Eversource 二季度业绩低于预期但维持全年指引并完成 Aquarion 出售

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Introduction & Market Context
Eversource Energy (NYSE:ES) presented its second-quarter 2026 earnings results on July 31, highlighting the completion of its $1.7 billion Aquarion Water sale and progress on balance sheet strengthening, even as the New England utility missed Wall Street estimates on both earnings and revenue. The company reported recurring earnings of $0.87 per share, below the consensus estimate of $0.94, while revenue of $2.9 billion fell short of the $3.07 billion forecast.
Shares declined 2.41% to $72.06 following the results, leaving the stock about 6% below its 52-week high of $76.57. Despite the near-term miss, management reaffirmed full-year 2026 non-GAAP EPS guidance of $4.57 to $4.72 and maintained its long-term growth target of 5% to 7%.
The quarter marked a strategic inflection point for Eversource, with the June 30 closing of the Aquarion sale positioning the company as a pure-play regulated electric and gas utility focused on New England infrastructure investment.
Quarterly Performance Highlights
The company’s second-quarter results reflected both operational execution and significant non-cash charges tied to strategic repositioning. As detailed in the following financial breakdown, recurring earnings declined year-over-year across most business segments.
On a recurring basis, Eversource earned $0.87 per share in the second quarter, down from $0.96 in the year-earlier period. The decline was driven primarily by a $0.07 decrease in electric transmission earnings following FERC’s reduction of the base return on equity to 9.57% from 11.14%. Natural gas distribution earnings fell $0.02, while electric distribution provided a modest $0.01 gain.
GAAP earnings showed a steeper decline, falling to $0.14 per share from $0.96 a year earlier. The difference stemmed from a $111.4 million after-tax charge related to the Aquarion Water carrying value and a $164 million after-tax charge tied to higher projected costs for the Revolution Wind offshore project, which is now 97% complete with commercial operation expected by year-end.
For the first half of 2026, recurring EPS rose to $2.60 from $2.45 in the prior-year period, with natural gas distribution providing the largest contribution at $0.18 per share, reflecting colder winter weather and rate adjustments.
Strategic Transformation
The completion of the Aquarion Water sale represents the centerpiece of Eversource’s strategic repositioning. The $1.7 billion in net proceeds was immediately deployed to reduce parent-level debt, strengthening the balance sheet and improving credit metrics.
"Aligned with our mission to provide reliable, resilient and affordable service for customers, while delivering shareholder value," the company outlined five key strategic priorities for 2026, as shown in the following framework.
The strategic priorities include delivering top-tier performance on reliability and safety, executing on a robust $26.5 billion capital investment plan through 2030, engaging constructively with regulators, maintaining balance sheet strength, and supporting sustainable long-term growth of 5% to 7% annually.
The Aquarion sale removes the water business from Eversource’s portfolio, allowing management to concentrate capital and operational focus on regulated electric transmission and distribution, along with natural gas distribution across Connecticut, Massachusetts, and New Hampshire.
Balance Sheet Progress & Credit Metrics
Eversource made significant progress on balance sheet metrics during the quarter, with funds from operations (FFO) to debt ratios improving to levels well above rating agency downgrade thresholds. The company’s financing strategy for 2026-2030 demonstrates a disciplined approach to funding growth while maintaining credit quality.
The five-year financing plan projects cash uses of $26.5 billion for capital investment and $6.7 billion to $7.2 billion for dividends. These needs will be met primarily through $23.6 billion to $23.9 billion in cash from operations (69.7% of total sources), with debt and alternative financing solutions providing $7.0 billion to $7.5 billion, storm securitization proceeds contributing up to $1.8 billion, and minimal common equity issuance of $0.8 billion to $1.1 billion.
The improvement in credit metrics earned recognition from Moody’s, which upgraded Eversource’s outlook to stable from negative in early July. As illustrated in the following chart, the company now maintains substantial cushion above downgrade thresholds at both major rating agencies.
FFO to debt reached 14.3% at S&P and 15.7% at Moody’s as of March 2026, representing 230 and 270 basis points of credit cushion above the 12% and 13% downgrade thresholds, respectively. Management projects maintaining at least 100 basis points above downgrade thresholds at each agency through 2030.
The financing plan includes key strategic elements completed in 2026, including a $1.5 billion hybrid offering that closed in February and the $1.7 billion in Aquarion proceeds received in June. Storm cost securitization is expected to provide additional balance sheet support, with Connecticut proceedings targeting approximately $668 million and New Hampshire securitization estimated at $700 million.
Growth Initiatives & Capital Investment
Eversource’s updated five-year capital plan totals $26.5 billion from 2026 through 2030, representing a $2.3 billion increase compared to the prior forecast. The plan focuses on transmission infrastructure, electric distribution modernization, natural gas system upgrades, and information technology enhancements.
Annual capital spending is projected to grow from $5.1 billion in 2026 to $5.5 billion by 2030, with electric distribution representing the largest category at approximately $2.2 billion to $2.3 billion annually. Transmission investment ranges from $1.3 billion to $1.6 billion per year, while natural gas distribution capital spending increases from $1.2 billion to $1.5 billion over the period.
