Loading...
01/10 16:01
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with increased non-GAAP recurring earnings and improved cash flows. Positive regulatory developments and infrastructure investments support future growth. Despite a GAAP loss due to sale transactions, optimistic guidance and ongoing projects like the Revolution Wind Project bolster investor confidence. The Q&A section reveals some uncertainties, but the overall sentiment remains positive, particularly with the reaffirmation of EPS guidance and infrastructure plans. Considering the lack of market cap information, a moderate positive stock reaction is expected.
Net after-tax nonrecurring charge $75 million, or $0.20 per share related to offshore wind liability. This charge increased estimated liability for future payments to GIP by approximately $285 million, offset by $210 million of tax benefits. Tax benefits resulted from a change to previously estimated tax attributes primarily associated with Revolution Wind.
GAAP earnings for Q3 2025 $0.99 per share, including the impact of the offshore wind net charge. GAAP EPS for Q3 2024 was a loss of $0.33 per share, reflecting the impact of the sale transaction of South Fork and Revolution.
Non-GAAP recurring earnings for Q3 2025 $1.19 per share compared with $1.13 per share in Q3 2024. Increase attributed to higher electric transmission earnings, distribution rate increases, and capital tracking mechanisms for natural gas businesses.
Electric transmission earnings Increased by $0.01 per share due to increased revenues from continued investment in the transmission system.
Electric distribution earnings Increased by $0.03 per share due to distribution rate increases in New Hampshire and Massachusetts for cost recovery for infrastructure investments. Partially offset by higher interest, depreciation, property taxes, and O&M.
Natural Gas segment earnings Improved by $0.04 per share due to base distribution rate increases in Massachusetts utilities and capital tracking mechanisms for timely cost recovery. Partially offset by higher interest, depreciation, and property tax expenses.
Water distribution earnings Decreased by $0.02 per share due to higher O&M and depreciation expense.
FFO to debt ratio Improved to 12.7% as of Q2 2025, reflecting an improvement of over 300 basis points from December 2024. Expected to be over 13% as of Q3 2025.
Operating cash flows Increased by over $1.7 billion year-over-year through Q3 2025.
Revolution Wind Project: Substantially completed construction of the onshore substation. Back-feed energization to offshore facilities expected by end of November to support testing and commissioning.
Seasonal Heat Pump Rate: Introduced a reduced rate during winter months for Eversource electric customers using heat pumps in Massachusetts.
Load Growth: Year-to-date weather-normalized load growth of 2%. Summer peak of over 12 gigawatts, highest since 2013, driven by electrification and economic expansion.
Transmission Projects: Pursuing projects like the Cambridge underground substation and interconnections to address load growth and regional reliability. Potential to add billions of dollars to future investment plans.
Infrastructure Investments: On track to invest nearly $5 billion in 2025. Installed over 40,000 AMI meters in Massachusetts and completed communication network deployment in Western service territory.
Energy Efficiency Programs: Generated $1.4 billion in savings for customers through nation-leading programs. Expanded incentives for residential and low-income customers adopting energy-efficient technologies.
Regulatory Collaboration in Connecticut: Gained clarity on Connecticut regulatory environment with new PURA commissioners. Submitted alternative resolution for Yankee rate case to improve customer affordability and regulatory trust.
Aquarion Water Sale: Final decision expected by November 19, with transaction closure anticipated by year-end. Addressed concerns from Connecticut Office of Consumer Counsel with a comprehensive offer of compromise.
Regulatory Environment in Connecticut: The company faces challenges in navigating the Connecticut regulatory environment, including ongoing and future proceedings at PURA. While there is optimism about collaboration with new commissioners, the regulatory process remains a potential risk to achieving balanced outcomes and maintaining customer trust.
Offshore Wind Projects: The Revolution Wind project has seen progress, but there are risks related to construction delays, increased liabilities, and the need for tax benefits to offset financial impacts. These factors could affect the project's completion and financial performance.
Affordability and Customer Rates: Efforts to address affordability, such as rate adjustments and energy efficiency programs, may face challenges in balancing customer needs with financial sustainability. Regulatory approval and customer adoption of these measures are critical.
