01—Abstract
Summary
Summary of the 10-Q filed May 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy's first-quarter 2025 10-Q shows a quarter driven by regulated earnings growth and a sharp swing in operating cash flow.
Net income attributable to common shareholders rose to $550.8 milliona, or $1.50 per diluted share, versus $521.8 million ($1.49) a year earlier. Regulated companies earned $1.66 per share, up from $1.53, led by electric transmission, natural gas distribution, and electric distribution, while the parent and other companies lost $0.16 per share, weighed down by higher interest expense after capitalized interest ended with the 2024 offshore wind sales. Management reaffirmed its 2025 EPS guidance of $4.67 to $4.82 and its 5% to 7% long-term growth target through 2029.
Cash generation improved materially. Operating cash flow was $1.04 billionb versus $291 million, mainly from favorable timing of regulatory recoveries at CL&P, including the non-bypassable FMCC, and lower storm-related vendor payments. Capital investment was $1.01 billion, slightly below last year's $1.15 billion.
Total debt grew, with $1.20 billionc of new long-term issuance against $300 million repaid, and commercial paper and notes payable fell by about $553 million. Liquidity is adequate, with $1.16 billion of commercial paper capacity and $111 million of cash on hand.
The main investor watch items are the pending $2.4 billiond sale of the Aquarion water business, expected to close in late 2025, with proceeds earmarked for parent debt reduction, and the unresolved FERC transmission ROE complaints, for which the company cannot estimate a loss range. The $365 million contingent liability tied to the offshore wind sale to GIP also remains open, and management has flagged that further cost overruns at Revolution Wind could be material.
02—Key points
Key Highlights
- Net income attributable to common shareholders rose 5.6% to $550.8 million ($1.50 per diluted share) from $521.8 million ($1.49) in Q1 2024.
- Regulated companies earned $1.66 per share, up from $1.53, while Eversource parent and other companies lost $0.16 per share versus a $0.04 loss, driven by higher interest expense.
- Operating cash flow nearly quadrupled to $1.04 billion from $291 million, largely due to timing of regulatory recoveries and lower storm-related payments.
- Eversource reaffirmed 2025 EPS guidance of $4.67 to $4.82 and a 5% to 7% long-term EPS growth rate through 2029 off a 2024 non-GAAP base of $4.57.
- A $2.4 billion sale of the Aquarion water business was signed in January 2025, with closing expected in late 2025 and proceeds to pay down parent debt.
- The company carries a $365 million contingent liability tied to offshore wind sale obligations, and management says further Revolution Wind cost overruns could be material.
- Total long-term debt rose to $26.2 billion from $25.7 billion, with $1.20 billion issued and $300 million retired in the quarter; all long-term debt is fixed-rate.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 5, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $4.11B$3.28B | +25.3% |
| Operating Expenses | $3.19B$2.49B | +28.4% |
| Operating Income | $926.39M$845.97M | +9.5% |
| Net Income | $552.67M$523.73M | +5.5% |
| EPS (Basic) | $1.50$1.49 | +0.7% |
| EPS (Diluted) | $1.50$1.49 | +0.7% |
| Shares Outstanding (Basic) | 367.32M350.72M | +4.7% |
| Shares Outstanding (Diluted) | 367.68M351.00M | +4.8% |
05—Questions
Frequently Asked Questions
Why did operating cash flow jump so much year over year?
Operating cash flow was $1.04 billion versus $291 million in Q1 2024, mainly because of improved timing of regulatory recoveries, particularly CL&P's non-bypassable FMCC and SBC collections, which added about $342.6 million. Lower cash payments to vendors for storm costs also helped. Management described these as timing benefits, so they may reverse in later periods.
What is driving the earnings growth, and why are parent-level losses widening?
Regulated segments drove growth: electric transmission earned $199.4 million (up $22.7 million on a higher rate base), natural gas distribution earned $218.4 million (up $27.8 million on base rate increases), and electric distribution earned $188.4 million (up $20.3 million). Parent and other losses grew to $59.0 million because capitalized interest on the offshore wind investments ended after their 2024 sale, and long-term debt costs increased.
What are the biggest risks to the outlook?
Key risks include the FERC transmission ROE complaints, where Eversource says it cannot estimate a range of loss and a change of 10 basis points in base ROE affects earnings by about $3 million per 15-month period. The offshore wind contingent liability ($365 million) could rise if Revolution Wind costs overrun, and the Aquarion sale depends on regulatory approvals from PURA, DPU and NHPUC. Connecticut performance-based ratemaking is also still in development.
How is the balance sheet and financing position changing?
Total assets reached $60.2 billion. Notes payable fell to $1.49 billion from $2.04 billion as long-term debt was issued to refinance short-term borrowings. Eversource's commercial paper program had $1.16 billion of available capacity at quarter-end, and all long-term debt carries fixed rates. Common equity rose to $15.3 billion, supported by retained earnings growth.
What does the Aquarion sale mean for investors?
Eversource agreed to sell its Aquarion water distribution business for about $2.4 billion in cash, including roughly $1.6 billion for equity and $800 million of net debt to be extinguished. The business is classified as held for sale, with assets of about $2.6 billion. Water earnings are small, at $3.6 million in the quarter, so the main effect is on deleveraging, since the proceeds will reduce parent company debt once the deal closes.
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