Eversource(US:ES)2026-02-13 15:02Financial 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]