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AMEREN CORP

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Business Summary

Ameren Corporation is a public utility holding company whose primary assets are its equity interests in its subsidiaries, which operate in the rate-regulated electric and natural gas utility industry. The company's principal subsidiaries are Ameren Missouri, which operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri; Ameren Illinois, which operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois; and Ameren Transmission Company of Illinois, which operates a FERC rate-regulated electric transmission business in the MISO. The industry is highly regulated by governmental entities including the MoPSC, the ICC, and the FERC, and decisions by these entities are influenced by many factors including the cost of providing service, the prudency of expenditures, the quality of service, and economic conditions. The company faces issues common to the electric and natural gas utility industry, including the potential for changes in laws and regulations, cybersecurity risks, the impacts from new data centers, and the need to modernize the electric grid.

The filing does not name specific primary competitors or provide market share data. The company's stated competitive advantages are not explicitly enumerated in a single section, but the business model is built on three strategic pillars: investing in rate-regulated energy infrastructure, enhancing regulatory frameworks and advocating for responsible policies, and optimizing operating performance. The company seeks to make prudent investments that benefit customers and earn competitive returns, and it focuses on minimizing the gap between allowed and earned ROEs and allocating capital to business opportunities expected to provide the most benefit to customers and offer the most attractive risk-adjusted return potential.

Ameren generates revenue through the sale of electric and natural gas utility services, which are subject to state and federal regulation. The company's revenue is primarily transactional, derived from customer rates approved by regulators. The primary customer segments are residential, commercial, and industrial customers within its service territories in Missouri and Illinois. The company's business model is driven by investing in rate-regulated energy infrastructure, enhancing regulatory frameworks, and optimizing operating performance.

Ameren operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The Ameren Missouri segment includes all operations of Ameren Missouri, which operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business. For the year ended December 31, 2025, Ameren Missouri reported electric revenues of $4,631 million and natural gas revenues of $164 million . The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois, reporting electric revenues of $2,399 million for 2025. The Ameren Illinois Natural Gas segment consists of the natural gas business of Ameren Illinois, reporting natural gas revenues of $968 million for 2025. The Ameren Transmission segment primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI, reporting electric revenues of $862 million for 2025.

Ameren Missouri owns energy centers that rely on a diverse fuel portfolio including coal, nuclear, natural gas, and renewable sources. As of December 31, 2025, Ameren Missouri's coal-fired energy centers represented 5% and 11% of Ameren's and Ameren Missouri's rate base, respectively . The Callaway Energy Center, a nuclear facility, began operation in 1984 and is currently licensed to operate until 2044 . Ameren Missouri also operates several renewable energy centers, including hydroelectric, wind, methane gas, and solar facilities. Ameren Illinois operates two solar generation facilities, which are two of three pilot solar projects it is allowed to invest in under the CEJA. The company also offers customer energy-efficiency programs in both Missouri and Illinois.

In February 2026, Ameren Missouri acquired the Split Rail Solar Project for approximately $600 million and took over construction management of the project, which is expected to be placed in-service in the second quarter of 2026. In February 2025, Ameren's board of directors increased the quarterly common stock dividend to 71 cents per share, resulting in an annualized equivalent dividend rate of $2.84 per share . In February 2026, Ameren's board of directors increased the quarterly common stock dividend to 75 cents per share, resulting in an annualized equivalent dividend rate of $3.00 per share . As of December 31, 2025, Ameren had multiple forward sale agreements with various counterparties relating to 6.4 million shares of common stock , which it expects to settle in 2026. In February 2026, Ameren Missouri executed electric service agreements with large load customers representing 2.2 gigawatts of demand .

Net income attributable to Ameren common shareholders was $1,456 million , or $5.35 per diluted share , for 2025, compared to $1,182 million , or $4.42 per diluted share , for 2024. The increase in net income was driven by increased base rate revenues at Ameren Missouri, decreased tax expense at Ameren Transmission, Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas due to the revaluation of excess deferred income tax regulatory liabilities, and increased retail electric sales volumes at Ameren Missouri. These positive factors were partially offset by increased financing costs, higher other operations and maintenance expenses, and an increase in the weighted-average basic common shares outstanding.

