Core Insights - Eversource Energy (ES) is enhancing its infrastructure to provide reliable electricity and natural gas services while expanding its renewable operations [1] - The company plans a capital investment of $24.2 billion from 2025 to 2029, focusing on electric and natural gas distribution networks and electric transmission [2][9] Investment Plans - ES will allocate nearly $2 billion for replacing aging infrastructure, $1.5 billion for a cable underground program, $1 billion for substation development, and $0.5 billion for clean energy initiatives through 2028 [3] - The company is developing a $1.5-$1.6 billion underground substation in Cambridge, MA, which is the first of its kind in the U.S. [3] Strategic Moves - In January 2025, ES announced the sale of Aquarion Water Company for $2.4 billion, allowing it to reinvest in core electric and natural gas operations and reduce parent company debt [4] Industry Context - Other utility companies, such as FirstEnergy, NextEra Energy, and PPL Corporation, are also investing heavily in their transmission and distribution infrastructure to enhance reliability and support the transition to cleaner energy [7][8][10] - FirstEnergy plans to invest $28 billion between 2025 and 2029 to modernize its infrastructure, while NextEra Energy's Florida Power & Light aims to invest nearly $21.7 billion in similar projects [8][10] - PPL intends to invest $20 billion from 2025 to 2028 to upgrade its infrastructure and improve service quality [11]

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ES over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am not a ...

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Core Viewpoint - Long-term dividend stocks are generally more stable and provide consistent dividends due to their established nature and lower volatility compared to the broader market [1][2] Group 1: Waste Management - Waste Management Inc. is a significant player in the waste and recyclables collection industry, with a market capitalization exceeding $92 billion [4] - The company has a dividend yield of 1.40%, an annual dividend of $3.30, and a 22-year track record of increasing dividends, with a payout ratio of 48.96% [5] - In the second quarter of 2025, Waste Management reported a 19% year-over-year increase in revenue, alongside strong earnings per share (EPS) [6] - Operating expenses have decreased to less than 60% of revenue, contributing to a solid free cash flow projection of nearly $3 billion for the year [7] Group 2: Eversource Energy - Eversource Energy, a major utility provider in the northeast, has a dividend yield of 4.63% and an annual dividend of $3.01, but a high payout ratio of 129.18% [9] - The company managed to slightly increase its EPS to 96 cents, surpassing analyst expectations, and reaffirmed its full-year EPS guidance [10] - Eversource's revenue grew by 12% year-over-year, although it fell short of predictions, with a permanent rate increase in New Hampshire expected to provide stability [11] Group 3: Johnson & Johnson - Johnson & Johnson boasts a dividend yield of 3.00%, an annual dividend of $5.20, and an impressive 64-year history of dividend increases, with a payout ratio of 55.61% [12][13] - The company exceeded EPS predictions by 9 cents and revenue estimates by nearly $900 million in its mid-July earnings report [13] - Growth is driven by its innovative medicine business, particularly in oncology, with potential peak sales of $5 billion for its drug candidate TAR200 [14]

