Summary
Eversource Energy (ES) has announced the successful completion of the sale of its subsidiary, Aquarion Water Company, for $2.4 billion in cash to the Aquarion Water Authority. The net proceeds of approximately $1.7 billion are earmarked for debt reduction, which is a positive step towards strengthening the company's balance sheet. However, investors should note that the company expects to recognize an after-tax non-cash, non-recurring charge of approximately $115 million, or $0.31 per share, in the second quarter of 2026 as a result of this sale. The company also provided clarification on its use of non-GAAP financial measures, emphasizing that these are used for internal performance evaluation and planning, excluding items like the loss on the sale and a prior FERC decision charge. Management believes these exclusions provide a more meaningful representation of ongoing operational performance and future outlook. Investors are encouraged to review these non-GAAP measures cautiously and in conjunction with GAAP reporting, as they do not represent a direct legal interest in the assets and liabilities of specific businesses.
Key Highlights
- 1Completion of sale of Aquarion Water Company for $2.4 billion cash.
- 2Approximately $1.7 billion in net proceeds will be used to reduce company debt.
- 3Expected after-tax non-cash, non-recurring charge of $115 million ($0.31 per share) in Q2 2026 due to the sale.
- 4Announcement of the sale was made via a news release on June 30, 2026.
- 5Eversource Energy utilizes non-GAAP financial measures to present operational performance excluding certain charges.
- 6The company provided a disclaimer regarding the limitations and comparability of non-GAAP measures.
- 7Extensive discussion of forward-looking statements and associated risks.