EVERSOURCE ENERGY Q3 2025 EARNINGS REPORT November 5, 2025 EVERSOURCE ENERGY Q3 2025 EARNINGS REPORT EVERSOURCE ENERGY Q3 2025 EARNINGS REPORT Safe Harbor Statement All per-share amounts in this presentation are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The third quarter and first nine months of 2025 and 2024 earnings discussion includes financial measures that are not recognized under generally accepted accounting princip ...

Core Insights - Eversource Energy reported a significant recovery in Q3 2025 earnings, achieving $367.5 million ($0.99 per share) compared to a loss of $118.1 million ($-0.33 per share) in the same quarter last year, driven by improved electric transmission and distribution performance despite increased costs and ongoing offshore wind-related losses [1][4]. Financial Performance - On a non-GAAP basis, recurring earnings increased to $442.5 million ($1.19 per share) from $405.9 million ($1.13 per share) year-over-year, attributed to higher revenues from rate increases in Massachusetts and New Hampshire, along with continued investments in grid infrastructure [2]. - The company narrowed its full-year 2025 guidance to $4.72–$4.80 per share, reaffirming a 5–7% compound annual EPS growth target from its 2024 base [2]. - For the first nine months of 2025, Eversource earned $1.27 billion ($3.44 per share), up from $739 million ($2.08 per share) in 2024, with recurring earnings totaling $1.35 billion ($3.64 per share) compared to $1.26 billion ($3.56 per share) a year prior [5]. Segment Performance - The transmission segment earned $185.5 million, an increase from $174.9 million last year, driven by ongoing system upgrades [3]. - Electric distribution profit rose to $221.6 million from $203.5 million, supported by new rates and capital spending [3]. - The natural gas segment reduced losses to $16.8 million from $30.2 million, aided by rate adjustments to recover infrastructure investments [3]. - The water distribution business reported lower quarterly earnings of $18.9 million due to higher operations and maintenance costs [4]. Strategic Focus - Eversource's results reflect a strategic shift back to its regulated "pipes and wires" focus after divesting from offshore wind ventures that negatively impacted earnings [6]. - CEO Joe Nolan highlighted grid modernization and affordability as key priorities amid regulatory changes in New England [6]. - Eversource operates the largest energy delivery network in the region, serving 4.6 million electric, natural gas, and water customers across Connecticut, Massachusetts, and New Hampshire [6].

Core Viewpoint - Eversource Energy reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing a year-over-year increase from $1.13 per share [1][2] Financial Performance - The company achieved revenues of $3.22 billion for the quarter ended September 2025, which was 9.06% below the Zacks Consensus Estimate, but up from $3.06 billion a year ago [2] - Over the last four quarters, Eversource has surpassed consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance - Eversource shares have increased approximately 29.5% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $1.19 for the upcoming quarter and $4.75 for the current fiscal year [4][7] - The Zacks Rank for Eversource is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Utility - Electric Power industry, to which Eversource belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Eversource Energy exceeded Wall Street profit expectations for the third quarter, driven by increased service rates [1] Financial Performance - The company reported higher profits compared to analysts' forecasts, indicating strong financial performance in the third quarter [1]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides details on Eversource Energy's Form 8-K filing and its common share listing [Registrant Details](index=1&type=section&id=Registrant%20Details) Eversource Energy (ES) filed a Form 8-K on October 14, 2025, detailing current events. The company's common shares are listed on the New York Stock Exchange - Eversource Energy (ES) filed a **Form 8-K** on **October 14, 2025**[2](index=2&type=chunk) Securities Registered | Title of each class | Trading Symbol | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Shares, $5.00 par value per share | ES | New York Stock Exchange | [Section 2 - Financial Information](index=2&type=section&id=Section%202%20-%20Financial%20Information) This section details Eversource Energy's Q3 2025 financial results and offshore wind liability update [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Eversource Energy issued a news release on October 14, 2025, providing an update on offshore wind liability, including unaudited financial information for the three months ended September 30, 2025. This information is attached as Exhibit 99.1 - Eversource Energy issued a news release on **October 14, 2025**, updating on offshore wind liability and unaudited **Q3 2025** financial information[5](index=5&type=chunk) - The news release is attached as Exhibit 99.1 and incorporated by reference, but the information is not deemed 'filed' with the SEC unless specified[5](index=5&type=chunk)[6](index=6&type=chunk) [Section 8 - Other Events](index=2&type=section&id=Section%208%20-%20Other%20Events) This section outlines post-closing adjustments and increased contingent liability for offshore wind projects [Item 8.01 Other Events](index=2&type=section&id=Item%208.01%20Other%20Events) This section details the post-closing adjustments and increased contingent liability related to the sale of Eversource's interests in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP). Revised cost projections for Revolution Wind led to an expected $285 million increase in liability and a net after-tax charge of $75 million in Q3 2025 - Eversource sold its interests in the South Fork Wind and Revolution Wind projects to