PART I – FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Eversource Energy and its key subsidiaries for the period ended June 30, 2025 [Eversource Energy and Subsidiaries Financials](index=6&type=section&id=Eversource%20Energy%20and%20Subsidiaries%20(Unaudited)) Eversource Energy reported increased net income and total assets for H1 2025, with a significant rise in net cash from operating activities to $2.1 billion Eversource Energy Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $60,956,100 | $59,594,529 | | Total Liabilities | $45,286,541 | $44,519,387 | | Total Common Shareholders' Equity | $15,665,791 | $15,039,387 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $6,956,423 | $5,866,097 | | Net Income Attributable to Common Shareholders | $903,517 | $857,190 | | Diluted EPS | $2.45 | $2.43 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $2,097,904 | $962,026 | [The Connecticut Light and Power Company (CL&P) Financials](index=10&type=section&id=The%20Connecticut%20Light%20and%20Power%20Company%20(Unaudited)) CL&P's H1 2025 net income increased to $294.9 million, driven by higher operating revenues and a substantial increase in cash from operations CL&P Condensed Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $16,962,290 | $16,839,845 | | Total Liabilities | $10,436,324 | $10,275,963 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $2,673,357 | $2,085,914 | | Net Income | $294,877 | $269,954 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $753,612 | $109,757 | [NSTAR Electric Company Financials](index=14&type=section&id=NSTAR%20Electric%20Company%20and%20Subsidiary%20(Unaudited)) NSTAR Electric's H1 2025 net income rose to $336.1 million, supported by revenue growth and ongoing investment in property, plant, and equipment NSTAR Electric Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $18,728,993 | $18,075,248 | | Total Liabilities | $11,814,065 | $11,159,442 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $1,883,152 | $1,792,683 | | Net Income | $336,104 | $317,580 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $393,610 | $341,373 | [Public Service Company of New Hampshire (PSNH) Financials](index=18&type=section&id=Public%20Service%20Company%20of%20New%20Hampshire%20and%20Subsidiaries%20(Unaudited)) PSNH's net income grew significantly to $130.2 million in H1 2025, with cash from operations more than doubling due to improved performance PSNH Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $6,833,025 | $6,641,941 | | Total Liabilities | $4,096,029 | $3,935,139 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $651,114 | $613,427 | | Net Income | $130,194 | $99,800 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $191,934 | $76,489 | [Combined Notes to Condensed Financial Statements](index=22&type=section&id=Combined%20Notes%20to%20Condensed%20Financial%20Statements%20(Unaudited)) The notes detail accounting policies, regulatory assets, debt structure, contingencies, and the pending sale of the Aquarion water business - Total regulatory assets were **$6.73 billion** as of June 30, 2025, representing incurred costs probable of future recovery in customer rates[80](index=80&type=chunk) - In H1 2025, the company's subsidiaries issued approximately **$1.73 billion in new long-term debt** to repay short-term debt and fund capital expenditures[109](index=109&type=chunk) - Eversource has recorded a reserve of **$39.1 million** for the second FERC ROE complaint period, representing the difference between billed rates and a potential lower ROE[131](index=131&type=chunk) - A contingent liability of **$296 million** was recorded as of June 30, 2025, related to post-closing obligations from the sale of offshore wind projects[144](index=144&type=chunk) - Eversource agreed to sell its Aquarion water business for an enterprise value of approximately **$2.4 billion**, with assets and liabilities now classified as held for sale[174](index=174&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2025 financial results, segment performance, and capital expenditures, reaffirming full-year EPS guidance and long-term growth targets [Eversource Energy and Subsidiaries MD&A](index=45&type=section&id=Eversource%20Energy%20and%20Subsidiaries%20MD%26A) The company reaffirmed its 2025 EPS guidance of $4.67-$4.82, driven by rate increases and infrastructure investment, while progressing with the sale of its water business Earnings Per Share (EPS) by Business Segment | Segment | Q2 2025 EPS | Q2 2024 EPS | H1 2025 EPS | H1 2024 EPS | | :--- | :--- | :--- | :--- | :--- | | Electric Distribution | $0.44 | $0.42 | $0.95 | $0.90 | | Electric Transmission | $0.56 | $0.54 | $1.11 | $1.04 | | Natural Gas Distribution | $0.10 | $0.08 | $0.68 | $0.61 | | Water Distribution | $0.04 | $0.02 | $0.05 | $0.04 | | **Total Regulated** | **$1.14** | **$1.06** | **$2.79** | **$2.59** | - The company reaffirmed its **2025 EPS guidance of $4.67 to $4.82** and its long-term EPS growth rate projection of **5-7% through 2029**[189](index=189&type=chunk) - The NHPUC approved a permanent rate increase of **$100.7 million** for PSNH and established an authorized ROE of **9.5%**, effective August 1, 2025[188](index=188&type=chunk)[260](index=260&type=chunk) - The Greater Cambridge Energy Program, a major underground transmission project, was approved with a total estimated cost of **$1.84 billion**[224](index=224&type=chunk) [CL&P, NSTAR Electric, and PSNH MD&A](index=61&type=section&id=CL%26P%2C%20NSTAR%2C%20and%20PSNH%20MD%26A) All major electric utility subsidiaries reported increased earnings in H1 2025, driven by higher transmission earnings and base distribution rate increases - CL&P's H1 2025 earnings increased by **$24.9 million**, driven by higher transmission earnings and capital tracking mechanism revenues[326](index=326&type=chunk) - NSTAR Electric's H1 2025 earnings increased by **$18.5 million**, primarily due to a base distribution rate increase and higher transmission earnings[329](index=329&type=chunk) - PSNH's H1 2025 earnings increased by **$30.4 million**, largely due to a base distribution rate increase and higher transmission earnings[330](index=330&type=chunk) - CL&P's operating cash flow for H1 2025 surged to **$753.6 million** from $109.8 million in H1 2024, mainly due to improved regulatory recoveries[331](index=331&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risk is minimal, as commodity costs are passed to customers and all long-term debt is at fixed rates - The company's regulated businesses have **no material exposure** to loss of future earnings from commodity price risk, as energy costs are passed on to customers[335](index=335&type=chunk) - Interest rate risk is significantly mitigated as **all of the company's long-term debt carried a fixed interest rate** as of June 30, 2025[336](index=336&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal controls - Management concluded that the disclosure controls and procedures for Eversource and its reporting subsidiaries were **effective** as of June 30, 2025[340](index=340&type=chunk) - **No material changes** to internal controls over financial reporting occurred during the quarter ended June 30, 2025[341](index=341&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports no material legal proceedings or material changes to previously disclosed proceedings from its 2024 Form 10-K - There have been **no material legal proceedings** identified and no material changes with regard to legal proceedings previously disclosed in the 2024 Form 10-K[343](index=343&type=chunk) [Risk Factors](index=66&type=section&id=ITEM%201A.%20Risk%20Factors) The company states there have been no additional risk factors identified and no material changes to those previously disclosed in its 2024 Form 10-K - There have been **no additional risk factors** identified and no material changes to the risk factors previously disclosed in the 2024 Form 10-K[344](index=344&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company purchased 2,920 of its own common shares during the quarter at an average price of $63.98 per share for its 401k plan Common Share Purchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 2 | $55.05 | | May 2025 | 0 | N/A | | June 2025 | 2,918 | $63.99 | | **Total** | **2,920** | **$63.98** | [Other Information](index=67&type=section&id=ITEM%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[349](index=349&type=chunk) [Exhibits](index=68&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files

