01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy's Q3 2025 10-Q shows a sharp swing back to profitability on a GAAP basis, but the quarter was dominated by a non-recurring-looking but still uncertain offshore wind charge.
Net income attributable to common shareholders was $367.5 milliona, or $0.99 per diluted share, versus a loss of $118.1 million ($0.33 per share) a year earlier. For the first nine months, GAAP EPS was $3.44 versus $2.08. Excluding offshore wind items, the company reports non-GAAP earnings of $442.5 million ($1.19 per share) for Q3 and $3.64 per share year-to-date, with the Q3 2025 offshore wind charge of $284 million pre-tax ($75 million after-tax, net of $209 million of expected tax benefits) increasing the GIP contingent liability to $507.7 million, now classified as current.
The regulated utilities drove the underlying results, with regulated companies earning $3.89b per share year-to-date versus $3.62 a year ago, supported by rate increases at PSNH and NSTAR Electric and transmission rate base growth. Cash generation improved materially, with operating cash flow of $3.20 billion in the first nine months versus $1.52 billion a year earlier, aided largely by regulatory recoveries and timing of CL&P's FMCC and SBC collections. Capital investment remained heavy at $3.18 billion year-to-date.
Leverage is rising: long-term debt increased to $26.9 billionc from $25.7 billion, notes payable declined, and the company issued $2.04 billion of long-term debt while raising $465 million through its at-the-market equity program. Cash and equivalents were $259 million at quarter-end.
Management reaffirmed a 2025 non-GAAP EPS guidance range of $4.72 to $4.80d (narrowed from $4.67 to $4.82) and a 5% to 7% long-term EPS growth target through 2029. Key risks for investors include the open-ended Revolution Wind cost exposure, where management states additional losses could be material, unresolved FERC ROE complaints with no reasonable estimate of loss, the pending Aquarion water sale (approximately $2.4 billion enterprise value, expected to close late 2025), and Fitch's watch-negative outlook placed on Eversource and its utilities in September 2025 tied to the Revolution Wind stop-work order.
02—Key points
Key Highlights
- GAAP net income to common shareholders of $367.5M ($0.99/share) in Q3 2025 vs. a $118.1M loss in Q3 2024; year-to-date GAAP EPS $3.44 vs. $2.08
- Q3 2025 included a $284M pre-tax ($75M after-tax) charge raising the offshore wind (Revolution Wind/South Fork) contingent liability to $507.7M, now classified as current; further charges could be material
- Non-GAAP EPS of $1.19 in Q3 2025 (vs. $1.13) and $3.64 year-to-date (vs. $3.56); regulated companies contributed $3.89 per share year-to-date
- Operating cash flow nearly doubled to $3.20B for the first nine months, largely from favorable regulatory recovery timing at CL&P, while capital investment was $3.18B
- Total long-term debt rose to $26.9B; $2.04B of new long-term debt issued and $465M raised via the ATM equity program, with cash of $259M at quarter-end
- 2025 non-GAAP EPS guidance narrowed to $4.72–$4.80 (from $4.67–$4.82); long-term EPS growth target of 5%–7% through 2029 reaffirmed
- Pending $2.4B enterprise value sale of Aquarion water business expected to close late 2025, with proceeds earmarked to pay down parent debt
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.23B$3.07B | +5.2% |
| Operating Expenses | $2.53B$2.45B | +3.3% |
| Operating Income | $688.68M$612.40M | +12.5% |
| Net Income | $369.43M-$116.18M | +418.0% |
| EPS (Basic) | $0.99$-0.33 | +400.0% |
| EPS (Diluted) | $0.99$-0.33 | +400.0% |
| Shares Outstanding (Basic) | 371.91M359.52M | +3.4% |
| Shares Outstanding (Diluted) | 372.26M359.82M | +3.5% |
05—Questions
Frequently Asked Questions
Why did GAAP earnings swing so much between Q3 2024 and Q3 2025?
Q3 2024 included a $524M after-tax loss on the sale of offshore wind investments, which produced a GAAP loss of $118.1M. Q3 2025 included a smaller $75M after-tax net charge tied to higher expected GIP obligations, so GAAP earnings returned to a $367.5M profit. Excluding these items, earnings grew from $405.9M to $442.5M in Q3.
How significant is the remaining offshore wind exposure?
The contingent liability of $507.7M is classified as current because payments are expected soon, and management states that further cost overruns or adverse developments could cause additional losses that could be material. Revolution Wind construction is expected to complete in the second half of 2026, and the company's Fitch watch-negative outlook reflects this risk.
What is driving the improvement in operating cash flow?
Operating cash flow of $3.20B (vs. $1.52B) reflects higher collections within CL&P's non-bypassable FMCC and SBC regulatory mechanisms, $107.8M of Connecticut state bond proceeds received in Q3, lower storm cost payments, and working capital timing. Management attributes part of this to timing, so it may not be fully repeatable.
Is the company's leverage increasing, and how is it funding growth?
Long-term debt rose to $26.9B from $25.7B at year-end 2024, and notes payable fell as short-term borrowings were refinanced. The company also issued shares under its ATM program ($465M year-to-date) and plans to use Aquarion sale proceeds to reduce parent debt. Management says operating cash flow, borrowing capacity ($1.13B available under commercial paper programs), and capital market access are sufficient for its needs.
What are the main unresolved regulatory risks?
Four FERC ROE complaints remain open. Eversource has a $39.1M reserve for the second complaint period but says it cannot reasonably estimate the range of loss for the pending proceedings, and each 10-basis-point change in base ROE would affect prospective annual earnings by roughly $7M. Storm cost prudency reviews at CL&P and PSNH and the Yankee Gas rate decision (ROE 9.32%) are also pending.
06—Continue