Business Outlook

Ameren Missouri's 2025 Change to the 2023 PRP includes estimated total load growth of 1.5 gigawatts by 2032 and 2.5 gigawatts by 2040 . The plan includes adding 1,600 MWs of natural gas-fired simple-cycle generation by 2030 , an additional 1,200 MWs by 2043 , adding 2,100 MWs of natural gas-fired combined-cycle generation by 2035 , an additional 1,200 MWs by 2040 , adding 3,200 MWs of renewable generation by 2030 , an additional 1,500 MWs by 2035 , adding 1,000 MWs of battery storage by 2030 , an additional 800 MWs by 2042 , and adding 1,500 MWs of nuclear generation by 2040 . The plan also includes retiring all of Ameren Missouri's coal-fired energy centers by 2042 and retiring 1,800 MWs of Ameren Missouri's natural gas-fired energy centers by 2040 to comply with Illinois law . In February 2026, Ameren Missouri executed electric service agreements with large load customers representing 2.2 gigawatts of demand .

Ameren Illinois' Grid Plan for the years 2028 through 2031 was filed in January 2026 and will be used to align capital expenditures to operational needs and will impact rate base for future rate reviews. Pursuant to the CRGA, Ameren Illinois will participate in an integrated resource planning process. The CRGA also establishes an energy storage credit program, under which the IPA must hold statewide procurements for energy storage credits, with delivery of the credits beginning no later than 2030. Ameren Illinois anticipates utilizing cost recovery mechanisms to allow it to collect from, or refund to, customers differences between actual costs incurred from the purchase of the credits and the amounts collected from customers.

The filing does not provide specific margin trajectory or efficiency targets with exact figures.

Ameren Missouri intends to invest $51 million in 2026 and $22 million in 2027 for customer energy-efficiency and demand response programs . Ameren Illinois' planned investments in electric energy-efficiency programs under the revised annual cap is approximately $126 million in 2026 , $178 million in 2027 , $222 million in 2028 , and $256 million in 2029 . The company estimates it will invest up to $33.1 billion (Ameren Missouri – up to $22.2 billion; Ameren Illinois – up to $8.3 billion; ATXI – up to $2.6 billion) of capital expenditures from 2026 through 2030 .

In February 2025, Ameren's board of directors increased the quarterly common stock dividend to 71 cents per share, resulting in an annualized equivalent dividend rate of $2.84 per share . In February 2026, Ameren's board of directors increased the quarterly common stock dividend to 75 cents per share, resulting in an annualized equivalent dividend rate of $3.00 per share . As of December 31, 2025, Ameren had approximately $1.5 billion of common stock remaining available for sale under the ATM program . As of December 31, 2025, Ameren had multiple forward sale agreements with various counterparties relating to 6.4 million shares of common stock , which it expects to settle in 2026.

The company faces headwinds from increased financing costs, primarily resulting from higher interest rates on higher debt balances at Ameren Missouri and Ameren (parent). Higher than expected inflation levels could put pressure on the prices of labor, services, materials and supplies, and other costs. The company also faces risks related to the ability to recover costs and investments and to earn allowed ROEs within frameworks established by regulators, while maintaining affordability of services for customers. The company is subject to regulatory lag, which is the exposure to differences in costs incurred and actual sales volumes as compared with the associated amounts included in customer rates.

The company faces constraints from the reconciliation cap under the MYRP for Ameren Illinois' electric distribution service, which limits the annual adjustment to 105% of the annual revenue requirement approved by the ICC . Ameren Missouri's electric service business is subject to a limitation on increasing the annual revenue requirement due to the inclusion of incremental PISA deferrals, with an annual limit of 2.25% for revenue requirements approved by the MoPSC after August 2025 . The company also faces risks related to the construction and acquisition of electric and natural gas utility infrastructure, including the ability to obtain necessary regulatory approvals and the availability of necessary labor, materials, and equipment.

Risk Factors

The company is subject to extensive regulation, and failure to obtain adequate rates or regulatory approvals could adversely affect results. The MYRP reconciliation cap limits Ameren Illinois' annual electric distribution revenue requirement adjustment to 105% of the ICC-approved amount , and Ameren Missouri's PISA election limits annual revenue requirement increases to 2.25% , creating risks of cost disallowance. The company faces significant operational risks from the construction and acquisition of infrastructure, with estimated capital expenditures of up to $33.1 billion from 2026 through 2030 , and from the operation of aging facilities, including coal-fired energy centers constructed prior to 1978 and the Callaway nuclear facility. Realized energy demand from new customers, including 2.2 gigawatts from large load agreements , may differ from forecasts, and early termination of agreements could impact cost recovery. The company is also exposed to risks from cyberattacks, acts of sabotage, and the inability to access capital markets on reasonable terms.

