01—Abstract
Summary
Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (NYSE: ES) reported second-quarter 2025 GAAP earnings of $352.7 milliona, or $0.96 per diluted share, compared with $335.3 million, or $0.95 per share, in the second quarter of 2024.
For the first half of 2025, earnings were $903.5 millionb, or $2.45 per share, versus $857.2 million, or $2.43 per share, a year earlier. Revenue rose to $2.84 billion in the quarter from $2.53 billion, and to $6.96 billion for the first half from $5.87 billion. Growth came mainly from the electric transmission, electric distribution, and natural gas segments, which benefited from ongoing infrastructure investment and base rate increases.
Those gains were partly offset by a larger parent-company loss, driven by higher interest expense after the sale of the offshore wind projects ended capitalized interest. Management reaffirmed 2025 EPS guidance of $4.67 to $4.82c and its 5% to 7% long-term EPS growth target, measured from a 2024 base of $4.57. The company also reiterated a 2025-2029 capital plan of $24.2 billion, with potential incremental investment of $1.5 billion to $2 billion.
Balance sheet metrics improved: management cited FFO-to-debt progress, a $1.2 billiond at-the-market equity program, and a $600 million dividend reinvestment and direct stock purchase plan through 2029. A New Hampshire rate case decision on July 25, 2025 approved a $100 million permanent rate increase with a 9.5% return on equity and a 50% equity capital structure.
The filing is largely a results release and investor presentation rather than a disclosure of new material events. The key investor considerations are the sustainability of regulated earnings growth, execution on pending Connecticut and Massachusetts regulatory decisions, the cost of the parent's interest burden, and whether credit metrics continue to strengthen relative to rating agency thresholds.
02—Key points
Key Highlights
- Q2 2025 GAAP EPS of $0.96 versus $0.95 a year earlier; H1 2025 EPS of $2.45 versus $2.43, a modest improvement that reflects higher segment earnings partly offset by parent-company costs.
- Electric transmission was the largest earnings contributor, with Q2 earnings of $208.0 million ($0.56 EPS), up from $189.0 million, driven by continued investment in the transmission system.
- Parent and other companies' losses widened to $66.5 million in Q2 (from $38.5 million) and $125.6 million for H1 (from $57.4 million), mainly due to higher interest expense after the sale of the offshore wind projects removed capitalized interest.
- 2025 EPS guidance of $4.67 to $4.82 and the 5% to 7% long-term EPS growth rate were reaffirmed, with the target measured from a 2024 base of $4.57.
- The 2025-2029 capital plan totals $24.2 billion, with 60% of distribution capital investment in Massachusetts and potential for an additional $1.5 billion to $2 billion. The plan excludes the pending water business sale and Connecticut AMI.
- New Hampshire (PSNH) received a $100 million permanent base rate increase with a 9.5% ROE and 50% equity ratio, plus a performance-based ratemaking framework that shares earnings above a 9.75% ROE with customers.
- Balance sheet actions include a $1.2 billion at-the-market equity program (3.4 million shares, $218 million net proceeds issued through June 2025) and a $600 million dividend reinvestment program through 2029, with FFO-to-debt improving to 11.5% as of March 31, 2025.
03—Questions
Frequently Asked Questions
Did Eversource beat expectations and is it on track for 2025 guidance?
The company reported Q2 2025 EPS of $0.96, slightly above the $0.95 reported a year earlier, and H1 EPS of $2.45. It reaffirmed 2025 guidance of $4.67 to $4.82. The filing does not include analyst consensus, so whether results beat expectations cannot be determined from this document alone.
Why did the parent company's losses increase so sharply?
Parent and other company losses rose to $66.5 million in Q2 2025 from $38.5 million, and to $125.6 million for H1 from $57.4 million. Management attributes the increase primarily to higher interest expense from the absence of capitalized interest following the sale of the offshore wind projects.
What regulatory developments could affect future earnings?
The New Hampshire rate case decision on July 25, 2025 approved a $100 million permanent increase, effective August 1, 2025. In Massachusetts, further rate increases are scheduled for November 2025 and January 2025 rate adjustments are in place. In Connecticut, a Yankee Gas rate decision is expected in October 2025 for rates effective November 1, 2025, and a performance-based ratemaking final decision is expected later in 2025.
How is Eversource funding its capital plan and strengthening its balance sheet?
The company is using a balanced mix of equity and debt. It has a $1.2 billion at-the-market equity program, of which 3.4 million shares had been issued through June 2025, and a $600 million dividend reinvestment program through 2029. It also cites business dispositions, regulatory recoveries, and rate increases as sources of cash flow enhancement. Ratings are Moody's Baa2 (negative outlook) and S&P BBB (stable). FFO-to-debt is reported at 11.5% as of March 31, 2025, versus 9% at year-end 2024, with management citing downgrade thresholds of roughly 12% to 13%.
What are the main risks highlighted in the filing?
The forward-looking statement cites risks including cyberattacks, variability in the costs and returns of the Revolution Wind project tied to its post-closing purchase price adjustment, capital market access and cost, interest rates, extreme weather, regulatory and policy actions, changes in capital spending, and rating agency actions. Management also noted that storm restoration costs and weather events affected operations during the quarter.
04—Continue