01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy's 2024 Form 10-K highlights a significant shift from a net loss in 2023 to a net income in 2024, primarily driven by the divestiture of its offshore wind investments and the planned sale of its water utility business, Aquarion.
Excluding these significant one-time items, the company's non-GAAP earnings per share saw an increase to $4.57a in 2024 from $4.34 in 2023, indicating underlying operational growth. Eversource projects continued earnings growth for 2025 and maintains a long-term EPS growth target of 5-7% through 2029.
The company plans substantial capital expenditures of $24.17 billionb from 2025-2029, focusing heavily on electric distribution ($10.22 billion), electric transmission ($6.81 billion), and natural gas distribution ($6.00 billion), signaling a commitment to infrastructure improvements and modernization. The sale of Aquarion for approximately $2.4 billion is expected to close in late 2025 and will be used to reduce parent company debt, potentially improving the balance sheet and financial flexibility.
02—Key points
Key Highlights
- Eversource Energy reported a net income of $811.7 million ($2.27 per share) in 2024, a significant improvement from a net loss of $442.2 million ($1.26 per share) in 2023. This turnaround was heavily influenced by losses related to the sale of offshore wind investments and an impairment charge related to the pending sale of Aquarion.
- Excluding these special items, non-GAAP earnings per share increased to $4.57 in 2024 from $4.34 in 2023, indicating underlying operational strength.
- The company projects 2025 non-GAAP EPS to be in the range of $4.67 to $4.82 and forecasts a long-term EPS growth rate of 5-7% through 2029.
- Eversource plans capital expenditures totaling $24.17 billion from 2025 through 2029, with significant investments planned for electric distribution ($10.22 billion), electric transmission ($6.81 billion), and natural gas distribution ($6.00 billion).
- A definitive agreement has been reached to sell the Aquarion water distribution business for approximately $2.4 billion in enterprise value, with the transaction expected to close in late 2025, subject to regulatory approvals. Net proceeds are earmarked for debt reduction.
- In 2024, Eversource completed the sales of its remaining offshore wind investments, recognizing an aggregate net after-tax loss of $524 million and recording a contingent liability of $365 million related to post-closing obligations.
- Credit rating agencies, specifically Moody's and S&P, have revised their outlooks for Eversource and its subsidiaries to negative or downgraded ratings, citing challenges in the Connecticut regulatory environment.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.80B$11.89B | −0.7% |
| Operating Expenses | $9.49B$9.51B | −0.2% |
| Operating Income | $2.41B$2.40B | +0.4% |
| Net Income | $819.17M-$442.24M | +285.2% |
| EPS (Basic) | $2.27$-1.27 | +278.7% |
| EPS (Diluted) | $2.27$-1.26 | +280.2% |
| Shares Outstanding (Basic) | 357.48M349.58M | +2.3% |
| Shares Outstanding (Diluted) | 357.78M349.84M | +2.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of Eversource's financial performance in 2024?
Eversource's 2024 financial performance was significantly impacted by the divestiture of its offshore wind investments, which resulted in a net after-tax loss of $524 million. Additionally, the company recorded a $298.3 million after-tax loss related to the pending sale of its Aquarion water business. Excluding these items, the underlying regulated businesses showed positive performance, with non-GAAP earnings per share increasing to $4.57.
What is Eversource's outlook for future earnings and capital expenditures?
Eversource forecasts 2025 non-GAAP earnings per share between $4.67 and $4.82 and targets a long-term EPS growth rate of 5-7% through 2029. The company plans to invest approximately $24.17 billion in capital expenditures from 2025 to 2029, primarily in its electric distribution, electric transmission, and natural gas distribution segments, to upgrade and maintain infrastructure.
What is the status of the Aquarion water business sale, and how will the proceeds be used?
Eversource has entered into a definitive agreement to sell its Aquarion water distribution business for approximately $2.4 billion in enterprise value. The sale is expected to close in late 2025, subject to regulatory and other approvals. The net proceeds from the sale are intended to be used to pay down parent company debt.
Are there any significant regulatory or legal risks highlighted in the filing?
The filing notes challenges in the Connecticut regulatory environment, which have led to outlook revisions and downgrades by credit rating agencies. Additionally, ongoing FERC ROE (Rate of Return on Equity) complaints present uncertainty regarding potential impacts on transmission rates and financial results. The company also faces cybersecurity threats, which are identified as a top enterprise risk.
06—Continue