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1. Company Snapshot

1.a. Company Description

Eversource Energy, a public utility holding company, engages in the energy delivery business.The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments.It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas.


The company operates regulated water utilities that provide water services to approximately 226,000 customers.It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire.The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015.


Eversource Energy is based in Springfield, Massachusetts.

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1.b. Last Insights on ES

Eversource Energy's recent performance was driven by strong Q4 earnings, beating estimates with quarterly earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of $1.1 per share. The company's impressive earnings surprise history and favorable business conditions, including higher load growth and new gas rates, contributed to its success. Additionally, the absence of hefty one-time charges that had weighed on year-earlier earnings further boosted its quarterly profit.

1.c. Company Highlights

2. Eversource Energy's 2025 Earnings: A Year of Strong Execution

Eversource Energy reported a non-GAAP earnings per share (EPS) of $4.76 for 2025, with the actual EPS for the fourth quarter coming in at $1.12, slightly beating estimates of $1.1. The company's revenues for the year were not explicitly stated, but the reported EPS suggests a stable financial performance. The company's ability to deliver on its earnings expectations is reflected in its operational achievements, including top-decile performance for both the MAIFI and SAIDI metrics, demonstrating investments in grid modernization and reliability. With a P/E Ratio of 20.31, the market seems to be pricing in a certain level of growth, and the Dividend Yield of 4.1% indicates an attractive return for income-seeking investors.

Publication Date: 09:19

📋 Highlights
  • 2025 Non-GAAP Earnings & Dividends: Eversource reported $4.76/share in non-GAAP earnings and paid $3.01/share in dividends, with $4B+ in capital investments deployed.
  • 2026–2030 Capital Plan: Updated $26.5B infrastructure plan includes $11B for electric distribution, $7B for natural gas, and $7B for transmission, targeting $35B rate base by 2030.
  • Regulatory Approvals: Massachusetts PBR adjustments granted $55M for NSTAR Electric and $10M for NSTAR Gas, with $45M base rate increase from NSTAR Gas rate base roll-in.
  • 2026 Earnings Outlook: Guidance of $4.80–$4.95/share, with moderate growth due to transitory 2026 headwinds and a 5–7% long-term EPS growth target by 2028.
  • Offshore Wind & Storm Costs: First power from Revolution Wind expected mid-2026, with $88M Aquarion rate case request and $34.5B–$35B total cash needs for 2026–2030 projects.

Operational Highlights and Future Plans

The company highlighted several accomplishments, including achieving over 100,000 smart meter installations in Massachusetts and obtaining constructive decisions from regulators to support ongoing infrastructure needs. Eversource is also working with Governor Healey's administration to implement a rate relief plan for electric and gas customers in Massachusetts. For 2026, the company is focused on completing offshore wind commitments, enhancing storm cost securitization, and managing a potential sale of Aquarion. The updated five-year capital plan includes approximately $26.5 billion in infrastructure investments, representing a $2.3 billion increase from the prior plan, with a focus on system resiliency and top-tier electric reliability.

Regulatory Developments and Financing Needs

Eversource had a busy year on the regulatory front, with encouraging results, including approval of its PBR rate adjustments in Massachusetts and a settlement agreement that included the recovery of EGMA acquisition and integration costs. The company anticipates incremental financing needs over the next five years and is reviewing alternatives to ensure efficient funding. Eversource expects to fund $27.8 billion of infrastructure investments, with a total cash need of $34.5 billion to $35 billion, and cash flows from operations expected to be in the range of $24.2 billion to $24.7 billion, funding nearly 70% of its cash needs.

Outlook and Valuation

The company is projecting earnings per share in the range of $4.80 to $4.95 for 2026, with earnings growth to be more moderate due primarily to the timing of key regulatory outcomes. Analysts estimate next year's revenue growth at 3.6%. With an EV/EBITDA ratio of 11.13, the market is pricing in a certain level of profitability. The ROE of 8.66% indicates a reasonable return on equity. The company's long-term earnings per share growth rate is expected to be in the range of 5% to 7%, driven by improved regulatory outcomes, recovery of storm costs, and distribution rate adjustments.

