri West filed an application with FERC requesting authorization to issue long-term debt securities of up to $1.3 billion outstanding at any one time. In July 2026, FERC approved Evergy Missouri West's request and the authorization expires in July 2028. As a result of Evergy Missouri West's issuance of $300.0 million of long-term debt in May 2026, the authorization provides Evergy Missouri West with an additional $1.0 billion of long-term debt capacity.

See Note 8 to the consolidated financial statements for information regarding significant debt issuances.

Pensions

See Note 6 to the consolidated financial statements for information regarding Evergy's pension and post-retirement plan contributions.

ATM Program

See Note 13 to the consolidated financial statements for information regarding Evergy's ATM Program.

Debt Covenants

As of June 30, 2026, Evergy was in compliance with all debt covenants under the master credit facility and certain debt instruments that contain restrictions that require the maintenance of certain capitalization and leverage ratios. See Note 7 to the consolidated financial statements for more information.

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Cash Flows

The following table presents Evergy's cash flows from operating, investing and financing activities.

Year to Date June 30

(millions)

Cash Flows from Operating Activities

$

$

Cash Flows used in Investing Activities

Cash Flows from Financing Activities

Cash Flows from Operating Activities

T7Evergy's cash flows from operating activities decreased $62.4 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by fuel recovery mechanism under-collections at Evergy Missouri West and an increase in coal inventory purchases.

Cash Flows used in Investing Activities

Evergy's cash flows used in investing activities increased $393.1 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•T8a $591.7 million increase in additions to property, plant and equipment, due to increased spending for a variety of capital projects, including construction of new generating facilities; partially offset by

•a $49.3 million increase in proceeds from COLI investments, primarily at Evergy Kansas Central due to higher policy settlements in 2026.

Cash Flows from Financing Activities

Evergy's cash flows from financing activities increased $450.7 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•a $500.0 million increase due to proceeds from term loans, net of repayments, executed in 2026; and

•a $221.4 million increase in short-term debt borrowings driven by:

◦a $564.6 million increase in short-term debt at Evergy Kansas Central primarily due to the repayment of commercial paper borrowings with proceeds from long-term debt issuances in 2025; and

◦higher borrowings of $122.5 million at Evergy Missouri West and $64.8 million at Evergy Metro; partially offset by

◦a $530.5 million decrease in short-term debt at Evergy, Inc. primarily due to the repayment of commercial paper borrowings with proceeds from long-term debt in 2026.

•a $130.9 million increase in proceeds from long-term debt, net due to the issuance of $724.3 million of long-term debt year to date June 30, 2026, compared to the issuance of $593.4 million of long-term debt for the same period in 2025; partially offset by

•a $389.4 million decrease due to retirements of long-term debt driven by Evergy's repurchase of $244.1 million aggregate principal amount of the Convertible Notes in 2026 and Evergy Metro's remarketing of its Series 2023 EIRR bonds totaling $79.5 million in 2026.

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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 (H)(2)(a) to Form 10-Q.

The following table summarizes Evergy Kansas Central's comparative results of operations.

Year to Date June 30

Change

(millions)

Operating revenues

$

$

$

Fuel and purchased power

SPP network transmission costs

Operating and maintenance

Depreciation and amortization

Taxes other than income tax

Income from operations

Other income, net

Interest expense

Income tax expense

Equity in earnings of equity method investees, net of income taxes

Net income

Less: Net income attributable to noncontrolling interests

—

Net income attributable to Evergy Kansas Central, Inc.

$

$

$

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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

Year to Date June 30

Change

Change

Retail revenues

(millions)

(thousands)

Residential

$

$

$

Commercial

Industrial

Other retail revenues

(6)

Total electric retail

Wholesale revenues

Transmission revenues

N/A

N/A

N/A

Other revenues

N/A

N/A

N/A

Operating revenues

Fuel and purchased power

SPP network transmission costs

Operating and maintenance (a)

Depreciation and amortization

Taxes other than income tax

Gross margin (GAAP)

Operating and maintenance (a)

Depreciation and amortization

Taxes other than income tax

Utility gross margin (non-GAAP)

$

$

$

(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 $125.5 million and $115.0 million year to date June 30, 2026 and 2025, respectively.

