Eversource(ES) - 2025 Q2 - Quarterly Results

Eversource Energy Second Quarter 2025 Financial Results Eversource Energy reported increased earnings for Q2 and H1 2025, reaffirming its full-year 2025 earnings guidance and long-term growth projections Overall Performance Summary Eversource Energy reported increased earnings for Q2 and H1 2025, driven by solid operational performance and a strengthened financial foundation Earnings and EPS Overview | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Earnings | $352.7M | $335.3M | $903.5M | $857.2M | | EPS | $0.96 | $0.95 | $2.45 | $2.43 | - Management attributed the solid results to the workforce's dedication, quick response to weather events, and progress on constructive regulatory outcomes while prioritizing customer affordability[3] 2025 Financial Outlook The company has reaffirmed its full-year 2025 earnings projection and its long-term compound annual earnings per share growth rate - Reaffirmed 2025 earnings projection of between $4.67 and $4.82 per share[3] - Reaffirmed compound annual EPS growth rate target of 5% to 7% from a 2024 base of $4.57 per share[3] Segment Performance This section details the financial performance of Eversource Energy's core business segments, including transmission, distribution, and water operations Electric Transmission The Electric Transmission segment's earnings increased in both the second quarter and first half of 2025 compared to the prior year, driven by continued investment in the electric transmission system Electric Transmission Segment Earnings | Period | 2025 Earnings (Millions) | 2024 Earnings (Millions) | | :--- | :--- | :--- | | Q2 | $208.0M | $189.0M | | H1 | $407.5M | $365.7M | - The improvement in earnings was primarily due to continued investment in Eversource's electric transmission system[4] Electric Distribution The Electric Distribution segment saw earnings growth in Q2 and H1 2025, primarily due to higher revenues from base distribution rate increases and system investments, which were partially offset by increased expenses Electric Distribution Segment Earnings | Period | 2025 Earnings (Millions) | 2024 Earnings (Millions) | | :--- | :--- | :--- | | Q2 | $161.5M | $149.7M | | H1 | $350.0M | $317.9M | - Improved results were driven by higher revenues from base distribution rate increases in New Hampshire and Massachusetts, and continued system investments, partially offset by higher property taxes, interest, and depreciation[5] Natural Gas Distribution The Natural Gas Distribution segment's earnings improved for both the quarter and half-year periods, mainly as a result of base distribution rate increases in Massachusetts to recover infrastructure investments Natural Gas Distribution Segment Earnings | Period | 2025 Earnings (Millions) | 2024 Earnings (Millions) | | :--- | :--- | :--- | | Q2 | $35.3M | $27.1M | | H1 | $253.7M | $217.6M | - The earnings increase was primarily due to base distribution rate increases at Massachusetts gas businesses, effective November 1, 2024, with higher revenues partially offset by increased expenses[6] Water Distribution The Water Distribution segment reported significantly improved earnings for Q2 and H1 2025, benefiting from higher revenues and lower interest expense Water Distribution Segment Earnings | Period | 2025 Earnings (Millions) | 2024 Earnings (Millions) | | :--- | :--- | :--- | | Q2 | $14.4M | $8.0M | | H1 | $17.9M | $13.4M | - Improved results were primarily due to higher revenues and lower interest expense[7] Eversource Parent and Other Companies The Parent and Other Companies segment reported a larger loss in 2025 compared to 2024, mainly due to higher interest expenses following the sale of offshore wind projects Parent and Other Companies Segment Loss | Period | 2025 Loss (Millions) | 2024 Loss (Millions) | | :--- | :--- | :--- | | Q2 | ($66.5M) | ($38.5M) | | H1 | ($125.6M) | ($57.4M) | - The increased loss was primarily due to higher interest expense resulting from the absence of capitalized interest after the sale of the company's offshore wind projects[8] Detailed Financials This section