Eversource Energy Q2 Earnings Drop 85% on Asset Sale and Offshore Wind Charges
The New England utility reported GAAP earnings of $0.14 per share versus $0.96 a year earlier, weighed down by $0.73 in one-time charges related to its Aquarion divestiture and offshore wind contingencies.
Earnings Collapse Masked by Strategic Transition
Eversource Energy reported GAAP earnings of $53.7 million, or $0.14 per share, for the second quarter of 2026, an 85% decline from $352.7 million, or $0.96 per share, in the year-ago period (8-K filing, 2026-07-30). However, the utility's non-GAAP recurring earnings told a different story at $329.1 million, or $0.87 per share, reflecting the company's underlying operational performance.
The dramatic variance stemmed from two significant charges. The company recorded a non-cash, after-tax charge of $111.4 million, or $0.30 per share, related to the June 30, 2026 sale of its Aquarion Water Company subsidiary. An additional after-tax charge of $164.0 million, or $0.43 per share, resulted from an increased offshore wind contingent liability for expected future payments to Global Infrastructure Partners tied to the September 2024 sale of the South Fork Wind and Revolution Wind projects (8-K filing, 2026-07-30).
Regulatory Headwinds Hit Transmission
The company's electric transmission segment earned $183.7 million in the quarter, excluding a separate FERC refund charge. First-half results of $408.0 million were essentially flat compared to $407.5 million a year earlier (8-K filing, 2026-07-30). Performance reflected ongoing pressure from a Federal Energy Regulatory Commission decision on March 19, 2026, that reduced the return on equity rate for New England transmission owners from 10.57% to 9.57%, resulting in an after-tax charge of $43.9 million, or $0.12 per share, in the first half.
Distribution Business Shows Growth
Electric distribution delivered $170.4 million in quarterly earnings, up from $161.5 million in Q2 2025, driven by base distribution rate increases in Massachusetts and New Hampshire. Natural gas distribution contributed $29.7 million in the quarter, though first-half earnings of $325.1 million surged 28% from $253.7 million, benefiting from base distribution rate increases across all gas businesses effective November 1, 2025 (8-K filing, 2026-07-30).
Strategic Pivot to Pure-Play Utility
"During the second quarter, we completed our strategic divestiture of Aquarion Water, further strengthening our balance sheet and positioning Eversource for continued success as a pure-play regulated electric and natural gas delivery company," said Joe Nolan, Chairman, President and CEO (8-K filing, 2026-07-30).
Nolan highlighted preliminary selection by ISO-NE to develop critical transmission infrastructure bringing power from northern Maine to southern New England, calling it evidence that the focused strategy "has already created new opportunities" (8-K filing, 2026-07-30).
Guidance Maintained
The company reaffirmed its 2026 non-GAAP recurring earnings guidance of $4.57 to $4.72 per share, incorporating the transmission ROE reduction and absence of Aquarion earnings in the second half. The utility also maintained its long-term earnings per share growth rate of 5% to 7% through 2030, using the adjusted 2026 midpoint of $4.65 per share as the base (8-K filing, 2026-07-30).
MarginX data shows recent insider activity included a 7,000-share sale by Gregory B. Butler and a 750-share purchase by W. Robert Mudge. The company's next quarterly report is expected November 3, 2026.
With approximately 377 million common shares outstanding and a market capitalization near $27 billion at its last close of $71.59, Eversource operates New England's largest energy delivery system, serving more than 4 million electric and natural gas customers across Connecticut, Massachusetts and New Hampshire (8-K filing, 2026-07-30).
This article was generated by MarginX from the 8-K filing on 2026-07-30. It is not investment advice.