Eversource Reaffirms Growth Guidance Despite Offshore Wind Charge and FERC ROE Headwinds
The New England utility reported Q2 recurring earnings of $0.87 per share and completed its $1.7 billion Aquarion sale while navigating regulatory challenges and pursuing a $700 million transmission project.
Earnings in Line Amid Strategic Transition
Eversource Energy reported second quarter 2026 recurring earnings per share of $0.87, in line with expectations, as the $27 billion utility completed its strategic shift to a pure-play regulated pipes and wires company (earnings call, 2026-07-31).
GAAP earnings were just $0.14 per share, weighed down by a $111.4 million after-tax charge related to the carrying value of Aquarion Water Company and a $164 million charge to increase the company's contingent liability for its sold Revolution Wind offshore project (earnings call, 2026-07-31). The offshore wind charge reflected "cost increases stemming from 2 stop work orders," though the project remains on track for commercial operation later this year, according to CEO Joe Nolan.
The company reaffirmed its long-term earnings per share growth guidance of 5% to 7% (earnings call, 2026-07-31).
Aquarion Sale and Balance Sheet Progress
Eversource completed the sale of Aquarion for net proceeds of $1.7 billion during the quarter, marking "a significant milestone in furthering our strategic position as a pure play regulated pipes and wires utility," Nolan said (earnings call, 2026-07-31). The divestiture allows the company to focus on core electric and natural gas operations across New England.
Moody's changed its outlook on Eversource from negative to stable, a move Nolan characterized as "a testament to our consistent execution and commitment to strengthening our balance sheet" (earnings call, 2026-07-31).
$700 Million Transmission Project Secured
ISO New England preliminarily selected a joint proposal from Eversource and Avangrid as the preferred solution for a major transmission capacity expansion between Maine and New Hampshire. Eversource's share of the $2.2 billion project is approximately $700 million, with an anticipated in-service date of 2032 (earnings call, 2026-07-31).
The selection represents the second competitive transmission bid awarded to Eversource, following the Boston 2028 solution study project completed "ahead of schedule and under budget," Nolan noted (earnings call, 2026-07-31).
First Connecticut Rate Case in Nearly a Decade
Eversource filed its first general rate request for Connecticut Light & Power since 2017, calculating a revenue deficiency of $451 million with a proposed return on equity of 10.25% (earnings call, 2026-07-31). The filing follows more than $4 billion in electric distribution infrastructure investments serving 1.3 million customers across 157 Connecticut municipalities.
Nolan emphasized reliability improvements achieved since 2017, including a 15% reduction in outage frequency and an estimated 1.5 million customer outages avoided in 2025 through automated technology (earnings call, 2026-07-31). The company also received a final storm cost decision enabling it to proceed with securitization financing.
FERC ROE Challenge Continues
The company continues to navigate fallout from FERC's base ROE rate reduction issued in March, which pressured transmission earnings in the quarter. Eversource has appealed to both FERC and the DC Court of Appeals, with FERC expected to decide on the prospective ROE by November 30 (earnings call, 2026-07-31).
"The New England region needs more transmission investment and utilities need a predictable regulatory environment to attract long-term capital," Nolan said (earnings call, 2026-07-31).
MarginX data shows the company's next earnings report is expected November 3, 2026, following FOMC rate decisions in September and October.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.