affiliates of Global Infrastructure Partners (GIP) on **September 30, 2024**[7](index=7&type=chunk) Offshore Wind Contingent Liability Evolution | Date | Liability Amount | | :--- | :--- | | September 30, 2024 (initial) | $365 million | | June 30, 2025 | $296 million | | Q3 2025 (expected increase) | +$285 million | | Q3 2025 (expected net after-tax charge) | $75 million | | Q3 2025 (expected EPS impact) | $0.20 per share | - The **$285 million** increase in liability is due to revised construction cost projections for Revolution Wind, reflecting damage to the installation vessel, insurance costs, and a stop-work order from BOEM[9](index=9&type=chunk) - The expected **$285 million** increase in liability will result in a net after-tax non-recurring charge of approximately **$75 million**, or **$0.20 per share**, in **Q3 2025**, partially offset by a **$210 million** federal tax benefit[11](index=11&type=chunk) - Revolution Wind project completion is still expected in the **second half of 2026**[10](index=10&type=chunk) [Non-GAAP Measures and Forward-Looking Statements](index=3&type=section&id=Non-GAAP%20Measures%20and%20Forward-Looking%20Statements) This section discusses the use of non-GAAP financial measures and outlines key forward-looking statement risks [Non-GAAP Financial Measures Disclosure](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Disclosure) Eversource uses non-GAAP financial measures to evaluate and present earnings results, excluding non-recurring items such as losses on offshore wind investments, the Aquarion water business sale, land disposition, and certain transaction costs. Management believes these exclusions provide a more meaningful representation of ongoing operating performance - Eversource uses non-GAAP financial measures to evaluate and provide details of earnings results by business, excluding specific non-recurring items[12](index=12&type=chunk) - Excluded items include losses on offshore wind equity method investments, the pending sale of the Aquarion water distribution business, disposition of land for the Northern Pass Transmission project, and certain transaction/transition costs[12](index=12&type=chunk) - Management believes these non-GAAP measures offer a more meaningful representation of financial performance by excluding items not indicative of ongoing costs and performance[12](index=12&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. Key risks include cyberattacks, ability to qualify for tax credits, variability in offshore wind project costs, capital market disruptions, economic conditions, regulatory actions, and extreme weather - The report includes forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ materially[13](index=13&type=chunk) - Key risk factors include cyberattacks, ability to qualify for investment tax credits, variability in offshore wind project costs (Revolution Wind and South Fork Wind), disruptions in capital markets, changes in economic conditions, and regulatory actions[13](index=13&type=chunk) - Eversource encourages readers to consult its SEC filings and website for detailed risk factor disclosures[14](index=14&type=chunk) [Section 9 - Financial Statements and Exhibits](index=5&type=section&id=Section%209%20-%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K, including the interactive data file [Item 9.01 Financial Statements and Exhibits](index=5&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K, specifically Exhibit 104, which is the Cover Page Interactive Data File embedded within the Inline XBRL document Exhibits Filed | Exhibit Number | Description | | :--- | :--- | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=6&type=section&id=Signature) This section confirms the official signing of the report by Eversource Energy's authorized officer [Registrant Signature](index=6&type=section&id=Registrant%20Signature) The report was duly signed on October 14, 2025, by Jay S. Buth, Vice President, Controller, and Chief Accounting Officer of Eversource Energy - The report was signed on **October 14, 2025**, by Jay S. Buth, Vice President, Controller and Chief Accounting Officer of Eversource Energy[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)

Core Insights - Eversource Energy is identified as a high-growth utility stock, with a recent increase in future liability for payments to Global Infrastructure Partners by $285 million due to the disposal of two renewable energy projects [1] - The company anticipates that tax advantages from the losses on these project sales will offset some of the increased liability, resulting in a net non-recurring after-tax charge of approximately $75 million [2] - Mizuho has become more bullish on Eversource, lowering its non-GAAP EPS guidance for 2025 to a range of $4.72 to $4.80, down from a previous range of $4.67 to $4.82 [3] Financial Outlook - Following the liability increase, Mizuho reiterated an Outperform rating with a price target of $72, later raising it to $81, citing the company's strong financial position and improved regulatory environment [4] - The firm noted that the renewed liability is minor and does not significantly impact the company's financing needs, indicating confidence in Eversource's financial health [4] Company Overview - Eversource Energy is a utility company based in Massachusetts, providing electricity, natural gas, and water services across Connecticut, Massachusetts, and New Hampshire, with operations in electric transmission, solar power generation, and regulated water utilities [5]

