Eversource Energy

What they do

Eversource operates four reportable segments: electric distribution, electric transmission, natural gas distribution, and water distribution (water was divested on June 30, 2026). The electric distribution segment serves retail customers through CL&P, NSTAR Electric, and PSNH, and the transmission segment operates in New England. Natural gas distribution is through NSTAR Gas, EGMA, and Yankee Gas. The company has exited most offshore wind development, retaining only a noncontrolling tax equity investment in South Fork Wind.

Revenue drivers

• Electric distribution — Delivers electricity to residential, commercial, and industrial customers in Connecticut, Massachusetts, and New Hampshire; earned $170.4M in Q2 2026, benefiting from base rate increases in Massachusetts and New Hampshire.
• Electric transmission — Provides regulated transmission service in New England; earned $183.7M in Q2 2026, with results impacted by a FERC-ordered ROE reduction from 10.57% to 9.57%.
• Natural gas distribution — Distributes natural gas in Massachusetts and Connecticut; earned $29.7M in Q2 2026 and $325.1M in H1 2026, helped by base rate increases effective November 1, 2025.

Recent performance

In Q2 2026, Eversource reported GAAP earnings of $53.7M, or $0.14 per share, down from $352.7M, or $0.96 per share, in Q2 2025. Results included a non-cash charge of $111.4M related to the Aquarion Water sale and a $164.0M increase in the offshore wind contingent liability. For H1 2026, GAAP earnings were $660.5M, or $1.75 per share, versus $903.5M, or $2.45 per share, in H1 2025. Non-GAAP recurring earnings were $329.1M in Q2 and $979.8M in H1 2026. Revenue for the June 2026 quarter was $2.90B, compared to $3.22B in the September 2025 quarter.

Strategy

Eversource completed the sale of Aquarion Water on June 30, 2026, positioning itself as a pure-play regulated electric and natural gas delivery company. Management highlights the preliminary selection by ISO-NE to develop transmission infrastructure bringing power from northern Maine to southern New England. Priorities include operating safely, delivering reliable service, executing strategic investments, and maintaining financial strength. The company previously sold its interests in Revolution Wind, South Fork Wind, and Sunrise Wind in 2024, retaining only a tax equity investment in South Fork Wind.

Risks

• Regulatory decisions — FERC reduced the allowed ROE for New England transmission owners from 10.57% to 9.57%, resulting in a $43.9M after-tax charge for estimated refunds in H1 2026.
• Offshore wind contingent liability — Eversource increased its contingent liability by $164.0M in Q2 2026 for expected future payments to Global Infrastructure Partners from the 2024 sale of South Fork Wind and Revolution Wind.
• Aquarion sale regulatory denial — The sale of Aquarion was denied by regulators, and although completed in Q2 2026, the denial and subsequent appeal introduced transaction risk and costs.
• Climate and weather impacts — Severe storms and extreme weather can damage transmission and distribution systems, causing outages and requiring significant unplanned capital expenditures.

Outlook

Management reaffirmed 2026 non-GAAP recurring earnings guidance of $4.57 to $4.72 per share, reflecting the lower transmission ROE and the absence of Aquarion earnings in H2. The company also reaffirmed long-term EPS growth of 5-7% through 2030, using the adjusted 2026 midpoint of $4.65 as the base year, with growth towards the upper half expected by 2028. Eversource continues to invest in transmission and distribution infrastructure, including potential new transmission projects in New England.