Evergy EVRG · USD

This segment information is detailed in the following table.202520242023(millions)OPERATING REVENUES$5,961.6 $5,847.3 $5,508.2 Less:Fuel and purchased power1,412.4 1,479.9 1,494.8 SPP network transmission costs438.0 370.9 302.6 Operating and maintenance:Operations and customer(a)612.2 611.4 590.7 Support(a)155.4 148.5 137.6 Other segment items, including benefit costs(b)227.7 202.0 217.0 Depreciation and amortization1,162.9 1,114.0 1,076.5 Taxes other than income tax420.1 452.6 406.6 Interest expense616.3 563.1 525.8 Income tax expense29.9 30.0 15.6 Net income attributable to noncontrolling interests12.3 12.3 12.3 Plus:Total other income (expense), net(25.6)3.1 (4.8)Equity in earnings of equity method investees, net of income taxes6.8 7.8 7.4 NET INCOME ATTRIBUTABLE TO EVERGY, INC.$855.6 $873.5 $731.3 (a) In 2025, an internal reorganization that altered departmental hierarchies resulted in changes to the classification of certain operation and maintenance expenses. Amounts for 2024 and 2023 have been recast to conform to the current-year presentation and these reclassifications have no impact on total operation and maintenance expense or net income attributable to Evergy, Inc. (b) Other segment items include benefits expense associated with Operations, Customer and Support employees, regulatory amortization expense, expense associated with energy efficiency programs and credit loss expense, among other items.

SEGMENT INFORMATIONEvergy's chief operating decision maker is Evergy's President and Chief Executive Officer. The chief operating decision maker assesses Evergy's performance based on consolidated net income attributable to Evergy, Inc. (i.e., Evergy operates in a single reportable segment) and uses consolidated net income attributable to Evergy, Inc. to make resource allocation decisions and to compare actual results to budget. The measures of segment assets and expenditures for additions to long-lived assets are reported as total assets on the consolidated balance sheet and additions to property, plant and equipment on the consolidated statement of cash flows, respectively. See Note 1 for additional information regarding the operations of Evergy. This segment information is detailed in the following table.202520242023(millions)OPERATING REVENUES$5,961.6 $5,847.3 $5,508.2 Less:Fuel and purchased power1,412.4 1,479.9 1,494.8 SPP network transmission costs438.0 370.9 302.6 Operating and maintenance:Operations and customer(a)612.2 611.4 590.7 Support(a)155.4 148.5 137.6 Other segment items, including benefit costs(b)227.7 202.0 217.0 Depreciation and amortization1,162.9 1,114.0 1,076.5 Taxes other than income tax420.1 452.6 406.6 Interest expense616.3 563.1 525.8 Income tax expense29.9 30.0 15.6 Net income attributable to noncontrolling interests12.3 12.3 12.3 Plus:Total other income (expense), net(25.6)3.1 (4.8)Equity in earnings of equity method investees, net of income taxes6.8 7.8 7.4 NET INCOME ATTRIBUTABLE TO EVERGY, INC.$855.6 $873.5 $731.3 (a) In 2025, an internal reorganization that altered departmental hierarchies resulted in changes to the classification of certain operation and maintenance expenses. Amounts for 2024 and 2023 have been recast to conform to the current-year presentation and these reclassifications have no impact on total operation and maintenance expense or net income attributable to Evergy, Inc. (b) Other segment items include benefits expense associated with Operations, Customer and Support employees, regulatory amortization expense, expense associated with energy efficiency programs and credit loss expense, among other items.

REVENUEEvergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.Evergy202520242023Revenues(millions)Residential$2,198.6 $2,186.6 $2,036.7 Commercial1,950.5 1,963.7 1,832.4 Industrial649.9 682.0 625.9 Other retail45.7 43.3 43.2 Total electric retail$4,844.7 $4,875.6 $4,538.2 Wholesale312.8 320.5 373.5 Transmission520.6 482.6 403.2 Industrial steam and other27.0 25.7 30.2 Total revenue from contracts with customers$5,705.1 $5,704.4 $5,345.1 Other 256.5 142.9 163.1 Operating revenues$5,961.6 $5,847.3 $5,508.2 Evergy Kansas Central202520242023Revenues(millions)Residential$960.3 $983.5 $821.0 Commercial816.3 842.7 722.9 Industrial425.0 448.9 398.5 Other retail24.3 25.2 18.1 Total electric retail$2,225.9 $2,300.3 $1,960.5 Wholesale266.2 237.2 296.8 Transmission483.0 455.0 385.8 Other2.6 2.7 2.1 Total revenue from contracts with customers$2,977.7 $2,995.2 $2,645.2 Other82.6 11.9 53.2 Operating revenues$3,060.3 $3,007.1 $2,698.4 Evergy Metro202520242023Revenues(millions)Residential$750.6 $738.8 $748.4 Commercial781.5 776.7 778.9 Industrial131.8 132.7 130.9 Other retail11.8 10.3 12.7 Total electric retail$1,675.7 $1,658.5 $1,670.9 Wholesale38.7 82.6 91.9 Transmission25.7 19.9 14.3 Other4.3 3.7 3.3 Total revenue from contracts with customers$1,744.4 $1,764.7 $1,780.4 Other171.7 129.0 108.6 Operating revenues$1,916.1 $1,893.7 $1,889.0 Retail RevenuesThe Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed monthly at the tariff rates approved by the KCC and MPSC based on customer kWh usage. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. 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. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.