provides a detailed reconciliation of consolidated EPS and a comprehensive breakdown of earnings and EPS contributions by each business segment Consolidated Earnings Per Share (EPS) Reconciliation The company provided a reconciliation of its GAAP EPS, detailing the positive contributions from its distribution and transmission segments and the negative impact from higher interest expenses at the parent company level Consolidated EPS Reconciliation | Description | Q2 EPS Impact ($) | H1 EPS Impact ($) | | :--- | :--- | :--- | | 2024 Reported GAAP EPS | $0.95 | $2.43 | | Higher electric transmission earnings | $0.02 | $0.07 | | Higher electric distribution earnings | $0.02 | $0.05 | | Higher natural gas distribution earnings | $0.02 | $0.07 | | Higher water distribution earnings | $0.02 | $0.01 | | Increased loss at parent/other | ($0.07) | ($0.18) | | 2025 Reported GAAP EPS | $0.96 | $2.45 | Segment Earnings Breakdown This section provides a detailed table view of the earnings and EPS contributions from each business segment for the second quarter and first half of 2025, compared to the same periods in 2024 Segment Earnings and EPS (Q2) Three months ended June 30 (in millions, except EPS): | Segment | 2025 Earnings (Millions) | 2024 Earnings (Millions) | 2025 EPS ($) | 2024 EPS ($) | | :--- | :--- | :--- | :--- | :--- | | Electric Transmission | $208.0 | $189.0 | $0.56 | $0.54 | | Electric Distribution | $161.5 | $149.7 | $0.44 | $0.42 | | Natural Gas Distribution | $35.3 | $27.1 | $0.10 | $0.08 | | Water Distribution | $14.4 | $8.0 | $0.04 | $0.02 | | Parent and Other | ($66.5) | ($38.5) | ($0.18) | ($0.11) | | Reported Earnings | $352.7 | $335.3 | $0.96 | $0.95 | Segment Earnings and EPS (H1) Six months ended June 30 (in millions, except EPS): | Segment | 2025 Earnings (Millions) | 2024 Earnings (Millions) | 2025 EPS ($) | 2024 EPS ($) | | :--- | :--- | :--- | :--- | :--- | | Electric Transmission | $407.5 | $365.7 | $1.11 | $1.04 | | Electric Distribution | $350.0 | $317.9 | $0.95 | $0.90 | | Natural Gas Distribution | $253.7 | $217.6 | $0.68 | $0.61 | | Water Distribution | $17.9 | $13.4 | $0.05 | $0.04 | | Parent and Other | ($125.6) | ($57.4) | ($0.34) | ($0.16) | | Reported Earnings | $903.5 | $857.2 | $2.45 | $2.43 | Supplementary Information This section provides details on the upcoming conference call, clarifies non-GAAP financial measures, and outlines forward-looking statements and associated risk factors Conference Call and Contact Information Eversource Energy will host a conference call with senior management to discuss the financial results, with contact information for investor relations also provided - A conference call with senior management is scheduled for August 1, 2025, at 9 a.m. Eastern Time[11] - The webcast and slides will be accessible on the Investors page of the Eversource Energy website[11] Non-GAAP Financial Measures The report clarifies the use of non-GAAP financial measures, such as EPS by business, which management believes provide a more meaningful representation of financial performance by excluding certain items not indicative of ongoing operations - The report includes a non-GAAP measure, "EPS by business," calculated by dividing each business's net income by the weighted average diluted common shares outstanding[12] - Management uses these non-GAAP measures to evaluate performance and believes they provide useful information by excluding items not considered indicative of ongoing operations[12] Forward-Looking Statements and Risk Factors This section contains the standard safe harbor statement, cautioning that forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties - The report contains forward-looking statements regarding expectations, plans, and financial performance, which are subject to risks and uncertainties[13] - Key risk factors include, but are not limited to, cyberattacks, capital market disruptions, economic conditions, regulatory actions, extreme weather, and changes in laws or regulations[13] - Readers are encouraged to consult Eversource's SEC filings for a more detailed discussion of risk factors[14]