Evergy Kansas Central's gross margin (GAAP) increased $63.3 million year to date June 30, 2026, compared to the same period in 2025, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $94.2 million year to date June 30, 2026, compared to the same period in 2025, both measures were driven by:

•a $65.7 million increase from new Evergy Kansas Central retail rates effective in October 2025; and

•a $15.6 million increase in revenue related to non-regulated energy marketing activity; and

•a $12.9 million increase primarily due to higher weather-normalized demand from commercial and industrial customers, including higher demand from a large load industrial customer.

Additionally, the increase in Evergy Kansas Central's gross margin (GAAP) was also impacted by:

•a $19.2 million increase in depreciation and amortization as further described below; and

•a $12.3 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an increase in transmission and distribution operating and maintenance expense as further described below; partially offset by

•a $0.6 million decrease in taxes other than income tax.

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Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense increased $22.8 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•an $11.3 million increase in transmission and distribution operating and maintenance expenses primarily driven by a $7.3 million increase in non-labor costs including higher contractor and vegetation management costs;

•a $2.6 million increase in general and administrative labor and employee benefits expense primarily driven by higher medical claims; and

•a $1.9 million increase in plant operating and maintenance expense at coal-fired generating facilities primarily due to a $3.5 million increase at JEC driven by a major maintenance outage in 2026, partially offset by a $1.7 million decrease at Lawrence Energy Center driven by a major maintenance outage in 2025.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $19.2 million year to date June 30, 2026, compared to the same period in 2025, primarily due to capital additions.

Evergy Kansas Central Other Income, Net

Evergy Kansas Central's other income, net increased $10.3 million year to date June 30, 2026, compared to the same period in 2025, driven by a $10.3 million increase in equity AFUDC primarily driven by higher average CWIP balances in 2026.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased $8.3 million year to date June 30, 2026, compared to the same period in 2025, primarily driven by:

•a $13.8 million increase due to issuances of long-term debt; and

•a $6.7 million increase due to decreases in carrying costs deferred to a regulatory asset in accordance with plant-in-service accounting (PISA); partially offset by

•a $5.0 million decrease in interest expense on short-term borrowings primarily due to lower short-term debt balances and lower short-term interest rates in 2026;

•a $4.1 million decrease due to the repayment of long-term debt; and

•a $2.0 million decrease due to higher debt AFUDC driven by higher CWIP balances in 2026.

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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 (H)(2)(a) to Form 10-Q.

The following table summarizes Evergy Metro's comparative results of operations.

Year to Date June 30

Change

(millions)

Operating revenues

$

$

$

Fuel and purchased power

Operating and maintenance

Depreciation and amortization

Taxes other than income tax

Income from operations

Other income (expense), net

Interest expense

Income tax expense

Net income

$

$

$

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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

Year to Date June 30

Change

Change

Retail revenues

(millions)

(thousands)

Residential

$

$

$

Commercial

Industrial

Other retail revenues

(1)

Total electric retail

Wholesale revenues

Transmission revenues

N/A

N/A

N/A

Other revenues

N/A

N/A

N/A

Operating revenues

Fuel and purchased power

Operating and maintenance (a)

Depreciation and amortization

Taxes other than income tax

Gross margin (GAAP)

Operating and maintenance (a)

Depreciation and amortization

Taxes other than income tax

Utility gross margin (non-GAAP)

$

$

$

(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 $41.5 million and $42.1 million year to date June 30, 2026 and 2025, respectively.

Evergy Metro's gross margin (GAAP) increased $11.0 million year to date June 30, 2026, compared to the same period in 2025, and Evergy Metro's utility gross margin (non-GAAP) increased $19.0 million year to date June 30, 2026, compared to the same period in 2025, both measures were driven by a $19.0 million increase primarily due to higher weather-normalized demand from commercial and industrial customers, including a data center customer that began taking service in 2026, and retail pricing.

Additionally, the increase in Evergy Metro's gross margin (GAAP) was also impacted by:

•a $9.7 million increase in depreciation and amortization as further described below; partially offset by

•a $1.0 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities; and

•a $0.7 million decrease in taxes other than income tax.

Evergy Metro Depreciation and Amortization

Evergy Metro's depreciation and amortization expense increased $9.7 million year to date June 30, 2026, compared to the same period in 2025, primarily due to capital additions.

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