Eversource Energy 2026 Q1 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026, for Eversource Energy and its wholly-owned regulated utility subsidiaries: The Connecticut Light and Power Company (CL&P), NSTAR Electric Company, and Public Service Company of New Hampshire (PSNH). Eversource operates as a public utility holding company providing electric, natural gas, and water services to approximately 4.6 million customers across Connecticut, Massachusetts, and New Hampshire.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Operating Revenues | $4,504.4 million | $4,118.4 million |
| Net Income (GAAP) | $608.7 million | $552.7 million |
| Net Income Attributable to Common Shareholders | $606.8 million | $550.8 million |
| Diluted Earnings Per Share (EPS) | $1.61 | $1.50 |
| Operating Cash Flows | $1,324.3 million | $1,040.6 million |
| Capital Expenditures (Cash) | $1,009.3 million | $1,007.4 million |
| Total Debt (Long-Term + Current) | $29,504.2 million | $28,265.4 million (Dec 2025) |
| Cash and Restricted Cash | $337.8 million | $246.2 million (Dec 2025) |
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased by $386.0 million (9.4%) year-over-year, driven primarily by base distribution rate increases at NSTAR Electric (effective Jan 1, 2026) and PSNH (effective Aug 1, 2025), as well as higher natural gas distribution rates effective Nov 1, 2025.
- Earnings Impact: GAAP earnings increased by $56.0 million. However, this includes a significant after-tax charge of $43.9 million ($0.12 per share) related to a Federal Energy Regulatory Commission (FERC) decision on transmission Return on Equity (ROE) complaints. Excluding this charge, non-GAAP earnings were $650.7 million ($1.73 per share).
- Segment Performance:
- Electric Distribution: Earnings increased $14.4 million due to rate increases and capital tracking mechanisms.
- Electric Transmission: GAAP earnings decreased $19.0 million primarily due to the FERC ROE charge. Excluding the charge, earnings increased $24.9 million.
- Natural Gas Distribution: Earnings increased $76.9 million driven by rate increases and infrastructure investments.
- Debt Activity: The company issued $1.50 billion in new long-term debt (Series A and B Junior Notes) in February 2026 and repaid $250 million of maturing debt.
Guidance, Outlook, and Risks
- Guidance Revision: Eversource revised its 2026 non-GAAP earnings guidance to a range of $4.57 to $4.72 per share, reflecting the prospective reduction in transmission ROE from the FERC order and the potential sale of the Aquarion water business. The company expects a cumulative long-term EPS growth rate of 5% to 7% through 2030.
- FERC ROE Contingency: Following a March 19, 2026 FERC order, the company recorded a $60.4 million liability (low end of a $60.4M to $932M estimated loss range) for refunds related to historical transmission rates. The company is challenging the decision and has filed for a rehearing and a stay of the retroactive refund obligation.
- Aquarion Sale: The sale of the Aquarion water business to the Aquarion Water Authority was approved by the Connecticut Public Utilities Regulatory Authority (PURA) on March 25, 2026. However, the transaction is not yet classified as "held for sale" due to legal opposition and potential appeals, creating uncertainty regarding the closing timing.
- Offshore Wind Liability: A contingent liability of $298.2 million remains related to the sale of offshore wind projects (Revolution Wind and South Fork Wind), reflecting potential purchase price adjustments for cost overruns. This liability decreased from $448.2 million at year-end 2025 following payments made in Q1 2026.
Investor Verification Checklist
- FERC ROE Outcome: Monitor the status of the rehearing request and the D.C. Circuit Court motion to stay the retroactive refund obligation, as the ultimate liability could range up to $932 million.
- Aquarion Closing: Verify the resolution of legal appeals and the final closing date for the Aquarion sale, which impacts future cash flows and segment reporting.
- Offshore Wind Costs: Track construction cost updates for the Revolution Wind project, as further overruns could increase the contingent liability to Global Infrastructure Partners (GIP).
- Rate Case Progress: Review the status of the CL&P storm cost prudency review and the Aquarion 2026 rate case, which could impact future revenue recovery.
- Dividend Sustainability: Confirm the Board's approval of the $0.7875 per share dividend payable June 30, 2026, in the context of the revised earnings guidance.