Load Growth and Infrastructure Investments: The company is experiencing robust load growth driven by electrification and economic expansion, necessitating significant infrastructure investments. However, these projects, including substations and transmission upgrades, carry risks related to cost overruns, land acquisition, and regulatory approvals.
Deferred Storm Costs: Recovery of deferred storm costs remains a challenge, with 98% under review or in rates. Delays or unfavorable outcomes in cost recovery could impact cash flow and financial stability.
Debt and Financing: The issuance of $600 million in parent company debt and reliance on equity programs highlight the need to manage liquidity and credit metrics carefully. Rising interest rates or unfavorable market conditions could pose additional risks.
Regulatory Environment and Infrastructure Investments: Eversource Energy anticipates a constructive shift in Connecticut's regulatory landscape with the appointment of new commissioners at PURA. This is expected to facilitate balanced regulatory outcomes and support state energy goals. The company is focused on critical infrastructure investments to maintain a reliable and resilient grid, accommodating new sources of generation to meet increasing electric demand.
Offshore Wind Projects: The Revolution Wind project is substantially complete, with back-feed energization to offshore facilities expected by the end of November 2025. This will support testing and commissioning of the facilities, with the project being a key generation resource for New England.
Capital Investments: Eversource plans to invest nearly $5 billion in 2025, with a 5-year capital plan of $24.2 billion through 2029. Additional investment opportunities of $1.5 billion to $2 billion are anticipated within this period. Projects include transmission upgrades, new substations, and land acquisitions to support load growth and grid reliability.
Load Growth and Electrification: The company is experiencing robust load growth driven by electrification of transportation and heating, decarbonization initiatives, and economic expansion. Weather-normalized load growth of 2% year-to-date and a peak of over 12 gigawatts in summer 2025 highlight increasing demand. Future projects include the Cambridge underground substation and other transmission solutions to address this growth.
Affordability and Customer Programs: Eversource is implementing various programs to address affordability, including seasonal heat pump rates, energy efficiency incentives, and low-income discount rates. These initiatives aim to provide cost-effective energy solutions while supporting customer needs.
Earnings Guidance and Financial Outlook: The company has raised its 2025 recurring earnings per share guidance to $4.72-$4.80, with a long-term EPS growth rate of 5%-7%. Eversource expects to improve its FFO to debt ratio to over 13% by year-end 2025, supported by disciplined execution of its strategic plan and cost recovery mechanisms.
The selected topic was not discussed during the call.
The earnings call indicates strong financial performance with increased non-GAAP recurring earnings and improved cash flows. Positive regulatory developments and infrastructure investments support future growth. Despite a GAAP loss due to sale transactions, optimistic guidance and ongoing projects like the Revolution Wind Project bolster investor confidence. The Q&A section reveals some uncertainties, but the overall sentiment remains positive, particularly with the reaffirmation of EPS guidance and infrastructure plans. Considering the lack of market cap information, a moderate positive stock reaction is expected.
The earnings call highlights strong financial performance with improved cash flows, FFO to debt ratio, and positive regulatory outcomes like the New Hampshire rate case. Management expressed high confidence in achieving financial targets and provided optimistic guidance. Despite some uncertainties in capital redeployment and equity needs, the overall sentiment is positive, supported by constructive regulatory environments and strategic transactions like the Aquarion sale. The Q&A section reinforced confidence in financial metrics and regulatory processes, suggesting a positive stock price movement in the short term.
The earnings call presented mixed signals: slight EPS growth, positive infrastructure investments, and a rate reduction for customers are positive. However, increased equity issuance, unclear project timelines, and higher parent losses raise concerns. The Q&A session revealed management's uncertainty on several issues, which may cause investor hesitation. Overall, these factors suggest a neutral stock price movement.
The earnings call summary reveals mixed signals: a slight increase in EPS and a positive shareholder return plan, but concerns over increased parent losses and equity issuance. The Q&A section provides no significant new insights or changes in sentiment. The absence of record high revenue and lack of strong guidance adjustments further support a neutral outlook. The market reaction is likely to remain stable, given the balance of positive shareholder returns and financial challenges.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
