Evergy (EVRG) risk factors, FY2025 10-K

Evergy's FY2025 10-K, filed Feb 19, 2026, lists 27 risk factors. Against the prior year's 28: 3 new, 4 dropped, 10 substantially reworded.

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Risk factors listed
270 groups
New this year
3vs 28 last year
Dropped
4since the prior 10-K
Substantially reworded
10of those kept
Section length
10k wordsItem 1A

What the changes say

  • Evergy is planning major generation and transmission investment for projected data-center and large-load growth.
  • Environmental permitting and compliance may cause earlier unit retirements, asset obligations, and unrecovered costs.
  • The risk section shifts from supply-chain, renewable-weather, SEC climate disclosure, and Wolf Creek funding concerns toward energy-market exposure.

What changed since the prior 10-K

New

  • New

    unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action could result in substantial costs or operational impacts

    Tighter remediation requirements, permit conditions, permitting delays, lawsuits, or environmental compliance could increase costs, delay projects, or force earlier asset retirement.

  • New

    Evergy’s business and capital investment plans depend, in part, on the viability of data centers and large load customers interconnecting with Evergy’s utility subsidiaries

    Evergy’s generation and transmission investment plans depend on data centers and other large-load customers materializing and sustaining projected electricity demand.

  • New

    necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurred

    Wholesale and retail energy activities expose Evergy to electricity-price volatility, hedging limitations, collateral requirements, counterparty defaults, and retroactive market repricing.

Dropped

  • Dropped

    fleet. These disruptions and constraints could have a material adverse effect on the business, results of operations, financial position and cash flows of the Evergy Companies

  • Dropped

    Evergy Companies' service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies

  • Dropped

    Climate disclosure rules issued by the SEC may increase the Evergy Companies' costs of compliance and adversely impact their business

  • Dropped

    reduce rates by excluding the Wolf Creek investment from rate base. Wolf Creek commenced operations in 1985 and the age of Wolf Creek may increase the risk of unplanned outages and may result in higher maintenance costs

Reworded

  • 90% rewritten

    The Evergy Companies are subject to commodity and other risks associated with energy markets

    The commodity-risk discussion is now separated from capacity-cost recovery language and expanded into the detailed energy-market risks in 11.

  • 69% rewritten

    Costs to comply with environmental laws and regulations, including those relating to air and water quality, waste management and hazardous substance disposal, protected natural resources and health and safety, are significant and may adversely impact operations and financial results

    The wording removes “continue to become” increasingly stringent and adds that environmental compliance itself requires significant capital and operating resources.

  • 58% rewritten

    The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results

    No substantive change is visible in the provided text; Wolf Creek ownership, NRC authority, insurance, and cost-recovery risks remain the same.

  • 55% rewritten

    Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change

    No substantive change is visible in the provided text; weather-driven demand, outages, restoration costs, and insufficient storm reserves remain the same.

  • 52% rewritten

    Supply chain disruptions, tariffs and inflation could negatively impact the Evergy Companies' operations and corporate strategy

    “Supply chain turmoil” becomes “supply chain uncertainty,” while the operational, shortage, international-tension, tariff, and administration statements remain materially similar.

  • 36% rewritten

    The anticipated benefits of the Evergy Companies' strategy may not be realized

    The strategy now explicitly includes battery storage capacity and emphasizes modernization and expansion for Kansas and Missouri economic growth.

  • 35% rewritten

    Evergy is subject to wildfire risk

    No substantive change is visible in the provided text; wildfire exposure to communities, lines, facilities, severe weather, and climate effects remains the same.

  • 28% rewritten

    The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows

    The revised text removes SPP preferential treatment for public-policy resources such as renewables and adds planned natural-gas and renewable generation.

  • 23% rewritten

    Tax legislation and an inability to utilize tax credits could adversely impact results of operations, financial position and liquidity

  • 21% rewritten

    Financial market volatility or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results

All 27 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The prices that the FERC, KCC and MPSC authorize the utility subsidiaries of Evergy to charge significantly influence the Evergy Companies' results of operations, financial position and cash flows
  2. 02Legislative and regulatory requirements may increase costs and result in compliance penalties
  3. 03Costs to comply with environmental laws and regulations, including those relating to air and water quality, waste management and hazardous substance disposal, protected natural resources and health and safety, are significant and may adversely impact operations and financial results69% rewritten
  4. 04unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action could result in substantial costs or operational impactsNew
  5. 05Evergy’s business and capital investment plans depend, in part, on the viability of data centers and large load customers interconnecting with Evergy’s utility subsidiariesNew
  6. 06Financial market volatility or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results21% rewritten
  7. 07Evergy is a holding company and relies on the earnings of its subsidiaries to meet its financial obligations
  8. 08Supply chain disruptions, tariffs and inflation could negatively impact the Evergy Companies' operations and corporate strategy52% rewritten
  9. 09Public health crises, epidemics, or pandemics could adversely affect the Evergy Companies' business functions, financial position, liquidity, and results of operations
  10. 10Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity
  11. 11The Evergy Companies are subject to commodity and other risks associated with energy markets90% rewritten
  12. 12necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurredNew
  13. 13Tax legislation and an inability to utilize tax credits could adversely impact results of operations, financial position and liquidity23% rewritten
  14. 14The anticipated benefits of the Evergy Companies' strategy may not be realized36% rewritten
  15. 15The price of Evergy common stock may experience volatility
  16. 16Evergy has recorded goodwill that could become impaired and adversely affect financial results
  17. 17Evergy is subject to wildfire risk35% rewritten
  18. 18Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows
  19. 19Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change55% rewritten
  20. 20The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results58% rewritten
  21. 21Operational risks may adversely affect the Evergy Companies
  22. 22Artificial intelligence (AI) is an emerging area of technology that has the potential to impact various aspects of the Evergy Companies' business operations and customer interactions
  23. 23The cost and schedule of capital projects, including the construction of new natural gas and renewable generating facilities, may materially change and expected performance may not be achieved
  24. 24Failure to attract and retain an appropriately qualified workforce or to maintain satisfactory collective bargaining agreements could negatively impact the Evergy Companies' business and operations and adversely impact the Evergy Companies' results of operations, financial position and cash flows
  25. 25The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows28% rewritten
  26. 26The outcome of legal proceedings cannot be predicted. An adverse finding could have a material adverse effect on the Evergy Companies' results of operations, financial position and cash flows
  27. 27The Evergy Companies are subject to risks relating to environmental, social and governance (ESG) matters that could adversely affect their reputation, business, financial position and results of operations

Other Evergy 10-Ks

  • FY2024 10-K risk factors
    28 risks

    Evergy faces heavy regulatory oversight by FERC, KCC, and MPSC affecting its utility subsidiaries' financial results.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.