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]

Core Viewpoint - Alliant Energy (LNT) is expected to report its fourth-quarter 2025 results on February 19, with a projected earnings per share (EPS) decline of 17.14% year-over-year and a revenue decrease of 3.91% year-over-year [1][2][8] Group 1: Earnings Expectations - The Zacks Consensus Estimate for LNT's earnings is set at 58 cents per share, reflecting a year-over-year decrease of 17.14% [2] - The revenue estimate for the quarter is $937.8 million, indicating a year-over-year decline of 3.91% [2] - Total electricity delivered is estimated at 8,181.71 megawatt-hours (MWh), which represents a slight increase of 0.81% year-over-year [2] Group 2: Factors Influencing Earnings - LNT's earnings are anticipated to benefit from a diversified and expanding customer base, along with robust economic development in its service territory, which is driving demand for utility services [3] - The successful integration of a new 100 MW battery energy storage system for a 200 MW solar project in Grant County, WI, is expected to positively impact quarterly performance [3] - Increased demand from data centers and effective cost control measures are also likely to support LNT's fourth-quarter earnings [4] Group 3: Earnings Prediction Model - The company's Earnings ESP (Earnings Surprise Prediction) is +0.58%, suggesting a potential earnings beat [5][8] - LNT currently holds a Zacks Rank of 3, indicating a neutral outlook [6][8]

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 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]

Market Overview - U.S. equities started February on a subdued note, with investors becoming more selective regarding AI exposure, leading to a decline in stocks as the market adjusted high expectations and penalized companies perceived as potential AI "losers" [1] - Retail investors are advised to adopt a disciplined approach by reassessing allocations, tightening risk controls, and ensuring alignment with long-term goals [1] Stock Selection Criteria - Traditional stock selection based on sales growth is emphasized as a more reliable metric compared to earnings-focused metrics [2] - Sales growth is viewed as a clear indicator of a company's underlying momentum, reflecting actual demand for products and services, and can signal future profit potential [3] - Revenue trends should be analyzed in context, comparing growth with peers and industry norms to distinguish between sustainable strength and temporary boosts [4] Screening Parameters for Winning Stocks - Stocks are shortlisted based on a 5-Year Historical Sales Growth (%) greater than the industry average and a cash flow exceeding $500 million [5] - Additional criteria include a Price/Sales (P/S) Ratio lower than the industry average, indicating better value for each dollar of revenue [6] - Estimate revisions for future sales that exceed industry standards are also considered, as they can lead to stock price increases [6] - Operating Margin over the last five years should be greater than 5%, indicating effective cost control and sales growth outpacing costs [7] - Return on Equity (ROE) should be above 5%, ensuring that sales growth translates into profits and that the company is not hoarding cash [8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are preferred, as they are known to outperform in various market conditions [8] Recommended Stocks - Genuine Parts Company (GPC) is highlighted, with an expected sales growth rate of 3.7% for 2026 and a Zacks Rank of 2 [9][10] - Wheaton Precious Metals Corp. (WPM) is noted for its expected sales growth rate of 35.4% for 2026, also holding a Zacks Rank of 2 [9][11] - FirstEnergy Corporation (FE) is projected to have a sales increase of 3.6% in 2026, currently carrying a Zacks Rank of 2 [9][12]

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Group 1: Investment Strategy - The company advocates for a diversified investment approach that includes high-quality dividend stocks and various asset types to maximize income potential [1]. - The hybrid system developed by the company aims to balance growth and income, allowing for total returns that align with the performance of the S&P index [1].

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 ...

Core Insights - American Electric Power (AEP) is experiencing significant demand growth driven by data centers and large loads, particularly in Texas, which is influencing the company's capital expenditure plans [1][5]. Group 1: Demand and Growth - AEP has contracted 56 GW of large loads expected by 2030, a substantial increase from 28 GW in the third quarter [2]. - Retail sales growth for AEP is projected at 7.5% in 2025, up from 3% in 2024, primarily fueled by commercial and industrial sales [3][8]. - Data centers constitute nearly 90% of AEP's large load pipeline, indicating a strong reliance on this sector for future growth [5]. Group 2: Financial Projections - AEP's capital expenditure plan through 2030 is set at $72 billion, with an additional $5 billion to $8 billion anticipated [4]. - The consolidated return on equity for AEP is expected to rise to 9.1% in 2025, up from 8.8% in 2023 [5]. Group 3: Regulatory Environment - Utility regulators in several states, including Ohio, Indiana, Kentucky, and West Virginia, have approved large load tariffs to protect existing customers from costs associated with new loads [7]. - Similar tariff proposals are under consideration in Michigan, Oklahoma, Texas, and Virginia, reflecting a proactive regulatory approach to manage growth [7]. Group 4: Infrastructure and Load Management - AEP Texas has seen an increase in large loads compliant with Senate Bill 6, now totaling 36 GW, up from 13 GW in the fall [6]. - The Electric Reliability Council of Texas (ERCOT) is a crucial component of AEP's long-term growth strategy, with a significant portion of new loads coming from hyperscaler data centers [6][7].