Core Insights - Eversource Energy reported Q2 2025 GAAP earnings per share of $0.96, slightly above the $0.95 analyst estimate, with net income improving across all regulated segments [1][2] - The company reaffirmed its full-year 2025 earnings guidance and long-term growth targets, indicating a stable quarter for its core businesses [1][9] Financial Performance - Q2 2025 EPS (GAAP) increased by 1.1% year-over-year from $0.95 in Q2 2024 [2] - Revenue for Q2 2025 was reported at $2,931 million [2] - Net income from Electric Transmission rose to $208 million, a 10.1% increase from $189 million in Q2 2024 [2] - Net income from Electric Distribution increased to $161.5 million, up 7.9% from $149.7 million in Q2 2024 [2] - Net income from Natural Gas Distribution surged by 30.3% to $35.3 million compared to $27.1 million in Q2 2024 [2] Business Overview - Eversource Energy serves 4.6 million customers across Connecticut, Massachusetts, and New Hampshire, operating as a regulated utility [3] - The company focuses on regulatory approvals for infrastructure investments, grid modernization, and service reliability [4] Operational Developments - The Electric Transmission segment's earnings growth was driven by ongoing capital investments [5] - The Electric Distribution segment's earnings growth was primarily due to approved base rate hikes in New Hampshire and Massachusetts [5] - Natural Gas Distribution earnings growth was attributed to rate increases, despite rising expenses [6] - Water Distribution earnings increased by 80% due to higher revenues and lower interest costs [6] Regulatory and Capital Investments - Eversource achieved significant regulatory milestones, including a $900 million recovery for storm and cost under-recoveries in Connecticut [7] - The company has a $24.2 billion five-year capital plan, a 10% increase from the previous period, focusing on transmission upgrades and grid modernization [7] - Continued investment in Advanced Metering Infrastructure (AMI) technology supports state decarbonization plans [8] Forward Guidance - Management maintained its full-year 2025 EPS guidance of $4.67 to $4.82 and a long-term annual EPS growth goal of 5–7% [9] - The company's performance will depend on successful execution of its capital plan and positive regulatory interactions [9] Dividend and Future Considerations - The quarterly dividend remained unchanged from the prior period [10] - Future focus areas include regulatory decisions in New Hampshire and Connecticut, the ongoing Aquarion water business sale, and progress on capital projects [10]

