8-K: Eversource Reports Strong 2025 Earnings, Boosts Investment Plan

Eversource Energy announced full-year 2025 earnings of $4.56 per share, with non-GAAP recurring earnings of $4.76 per share, and unveiled a new $26.5 billion five-year investment plan.

Summary

• Full-year 2025 GAAP earnings were $1.69 billion, or $4.56 per share, a significant increase from $811.7 million, or $2.27 per share, in 2024.
• Non-GAAP recurring earnings for full-year 2025 totaled $1.77 billion, or $4.76 per share, meeting the upper end of the company's updated guidance range of $4.72 to $4.80 per share.
• Fourth quarter 2025 GAAP earnings were $421.3 million, or $1.12 per share, compared to $72.5 million, or $0.20 per share, in the fourth quarter of 2024.
• A new five-year $26.5 billion investment plan for 2026-2030 was released, representing an increase of $2.3 billion over the previous plan, primarily for electric and natural gas distribution.
• The company projects 2026 earnings to be between $4.80 and $4.95 per share.
• A cumulative long-term earnings per share growth rate of 5% to 7% is expected through 2030, using the 2025 non-GAAP results of $4.76 per share as the base year.
• Eversource expects to raise equity in the range of $800 million to $1.1 billion over the 2026-2030 forecast period, excluding annual dividend reinvestment and equity compensation programs.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong report, with solid financial performance meeting guidance, a significantly increased capital investment plan, and positive regulatory momentum, all contributing to a favorable outlook for a regulated utility.

Positives

• Full-year 2025 GAAP earnings and EPS saw a substantial increase to $1.69 billion ($4.56/share) from $811.7 million ($2.27/share) in 2024.
• Non-GAAP recurring EPS of $4.76 for 2025 met the upper end of the updated guidance range of $4.72-$4.80 per share.
• The company announced an increased five-year capital investment plan (2026-2030) of $26.5 billion, a $2.3 billion increase, primarily focused on electric and natural gas distribution.
• Achieved constructive regulatory outcomes, including rate orders for Public Service Company of New Hampshire (PSNH) and Yankee Gas, and rate settlements for NSTAR Gas and Eversource Gas Company of Massachusetts (EGMA).
• Maintained top decile performance for reliability, marking the 7th consecutive year for Months Between Interruptions (MBI) and a multi-year track record for System Average Interruption Duration Index (SAIDI).
• Completed onshore substation construction for Revolution Wind ahead of schedule.
• Improved credit metrics (FFO/Debt) by +300 basis points at S&P and +450 basis points at Moody's.
• Received approval for the recovery of costs to acquire Eversource Gas Company of Massachusetts (EGMA) as part of the Massachusetts joint settlement agreement.

Negatives

• Full-year 2025 results include a net after-tax loss of $75.0 million, or $0.20 per share, related to an increase in liability for expected future payments to Global Infrastructure Partners from the September 30, 2024, sale of offshore wind projects.
• Fourth quarter 2025 electric transmission earnings were slightly lower due to the absence of a carrying charge benefit recorded in the prior year.
• Fourth quarter and full-year 2025 electric distribution earnings were negatively impacted by a charge for customer credits at NSTAR Electric as a result of a joint settlement agreement approved in Massachusetts on December 1, 2025.
• Natural gas distribution results were partially offset by higher operations and maintenance (O&M) expenses, which included a charge from penalties as part of NSTAR Gas' settlement agreement with the Attorney General in December 2025 and an unfavorable impact from the Yankee Gas rate case decision.
• The Eversource Parent and Other Companies segment reported a larger full-year loss of $(81.1) million in 2025 compared to $(57.9) million in 2024, primarily driven by higher interest expense due to the absence of capitalized interest following the sale of offshore wind projects.

