Revenue and Sales Performance - Eversource's total retail tariff sales revenues increased to $4,155.4 million in 2025, up by $332.7 million from $3,822.7 million in 2024, representing an 8.7% growth[44] - The supply revenue component decreased by $44.1 million to $1,050.0 million in 2025, accounting for 25% of total revenues, while local delivery revenue increased by $70.6 million to $1,425.1 million, representing 34% of total revenues[44] - Public benefits revenue surged by $249.8 million to $959.3 million in 2025, making up 23% of total revenues, compared to 19% in 2024[44] Customer Base and Service Areas - Eversource's electric distribution segment serves approximately 1.32 million customers in Connecticut as of December 31, 2025[35] - NSTAR Electric served approximately 1.62 million customers across 159 cities and towns in Massachusetts as of December 31, 2025[50] - PSNH furnished retail franchise electric service to approximately 549,000 customers in New Hampshire as of December 31, 2025[59] Rate Structures and Adjustments - CL&P's distribution rates are frozen until at least January 1, 2024, following a settlement agreement with PURA, which does not apply to other rate mechanisms[44] - NSTAR Electric's retail rates include a supply component and a delivery component, with the supply charge based on competitive procurements and reset every six months[54] - PSNH's distribution rates were established in a July 2025 NHPUC-approved rate case, with rates effective August 1, 2025[65] Regulatory and Compliance Issues - Eversource is subject to various regulatory risks, including changes in laws and regulations that may impact compliance costs and strategic initiatives[27] - NSTAR Gas and EGMA's rates are subject to regulation by the DPU, while Yankee Gas is regulated by the PURA, covering aspects like rates and service standards[84] - The DPU has mandated that LDCs submit climate compliance plans every five years starting April 1, 2025, to align with Massachusetts' 2050 climate goals[90] Environmental and Sustainability Initiatives - Eversource aims for a 45% reduction in Scope 1 and 2 emissions by 2035 and net zero emissions by 2050, focusing on absolute emissions reductions rather than carbon offsets[124] - From 2018 to 2024, Eversource achieved nearly a 30% reduction in Scope 1 and 2 emissions through initiatives like improved energy efficiency and replacing leak-prone natural gas pipes[125] - The company is exploring alternative technologies such as networked geothermal for heating and cooling to reduce carbon intensity[125] Financial and Risk Management - Eversource's Enterprise Risk Management (ERM) program identifies and mitigates principal risks, integrating with compliance, auditing, and insurance functions[489] - All of Eversource's long-term debt was at a fixed interest rate as of December 31, 2025, significantly reducing interest rate risk[490] - If unsecured debt ratings fall below investment grade, Eversource's contracts would require additional collateral in the form of cash or letters of credit[493] Operational Performance and Metrics - NSTAR Electric's service quality metrics showed that the company achieved results at or above target for all metrics in 2025, avoiding any SQ charge[56] - Eversource's safety performance metric, Days Away Restricted Time (DART), increased from 0.76 in 2024 to 0.87 in 2025, indicating a need for continued focus on safety improvements[133] - NSTAR Gas incurred approximately $1.6 million in service quality charges for failing to meet performance metrics in 2025, recorded as a regulatory liability[91] Employee and Workforce Information - As of December 31, 2025, Eversource employed 10,731 employees, with approximately 49% being union members covered by collective bargaining agreements[132] - The company is committed to fostering a safe and healthy work environment, offering competitive compensation and comprehensive benefits to attract and retain talent[142]

Core Viewpoint - UBS maintains a Neutral rating for Eversource Energy and raises the price target from $75 to $80, reflecting confidence in the company's future performance [2][5] Financial Performance - Eversource reported earnings of $1.69 billion, or $4.56 per share for 2025, a significant increase from 2024's earnings of $811.7 million, or $2.27 per share [2][5] - The company's non-GAAP recurring earnings for 2025 were $1.77 billion, or $4.76 per share, indicating strong operational performance [3][5] Stock Performance - The stock price has risen by $3.04, a 4.32% increase, with a current trading range between $70.59 and $74.13 [3] - Over the past year, Eversource's stock reached a high of $75.25 and a low of $52.28, with a market capitalization of approximately $27.52 billion and a trading volume of 4,278,991 shares [4]

Core Viewpoint - Eversource Energy reported significant growth in earnings for the full year 2025 compared to 2024, indicating strong financial performance and operational efficiency [1]. Financial Performance - Full-year 2025 earnings reached $1.69 billion, translating to $4.56 per share, a substantial increase from the previous year's earnings of $811.7 million, or $2.27 per share [1]. - Non-GAAP recurring earnings for 2025 totaled $1.77 billion, or $4.76 per share, reflecting a robust operational performance [1].

