8-K: Eversource Posts Strong 2025 Earnings, Raises Outlook

Eversource Energy reported robust full-year 2025 earnings, exceeding its updated non-GAAP guidance and announcing an increased five-year capital investment plan.

Summary

• Full-year 2025 GAAP earnings were $1.69 billion, or $4.56 per share, compared to $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, significantly up from $72.5 million, or $0.20 per share, in Q4 2024.
• The company announced a new five-year $26.5 billion capital investment plan for 2026-2030, an increase of $2.3 billion over its previous plan.
• Eversource projects 2026 earnings per share to be between $4.80 and $4.95.
• A long-term cumulative EPS 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.
• The company expects to raise equity in the range of $800 million to $1.1 billion over the 2026-2030 forecast period, excluding dividend reinvestment and equity compensation programs.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong report, with earnings meeting expectations, a significant increase in the capital investment plan, and positive long-term growth projections, reinforcing its position as a stable regulated utility.

Positives

• Full-year 2025 non-GAAP recurring EPS of $4.76 was at the upper end of the company's updated guidance range of $4.72 to $4.80 per share.
• The new five-year (2026-2030) capital investment plan of $26.5 billion represents a $2.3 billion increase over the previous plan, signaling robust future infrastructure development.
• Provided a strong 2026 EPS guidance range of $4.80 to $4.95 per share, indicating continued financial growth.
• Set a long-term EPS growth target of 5% to 7% through 2030, with annual earnings growth expected towards the upper half of this guidance by 2028.
• 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 for 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 over 300 basis points at S&P and over 450 basis points at Moody's in 2025, strengthening the balance sheet.
• 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 GAAP earnings include an aggregate net after-tax loss of $75.0 million, or $0.20 per share, related to an increase in the contingent liability for expected future payments to Global Infrastructure Partners from the offshore wind project sale.
• Fourth quarter 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.
• Natural gas distribution earnings were partially offset by higher operations and maintenance (O&M) expenses, which included a charge resulting from penalties recorded as part of NSTAR Gas' settlement agreement with the Attorney General in December 2025.
• The Parent and Other Companies segment, excluding net losses from offshore wind, reported a full-year loss of $(81.1) million in 2025, primarily due to higher interest expense from 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, which may impact the cost of compliance and strategic initiatives.
• Adverse publicity, which can harm 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.
• 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 projects 2026 earnings per share between $4.80 and $4.95. The company also anticipates a cumulative long-term EPS growth rate of 5% to 7% through 2030, using the 2025 non-GAAP results of $4.76 per share as the base year, with annual earnings growth expected towards the upper half of this guidance by 2028. The new five-year $26.5 billion investment plan underscores a commitment to continued infrastructure development and clean energy objectives.

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." Joe Nolan, Chairman, President and CEO.
• "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.
• "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." Joe Nolan.
• "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 is positioning itself as a pure-play regulated utility, focusing on stable, predictable returns from its New England energy delivery system. The increased capital investment plan aligns with broader industry trends of infrastructure modernization and clean energy transition, while the focus on regulatory engagement is critical for utilities operating in highly regulated environments. The company's divestment from offshore wind projects further solidifies its regulated utility focus, aiming for more predictable earnings streams.

Comparison to Industry Standards

• Maintained top decile performance for reliability for the 7th consecutive year for MBI (Months Between Interruptions) and a multi-year track record for SAIDI (System Average Interruption Duration Index), indicating strong operational efficiency compared to industry peers.
• Recognized in Newsweek's list of America's Most Responsible Companies for the 7th year, named one of America's Climate Leaders for the 3rd year by USA Today and Statista, and ranked #1 among energy companies for core emissions reduction, suggesting leading performance in ESG metrics within the utility sector.
• Achieved Platinum level, the highest recognition from the US Department of Labor, for the HIRE Vets award, demonstrating strong commitment to veteran employment compared to other companies.

Legal Proceedings

• NSTAR Gas' settlement agreement with the Attorney General in December 2025 included penalties.
• The Public Utilities Regulatory Authority (PURA) opened a new docket for prudency and securitization of $980 million in storm costs in Connecticut.

Stakeholder Impact

• Shareholders are likely to benefit from strong earnings, an increased capital investment plan, and positive long-term EPS growth targets, though potential equity dilution from future capital raises is noted.
• Customers will benefit from continued investments in safe, reliable, and affordable energy service, but may also experience impacts from base distribution rate increases and customer credits/penalties.
• Employees are recognized for their dedication and expertise, indicating a stable and valued workforce.
• Regulators are actively engaged with the company, leading to constructive outcomes that shape the energy future in the region.

Next Steps

• A conference call with financial analysts will be webcast on February 13, 2026, to discuss the company's 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 new $26.5 billion capital investment plan for the years 2026 to 2030.
• Actively pursue constructive engagement with regulators and stakeholders to help shape the future of energy in the region.
• The Aquarion Water rate case has been filed, with a decision expected year-end 2026 and earnings impact in 2027.
• The CL&P rate case has been filed, with a decision expected mid-2027 and earnings impact in 2027 and 2028.
• Resolution is expected mid-2026 for storm securitization proceedings, with cash proceeds anticipated in 2027.
• Revolution Wind is expected to be operational in the second half of 2026, removing go-forward earnings risk from offshore wind.

Key Dates

Recommendation

The company delivered strong 2025 results, meeting the high end of its non-GAAP guidance, and provided robust 2026 EPS guidance. The significant increase in the five-year capital investment plan to $26.5 billion, coupled with a long-term EPS growth target of 5-7% through 2030, signals strong future growth and predictable returns for a pure-play regulated utility. Constructive regulatory outcomes and improved credit metrics further enhance the investment thesis, making it an attractive opportunity for long-term investors seeking stable growth in the utility sector.

Keywords

Eversource Energy, ES, utility, regulated utility, New England, earnings, financial results, capital investment, EPS guidance, offshore wind, Aquarion Water, electric transmission, electric distribution, natural gas distribution, rate cases, regulatory outcomes, FFO/Debt, sustainability, climate leaders, smart meters, Massachusetts, Connecticut, New Hampshire