Risks

• Cyber events or breaches, including acts of war or terrorism, affecting systems or the systems of third parties on which the company relies.
• Unauthorized access to, and the misappropriation of, confidential and proprietary Company, customer, employee, financial or system operating information.
• Actions or inaction of local, state, and federal regulatory, public policy, and taxing bodies.
• Changes in laws, regulations, Presidential executive orders, or regulatory policy, including compliance with laws and regulations, which may impact the cost of compliance and strategic initiatives.
• Adverse publicity, which can harm the company's reputation, influence legislative and regulatory bodies, and result in unfavorable outcomes.
• Variability in the costs and final investment returns of the Revolution Wind and South Fork Wind offshore wind projects as it relates to the purchase price post-closing adjustment under the terms of the sale agreement.
• The ability to qualify for investment tax credits.
• Extreme weather, including severe storms due to the impacts of climate change, and fluctuations in weather patterns.
• Adequacy, contamination of, or disruption in, water supplies.
• Physical attacks or grid disturbances that may damage and disrupt electric transmission and electric, natural gas, and water distribution systems.
• Ability or inability to commence and complete major strategic development projects and opportunities.
• Breakdown, failure of, or damage to operating equipment, information technology systems, or processes of transmission and distribution systems.
• Changes in levels or timing of capital expenditures, including unplanned expenditures and increased capital expenditure requirements.
• Changes in business conditions, which could include disruptive technology or development of alternative energy sources related to the current or future business model.
• Substandard performance of third-party suppliers and service providers, or counterparties not meeting their obligations.
• Limits on access to, or increases in, the cost of capital, including disruptions in the capital markets or other events that make access to necessary capital more difficult or costly.
• Changes in economic conditions, including impact on interest rates, tax policies, tariffs, and customer demand and payment ability.
• Changes in accounting standards and financial reporting regulations.
• Actions of rating agencies.

Future Outlook

Eversource Energy projects 2026 earnings between $4.80 and $4.95 per share and anticipates a cumulative long-term EPS growth rate of 5% to 7% through 2030, based on its 2025 non-GAAP results of $4.76 per share. The company also expects annual earnings growth towards the upper half of its long-term guidance by 2028, supported by a new $26.5 billion five-year investment plan aimed at load growth, reliability, and clean energy objectives. The majority of financing needs are expected to be met through cash from operations, with additional equity raises planned to maintain balance sheet strength.

Management Comments

• "In 2025, we executed on our priorities of delivering solid operational and financial results, strengthening our balance sheet, and improving cash flow from operations. We also made significant progress in achieving constructive regulatory outcomes by working collaboratively with our regulators during a time of extensive change at the state and federal levels." Joe Nolan, Chairman, President and Chief Executive Officer.
• "This solid execution would not have been possible without our highly dedicated team of nearly 11,000 employees who work expertly and passionately to serve our communities and customers." Joe Nolan.
• "Looking ahead to 2026, we will continue to focus on energy affordability for our customers, making prudent investments and exercising cost discipline. We'll also continue to adopt innovative technology solutions to improve our delivery of safe, reliable and affordable energy that our customers need and deserve." Joe Nolan.
• "We are very excited about Eversource's future as a pure-play regulated utility company with solid growth opportunities." Joe Nolan.

Industry Context

StockSavvy.ai notes that Eversource Energy's focus on regulated utility operations and significant infrastructure investments aligns with broader industry trends towards grid modernization, reliability enhancements, and clean energy integration in the New England region. The increased capital plan positions Eversource to meet growing load demands and support state-level clean energy objectives, reinforcing its role as a dominant energy delivery system in its service territories. The company's strategic shift to a 'pure-play regulated utility' is a common industry move to reduce exposure to volatile non-regulated assets and focus on stable, regulated returns.