Core Insights - Eversource Energy (ES) reported fourth-quarter 2025 adjusted earnings of $1.12 per share, exceeding the Zacks Consensus Estimate of $1.10 by 1.82% and reflecting a 10.9% increase from $1.01 in the same quarter last year [1] - Total revenues for 2025 were $3.37 billion, falling short of the Zacks Consensus Estimate of $3.41 billion by 1.29%, but representing a 13.4% increase from $2.97 billion in the previous year [2] - The company projected 2026 earnings of $4.80-$4.95 per share and anticipates a long-term EPS growth rate of 5% to 7% through 2030 [8][9] Financial Performance - Total operating expenses were $2.66 billion, up 1.38% from $2.62 billion in the prior year, driven by higher costs in purchased power, natural gas, and maintenance expenses [3] - Operating income surged to $710.5 million, a 104.3% increase from $347.8 million in the year-ago quarter [3] - Interest expenses rose to $331.2 million, up 14.7% from $288.7 million in the previous year [3] Segment Performance - Electric Transmission earnings were $183.7 million, a slight decrease of 0.16% from the prior year due to the absence of a carrying charge benefit [4] - Electric Distribution earnings fell to $95.5 million, down 13.5% from the previous year, impacted by customer credits related to a settlement agreement in Massachusetts [5] - Natural Gas Distribution earnings increased to $123.6 million, up 19.5% from the prior year, attributed to higher revenues from base distribution rate increases [6] - Water Distribution earnings were $7.4 million, down 1.33% from the previous year [6] - Earnings from Eversource Parent & Other Companies amounted to $11.1 million, a significant increase of 132.2% from a loss of $34.5 million in the year-ago quarter [7] Future Outlook - Eversource Energy expects cash from operations to be between $24.2 billion and $24.7 billion from 2026 to 2030 [9] - The company plans to invest $27.8 billion during the same period, including $1.3 billion for its water business [9] - Eversource anticipates distributing dividends of $6.7 billion to $7.2 billion from 2026 to 2030 [9]

Financial Performance and Key Metrics - The company reported full-year non-GAAP earnings per share of $4.76, a 4.2% increase from $4.57 in 2024 [21] - GAAP earnings for 2025 were $4.56 per share, compared to $2.27 per share in 2024 [19] - The company paid dividends of $3.01 per share, representing a 5.2% increase [6] Business Segment Performance - Electric transmission earned $2.09 per share in 2025, up from $2.03 per share in 2024, driven by investments in service reliability and demand growth [22] - Electric distribution earnings increased to $1.80 per share in 2025 from $1.77 per share in 2024, primarily due to base distribution rate increases [22] - Natural gas distribution segment earnings rose to $0.97 per share in 2025 from $0.81 per share in 2024, supported by base distribution rate increases and infrastructure investments [23] Market Data and Key Metrics - The company achieved top decile performance for both MBI and SATI metrics, indicating improved reliability for customers [8] - The average electric customer experienced an outage only once in nearly two years [8] Company Strategy and Industry Competition - The company plans to invest approximately $26.5 billion in infrastructure over the next five years, an increase of $2.3 billion from the previous plan [25] - Key focus areas include grid modernization, resiliency projects, and compliance with state safety regulations [14] - The company aims to enhance customer experience and maintain high reliability while addressing aging infrastructure [13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of partnerships with state policymakers to address affordability and reliability [5] - The company expects 2026 to be a transformational year, with a focus on completing offshore wind commitments and managing the potential sale of Aquarion [17] - Long-term earnings growth is projected to be in the range of 5%-7% by 2028, with expectations of achieving earnings growth towards the upper half of this range [38] Other Important Information - The company successfully deployed over $4 billion in capital investments in 2025, advancing grid modernization initiatives and customer energy efficiency programs [8] - The Cambridge Underground Substation, a $1.8 billion investment, is critical for strengthening the electric system in a rapidly growing area [11] - The company received regulatory approvals for rate adjustments and cost recovery mechanisms that align with infrastructure investment needs [29] Q&A Session Summary Question: Impact of Aquarion sale on financing needs - Management indicated that if the Aquarion sale is approved, it could reduce the need for alternative financing solutions, potentially enhancing growth rates [46][60] Question: Status of Revolution Wind project liabilities - Management clarified that the cutoff for liabilities is the Commercial Operation Date (COD), not the first power [60] Question: Sources and uses of cash regarding minority interest sales - Management stated that they are exploring various alternatives for financing, including minority interest sales, but details are still premature [72] Question: Drivers for earnings in 2027 - Key drivers include the Aquarion transaction, storm cost recovery, and the CL&P rate case, all expected to solidify in 2026 [90]

