Eversource Energy’s Strong Financial Performance in the First Quarter of 2025

Eversource Energy, a leading utility company in the Northeast, has reported impressive financial results for the first quarter of 2025. The company’s net income attributable to common shareholders reached $550.8 million, or $1.50 per share, compared to $521.8 million, or $1.49 per share, in the same period of 2024.

Earnings Overview and Future Outlook

Eversource’s regulated businesses, which include electric distribution, electric transmission, natural gas distribution, and water distribution, were the primary drivers of the company’s strong performance. The Regulated Companies segment earned $609.8 million, or $1.66 per share, in the first quarter of 2025, compared to $540.8 million, or $1.53 per share, in the same period of 2024.

The electric distribution segment’s earnings increased by $20.3 million, primarily due to higher revenues from base distribution rate increases at PSNH and NSTAR Electric, as well as increased electric system improvements at CL&P. The electric transmission segment’s earnings increased by $22.7 million, reflecting the company’s continued investment in its transmission infrastructure.

The natural gas distribution segment’s earnings increased by $27.8 million, driven by higher revenues from base distribution rate increases at EGMA and NSTAR Gas, as well as increased investments in natural gas infrastructure.

The water distribution segment’s earnings decreased by $1.8 million, mainly due to the absence of a benefit recorded in the first quarter of 2024 related to Aquarion Water Company of Connecticut’s rate case decision.

Eversource’s parent company and other businesses reported a $40.0 million increase in losses, primarily due to higher interest expense resulting from the absence of capitalized interest following the sale of the company’s offshore wind investments in the third quarter of 2024.

Looking ahead, Eversource has reaffirmed its 2025 earnings guidance range of $4.67 to $4.82 per share and its long-term earnings growth rate target of 5 to 7 percent through 2029, using 2024 non-GAAP earnings per share of $4.57 as the base year.

Liquidity and Capital Resources

Eversource’s liquidity and capital resources remain strong. Cash flows provided by operating activities totaled $1.04 billion in the first quarter of 2025, compared to $291.3 million in the same period of 2024. This increase was primarily driven by improved regulatory recoveries and the timing of collections for various cost tracking mechanisms.

The company’s cash and cash equivalents totaled $111.4 million as of March 31, 2025, up from $26.7 million as of December 31, 2024. Eversource also has $1.16 billion in available borrowing capacity under its commercial paper programs as of March 31, 2025.

In the first quarter of 2025, Eversource issued $1.20 billion of new long-term debt and repaid $300 million of existing long-term debt. The company’s Board of Trustees also approved a common share dividend payment of $0.7525 per share, payable on June 30, 2025.

Strategic Developments

One of the key strategic developments for Eversource is the pending sale of its Aquarion water distribution business. On January 27, 2025, the company entered into a definitive agreement to sell Aquarion for an aggregate enterprise value of approximately $2.4 billion in cash. The sale is subject to regulatory and other approvals and is expected to close in late 2025. Eversource plans to use the net proceeds from the sale to pay down parent company debt.

Regulatory Matters

Eversource continues to navigate various regulatory proceedings related to its transmission business. The company’s electric transmission segment earnings increased due to a higher transmission rate base as a result of continued investments in the transmission infrastructure.

Regarding the ongoing FERC ROE complaints, Eversource has not made any changes to its reserves or recognized ROEs, as the company concluded that there is no reasonable basis for a change due to the significant uncertainty surrounding the applicability of the FERC order in the MISO transmission owners’ cases to Eversource’s pending four complaint cases.

Eversource’s regulated companies have also received approvals for various base distribution rate increases, including a temporary base distribution rate increase at PSNH, a base distribution rate increase at NSTAR Electric, and base distribution rate increases at EGMA and NSTAR Gas.

Capital Expenditures and Business Development

Eversource’s consolidated capital expenditures, including non-cash factors, totaled $1.04 billion in the first quarter of 2025, compared to $1.09 billion in the same period of 2024. The company’s electric transmission business capital expenditures decreased by $131.1 million, while its distribution business capital expenditures increased by $97.1 million.

One of Eversource’s key transmission projects is the Greater Cambridge Energy Program, which will construct the company’s first underground transmission substation in Cambridge, Massachusetts, along with associated transmission and distribution lines. The project is expected to address increased electric demand, enhance the resiliency of the transmission system, and support the decarbonization and electrification goals of the region.

Conclusion

Eversource Energy’s strong financial performance in the first quarter of 2025 demonstrates the company’s ability to effectively manage its regulated utility operations and continue investing in critical infrastructure to serve its customers. The pending sale of the Aquarion water distribution business and the company’s focus on transmission and distribution investments position Eversource for continued success in the future.

Despite the challenges posed by regulatory proceedings and the evolving energy landscape, Eversource has maintained a solid financial foundation and remains committed to delivering reliable and sustainable energy services to its customers across the Northeast.