Comparison to Industry Standards

• Maintained top decile performance for reliability for the 7th consecutive year for MBI (Months Between Interruptions).
• Maintained a multi-year track record of top decile performance for SAIDI (System Average Interruption Duration Index).
• Recognized in Newsweek's list of America's Most Responsible Companies for the 7th consecutive year.
• Named one of America's Climate Leaders for the third straight year by USA Today and Statista, ranking #1 among energy companies and utilities nationwide for the highest core emissions reduction year-over-year.
• Ranked as the #1 utility and included for the 6th consecutive year in the top 100 of Just Capital and CNBC's list of America's Most JUST Companies.
• Included as a constituent of the FTSE4Good Index Series, which identifies companies demonstrating strong environmental, social, and governance practices.
• Received the HIRE Vets award for the 6th consecutive year, achieving the Platinum level, the highest recognition from the US Department of Labor.
• Recognized in the 2025 Healthiest 100 Workplaces in America.

Legal Proceedings

• A charge to earnings for customer credits at NSTAR Electric resulted from a joint settlement agreement approved in Massachusetts on December 1, 2025.
• A charge resulting from penalties was recorded as part of NSTAR Gas' settlement agreement with the Attorney General in December 2025.
• The Public Utilities Regulatory Authority (PURA) in Connecticut opened a new docket for the prudency and securitization of $980 million in storm costs, with legislative support.

Stakeholder Impact

• Shareholders: Positive impact due to strong earnings, meeting guidance, an increased capital plan supporting future growth, and a commitment to long-term EPS growth and dividends.
• Customers: Continued focus on energy affordability, safe and reliable service, and innovative technology solutions. Potential for customer credits (NSTAR Electric) and rate increases (PSNH, Yankee Gas, NSTAR Gas) as part of regulatory outcomes.
• Employees: Acknowledged for their dedication and expertise; the company was recognized with the HIRE Vets award and as a Healthiest Workplace.
• Regulators: Active engagement and collaborative work leading to constructive regulatory outcomes across multiple jurisdictions.
• Creditors: Improved credit metrics (FFO/Debt) and a solid financing strategy aim to maintain balance sheet strength and financial stability.

Next Steps

• Webcast a conference call with financial analysts on February 13, 2026, to discuss Q4 and full-year 2025 financial performance.
• Continue to focus on energy affordability for customers, making prudent investments, and exercising cost discipline in 2026.
• Adopt innovative technology solutions to improve the delivery of safe, reliable, and affordable energy.
• Execute on the $26.5 billion capital investment plan through 2030, with a focus on load growth and reliability.
• Maintain balance sheet strength and target FFO-Debt levels at over 100 basis points above downgrade thresholds.
• Actively pursue constructive engagement with regulators and stakeholders to help shape the future of energy in the region.
• Await a decision on the Aquarion Water rate case, expected year-end 2026, with earnings impact in 2027.
• Await a decision on The Connecticut Light and Power Company (CL&P) rate case, expected mid-2027, with earnings impact in 2027 and 2028.
• Resolution expected mid-2026 for storm securitization proceedings, with cash proceeds in 2027.
• Revolution Wind project expected to be operational in the second half of 2026, removing go-forward earnings risk from offshore wind and improving earnings predictability.

Key Dates

Recommendation

Eversource Energy delivered strong full-year 2025 results, meeting the upper end of its non-GAAP guidance, and announced an ambitious $26.5 billion five-year capital investment plan. This significant investment, coupled with constructive regulatory outcomes and a clear long-term EPS growth target of 5-7%, positions the company for sustained, predictable growth as a pure-play regulated utility. The improved credit metrics and strategic focus on reliability and clean energy further enhance its investment appeal, making it a compelling 'strong buy' for long-term investors seeking stable returns in the utility sector.

Keywords

Eversource Energy, ES, Utility, Earnings Report, Financial Results, Q4 2025, Full Year 2025, EPS, Capital Investment Plan, Regulatory Outcomes, Electric Transmission, Electric Distribution, Natural Gas Distribution, Offshore Wind, Aquarion Water, New England, Dividend, Credit Ratings, Sustainability, Energy Affordability