10-QPeriod: Q1 FY2025

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 5, 2025For Securities:ES

Summary

Eversource Energy's (ES) Q1 2025 10-Q filing indicates a stable operational and risk management environment, with no new material risks or changes identified compared to its 2024 Form 10-K. The company's regulated entities effectively pass through commodity price risks to customers, mitigating direct exposure. Interest rate risk is substantially reduced due to a fixed-rate debt structure, with all long-term debt at a fixed rate as of March 31, 2025. Credit risk is managed through diverse counterparties and collateralization, with specific figures provided for collateral held and cash posted with ISO-NE. Investor confidence in the company's financial reporting controls remains strong, with management certifying the effectiveness of disclosure controls and internal financial reporting controls. There were no changes to these internal controls during the quarter. The filing also notes the absence of new material legal proceedings or changes to previously disclosed risk factors. Small share repurchases were made in March 2025 primarily for 401k plan matching contributions, indicating a focus on long-term employee benefits rather than a broad share buyback program.

Financial Highlights

46 data points
Beta

Revenue

$4.11B

Net Income

$552.67M

13.5% Net Margin

EPS (Diluted)

$1.50

Total Assets

$60.19B

Cash & Equivalents

$200.62M

Free Cash Flow

$33.21M

Financial Statements
Beta
Revenue$4.11B
Operating Expenses$3.19B
Operating Income$926.39M
Net Income$552.67M
EPS (Basic)$1.50
EPS (Diluted)$1.50
Shares Outstanding (Basic)367.32M
Shares Outstanding (Diluted)367.68M

Key Highlights

  • 1Regulated operations effectively insulate the company from direct commodity price risk, with costs passed to customers.
  • 2Interest rate risk is significantly minimized as all long-term debt was at a fixed interest rate as of March 31, 2025.
  • 3Credit risk is actively managed through diverse counterparties, with $17.5 million in collateral held from counterparties and $24.7 million in cash posted with ISO-NE as of March 31, 2025.
  • 4Management has affirmed the effectiveness of disclosure controls and procedures and internal controls over financial reporting for all its operating companies.
  • 5No changes to internal controls over financial reporting were identified during the quarter ended March 31, 2025.
  • 6No new material legal proceedings or risk factors have been identified since the prior 2024 Form 10-K filing.
  • 7Minor share repurchases in March 2025 were related to 401k plan contributions, not a broad buyback program.

Frequently Asked Questions

Eversource's regulated companies are structured such that the economic impacts of energy contracts, including fluctuations in commodity prices, are passed on to customers. Consequently, these regulated entities have no direct exposure to losses in future earnings or fair values resulting from these market-sensitive instruments.

Interest rate risk is largely mitigated by Eversource's debt financing strategy, which predominantly involves fixed interest rates. As of March 31, 2025, all of the company's outstanding long-term debt was at a fixed interest rate, minimizing exposure to changes in market interest rates.

Eversource manages credit risk, which arises from potential non-performance by counterparties, through a diverse mix of customers and suppliers. For regulated companies, credit risk with certain high-volume contract counterparties is managed according to established practices, including the holding of collateral (letters of credit or cash). As of March 31, 2025, $17.5 million in collateral was held from counterparties for standard service contracts, and $24.7 million in cash was posted with ISO-NE for energy transactions.

According to the filing, there have been no new material legal proceedings identified and no material changes to previously disclosed legal proceedings or risk factors since the company's 2024 Form 10-K. Investors are directed to the 2024 Form 10-K for a comprehensive understanding of these matters.