Eversource(US:ES)2025-05-05 18:06Financial Performance - Eversource earned $550.8 million, or $1.50 per share, in Q1 2025, compared to $521.8 million, or $1.49 per share, in Q1 2024, reflecting a slight increase in earnings per share [185]. - The company reaffirmed its 2025 earnings guidance range of $4.67 to $4.82 per share and projected a long-term EPS growth rate of 5% to 7% through 2029, using 2024 non-GAAP EPS of $4.57 as the base year [185]. - Eversource reported operating revenues of $4,118.4 million for Q1 2025, an increase of $785.8 million (23.6%) compared to $3,332.6 million in Q1 2024 [243]. - Net income attributable to common shareholders for Q1 2025 was $550.8 million, a rise of $29.0 million (5.6%) compared to $521.8 million in Q1 2024 [243]. - Operating income increased to $926.4 million in Q1 2025, reflecting an increase of $80.4 million (9.5%) from $846.0 million in Q1 2024 [243]. Cash Flow and Debt Management - Cash flows from operating activities totaled $1.04 billion in Q1 2025, significantly higher than $291.3 million in Q1 2024 [185]. - Eversource issued $1.20 billion of new long-term debt in Q1 2025 and repaid $300 million of long-term debt [185]. - As of March 31, 2025, Eversource Parent's commercial paper borrowings outstanding were $1,381.6 million, down from $1,538.0 million as of December 31, 2024, with available borrowing capacity increasing to $618.4 million from $462.0 million [200]. - Eversource's cash and cash equivalents increased to $111.4 million as of March 31, 2025, compared to $26.7 million as of December 31, 2024 [197]. Investments and Capital Expenditures - Eversource's total investments in property, plant, and equipment were $1.01 billion in Q1 2025, down from $1.15 billion in Q1 2024 [185]. - Eversource's total capital expenditures in Q1 2025 were $1.04 billion, slightly down from $1.09 billion in Q1 2024, with investments primarily focused on infrastructure improvements [213]. - The Greater Cambridge Energy Program, with a total project cost of approximately $1.84 billion, aims to enhance the resiliency of the transmission system and is expected to be completed by 2031 [215]. Segment Performance - The regulated companies segment reported net income of $609.8 million, or $1.66 per share, in Q1 2025, up from $540.8 million, or $1.53 per share, in Q1 2024 [187]. - The electric distribution segment's earnings increased by $20.3 million in Q1 2025, primarily due to higher revenues from base distribution rate increases [188]. - The natural gas distribution segment's earnings rose by $27.8 million in Q1 2025, driven by higher revenues from base distribution rate increases effective November 1, 2024 [190]. Regulatory and Compliance - Eversource has recorded a reserve of $39.1 million for the second complaint period as of March 31, 2025, reflecting the difference between billed rates and the established base ROE of 10.57% [222]. - A change of 10 basis points to the base ROE would impact Eversource's after-tax earnings by approximately $3 million for each of the four 15-month complaint periods [233]. - The company continues to monitor regulatory developments, particularly regarding performance-based regulation (PBR) in Connecticut, with final decisions expected in 2025 [237]. - Eversource cannot predict the ultimate outcome of pending matters before FERC, which could materially impact its financial condition and results of operations [235]. Revenue and Sales Volumes - Total sales volumes for electric distribution increased by 3.5% to 12,972 GWh, while firm natural gas sales volumes increased by 11.0% to 68,286 MMcf [244]. - Electric distribution revenues increased by $35.5 million primarily due to a temporary base distribution rate increase at PSNH effective August 1, 2024 [255]. - Natural gas distribution revenues increased by $55.7 million due to base distribution rate increases effective November 1, 2024 at EGMA and NSTAR Gas [255]. - Electric transmission revenues increased by $40.0 million for the three-month period due to a higher transmission rate base from continued investment in infrastructure [259]. Operating Expenses - Total operating expenses for Q1 2025 were $3,192.0 million, up $705.4 million (28.4%) from $2,486.6 million in Q1 2024 [243]. - Eversource's operating expenses included $1,340.3 million for purchased power, natural gas, and transmission, which increased by $104.3 million (8.5%) from the previous year [243]. - Operations and maintenance expenses increased by $24.5 million for the three-month period, driven by higher uncollectible expenses [265]. - Interest expense decreased to $50.0 million from $54.8 million, primarily due to lower long-term debt costs [272]. Dividend and Shareholder Returns - In Q1 2025, Eversource paid cash dividends totaling $270.2 million, compared to $244.8 million in Q1 2024, reflecting a year-over-year increase in shareholder returns [208].