Core Insights - Ford's Home Power Management system allows the F-150 Lightning electric pickup truck to provide electricity to homes, offering a solution for power outages and reducing electricity costs for homeowners [3][4][7]. Group 1: Home Power Management System - The system enables the F-150 Lightning to act as a backup power source during outages, capable of powering a home for approximately three days [6]. - Homeowners can save around $40 monthly on their power bills by utilizing the truck's stored energy instead of drawing from the grid during peak usage times [3][7]. - Ford estimates that regular use of the system can lead to annual savings of about $500 on electric bills [7]. Group 2: Smart Charging and Energy Rewards - The system allows for smart charging, where the truck can be recharged overnight when electricity rates are lower, optimizing energy costs [9]. - Ford is collaborating with various utilities to implement the Ford Energy Rewards program, compensating users for deferring charging during peak demand periods [11][12]. - A pilot program with DTE Energy is currently underway, where participants can share a portion of their F-150 Lightning's battery capacity with the utility [13]. Group 3: Market Position and Competitors - The vehicle-to-home (V2H) technology is not exclusive to Ford, as it is also available in models from Nissan, Kia, Tesla, and General Motors [14]. - Ford's decision to focus on the F-150 Lightning for this technology is due to its larger battery and the introduction of the Ford Charge Station Pro, which supports bi-directional charging [15][16].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted as a critical concern, with data centers consuming energy equivalent to that of small cities, leading to potential crises in power supply [2][3] Investment Opportunity - A specific company is presented as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI data centers [3][7] - This company is characterized as a "toll booth" operator in the AI energy boom, benefiting from the increasing need for electricity as AI technologies expand [4][5] Market Position - The company is noted for its unique position in the market, being one of the few capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including nuclear energy [7][8] - It is described as debt-free and holding a significant cash reserve, which is nearly one-third of its market capitalization, providing a strong financial foundation [8][10] Growth Potential - The company also has a substantial equity stake in another AI-related venture, offering investors indirect exposure to multiple growth opportunities in the AI sector without the associated high premiums [9][10] - The stock is considered undervalued, trading at less than seven times earnings, which presents a compelling investment opportunity given its ties to the growing AI and energy markets [10][11] Industry Trends - The article discusses the broader trends of onshoring and increased U.S. LNG exports, driven by recent tariffs, which further position this company favorably within the energy landscape [6][14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Edison International (NYSE:EIX) - Dividend yield is 5.67% [7] - Barclays analyst Nicholas Campanella maintained an Overweight rating and raised the price target from $65 to $69 on October 21, 2025, with a 70% accuracy rate [7] - Jefferies analyst Julien Dumoulin-Smith downgraded the stock from Buy to Hold and cut the price target from $70 to $57 on October 2, 2025, with a 67% accuracy rate [7] - On September 22, Edison's board declared a quarterly common stock dividend of $0.8275 per share [7] Group 2: Portland General Electric Co (NYSE:POR) - Dividend yield is 4.67% [7] - Barclays analyst Nicholas Campanella maintained an Equal-Weight rating and raised the price target from $43 to $47 on October 21, 2025, with a 70% accuracy rate [7] - JP Morgan analyst Richard Sunderland maintained a Neutral rating and cut the price target from $46 to $45 on May 19, 2025, with a 66% accuracy rate [7] - Portland General Electric will host an analyst conference call and webcast on October 31 to review its third quarter financial results [7] Group 3: Eversource Energy (NYSE:ES) - Dividend yield is 4.11% [7] - B of A Securities analyst Ross Fowler upgraded the stock from Neutral to Buy and raised the price target from $73 to $85 on October 21, 2025, with a 68% accuracy rate [7] - Janney Montgomery analyst Michael Gaugler downgraded the stock from Buy to Neutral on October 13, 2025, with a 70% accuracy rate [7] - Eversource Energy will host an earnings conference call on November 5 to discuss its financial performance and business updates through the third quarter [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Edison International (NYSE:EIX) - Dividend Yield: 5.67% [7] - Barclays analyst Nicholas Campanella maintained an Overweight rating and raised the price target from $65 to $69 on Oct. 21, 2025, with an accuracy rate of 70% [7] - Jefferies analyst Julien Dumoulin-Smith downgraded the stock from Buy to Hold and cut the price target from $70 to $57 on Oct. 2, 2025, with an accuracy rate of 67% [7] - Recent news includes a quarterly common stock dividend declaration of $0.8275 per share on Sept. 22 [7] Group 2: Portland General Electric Co (NYSE:POR) - Dividend Yield: 4.67% [7] - Barclays analyst Nicholas Campanella maintained an Equal-Weight rating and raised the price target from $43 to $47 on Oct. 21, 2025, with an accuracy rate of 70% [7] - JP Morgan analyst Richard Sunderland maintained a Neutral rating and cut the price target from $46 to $45 on May 19, 2025, with an accuracy rate of 66% [7] - Recent news includes an upcoming analyst conference call on Oct. 31 to review third quarter financial results [7] Group 3: Eversource Energy (NYSE:ES) - Dividend Yield: 4.11% [7] - B of A Securities analyst Ross Fowler upgraded the stock from Neutral to Buy and raised the price target from $73 to $85 on Oct. 21, 2025, with an accuracy rate of 68% [7] - Janney Montgomery analyst Michael Gaugler downgraded the stock from Buy to Neutral on Oct. 13, 2025, with an accuracy rate of 70% [7] - Recent news includes an earnings conference call scheduled for Nov. 5 to discuss financial performance and updates through the third quarter [7]