Financial Data and Key Metrics Changes - The second quarter earnings were $0.96 per share, slightly up from $0.95 per share in the previous year, indicating solid earnings growth [22][8] - The company reaffirmed its 2025 EPS guidance range of $4.67 to $4.82 per share, with a long-term EPS growth projection of 5% to 7% through 2029 [8][35] - The FFO to debt ratio is expected to be approximately 100 basis points above rating agency thresholds, with a current ratio of 11.5% reflecting an improvement of over 200 basis points from the previous year [30][32] Business Line Data and Key Metrics Changes - Higher electric transmission earnings of $0.02 per share were attributed to increased revenues from continued investments in the transmission system and lower interest expenses [23] - Electric distribution earnings also increased by $0.02 per share due to distribution rate increases in New Hampshire and Massachusetts [24] - Natural gas segment earnings improved by $0.02 per share primarily due to base distribution rate increases at Massachusetts utilities [24] Market Data and Key Metrics Changes - Electric demand is expected to rise, with load growth through 2025 exceeding 2%, nearly double the rate observed during the same period last year [6] - The company is experiencing a critical need for strategic upgrades and new development due to demand outpacing existing infrastructure capacity [6] Company Strategy and Development Direction - The company is focused on being a pure play pipes and wires regulated utility while executing key strategic priorities [5] - Investments in grid modernization and infrastructure are aimed at supporting the energy transition and managing costs for families and businesses [15] - The company is also enhancing its cash flow position and strengthening its balance sheet condition through various initiatives, including the divestiture of non-core businesses [30][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the challenges posed by rising electric demand and regulatory changes, emphasizing the importance of strategic investments [5][6] - The recent legislative changes in Connecticut, including Senate Bill 4, are expected to improve customer bill predictability and strengthen the balance sheet [11] - The management remains optimistic about the future, focusing on delivering safe, reliable, and sustainable energy while navigating an evolving regulatory landscape [20] Other Important Information - The company has made significant progress in its five-year infrastructure investment plan, with a 10% increase announced earlier this year [6][29] - The company is actively working on the regulatory approval process for the Aquarion divestiture, expecting to close the sale by the end of the year [12] Q&A Session Summary Question: Can you walk us through the confidence levels in hitting the 14% FFO to debt level by the end of the year? - Management expressed high confidence, citing recovery of deferrals and the expected contribution from the Aquarion closing towards the end of the year [40][42] Question: How could the securitization of storm costs impact long-term FFO to debt levels? - Management indicated that while the securitization could reduce equity needs, it would not change the $1.2 billion equity requirement for the year [43][44] Question: What are the updated metrics for Moody's and S&P for the second quarter? - Management confirmed strong positions with both agencies, with expectations of continued improvement in the coming quarters [52] Question: What are the implications of the Connecticut Court's clarification around prudency standards? - Management noted that the court's decision reinforces that prudency must be assessed at the time of investment decisions, which is favorable for future investments [107][109] Question: What is the status of the Aquarion sale process? - Management is optimistic about the approval of the sale, citing strong legislative support and a favorable regulatory environment [101][102]

Financial Data and Key Metrics Changes - Eversource reported second quarter earnings of $0.96 per share, slightly up from $0.95 per share in the previous year, indicating solid earnings growth [22][24] - The company reaffirmed its 2025 EPS guidance range of $4.67 to $4.82 per share, with a long-term EPS growth projection of 5% to 7% through 2029 [7][33] - The FFO to debt ratio improved to 11.5% as of the first quarter, with expectations to reach approximately 14% by year-end [29][40] Business Line Data and Key Metrics Changes - Transmission earnings increased to $0.02 per share due to higher revenues from continued investments and lower interest expenses [22][23] - Electric distribution earnings also rose to $0.02 per share, benefiting from rate increases in New Hampshire and Massachusetts [23] - Natural gas segment earnings improved by $0.02 per share, primarily due to base distribution rate increases [23] Market Data and Key Metrics Changes - Electric demand is expected to rise, with load growth through 2025 exceeding 2%, nearly double the rate observed last year [6] - The company noted that the accelerating electrification of transportation and heating sectors is driving this upward trend [6] Company Strategy and Development Direction - Eversource is focused on being a pure play regulated utility, with a commitment to infrastructure modernization and renewable energy integration [5][15] - The company announced a 10% increase in its five-year infrastructure investment plan, now totaling $24.2 billion [6][28] - The company is also working on strategic upgrades and new developments to meet rising electric demand [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment, particularly in Connecticut, following the passage of Senate Bill 4, which aims to make electric bills more affordable [11][12] - The company is optimistic about the ongoing recovery of storm costs and the potential for cash flow stabilization through regulatory changes [30][31] - Management emphasized the importance of maintaining strong relationships with union partners and stakeholders [14] Other Important Information - Eversource's annual sustainability report highlights innovative projects, including a geothermal pilot and the Cambridge Underground Substation [10][17] - The company is progressing well with the Aquarion divestiture process and expects to close the sale by the end of the year [12][98] Q&A Session Summary Question: Can you walk us through the confidence levels in hitting the 14% FFO to debt level by year-end? - Management expressed high confidence, citing recovery of deferrals and the impact of the Aquarion transaction as key drivers [38][40] Question: How could the securitization of storm costs impact long-term FFO to debt levels? - Management indicated that securitization could reduce equity needs, but further clarity on timing is needed [41][43] Question: What are the updated metrics for Moody's and S&P regarding FFO to debt? - Management confirmed strong positions with both agencies, expecting continued improvement [49][50] Question: What are the implications of the Connecticut Court's clarification around prudency standards? - Management noted that the ruling supports investment decisions made based on current facts, preventing retrospective scrutiny [104][106] Question: Will there be additional equity needs in 2025? - Management clarified that while there may not be significant equity needs this year, they will monitor the situation closely [114][116]

Key Takeaways ES posted Q2 earnings of 96 cents per share, up slightly and topping estimates by 1.05%.Electric transmission and distribution segments saw earnings rise on rate hikes and investments.Q2 revenues missed estimates by 10.9% despite a 12.2% year-over-year increase to $2.84 billion.Eversource Energy (ES) reported second-quarter 2025 adjusted earnings of 96 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 1.05%. In the year-ago quarter, the company reported earnings of 9 ...