Financial Data and Key Metrics Changes - The company reported full-year non-GAAP earnings per share of $4.76, a 4.2% increase from $4.57 in 2024 [21] - GAAP earnings for 2025 were $4.56 per share, compared to $2.27 per share in 2024 [19] - The company paid dividends of $3.01 per share, representing a 5.2% increase [6] Business Line Data and Key Metrics Changes - Electric transmission earned $2.09 per share in 2025, up from $2.03 per share in 2024, driven by investments in service reliability [22] - Electric distribution earnings increased to $1.80 per share in 2025 from $1.77 per share in 2024, due to base distribution rate increases [22] - Natural gas distribution segment earnings rose to $0.97 per share in 2025 from $0.81 per share in 2024, attributed to base distribution rate increases and infrastructure investments [23] Market Data and Key Metrics Changes - The company achieved top decile performance for both MBI and SAIDI metrics, indicating improved reliability for customers [8] - The average electric customer experienced an outage only once in nearly two years, reflecting high service reliability [8] Company Strategy and Development Direction - The company plans to invest approximately $26.5 billion in infrastructure over the next five years, a $2.3 billion increase from the previous plan [25] - Key focus areas include grid modernization, resiliency projects, and compliance with state safety regulations [14] - The company aims to enhance customer experience and maintain high reliability while addressing aging infrastructure [13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of partnerships with state policymakers to address affordability and reliability [5] - The company expects 2026 to be a transformational year, with a focus on completing offshore wind commitments and managing potential sales [17] - Long-term earnings growth is projected to be in the range of 5%-7% by 2028, with expectations for growth towards the upper half of this range [38] Other Important Information - The company received regulatory approvals for rate adjustments, including a $55 million increase for NSTAR Electric and a $10 million increase for NSTAR Gas [29] - The company is actively pursuing the sale of Aquarion Water Company, with a court ruling in favor of the sale process [30] Q&A Session Summary Question: Growth trajectory and balance sheet flexibility - Management indicated that if the Aquarion sale is approved, it could eliminate some funding needs and potentially be accretive to growth [46][60] Question: Status of Revolution Wind project liabilities - Management clarified that the obligation is to Global Infrastructure Partners, not Ørsted, and that the project is on track for first power soon [60][65] Question: Sources and uses of cash regarding minority interest sales - Management discussed various alternatives for financing, including potential minority interest sales, but emphasized that these are not immediate plans [72] Question: Timeline for Connecticut AMI resolution - Management expects to meet regarding AMI in Connecticut soon and is optimistic about clarity on investment recovery mechanisms [75] Question: Impact of Aquarion sale on equity needs - Management confirmed that equity needs remain unchanged regardless of the Aquarion sale outcome, but alternative financing flexibility exists [103]