Management Priorities

Management's message emphasizes a core strategy driven by three pillars: investing in rate-regulated energy infrastructure, enhancing regulatory frameworks and advocating for responsible policies, and optimizing operating performance. The company seeks to make prudent investments that benefit customers and earn competitive returns. Management highlights the importance of partnering with stakeholders to enhance regulatory frameworks and advocate for responsible energy and economic policies. The company remains focused on disciplined cost management and strategic capital allocation, aligning overall spending with economic conditions and the frameworks established by regulators. Management's strategic priorities include minimizing the gap between allowed and earned ROEs and allocating capital resources to business opportunities that are expected to provide the most benefit to customers and offer the most attractive risk-adjusted return potential.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Results of Operations
  2. [2] Item 7, MD&A — Results of Operations
  3. [3] Item 7, MD&A — Results of Operations
  4. [4] Item 7, MD&A — Results of Operations
  5. [5] Item 7, MD&A — Results of Operations
  6. [6] Item 1, Business — Power Generation
  7. [7] Item 1, Business — Power Generation
  8. [8] Item 7, MD&A — Overview
  9. [9] Item 7, MD&A — Overview
  10. [10] Item 7, MD&A — Overview
  11. [11] Item 7, MD&A — Liquidity and Capital Resources
  12. [12] Item 7, MD&A — Overview
  13. [13] Item 7, MD&A — Earnings Summary
  14. [14] Item 7, MD&A — Earnings Summary
  15. [15] Item 7, MD&A — Earnings Summary
  16. [16] Item 7, MD&A — Earnings Summary
  17. [17] Item 1, Business — Supply of Electric Power
  18. [18] Item 1, Business — Supply of Electric Power
  19. [19] Item 1, Business — Supply of Electric Power
  20. [20] Item 1, Business — Supply of Electric Power
  21. [21] Item 1, Business — Supply of Electric Power
  22. [22] Item 1, Business — Supply of Electric Power
  23. [23] Item 1, Business — Supply of Electric Power
  24. [24] Item 1, Business — Supply of Electric Power
  25. [25] Item 1, Business — Supply of Electric Power
  26. [26] Item 1, Business — Supply of Electric Power
  27. [27] Item 1, Business — Supply of Electric Power
  28. [28] Item 1, Business — Supply of Electric Power
  29. [29] Item 7, MD&A — Overview
  30. [30] Item 1, Business — Customer Energy-Efficiency Programs
  31. [31] Item 1, Business — Customer Energy-Efficiency Programs
  32. [32] Item 1, Business — Customer Energy-Efficiency Programs
  33. [33] Item 1, Business — Customer Energy-Efficiency Programs
  34. [34] Item 1, Business — Customer Energy-Efficiency Programs
  35. [35] Item 1A, Risk Factors — Operational Risks
  36. [36] Item 7, MD&A — Overview
  37. [37] Item 7, MD&A — Overview
  38. [38] Item 7, MD&A — Liquidity and Capital Resources
  39. [39] Item 7, MD&A — Liquidity and Capital Resources
  40. [40] Item 1A, Risk Factors — Regulatory and Legislative Risks
  41. [41] Item 1A, Risk Factors — Regulatory and Legislative Risks
  42. [42] Item 1A, Risk Factors — Regulatory and Legislative Risks
  43. [43] Item 1A, Risk Factors — Regulatory and Legislative Risks
  44. [44] Item 1A, Risk Factors — Operational Risks
  45. [45] Item 1A, Risk Factors — Operational Risks
  46. [46] Item 7, MD&A — Overview
  47. [47] Item 7, MD&A — Results of Operations
  48. [48] Item 7, MD&A — Results of Operations
  49. [49] Item 7, MD&A — Results of Operations
  50. [50] Item 7, MD&A — Results of Operations
  51. [51] Item 7, MD&A — Earnings Summary
  52. [52] Item 7, MD&A — Earnings Summary
  53. [53] Item 7, MD&A — Earnings Summary
  54. [54] Item 7, MD&A — Earnings Summary
  55. [55] Item 7, MD&A — Results of Operations
  56. [56] Item 7, MD&A — Results of Operations
  57. [57] Item 7, MD&A — Results of Operations
  58. [58] Item 7, MD&A — Results of Operations
  59. [59] Item 7, MD&A — Results of Operations
  60. [60] Item 7, MD&A — Results of Operations
  61. [61] Item 7, MD&A — Results of Operations
  62. [62] Item 7, MD&A — Results of Operations
  63. [63] Item 7, MD&A — Results of Operations
  64. [64] Item 7, MD&A — Results of Operations
  65. [65] Item 7, MD&A — Results of Operations
  66. [66] Item 7, MD&A — Results of Operations

Analysis on 6/21/2026