Summary
Eversource Energy (ES) has filed an 8-K report detailing significant financial updates, primarily related to its offshore wind projects. The company announced an increase in its contingent liability stemming from the sale of its interests in the South Fork Wind and Revolution Wind projects to affiliates of Global Infrastructure Partners (GIP). This increase is driven by revised cost projections for the Revolution Wind project, which includes overruns due to vessel damage, insurance, and a recent stop-work order from BOEM. Consequently, Eversource expects to recognize a net after-tax non-recurring charge of approximately $75 million, or $0.20 per share, in the third quarter of 2025, partially offset by a tax benefit. Additionally, the filing highlights Eversource's use of non-GAAP financial measures to provide a clearer view of ongoing operational performance, excluding losses from asset sales, impairments, and certain transaction costs. Management believes these non-GAAP measures offer a more meaningful representation of the company's financial performance. Investors should note the forward-looking nature of many statements in the filing and the inherent risks and uncertainties associated with the offshore wind projects and broader market conditions.
Key Highlights
- 1Eversource Energy is increasing its contingent liability related to the sale of offshore wind projects (South Fork Wind and Revolution Wind) to GIP.
- 2Revised cost projections for Revolution Wind project, due to vessel damage, insurance, and a BOEM stop-work order, are driving the increased liability.
- 3The company anticipates a net after-tax non-recurring charge of approximately $75 million ($0.20 per share) in Q3 2025.
- 4A significant portion of the charge increase is offset by an estimated $210 million federal tax benefit related to tax losses on the sale.
- 5Eversource continues to use non-GAAP financial measures to present earnings, excluding certain one-time or non-operational items.
- 6Revolution Wind project construction is expected to be completed in the second half of 2026.