How much will the Aquarion sale affect Eversource's reported earnings?

Eversource expects an after-tax, non-cash, non-recurring charge of approximately $115 million, or $0.31 per share, to be recognized in the second quarter of 2026. This is a one-time item that management excludes from its non-GAAP results.

What will the sale proceeds be used for?

Adjusted net equity proceeds of about $1.7 billion will be used to displace (pay down) Eversource debt, which management says delivers on its commitment to strengthen the balance sheet.

Does the sale change Eversource's earnings outlook?

Yes, the loss of Aquarion's earnings is reflected in revised 2026 non-GAAP EPS guidance of $4.57 to $4.72. The company still targets 5% to 7% cumulative long-term EPS growth through 2030 using the $4.65 midpoint as the base, with growth toward the upper half of that range by 2028.

Why are the non-GAAP figures important to read carefully?

Non-GAAP results exclude the Aquarion loss on sale and a charge tied to the March 2026 FERC base ROE decision. Eversource does not reconcile its non-GAAP guidance to GAAP, citing uncertainty in future items, so investors should evaluate GAAP net income and EPS alongside the adjusted figures.

Who was the buyer and was the transaction approved?

The buyer was Aquarion Water Authority, a quasi-public Connecticut political subdivision that operates as a standalone water authority alongside the South Central Connecticut Regional Water Authority. The Connecticut Public Utilities Regulatory Authority approved the sale on March 25, 2026, and the deal closed June 30, 2026.

ES 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 1, 2026. Cited figures are marked; the original filing is the authoritative source.

Eversource Energy (ES) announced on June 30, 2026 that it has completed the sale of Aquarion Water Company to the Aquarion Water Authority, a quasi-public Connecticut political subdivision, for a total cash purchase price of $2.4 billion^a.

The transaction was agreed in January 2025 and approved by the Connecticut Public Utilities Regulatory Authority on March 25, 2026. Management says adjusted net equity proceeds of roughly $1.7 billion^b will be used to pay down Eversource debt, which is framed as a step toward strengthening the balance sheet and credit profile. The sale carries an accounting cost.

Eversource expects an after-tax, non-cash, non-recurring charge of approximately $115 million^c, or $0.31 per share, in the second quarter of 2026. The company also says its revised 2026 non-GAAP EPS guidance of $4.57 to $4.72 already reflects the loss of Aquarion's earnings. Management continues to target a cumulative long-term EPS growth rate of 5% to 7% through 2030 off a $4.65 midpoint base, and expects annual earnings growth in the upper half of that range by 2028.

For investors, the key trade-off is a one-time write-down and lost water earnings in exchange for lower leverage and a more focused pipes-and-wires electric and gas utility. The filing also relies on non-GAAP measures that exclude the Aquarion loss and a March 2026 FERC base ROE charge, so investors should weigh GAAP results alongside the adjusted figures.

02—Key points

Key Highlights

Completed sale of Aquarion Water Company to Aquarion Water Authority for $2.4 billion in cash, approved by PURA on March 25, 2026.
Adjusted net equity proceeds of approximately $1.7 billion will be used to displace Eversource debt, supporting the balance sheet and credit profile.
Expects an after-tax non-cash non-recurring charge of about $115 million ($0.31 per share) in Q2 2026 from the sale.
Revised 2026 non-GAAP EPS guidance of $4.57 to $4.72 includes the absence of Aquarion earnings; midpoint of $4.65 serves as the base for long-term growth.
Maintains cumulative long-term EPS growth target of 5% to 7% through 2030, with annual growth expected toward the upper half of the range by 2028.
Management positions Eversource as a pure-play regulated pipes-and-wires utility focused on electric and natural gas operations in Connecticut, Massachusetts and New Hampshire.
Filing uses non-GAAP measures excluding the Aquarion loss and a March 2026 FERC base ROE charge; no reconciliation to GAAP guidance is provided.

03—Questions

Frequently Asked Questions

How much will the Aquarion sale affect Eversource's reported earnings?
Eversource expects an after-tax, non-cash, non-recurring charge of approximately $115 million, or $0.31 per share, to be recognized in the second quarter of 2026. This is a one-time item that management excludes from its non-GAAP results.
What will the sale proceeds be used for?
Adjusted net equity proceeds of about $1.7 billion will be used to displace (pay down) Eversource debt, which management says delivers on its commitment to strengthen the balance sheet.
Does the sale change Eversource's earnings outlook?
Yes, the loss of Aquarion's earnings is reflected in revised 2026 non-GAAP EPS guidance of $4.57 to $4.72. The company still targets 5% to 7% cumulative long-term EPS growth through 2030 using the $4.65 midpoint as the base, with growth toward the upper half of that range by 2028.
Why are the non-GAAP figures important to read carefully?
Non-GAAP results exclude the Aquarion loss on sale and a charge tied to the March 2026 FERC base ROE decision. Eversource does not reconcile its non-GAAP guidance to GAAP, citing uncertainty in future items, so investors should evaluate GAAP net income and EPS alongside the adjusted figures.
Who was the buyer and was the transaction approved?
The buyer was Aquarion Water Authority, a quasi-public Connecticut political subdivision that operates as a standalone water authority alongside the South Central Connecticut Regional Water Authority. The Connecticut Public Utilities Regulatory Authority approved the sale on March 25, 2026, and the deal closed June 30, 2026.

04—Continue

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