Eversource(US:ES)2025-11-06 18:47Financial Performance - Eversource Energy reported earnings of $367.5 million, or $0.99 per share, in Q3 2025, compared to a loss of $118.1 million, or $0.33 per share, in Q3 2024[209]. - For the first nine months of 2025, Eversource earned $1.27 billion, or $3.44 per share, up from $739.1 million, or $2.08 per share, in the same period of 2024[209]. - Eversource's operating revenues for Q3 2025 were $3,220.6 million, an increase of 5.1% from $3,063.2 million in Q3 2024[319]. - For the nine months ended September 30, 2025, operating revenues reached $10,177.0 million, up 14.0% from $8,929.3 million in the same period of 2024[319]. - Net income attributable to common shareholders for Q3 2025 was $367.5 million, compared to a net loss of $118.1 million in Q3 2024, marking a significant turnaround[319]. Cash Flow and Debt Management - Cash flows from operating activities totaled $3.20 billion in the first nine months of 2025, compared to $1.52 billion in the same period of 2024[209]. - As of September 30, 2025, cash and cash equivalents stood at $259.3 million, significantly up from $26.7 million as of December 31, 2024[209]. - Eversource issued $2.04 billion in new long-term debt and repaid $750 million of long-term debt in the first nine months of 2025[209]. - Eversource paid cash dividends totaling $816.4 million in the first nine months of 2025, compared to $745.2 million in the same period of 2024[247]. - Eversource's interest expense for Q3 2025 was $318.1 million, an increase of 5.8% from $300.6 million in Q3 2024[319]. Segment Performance - Electric distribution segment earnings increased by $18.1 million (8.9%) in Q3 2025 and $50.3 million (9.6%) in the first nine months of 2025 compared to the same periods in 2024, driven by higher revenues from base distribution rate increases[213]. - Electric transmission segment earnings rose by $10.6 million (5.7%) in Q3 2025 and $52.4 million (9.7%) in the first nine months of 2025, primarily due to a higher transmission rate base from ongoing infrastructure investments[216]. - Natural gas distribution segment losses decreased by $13.4 million (44.4%) in Q3 2025 and earnings increased by $49.5 million (26.4%) in the first nine months of 2025, attributed to higher revenues from base distribution rate increases[217]. - Water distribution segment earnings decreased by $4.8 million (20.2%) in Q3 2025 and $0.3 million (0.8%) in the first nine months of 2025, mainly due to higher operations and maintenance expenses[218]. Regulatory and Rate Changes - The authorized net regulatory ROE for Yankee Gas was established at 9.32% with a 53% common equity ratio, while PSNH's regulatory ROE was set at 9.5% with a 50% common equity ratio[214]. - PURA approved a distribution rate increase of $82.2 million for Yankee Gas, effective November 1, 2025, resulting in a total distribution revenue requirement of $802.2 million[290]. - NSTAR Electric submitted a PBR Adjustment filing for a $55.1 million increase to base distribution rates, with a total revenue requirement of $1.34 billion effective January 1, 2026[295]. - PSNH's permanent rate increase was approved at $100.7 million, effective August 1, 2025, with a total revenue requirement of $519 million[300]. Capital Expenditures and Investments - Investments in property, plant, and equipment were $3.18 billion in the first nine months of 2025, slightly down from $3.29 billion in the same period of 2024[209]. - Capital expenditures for Eversource, CL&P, NSTAR Electric, and PSNH totaled $3.18 billion in the first nine months of 2025, with a focus on infrastructure improvements[250]. - Eversource's distribution capital expenditures totaled $2.36 billion in the first nine months of 2025, compared to $2.19 billion in the same period of 2024[258]. Business Transactions and Future Outlook - Eversource entered into a definitive agreement to sell the Aquarion water distribution business for an aggregate enterprise value of approximately $2.4 billion, including $1.6 billion for equity and $800 million of net debt to be extinguished at closing[261]. - The sale of the Aquarion business is expected to close in late 2025, with net proceeds planned to be used to pay down Eversource parent debt[261]. - Eversource expects future operating cash flows and access to debt and equity markets to be sufficient for working capital and capital investment opportunities[232]. Risks and Regulatory Matters - Eversource cannot predict the ultimate outcome of pending matters before FERC, which could materially impact its results of operations and financial condition[278]. - Eversource has recorded a reserve of $39.1 million for the second complaint period related to FERC ROE complaints, representing the difference between billed rates and a 10.57 percent base ROE[265]. - 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[276].