Financial Data and Key Metrics Changes - The company reported full-year non-GAAP earnings per share of $4.76, a slight increase from $4.57 in 2024, while GAAP earnings for 2025 were $4.56 per share compared to $2.27 per share in 2024 [21][19] - The company paid dividends of $3.01 per share, representing a 5.2% increase [5] - The FFO to debt ratio improved by over 400 basis points at Moody's [9][35] Business Line Data and Key Metrics Changes - Electric transmission earned $2.09 per share in 2025, up from $2.03 per share in 2024, driven by investments in service reliability and demand growth [22] - Electric distribution earnings increased to $1.80 per share in 2025 from $1.77 per share in 2024, primarily due to base distribution rate increases [22] - Natural gas distribution segment earnings rose to $0.97 per share in 2025 from $0.81 per share in 2024, attributed to base distribution rate increases and infrastructure investments [23] Market Data and Key Metrics Changes - The company successfully deployed over $4 billion in capital investments in 2025, focusing on grid modernization and customer energy efficiency programs [6] - The advanced metering infrastructure program reached over 100,000 smart meter installations in Massachusetts, part of a larger initiative to upgrade 1.5 million meters statewide [7] Company Strategy and Development Direction - The company aims to continue delivering top-tier operational performance while advancing infrastructure investments, including a new five-year capital investment plan of $26.5 billion, which is an increase of $2.3 billion from the previous plan [12][25] - The focus remains on enhancing customer experience, safety, and reliability while addressing aging infrastructure and supporting the clean energy transition [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings growth towards the upper half of the 5%-7% long-term EPS range by 2028, despite challenges in 2026 [18][39] - The company is navigating a changing regulatory landscape and addressing affordability concerns while maintaining a strong balance sheet [17][39] Other Important Information - The company received regulatory approvals for rate adjustments and cost recovery mechanisms that align with infrastructure investment needs [8][29] - The company is actively pursuing the sale of Aquarion Water Company and has submitted a notice of intent to file a rate case for Aquarion [14][32] Q&A Session Summary Question: Impact of Aquarion sale on funding needs - Management indicated that if the Aquarion sale is approved, it could reduce the need for alternative financing solutions, potentially enhancing growth rates [46][60] Question: Status of Revolution Wind project liabilities - Management clarified that the obligation is to Global Infrastructure Partners, not Ørsted, and that the critical trigger for liability ends at the commercial operation date [61][66] Question: Sources and uses of cash regarding minority interest sales - Management discussed exploring various alternatives for financing, including minority interest sales, but emphasized that details are still being evaluated [73][75] Question: Timeline for the completion of the Aquarion sale - Management confirmed that the decision from PURA regarding the Aquarion sale is expected in March, which will clarify the company's next steps [32][102] Question: Drivers for earnings growth in 2027 - Management highlighted several key drivers for 2027, including the Aquarion transaction, storm cost recovery, and regulatory adjustments [89]

YEAR END 2025 EARNINGS REPORT February 13, 2026 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 earnings discussion includes financial measures that are not recognized under generally accepted accounting principles (non-GAAP) referencing earnings and EPS excluding losses associated with our previous offshore wind investments, a loss on the pending sale of t ...

Earnings Performance - Eversource Energy reported quarterly earnings of $1.12 per share, exceeding the Zacks Consensus Estimate of $1.1 per share, and up from $1.01 per share a year ago, representing an earnings surprise of +1.63% [1] - The company posted revenues of $3.37 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 1.28%, compared to $2.97 billion in the same quarter last year [2] Market Performance - Eversource shares have increased by approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.62 on revenues of $4.26 billion, and for the current fiscal year, it is $4.95 on revenues of $14.3 billion [7] - The Zacks Rank for Eversource is currently 3 (Hold), indicating that the shares are expected to perform 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 bottom 44% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Core Viewpoint - Eversource Energy reported a significant increase in fourth-quarter profit, driven by improved performance in its gas business and the absence of substantial one-time charges that impacted earnings in the previous year [1]. Financial Performance - Eversource's net income for the fourth quarter reached $421.3 million, or $1.12 per share, compared to $72.5 million, or 20 cents per share, in the same quarter last year [1]. - The natural gas segment earned $123.6 million, up from $103.4 million a year earlier [1]. Future Outlook - The company forecasts 2026 profit to be between $4.80 and $4.95 per share, with analysts estimating a full-year profit of $4.97 per share [1]. - Eversource expects its long-term earnings per share growth rate to remain in the range of 5% to 7% through 2030 [1]. Capital Investment - Eversource raised its five-year capital investment plan to $26.5 billion, an increase from the previous $24.2 billion, primarily due to higher spending on electric and natural gas distribution infrastructure [1]. - The company anticipates raising between $800 million and $1.1 billion in equity from 2026 to 2030, excluding routine issuances related to its dividend reinvestment and compensation programs [1].