COMMITMENTS AND CONTINGENCIESEnvironmental MattersSet forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results. The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements. The Evergy Companies believe that all their operations are in substantial compliance with current federal, state and local environmental standards.There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' operations and consolidated financial results. Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below.Ozone Interstate Transport State Implementation Plans (ITSIP)In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. States were required to submit ITSIPs in 2018 to comply with the "Good Neighbor Provision" of the Clean Air Act (CAA) as it applies to the revised NAAQS. The EPA did not act on these ITSIP submissions by the deadline established in the CAA and entered consent decrees establishing deadlines for the EPA to take final action on various ITSIPs. In February 2022, the EPA published a proposed rule to disapprove the ITSIPs submitted by nineteen states including Missouri and Oklahoma. In April 2022, the EPA published an approval of the Kansas ITSIP in the Federal Register. The Missouri Department of Natural Resources (MDNR) submitted a supplemental ITSIP to the EPA in November 2022. In February 2023, the EPA published a final rule disapproving the ITSIPs submitted by nineteen states, including the final disapproval of the Missouri and Oklahoma ITSIPs. In April 2023, the Attorneys General of Missouri and Oklahoma filed Petitions for Review in the U.S.

LONG-TERM DEBTThe Evergy Companies' long-term debt is detailed in the following tables.December 31, 2025Issuing EntityYear DueEvergyEvergy Kansas CentralEvergy MetroMortgage Bonds (millions)2.55% SeriesEvergy Kansas Central, Inc.2026350.0 350.0 — 3.10% SeriesEvergy Kansas Central, Inc.2027300.0 300.0 — 5.90% SeriesEvergy Kansas Central, Inc.2033300.0 300.0 — 5.25% SeriesEvergy Kansas Central Inc. 2035600.0 600.0 — 4.125% SeriesEvergy Kansas Central, Inc.2042550.0 550.0 — 4.10% SeriesEvergy Kansas Central, Inc.2043430.0 430.0 — 4.625% SeriesEvergy Kansas Central, Inc.2043250.0 250.0 — 4.25% SeriesEvergy Kansas Central, Inc.2045300.0 300.0 — 3.25% SeriesEvergy Kansas Central, Inc.2049300.0 300.0 — 3.45% SeriesEvergy Kansas Central, Inc.2050500.0 500.0 — 5.70% SeriesEvergy Kansas Central, Inc.2053400.0 400.0 — 6.53% SeriesEvergy Kansas South, Inc.2037175.0 175.0 — 6.64% SeriesEvergy Kansas South, Inc.2038100.0 100.0 — 4.30% SeriesEvergy Kansas South, Inc.2044250.0 250.0 — 2.25% SeriesEvergy Metro, Inc.2030400.0 — 400.0 4.95% SeriesEvergy Metro, Inc.2033300.0 — 300.0 5.40% SeriesEvergy Metro, Inc.2034300.0 — 300.0 5.125% SeriesEvergy Metro, Inc.2035400.0 — 400.0 4.125% SeriesEvergy Metro, Inc.2049400.0 — 400.0 5.15% SeriesEvergy Missouri West, Inc.2027300.0 — — 3.75% SeriesEvergy Missouri West, Inc.2032250.0 — — 5.65% Series Evergy Missouri West, Inc.2034300.0 — — 5.25% SeriesEvergy Missouri West, Inc.2035300.0 — — Pollution Control Bonds3.50% SeriesEvergy Kansas Central, Inc.203245.0 45.0 — 3.50% SeriesEvergy Kansas Central, Inc.203230.5 30.5 — 2.98% Series(a)Evergy Kansas South, Inc.202721.9 21.9 — 3.607% SeriesEvergy Kansas South, Inc.203150.0 50.0 — 2.98% Series(a)Evergy Kansas South, Inc.203214.5 14.5 — 2.98% Series(a)Evergy Kansas South, Inc.203210.0 10.0 — 3.037% Series 2007A and 2007B(a)Evergy Metro, Inc.2035146.5 — 146.5 4.05% EIRR BondsEvergy Metro, Inc.203823.4 — 23.4 4.30% EIRR BondsEvergy Metro, Inc.204579.5 — 79.5 Notes and Senior Notes 4.70% SeriesEvergy Kansas Central, Inc.2028300.0 300.0 — 6.05% Series (5.78% rate)(b)(c)Evergy Metro, Inc.2035250.0 — 250.0 5.30% Series(b)Evergy Metro, Inc.2041400.0 — 400.0 4.20% Series(b)Evergy Metro, Inc.2047300.0 — 300.0 4.20% Series(b)Evergy Metro, Inc.2048300.0 — 300.0 2.86% Series A(d)Evergy Missouri West, Inc.2031350.0 — — 3.01% Series B(d)Evergy Missouri West, Inc.203375.0 — — 4.06% Series B(d)Evergy Missouri West, Inc.203360.0 — — 3.21% Series C(d)Evergy Missouri West, Inc.203675.0 — — 4.

