Eversource (ES) Q2 EPS Tops Estimates

Key Points

• GAAP earnings per share (EPS) for Q2 2025 exceeded expectations at $0.96, surpassing the analyst consensus of $0.95.

• Net income rose across all core business segments, led by a 10.1% increase in Electric Transmission and a 30.3% jump in Natural Gas Distribution (GAAP) for Q2 2025.

• Management reaffirmed its 2025 EPS guidance of $4.67 to $4.82 per share (non-GAAP) and a long-term growth target of 5–7%.

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Eversource Energy (NYSE:ES), a major regulated utility serving New England, reported its second quarter 2025 results on July 31, 2025. The most notable takeaway was a slight outperformance on GAAP earnings per share, which reached $0.96 against the $0.95 analyst estimate. Net income (GAAP) improved across all regulated operating segments, with the utility highlighting ongoing regulatory and infrastructure investments as key factors. Management reaffirmed its full-year 2025 per-share earnings guidance and its targeted long-term growth rates, underscoring a steady quarter for the company’s core businesses.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Current Focus

Eversource Energy (NYSE:ES) delivers electricity, natural gas, and water to 4.6 million customers in Connecticut, Massachusetts, and New Hampshire. As a regulated utility, it operates under oversight from federal and state agencies that set its service rates and allow it to recover costs through regular rate proceedings. It does not own generation resources but manages energy supplies via contracts and procurement to meet demand.

The company's main focus areas are winning regulatory approval for new infrastructure investments, modernizing its electric and gas grid, and maintaining service reliability. Managing its relationships with regulatory authorities is crucial since nearly all of its revenue depends on accepted cost recovery. Success also relies heavily on its ability to fund and execute capital projects -- including grid modernization and Advanced Metering Infrastructure -- and on supporting state climate and clean energy targets.

Quarter in Review: Financial and Operational Developments

The utility posted a 1.05% rise in GAAP earnings per share compared to Q2 2024. The Electric Transmission segment, which operates the high-voltage electricity network, delivered a 10.1% year-over-year earnings increase, driven by continued capital investment. Electric Distribution, which brings power to residential and business customers, posted 7.9% higher GAAP earnings compared to Q2 2024, mainly from approved base rate hikes in New Hampshire and Massachusetts.

Natural Gas Distribution earnings (GAAP) jumped 30.3% compared to Q2 2024. This growth in the electric distribution segment was attributed to rate increases in Massachusetts and New Hampshire, offset partly by increased expenses, including property taxes, interest, and depreciation. In the Water Distribution business, GAAP earnings rose 80% compared to Q2 2024 due to higher revenues and lower interest costs. However, earnings from the parent company and non-core segments recorded a wider loss, affected mainly by higher interest expense related to the absence of capitalized interest following offshore wind asset sales.

Management reported notable regulatory milestones, including new rate mechanisms and successful filings in multiple states. One significant event was the implementation of a $900 million recovery for storm and cost under-recoveries in Connecticut, which took effect July 1, 2024, and is scheduled to run through April 30, 2025, and the approval of modern grid investments. The $24.2 billion five-year capital plan, a 10% increase over the previous period, focuses on transmission upgrades, distribution reliability, and grid modernization, with specific projects like the $1.8 billion Greater Cambridge Energy Project in Massachusetts.

The quarter also saw continued investment in grid modernization technology, notably the AMI (Advanced Metering Infrastructure) project in Massachusetts, with roughly 40% of the network deployed as of the end of Q1 2025. This technology, also known as "smart meters," enables customers to access real-time data on energy consumption and supports state decarbonization plans. The company recorded improved cash flow from operations, supported by regulatory recoveries, and highlighted progress in enhancing its balance sheet as it manages credit rating metrics closely.

Forward Outlook and Guidance

Management reaffirmed its full-year 2025 earnings per share guidance, maintaining a target range of $4.67 to $4.82. It also maintained its long-term annual EPS growth goal of 5–7% (non-GAAP), anchored to a 2024 base of $4.57. The company's ability to meet these goals will depend on successful execution of its announced capital plan, prudent cost control, and continued positive regulatory interactions.

The quarterly dividend was unchanged from the prior period. Looking ahead, investors should pay attention to regulatory decisions in New Hampshire and Connecticut, the ongoing Aquarion water business sale, and further progress on grid modernization and capital projects. Any shifts in the regulatory environment or interest rate landscape could significantly affect earnings and capital needs.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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