Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2025, for Eversource Energy and its wholly-owned regulated utility subsidiaries: The Connecticut Light and Power Company (CL&P), NSTAR Electric Company (NSTAR Electric), Public Service Company of New Hampshire (PSNH), and their natural gas and water distribution affiliates. Eversource operates as a public utility holding company providing electric, natural gas, and water services in Connecticut, Massachusetts, and New Hampshire. The company is organized into four reportable segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Operating Revenues | $13,547.2 million | $11,900.8 million |
| Net Income (GAAP) | $1,692.4 million | $811.7 million |
| Diluted EPS (GAAP) | $4.56 | $2.27 |
| Non-GAAP Earnings | $1,767.4 million | $1,634.0 million |
| Non-GAAP Diluted EPS | $4.76 | $4.57 |
| Operating Cash Flow | $4,113.6 million | $2,159.7 million |
| Capital Expenditures (Cash) | $4,158.7 million | $4,480.5 million |
| Long-Term Debt Issued | $2,942.4 million | $4,501.6 million |
| Long-Term Debt Repaid | $1,400.3 million | $1,949.9 million |
| Dividends per Share | $3.01 | $2.86 |
Material Changes vs. Prior Period
- Earnings Growth: GAAP Net Income increased by $880.7 million (108%) compared to 2024. This significant increase is primarily due to the absence of a $524.0 million after-tax loss on the sale of offshore wind investments recorded in 2024 and a $298.3 million after-tax loss on the pending sale of the Aquarion water business recorded in 2024.
- Offshore Wind Contingency: In 2025, the company recorded a pre-tax charge of $284.0 million (after-tax $75.0 million) to increase the contingent liability related to the 2024 sale of Revolution Wind and South Fork Wind projects to Global Infrastructure Partners (GIP). This reflects revised cost projections and stop-work orders.
- Aquarion Sale Status: The sale of the Aquarion water distribution business was denied by the Connecticut Public Utilities Regulatory Authority (PURA) in November 2025. Consequently, Aquarion assets and liabilities were reclassified from "Held for Sale" back to "Held and Used" as of December 31, 2025. The $297 million goodwill impairment recorded in 2024 remains on the books, but no new impairment was recorded in 2025.
- Regulatory Rate Increases: Operating revenues increased due to approved base distribution rate increases at PSNH (effective August 2024 and August 2025), NSTAR Electric (effective January 2025), and Yankee Gas (effective November 2025).
Guidance, Outlook, and Risks
- 2026 Guidance: Eversource projects 2026 earnings per share (EPS) to be in the range of $4.80 to $4.95. The company projects a long-term EPS growth rate of 5% to 7% through 2030, using 2025 non-GAAP EPS of $4.76 as the base.
- Capital Plan: Projected capital expenditures for 2026–2030 total $26.51 billion, with $11.24 billion allocated to Electric Distribution, $7.24 billion to Electric Transmission, and $6.80 billion to Natural Gas Distribution.
- Key Risks and Contingencies:
- Offshore Wind Liability: The contingent liability for the offshore wind sale totaled $448.2 million as of December 31, 2025. Further cost overruns or delays in the Revolution Wind project could result in additional material losses.
- FERC ROE Complaints: Four pending complaints challenge the company's Return on Equity (ROE) for transmission. While a reserve of $39.1 million exists for the second complaint period, the company cannot estimate the potential range of loss for the proceedings, which could materially impact financial results.
- Storm Costs: Approximately $2.06 billion of deferred storm costs are pending regulatory approval or prudency review. Disallowance of these costs could adversely affect earnings.
- Climate Change: Physical risks from severe weather and transitional risks from decarbonization policies (e.g., "Future of Gas" in Massachusetts) pose ongoing challenges to infrastructure planning and cost recovery.
Investor Verification Checklist
- Offshore Wind Contingency: Verify the status of the Revolution Wind construction and the potential for further increases to the $448.2 million contingent liability.
- Aquarion Sale Outcome: Monitor the final decision from PURA expected by March 25, 2026, regarding the appeal of the sale denial.
- FERC ROE Proceedings: Track developments in the four pending FERC complaints regarding transmission ROE, as a reduction could significantly impact future earnings.
- Storm Cost Recovery: Review regulatory decisions on the $2.06 billion of deferred storm costs, particularly for Tropical Storm Isaias and other recent events.
- Regulatory Rate Cases: Monitor the outcome of the PSNH rate case appeal filed by the New Hampshire Department of Energy and the Yankee Gas reconsideration request.