01—Abstract
Summary
Summary of the 8-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (NYSE: ES) reported full-year 2024 GAAP earnings of $811.7 milliona, or $2.27 per diluted share, versus a 2023 loss of $(442.2) million, or $(1.26) per share, which was driven by a large offshore wind impairment.
Non-GAAP recurring earnings rose to $4.57b per share from $4.34 in 2023, a 5.3% increase. Fourth-quarter GAAP EPS was $0.20, reflecting an after-tax $298.3 million (about $0.81 per share) loss tied to the pending sale of the Aquarion Water Company. Results were supported by higher transmission and gas distribution earnings, with electric transmission contributing $2.03 per share on a non-GAAP basis.
Management guided 2025 EPS to $4.67c-$4.82 and reaffirmed a 5-7% long-term EPS growth rate through 2029 off the 2024 base. The five-year capital plan for 2025-2029 was raised roughly 10% to $24.2 billion, excluding Aquarion, with the increase driven mainly by transmission. The company also expects to issue $1.2 billion of new equity over the forecast period, weighted toward the back half.
Management cited headwinds in 2025, including higher interest, depreciation, and property taxes, and share dilution. The Aquarion sale, with an aggregate enterprise value of about $2.4 billiond, is expected to close in late 2025 and will fund parent-company debt paydown, strengthening the balance sheet. Investors will be watching execution on that sale, the New Hampshire rate review decision expected in 2025, and the pace of equity issuance against the rising capital plan.
02—Key points
Key Highlights
- FY2024 GAAP EPS of $2.27 versus a $(1.26) loss in 2023; non-GAAP recurring EPS of $4.57, up 5.3% from $4.34.
- Q4 2024 GAAP EPS of $0.20, including an after-tax $298.3M (~$0.81/share) loss on the pending Aquarion water sale; Q4 recurring EPS was $1.01 versus $0.95 a year earlier.
- 2025 EPS guidance of $4.67-$4.82, and long-term 5-7% EPS growth through 2029 reaffirmed on the 2024 base.
- Five-year capital plan for 2025-2029 increased about 10% to $24.2B (ex-Aquarion), up $2.1B from the prior $22.1B plan, driven mainly by transmission.
- Planned $1.2B of new equity over 2025-2029, mostly in the back half of the period, in addition to dividend reinvestment and employee equity issuances.
- Aquarion sale at ~$2.4B enterprise value (~$1.6B cash, ~$800M net debt extinguished), expected to close in late 2025, with proceeds to pay down parent debt.
- Offshore wind exit completed in 2024, with aggregate after-tax losses of $524.0M (~$1.47/share) for the full year.
03—Questions
Frequently Asked Questions
Why did GAAP earnings swing from a loss in 2023 to a profit in 2024?
The 2023 results included a large $1.95B after-tax impairment (about $5.58/share) on offshore wind investments. In 2024, the company recorded smaller offshore wind losses of about $524M ($1.47/share) upon completing the exit, so GAAP earnings recovered to $2.27/share. Excluding these items, earnings rose modestly from $4.34 to $4.57 per share.
What is the impact of the Aquarion sale on Eversource's financials?
The sale is expected to generate roughly $1.6B in cash and extinguish about $800M of net debt, with proceeds used to reduce parent-company debt. The company recorded a $298.3M after-tax loss in Q4 2024 in anticipation of the sale. The transaction requires approvals in Connecticut, Massachusetts, and New Hampshire and is expected to close in late 2025.
Is the 2025 guidance and long-term growth outlook changing?
2025 EPS guidance is $4.67-$4.82, which is above 2024's $4.57 non-GAAP result. The company reaffirmed 5-7% cumulative EPS growth through 2029, using $4.57 as the base. Management acknowledged 2025 headwinds, including higher interest expense, depreciation, property taxes, share dilution, and a higher effective tax rate.
How will the larger capital plan be funded, and will shareholders be diluted?
The company expects to raise $1.2B of new equity over 2025-2029, excluding routine dividend reinvestment and employee equity issuances, with the majority in the back half of the period. Cash flow enhancements cited include Aquarion sale proceeds, South Fork Wind tax equity, incremental storm cost recovery, and rate increases. Share dilution is listed as a 2025 earnings headwind.
What drove the segment performance in 2024?
Electric transmission was the largest contributor at $2.03 per share non-GAAP, up from $1.84, due to higher investment. Natural gas distribution improved to $0.81 from $0.64 on base rate increases in Massachusetts. Electric distribution was roughly flat at $1.77 versus $1.74, as higher costs offset rate increases, and water distribution earned $0.12 versus $0.09.
04—Continue