Eversource Energy
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did ES Beat Earnings? Q1 2025 Results
Eversource Energy delivered a mixed first quarter for 2025, clearing the bar on revenue while falling just short on the bottom line. The New England utility posted earnings of $1.50 per diluted share, a hair below the $1.51 consensus estimate, even as operating revenues surged 23.6% year over year to $4.12 billion, well ahead of the $3.77 billion analysts had expected. The revenue strength was driven primarily by base distribution rate increases across its Massachusetts and New Hampshire electric and gas businesses, with the Natural Gas Distribution segment standing out as the quarter's strongest contributor at $218.40 million in earnings, up from $190.60 million a year ago following Massachusetts gas rate increases that took effect in November 2024. Higher interest expenses, reflecting the absence of capitalized interest after the exit from offshore wind investments, weighed on net results. Management reaffirmed full-year 2025 EPS guidance of $4.67 to $4.82 and its 5% to 7% long-term growth target through 2029, backed by a $24.20 billion capital plan, as the company advances toward becoming a <a href="https://247wallst.com/investing/2025/04/14/3-dividend-aristocrats-you-can-buy-dirt-cheap-right-now/">pure-play regulated utility</a> following the pending Aquarion water business sale.
- Base distribution rate increases at New Hampshire and Massachusetts electric businesses
- Massachusetts gas rate increases effective November 1, 2024
- Continued investment in electric transmission system
- Relatively quiet winter storm season reducing operational costs
- NSTAR Electric PBR adjustment rate increase of $56 million effective January 2025
“Eversource is off to a positive start to 2025, once again achieving strong operational and financial results in the first quarter. The strategic divestiture of our Aquarion water business, a key step to strengthening our balance sheet, is anticipated to close later in 2025, and we are excited about Eversource's future as a pure-play regulated utility company with solid growth opportunities.”
Eversource Energy CEO, on the earnings call
Forward Guidance & Outlook
Eversource reaffirmed its fiscal year 2025 EPS guidance of $4.67 to $4.82 per share. The company also reaffirmed its cumulative long-term EPS growth rate of 5% to 7% through 2029, from a 2024 base of $4.57 per share. The strategic sale of the Aquarion water business is anticipated to close later in 2025, transforming the company into a pure-play regulated utility. A $24.2 billion capital expenditure plan through 2029 is in place, with potential for incremental investments of $1.5 billion to $2.0 billion. Key upcoming regulatory milestones include a PSNH rate decision expected in July 2025, Yankee Gas rate case decision expected in October 2025, and multiple Massachusetts rate increases effective in late 2025. Smart meter deployment in Western Massachusetts is expected to begin in July 2025.
ES YoY Financials
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Figures from SEC filings and company reports. Not investment advice.