01—Abstract
Summary
Summary of the 10-Q filed August 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy reported a solid second quarter and first half of 2025, with GAAP net income attributable to common shareholders of $352.7 milliona, or $0.96 per diluted share, in Q2 2025 versus $335.3 million, or $0.95, a year earlier.
For the first half, earnings were $903.5 millionb, or $2.45 per diluted share, compared with $857.2 million, or $2.43, in 1H 2024. Management reaffirmed 2025 EPS guidance of $4.67 to $4.82 and a long-term EPS growth target of 5% to 7% through 2029, off a 2024 non-GAAP base of $4.57. Regulated companies drove the results, earning $1.14 per share in Q2, while Parent and Other losses widened, largely due to higher interest costs after capitalized interest on offshore wind projects ended.
Cash generation improved sharply, with operating cash flow of $2.10 billionc in the first half versus $962 million a year earlier, aided mainly by favorable regulatory recovery timing at CL&P. Capital investment remained heavy at $2.05 billion in the first half. Liquidity strengthened: cash rose to $343.7 million, Eversource issued $1.73 billion of long-term debt, and it set up a $1.2 billion at-the-market equity program, selling about $218 million of shares in Q2.
Total assets reached $60.96 billiond. Key risks remain. Eversource's FERC ROE complaints could have a material impact, though no reserve change is currently recorded.
The Revolution Wind post-closing liability stands at $296 million and could increase if construction overruns occur. Moody's downgraded CL&P to Baa1 in June 2025, citing the Connecticut regulatory environment. The pending $2.4 billion sale of the Aquarion water business, expected to close in late 2025, would be used to pay down parent debt.
02—Key points
Key Highlights
- Q2 2025 diluted EPS of $0.96 vs. $0.95 in Q2 2024; 1H 2025 diluted EPS of $2.45 vs. $2.43, with net income attributable to common shareholders up 5.4% for the half-year.
- 2025 EPS guidance reaffirmed at $4.67–$4.82; long-term EPS growth target of 5%–7% through 2029 reaffirmed.
- Operating cash flow of $2.10 billion in 1H 2025, more than double the $962 million in 1H 2024, largely from favorable regulatory recovery timing at CL&P.
- Capital investment of $2.05 billion in 1H 2025, slightly below $2.22 billion a year earlier; transmission and distribution reliability projects remain the focus.
- Financing activity: $1.73 billion of new long-term debt issued and $375 million repaid in 1H 2025; $218 million of common equity raised in Q2 via a new $1.2 billion ATM program.
- Risk items: FERC ROE complaint reserve of $39.1 million for the second complaint period, with no change recorded but potential material impact; Revolution Wind contingent liability of $296 million; Moody's downgrade of CL&P to Baa1.
- Pending $2.4 billion Aquarion water sale expected to close in late 2025, with proceeds earmarked to pay down parent debt; PSNH approved for a $100.7 million permanent rate increase effective August 1, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 4, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.83B$2.52B | +12.4% |
| Operating Expenses | $2.18B$1.93B | +12.6% |
| Operating Income | $663.05M$602.50M | +10.0% |
| Net Income | $354.61M$337.22M | +5.2% |
| EPS (Basic) | $0.96$0.95 | +1.1% |
| EPS (Diluted) | $0.96$0.95 | +1.1% |
| Shares Outstanding (Basic) | 368.66M353.21M | +4.4% |
| Shares Outstanding (Diluted) | 368.92M353.42M | +4.4% |
05—Questions
Frequently Asked Questions
Is Eversource's earnings growth on track with its guidance?
Management reaffirmed 2025 EPS guidance of $4.67 to $4.82 and a 5% to 7% long-term EPS growth target through 2029 off a 2024 non-GAAP base of $4.57. First-half 2025 diluted EPS of $2.45 is up modestly year over year, and the company attributed the Q2 uplift to higher transmission and distribution rate base and rate increases, partially offset by higher interest expense at the parent level and dilution from share issuance ($0.11 per share in 1H).
Why did operating cash flow more than double?
Operating cash flow rose to $2.10 billion from $962 million, primarily because of regulatory recovery timing. CL&P's non-bypassable FMCC and SBC collections improved operating cash flow by about $501 million, and storm-related cash payments fell by roughly $200 million. These gains were partly offset by timing of accounts payable payments and higher cost-of-removal spending, so part of the improvement may reverse over time.
What are the largest contingent risks to Eversource's financials?
The most significant risks are the four FERC transmission ROE complaints, where Eversource has a $39.1 million reserve for one period but cannot estimate a potential range of loss for the others, and the Revolution Wind post-closing purchase price obligations, recorded at $296 million as of June 30, 2025, which the company says could increase materially if cost overruns or ITC eligibility issues arise. Environmental remediation reserves also rose to $152.2 million, mainly due to MGP site cost estimate changes.
How is Eversource funding its capital program and what does the new equity program mean for shareholders?
Eversource is funding investment with operating cash flow, $1.73 billion of new long-term debt, and common equity. The May 2025 $1.2 billion ATM program issued 3.38 million shares in Q2 for $218 million net, increasing shares outstanding to about 371 million at June 30, 2025 from 366.6 million at year-end 2024. This dilutes per-share earnings modestly, with the company noting $0.04 per share of dilution in Q2 and $0.11 in 1H.
What regulatory developments could affect future earnings?
Several decisions are pending. PSNH received a permanent rate increase of $100.7 million effective August 1, 2025, with a 9.5% authorized ROE and an alternative framework for annual revenue adjustments. Connecticut's PBR proceeding and CL&P storm prudency review ($634M, plus further supplements totaling roughly $173M and $171M, and carrying charges) remain open, and Yankee Gas and NSTAR Gas have pending rate filings with decisions expected in fall 2025. Connecticut's Public Act 25-173 could reduce electric rates by up to $300 million over two years.
06—Continue