Did TerraPower’s Nuclear Partnership Just Shift Evergy’s (EVRG) Investment Narrative?

• In September 2025, TerraPower and the Kansas Department of Commerce announced a memorandum of understanding to explore siting TerraPower's Natrium reactor and energy storage system within Evergy's Kansas service territory.
• This collaboration could give Evergy access to next-generation nuclear technology, supporting its efforts to expand clean energy resources and grid reliability for its customers.
• We'll examine how the potential deployment of advanced nuclear technology could reshape Evergy's investment narrative and growth outlook.

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Evergy Investment Narrative Recap

Owning Evergy hinges on confidence in long-term demand growth from new data center and industrial customers, underpinned by major capital investments in generation. The recent memorandum with TerraPower to explore next-generation nuclear in Kansas is still in the exploratory phase and does not appear to significantly alter the near-term catalysts, namely, new load signings and project execution, or the company’s largest risk, which is raising external capital in potentially tough markets.

The most relevant recent announcement is Evergy's disclosure of two major new data center projects and the related uptick in capital spending forecasts, which are directly linked to the growth story powering the stock’s outlook. Any upgrade to technology partnerships, such as with TerraPower, would integrate with these expansion plans but does not erase underlying execution and funding risks for ongoing investment cycles.

However, against these positive headlines, investors should not overlook the company’s significant equity needs in coming years...

Read the full narrative on Evergy (it's free!)

Evergy’s outlook anticipates $6.8 billion in revenue and $1.2 billion in earnings by 2028. This is based on a forecasted 5.0% annual revenue growth rate and represents a $359.9 million increase in earnings from the current $840.1 million.

Uncover how Evergy's forecasts yield a $75.60 fair value, in line with its current price.

Exploring Other Perspectives

Four individual fair value estimates from the Simply Wall St Community span a wide range, from US$53 to US$76.55 per share. Rate base growth remains a key driver, but as participants show, your view on Evergy’s growth potential could vary substantially.

Explore 4 other fair value estimates on Evergy - why the stock might be worth as much as $76.55!

Build Your Own Evergy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Evergy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Evergy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Evergy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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