Operational Performance - The company achieved best-ever safety metrics in 2025, with a 43% reduction in serious injuries and fatalities compared to 2024 and a 30% improvement in serious preventable motor vehicle incidents [1] - System-wide performance measured by SAIDI improved by 19% year-over-year [1] - The company reported full-year 2025 core earnings of $1.50 per share, marking a 10% growth from 2024 and the fourth consecutive year of double-digit core EPS growth [2] Financial Guidance - The company is raising and tightening its 2026 core EPS guidance range, increasing the low end by $0.02 to a new range of $1.64 to $1.66, implying 10% EPS growth at the midpoint [1] - The long-term growth outlook is reaffirmed at 9%+ annually from 2027 through 2030 [1] Affordability and Rate Reductions - Bundled residential electric rates are approximately 11% lower compared to January 2024, translating to about $20 savings per month for a typical customer [3][9] - The company targets a future bill trajectory of 0% to 3%, supported by 2-4% O&M savings and accelerating data-center load [3][10] Wildfire Mitigation and Safety Initiatives - Ignitions were down 43% in 2025, contributing to a third consecutive year without a major fire caused by PG&E equipment [5] - The company launched Emberpoint in collaboration with Lockheed Martin to enhance wildfire detection and mitigation capabilities [6] - PG&E is a main sponsor of XPRIZE Wildfire, focusing on systems designed to detect and suppress high-risk fires [6] Infrastructure and Load Growth - The California Public Utilities Commission approved revised guidelines for utility undergrounding plans, allowing PG&E to file for approximately 5,000 additional miles of undergrounding over 10 years starting in 2028 [7] - Projects in the final engineering stage now total nearly 3.6 gigawatts, with expectations for load growth including 1.8 gigawatts online by 2030 [12][13] Capital Plan and Financing - The company maintains a $73 billion five-year capital plan with no new common equity required through 2030 [14][15] - The annual share dividend is doubled to $0.20 for 2026, with expectations for consistent increases in the next two years [15] - Fitch upgraded PG&E to investment grade, with Moody's and S&P indicating financial metrics are meeting investment-grade criteria [16] Regulatory and Legislative Developments - The company is engaged in wildfire liability reform discussions, with a report and recommendations expected by April 1 [17] - PG&E is seeking review of costs related to wildfire incidents, with claims exceeding $1 billion [19]

Summary of Conference Call Notes on China Electric Utilities Industry Overview - The conference call discusses the **China Electric Utilities** sector, focusing on the impact of recent government policies and coal prices on the industry. Key Points Coal Prices - The **PRC Sxcoal spot coal price** (5,500 kcal/kg) at Qinhuangdao was steady at **Rmb 711/tonne** on February 11, 2026, reflecting a **+1.8% week-over-week (wow)** and **+1.2% month-over-month (mom)** increase, but a **-0.2% year-over-year (yoy)** decrease [1][6] - The rise in coal prices was attributed to **Indonesia's coal export stoppage** due to government proposals to limit output [6] Government Policy - The **General Office of State Council** issued a policy paper titled **'Implementation Opinions on Improving the National Unified Power Market System (Policy No.4 in 2026)'** aimed at breaking provincial barriers and normalizing cross-region trading [2] - The policy promotes the development of market systems including long-term, spot, auxiliary services, capacity payments, and retail markets, with a target for completion by **2030** and full establishment by **2035** [2] Investment Opportunities - The new policy is expected to stimulate investments in the **PRC power industry**, benefiting power grid and plant equipment manufacturers [1] - Preference is given to **equipment suppliers** over operators, as suppliers are expected to gain from increased capital expenditures (capex), while operators may face margin cuts due to market-based tariff reductions [1] - Companies with **Buy ratings** include **Sieyuan**, **TBEA**, **Goldwind**, and **Dongfang Electric** [1][17] Energy Storage Systems (ESS) - A policy issued by the **NDRC** on January 30, 2026, states that only **grid-side independent ESS** are eligible for capacity payments, while wind and solar farms with ESS do not qualify [3] - The increased battery unit cost, driven by rising lithium prices, is expected to negatively impact **Sungrow's** gross profit margin on ESS sales, which was nearly **40% in Q3 2025** [4][5] - An **8% increase** in battery costs in January 2026 could lead to a **2% reduction** in Sungrow's net profit for every **1 percentage point** cut in gross profit margin [5] Market Dynamics - The **coal inventory** at Qinhuangdao Port decreased by **5.4% wow** to **5.30 million tonnes**, which is **16.9% below** the average of **6.38 million tonnes** in 2025 [6] Additional Insights - The call highlights the importance of monitoring coal prices and government policies as they significantly influence the profitability and operational strategies of companies within the electric utilities sector [1][2][4] - The focus on energy storage systems and their eligibility for capacity payments indicates a shift towards integrating renewable energy sources into the national grid, which may present both challenges and opportunities for existing players in the market [3][4]