01—Abstract
Summary
Summary of the 10-Q filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Eversource reported a sharply weaker second quarter and first half of 2026, driven by non-recurring and non-cash charges rather than operating deterioration.
Q2 GAAP net income attributable to common shareholders fell to $53.7 milliona ($0.14 per diluted share) from $352.7 million ($0.96) a year earlier, while first-half GAAP EPS was $1.75 versus $2.45. The decline reflects three items: a $194 million pre-tax ($164 million after-tax) increase to the offshore wind contingent liability tied to Revolution Wind cost overruns, a $111.4 million after-tax loss on the June 30, 2026 sale of the Aquarion water business, and a $43.9 million after-tax first-quarter charge for estimated FERC ROE refunds. Excluding these items, the company reports non-GAAP earnings of $329.1 million ($0.87) for Q2 and $979.8 million ($2.60) for the first half, and it reaffirmed 2026 non-GAAP recurring EPS guidance of $4.57 to $4.72.
The balance sheet and liquidity picture improved meaningfully. Cash and equivalents rose to $1.82 billionb, largely from roughly $1.7 billion of net Aquarion sale proceeds that management intends to use to reduce parent debt. Operating cash flow increased to $2.41 billion from $2.10 billion, while capital investment was steady at $2.02 billion.
Eversource also issued $2.40 billionc of long-term debt and repaid $1.62 billion in the first half, and Moody's moved the outlook for the parent and NSTAR Electric from negative to stable. The most important investor risk is the FERC ROE matter. FERC's March 2026 order lowered the transmission base ROE from 10.57% to 9.57%, which management estimates reduces annual after-tax earnings by about $70 million.
The company has recorded only the low end of a $62.0 million to $968.4 milliond pre-tax refund range, so a further charge could be material if the retroactive refund period is upheld on appeal. The offshore wind contingent liability, now $409.2 million, is also subject to further upward revision if construction costs rise, and the company states that such additional losses could be material.
02—Key points
Key Highlights
- GAAP EPS fell to $0.14 in Q2 2026 from $0.96 a year earlier; first-half GAAP EPS was $1.75 versus $2.45, largely due to non-recurring charges.
- Non-GAAP earnings were $329.1 million ($0.87 per share) in Q2 and $979.8 million ($2.60 per share) for the first half, excluding the Aquarion loss, offshore wind charge, and FERC refund charge.
- A $194 million pre-tax charge increased the offshore wind contingent liability for Revolution Wind cost overruns; the liability stands at $409.2 million, and further increases could be material.
- Aquarion sale closed June 30, 2026 for an approximate $2.4 billion purchase price, producing a $111.4 million after-tax loss and about $1.7 billion of net equity proceeds earmarked for parent debt reduction.
- Cash and equivalents rose to $1.82 billion from $135.4 million at year-end 2025, and operating cash flow increased to $2.41 billion from $2.10 billion.
- FERC's March 19, 2026 order cut the transmission base ROE to 9.57%; the company has recorded a $62.0 million refund liability but estimates a possible range up to $968.4 million pre-tax, with the high end dependent on the retroactive refund period.
- 2026 non-GAAP recurring EPS guidance of $4.57 to $4.72 was reaffirmed, with long-term EPS growth of 5% to 7% through 2030.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 3, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.98B$2.83B | +5.4% |
| Operating Expenses | $2.36B$2.18B | +8.6% |
| Operating Income | $540.87M$663.05M | −18.4% |
| Net Income | $55.56M$354.61M | −84.3% |
| EPS (Basic) | $0.14$0.96 | −85.4% |
| EPS (Diluted) | $0.14$0.96 | −85.4% |
| Shares Outstanding (Basic) | 376.49M368.66M | +2.1% |
| Shares Outstanding (Diluted) | 377.00M368.92M | +2.2% |
05—Questions
Frequently Asked Questions
Why did Eversource's reported earnings fall so sharply in the second quarter of 2026?
Q2 2026 GAAP net income attributable to common shareholders was $53.7 million ($0.14 per share), versus $352.7 million ($0.96) a year earlier. The decline is mainly due to a $194 million pre-tax ($164 million after-tax) offshore wind contingent liability charge and a $111.4 million after-tax loss on the Aquarion sale. Excluding these items, non-GAAP Q2 EPS was $0.87.
What is the financial impact of the FERC ROE decision?
FERC lowered the transmission base ROE from 10.57% to 9.57%, which management estimates reduces future annual after-tax earnings by about $70 million, partly offset by roughly $5 million from higher incentive adders. Eversource has recorded a $62.0 million pre-tax refund liability, but the estimated range of possible refunds extends to $968.4 million if the retroactive period is upheld, which the company does not consider probable. The company is appealing, and a separate FERC proceeding on a proposed 11.39% ROE is pending with a paper hearing schedule into September 2026.
How will the Aquarion sale proceeds affect the balance sheet?
The sale closed June 30, 2026, with adjusted net equity proceeds of about $1.7 billion, and management expects to use these funds to reduce parent-company debt. Cash at June 30, 2026 included roughly $1.7 billion from the sale. Approximately $612 million of long-term debt was repaid at closing, and about $650 million of total debt was either repaid or transferred to the buyer.
Is the offshore wind liability likely to grow further?
Possibly. The contingent liability for purchase price adjustments to GIP rose to $409.2 million, reflecting a $194 million charge in Q2 2026 for revised Revolution Wind cost projections. The company states that additional cost overruns, construction delays, or a change in the expected value of federal investment tax credits could lead to further losses that may be material, and it will reassess the balance as new information becomes available.
Does Eversource still expect to meet its 2026 earnings guidance?
Eversource reaffirmed its 2026 non-GAAP recurring EPS guidance of $4.57 to $4.72, which includes the reduced transmission ROE and the absence of Aquarion earnings in the second half. The company also reaffirmed 5% to 7% cumulative long-term EPS growth through 2030 and expects growth toward the upper half of that range by 2028. The GAAP results reported in this filing exclude these non-recurring items from the guidance measure.
06—Continue