3. NewsRoom

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ADDING and REPLACING Eversource Energy Reports Full-Year & Fourth Quarter 2025 Results

Feb -13

Source: businesswire.com

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Eversource Energy (ES) Q4 2025 Earnings Call Highlights: Strong Financial Performance and Strategic Investments

Feb -13

Source: gurufocus.com

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Eversource Energy Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Feb -13

Source: zacks.com

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Eversource Energy (ES) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Eversource Energy (ES) Beats Q4 Earnings Estimates

Feb -12

Source: zacks.com

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Eversource posts rise in quarterly profit as gas earnings strengthen, one‑time charges fade

Feb -12

Source: reuters.com

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Eversource Energy Reports Full-Year & Fourth Quarter 2025 Results

Feb -12

Source: businesswire.com

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What Analyst Projections for Key Metrics Reveal About Eversource (ES) Q4 Earnings

Feb -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.56%)

6. Segments

Electric Distribution

Expected Growth: 4.0%

Eversource Energy's Electric Distribution segment growth of 4.0% is driven by increasing demand for electricity, investments in grid modernization, and favorable regulatory environments. Additionally, the company's focus on renewable energy sources, energy efficiency programs, and customer growth in its service territories contribute to the segment's growth.

Eliminations

Expected Growth: 2.0%

Eversource Energy's 2.0% growth is driven by increasing electricity demand, favorable weather conditions, and strategic investments in grid modernization. Additionally, the company's focus on renewable energy sources, such as wind and solar, contributes to its growth. Furthermore, Eversource's efforts to improve operational efficiency and reduce costs also support its growth momentum.

Natural Gas Distribution

Expected Growth: 3.5%

Eversource Energy's Natural Gas Distribution segment growth of 3.5% is driven by increasing demand for clean energy, infrastructure upgrades, and expansion into new markets. Additionally, favorable regulatory environments, weather normalization, and customer growth contribute to the segment's growth.

Electric Transmission

Expected Growth: 4.5%

Eversource Energy's Electric Transmission segment growth of 4.5% is driven by increasing demand for reliable and efficient energy transmission, investments in grid modernization and resiliency, and strategic acquisitions. Additionally, favorable regulatory policies and growing renewable energy integration contribute to the segment's growth.

Other

Expected Growth: 3.0%

Eversource Energy's 3.0% growth is driven by increasing demand for electricity and natural gas, favorable weather conditions, and strategic investments in grid modernization and renewable energy. Additionally, the company's focus on energy efficiency and customer growth initiatives contribute to its growth momentum.

Water Distribution

Expected Growth: 3.8%

Eversource Energy's Water Distribution segment growth of 3.8% is driven by increasing demand for clean water, infrastructure upgrades, and acquisitions. Additionally, favorable weather patterns, population growth, and municipal contracts contribute to the segment's growth. Furthermore, Eversource's focus on water conservation and efficiency initiatives also supports the segment's expansion.

7. Detailed Products

Electricity

Eversource Energy provides electricity to residential, commercial, and industrial customers through its transmission and distribution networks.

Natural Gas

Eversource Energy offers natural gas services to customers, including supply, transportation, and storage solutions.

Renewable Energy

Eversource Energy invests in and develops renewable energy projects, such as wind and solar power, to reduce carbon footprint.

Energy Efficiency

Eversource Energy offers energy-efficient solutions and programs to help customers reduce energy consumption and lower their bills.

Transmission and Distribution

Eversource Energy operates and maintains a vast network of transmission and distribution lines to deliver energy to customers.

Energy Storage

Eversource Energy invests in energy storage solutions to improve grid resilience and reliability.

8. Eversource Energy's Porter Forces

Forces Ranking

Threat Of Substitutes

Eversource Energy's services are essential to the daily lives of its customers, making substitutes less likely.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative energy sources, Eversource Energy's diversified customer base and regulated rates mitigate this power.

Bargaining Power Of Suppliers

Eversource Energy's diversified fuel mix and long-term contracts reduce its dependence on any single supplier, limiting supplier bargaining power.

Threat Of New Entrants

High barriers to entry, including significant capital requirements and regulatory hurdles, make it difficult for new entrants to compete with Eversource Energy.

Intensity Of Rivalry

While Eversource Energy operates in a regulated industry, it still faces competition from other utilities and alternative energy sources, contributing to a moderate level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.38%
Debt Cost 3.95%
Equity Weight 34.62%
Equity Cost 6.86%
WACC 4.96%
Leverage 188.86%

11. Quality Control: Eversource Energy passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 6.2/10

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Yield: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.36$

Current Price

73.36$

Potential

-0.00%

Expected Cash-Flows