Eversource Energy (ES) Q4 2025 Earnings Call Highlights: Strong Financial Performance and …

GuruFocus News

Sat, February 14, 2026 at 6:01 AM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  MCO

  +2.70%

 ES  

 +4.32%  

This article first appeared on GuruFocus.

**Non-GAAP Earnings Per Share (EPS) for 2025:** $4.76

**GAAP Earnings Per Share (EPS) for 2025:** $4.56

**Dividends Paid in 2025:** $3.01 per share, a 5.2% increase

**Capital Investments in 2025:** Over $4 billion

**Five-Year Capital Investment Plan (2026-2030):** $26.5 billion

**Electric Transmission Earnings for 2025:** $2.09 per share

**Electric Distribution Earnings for 2025:** $1.80 per share

**Natural Gas Distribution Earnings for 2025:** $0.97 per share

**FFO-to-Debt Ratio Improvement:** Over 400 basis points at Moody's

**2026 EPS Guidance:** $4.80 to $4.95

**Long-term EPS Growth Expectation:** 5% to 7% by 2028

Warning! GuruFocus has detected 9 Warning Signs with ES.

Is ES fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Eversource Energy (NYSE:ES) reported strong financial performance with non-GAAP earnings per share of $4.76 for 2025, meeting their guidance range.

The company successfully deployed over $4 billion in capital investments in 2025, advancing grid modernization and supporting decarbonization goals.

Eversource Energy (NYSE:ES) achieved top decile performance in reliability metrics, with electric customers experiencing an outage only once in nearly two years.

The company reached a significant milestone with over 100,000 smart meter installations in Massachusetts, part of a broader effort to upgrade 1.5 million meters.

Eversource Energy (NYSE:ES) strengthened its balance sheet, improving its FFO-to-debt ratio by more than 400 basis points at Moody's over the past year.

Negative Points

The potential sale of Aquarion Water Company remains uncertain, with regulatory approval still pending, impacting financial planning.

Eversource Energy (NYSE:ES) faces challenges with storm cost recovery in Connecticut, with decisions expected in July 2027.

The company anticipates higher interest costs and depreciation, which could impact earnings growth in the near term.

Eversource Energy (NYSE:ES) is dealing with regulatory uncertainties in Connecticut, affecting the rollout of advanced metering infrastructure (AMI).

The company has significant financing needs over the next five years, requiring alternative financing solutions if the Aquarion sale does not proceed.

Q & A Highlights

Q: If the Aquarion sale is approved and storm cost recoveries are realized, could this eliminate the need for hybrid financing and potentially impact the 5% to 7% growth trajectory? A: John Moreira, Executive Vice President, CFO, and Treasurer, explained that the common equity issuance range of $0.8 billion to $1.1 billion is not impacted by the Aquarion transaction. The flexibility lies in the debt and alternative financing. Even with storm cost recoveries, junior subordinated debt issuance is expected, as storm cost recoveries will not be realized until 2027. The Aquarion sale would allow for a reduction in alternative financing solutions, potentially enhancing growth rates in the outer years.

Story Continues  

Q: What is the status of potential liabilities related to the Revolution Wind project, and when does liability end? A: Joseph Nolan, Chairman, President, and CEO, clarified that the trigger for liability is the Commercial Operation Date (COD), not the first power. The company expects first power in the coming weeks, with all land construction completed. There is no liability to Orsted; the obligation is to Global Infrastructure Partners (GIP).

Q: Can you elaborate on potential minority interest sales and their regulatory implications? A: John Moreira stated that they are exploring various alternatives, including traditional equity interest or minority interest capital structure deals. These are not immediate plans but are considered tools in their financial strategy toolkit.

Q: What is the timeline for the Connecticut AMI project, and when might it be included in the capital plan? A: Joseph Nolan mentioned that discussions in Connecticut are expected soon, focusing on applying prudent standards and updating the implementation schedule. The company is cautious about making investments without a clear recovery mechanism. John Moreira added that the current $1 billion placeholder for the project is being updated.

Q: How does the company plan to achieve growth towards the upper half of the 5% to 7% range by 2028? A: John Moreira confirmed that the growth target is based on 2027 earnings, not 2026, which is expected to be a transitional year. Key drivers include the Aquarion transaction, storm cost recovery, CL&P rate case, and securitization, all contributing to momentum in 2027 and beyond.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Terms and Privacy Policy

Privacy Dashboard

More Info