LEASESThe Evergy Companies lease office buildings, computer equipment, vehicles, generating plant and other property and equipment, including rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for the other owners' proportionate share of the costs. Under GAAP, a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Evergy Companies assess a contract as being or containing a lease if the contract identifies property, plant and equipment, provides the lessee the right to obtain substantially all of the economic benefits from use of the property, plant and equipment and provides the lessee the right to direct the use of the property, plant and equipment. The Evergy Companies have entered into several agreements to purchase energy through renewable purchase power agreements that are accounted for as leases that commenced prior to the application of Topic 842-Leases. Due to the intermittent nature of renewable generation, these leases have significant variable lease payments not included in the initial and subsequent measurement of the lease liability. Variable lease payments are expensed as incurred. In addition, certain other contracts contain payment for activity that transfers a separate good or service such as utilities or common area maintenance. The Evergy Companies have elected a practical expedient permitted by GAAP to not separate such components of the lease from other lease components for all leases.The Evergy, Evergy Kansas Central and Evergy Metro leases have remaining terms ranging from 1 to 35 years, 1 to 13 years and 1 to 8 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on the Evergy Companies’ balance sheets. Some leases have options to renew the lease or terminate early at the election of the Evergy Companies. Judgment is applied at lease commencement to determine the reasonably certain lease term based on then-current assumptions about use of the leased asset, market conditions and terms in the contract. The judgment applied to determine the lease term can significantly impact the measurement of the lease liability and right-of-use asset and lease classification.

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. 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.

TAXESComponents of income tax expense are detailed in the following tables.Evergy202520242023Current income taxes(millions)Federal$1.8 $30.9 $25.3 State7.2 7.7 6.9 Total9.0 38.6 32.2 Deferred income taxes Federal52.4 30.0 10.2 State(24.5)(31.4)(21.7)Total27.9 (1.4)(11.5)Investment tax creditDeferral— — 2.2 Amortization(7.0)(7.2)(7.3)Total(7.0)(7.2)(5.1)Income tax expense$29.9 $30.0 $15.6 Evergy Kansas Central 202520242023Current income taxes(millions)Federal$27.0 $6.2 $27.8 State7.2 4.7 4.7 Total34.2 10.9 32.5 Deferred income taxes Federal(5.9)16.4 (29.3)State(8.3)(11.3)(7.4)Total(14.2)5.1 (36.7)Investment tax creditDeferral— — 2.2 Amortization(3.7)(3.8)(3.9)Total(3.7)(3.8)(1.7)Income tax expense (benefit)$16.3 $12.2 $(5.9)Evergy Metro202520242023Current income taxes(millions)Federal$18.3 $37.7 $13.2 State1.5 3.6 3.7 Total19.8 41.3 16.9 Deferred income taxes Federal38.3 15.8 33.6 State(10.7)(13.0)(7.8)Total27.6 2.8 25.8 Investment tax credit amortization(3.2)(3.2)(3.5)Income tax expense$44.2 $40.9 $39.2 Effective Income Tax RatesEffective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.Evergy202520242023AmountPercentAmountPercentAmountPercent(millions, except percentages)Federal statutory income tax$188.5 21.0 %$192.3 21.0 %$159.4 21.0 %State and local income taxesState income taxes(a)12.1 1.4 %7.1 0.8 %5.2 0.7 %Amortization of state excess deferred income taxes(27.2)(3.0)%(27.2)(3.0)%(16.1)(2.1)%Tax CreditsEnergy-related tax credits(57.5)(6.4)%(59.8)(6.5)%(44.3)(5.8)%Other tax credits(2.2)(0.2)%(4.1)(0.5)%(3.1)(0.4)%Nontaxable or nondeductible itemsCorporate-owned life insurance(10.9)(1.2)%(11.9)(1.3)%(14.2)(1.9)%Other permanent differences(2.9)(0.3)%(3.3)(0.4)%(2.1)(0.3)%Effects of ratemakingAmortization of investment tax credits(5.3)(0.6)%(5.4)(0.6)%(5.6)(0.7)%Amortization of federal excess deferred income taxes(61.2)(6.8)%(59.9)(6.5)%(62.1)(8.2)%Flow through for plant related differences1.0 0.1 %5.2 0.6 %1.5 0.2 %Other adjustments(4.5)(0.7)%(3.0)(0.3)%(3.0)(0.5)%Income tax expense and effective income tax rate$29.9 3.3 %$30.0 3.3 %$15.6 2.0 %(a ) State income taxes in Missouri and Kansas make up the majority (greater than 50%) of the tax effect in this category.Evergy Kansas Central202520242023AmountPercentAmountPercentAmountPercent(millions, except percentages)Federal statutory income tax$121.7 21.0 %$121.2 21.0 %$79.5 21.