Beyond the base capital plan, Eversource identified $1.7 billion in incremental opportunities, including $1 billion for Connecticut advanced metering infrastructure (AMI) deployment and $700 million for the company’s share of the ISO-New England Long-Term Transmission Planning (LTTP) project.
The transmission opportunity represents a major growth catalyst for Eversource. On July 22, 2026, ISO-New England announced its preliminary preferred solution for the LTTP Request for Proposals, selecting the Avangrid/Eversource Solution A1, as detailed in the following regional map.
The $2.2 billion transmission project utilizes existing rights-of-way and is expected to enter service by the end of 2032, with a benefit-to-cost ratio of 2.2x. Eversource’s portion of the investment is estimated at approximately $700 million, with roughly half expected to be deployed within the current five-year forecast period. Cost recovery will follow the same mechanisms as other regulated transmission projects.
Connecticut Regulatory Developments
Regulatory proceedings in Connecticut represent both near-term challenges and long-term opportunities for Eversource. The company filed a comprehensive rate case on July 14, 2026, seeking to address a $451 million base deficiency while advancing the state’s energy infrastructure needs.
The Connecticut Light & Power (CL&P) rate case represents the first such filing since 2017 and proposes a 10.25% return on equity with approximately 54% equity in the capital structure. The four-year rate plan includes performance-based regulation and a framework to support advanced metering infrastructure implementation. A decision is expected in mid-2027, with earnings impacts beginning in 2027 and 2028.
The rate case filing emphasizes reliability improvements achieved through strategic investment. Since 2017, Eversource has invested over $4 billion in Connecticut infrastructure, resulting in a 15% increase in reliability. The average customer now experiences only one outage nearly every two years, compared to more frequent interruptions previously.
Storm cost recovery also advanced during the quarter, with the Connecticut Public Utilities Regulatory Authority (PURA) issuing a final decision on July 29 that found the vast majority of Eversource’s storm costs to be prudent. The following timeline details the securitization process for these costs.
Of the $974.2 million in storm costs requested, PURA approved $869.4 million, with $667.9 million expected to be securitized after accounting for amounts previously collected. The securitization schedule projects a final financing decision in the first quarter of 2027, followed by rating agency review, SEC registration, and marketing, with closing targeted for the third quarter of 2027.
FERC ROE Challenge & Transmission Returns
The Federal Energy Regulatory Commission’s March 2026 decision to reduce the authorized base return on equity for ISO-New England transmission owners to 9.57% from 11.14% represents a significant headwind for Eversource’s transmission earnings. The company has mounted a multi-faceted legal and regulatory response.
FERC ordered refunds covering the period from 2011 to 2026 for the differential between the billed 10.57% ROE and the replacement 9.57% base ROE. Eversource and other transmission owners filed multiple motions against the order, including a refund extension granted through May 2027, a motion for stay with the D.C. Circuit Court, and a rehearing request at FERC.
Simultaneously, Eversource filed a Section 205 application on April 30, 2026, requesting a new base ROE of 11.39%. FERC established a paper hearing process on June 29, with briefs scheduled for August 28 and reply briefs for September 28. The requested rates are set to become effective November 30, subject to refund, pending the commission’s final determination.
The 15-year procedural history highlights the complexity and duration of transmission ROE disputes, involving 22 FERC commissioners, 13 FERC chairs, and nominations by five presidential administrations.
Sustainability Leadership & ESG Performance
Eversource’s May 2026 sustainability report highlighted the company’s environmental, social, and governance achievements during 2025, demonstrating progress toward ambitious climate commitments and community engagement goals.
The company achieved a 28% reduction in operational greenhouse gas emissions since the 2018 baseline, advancing toward its goal of 45% reduction by 2035 and net zero by 2050. Infrastructure investments supporting the clean energy transition include smart meter deployment, a first-of-its-kind underground substation, and an underground cable modernization program.
Community engagement remained strong, with over 6,000 employees contributing nearly 30,000 volunteer hours. The company’s workforce includes more than 800 employees with military backgrounds, reflecting its commitment to veteran hiring. Customer support programs helped save nearly $77 million on energy bills through efficiency initiatives and community workshops.
External recognition for ESG performance included being named one of America’s Best Companies by TIME Magazine, based on employee satisfaction, financial strength, and ESG transparency. The company also raised over $1.6 million for charities through community events across its three-state service territory.
Forward-Looking Guidance & Strategic Milestones
Eversource reaffirmed its 2026 non-GAAP EPS guidance range of $4.57 to $4.72, revised from the original $4.80 to $4.95 guidance provided in February. The revision primarily reflects the impact of the Aquarion sale and the FERC ROE reduction, partially offset by improved performance in other business segments.
Key drivers supporting earnings growth include transmission capital investments, base rate changes in Connecticut, Massachusetts, and New Hampshire, capital recovery mechanisms, and controlled operations and maintenance expenses. Offsetting factors include higher depreciation and property taxes, increased interest expense, share dilution, and the impacts from the Aquarion sale and FERC ROE decision.
The company maintained its long-term EPS growth target of 5% to 7%, measured from the midpoint of the 2026 revised guidance. Management expects growth to move toward the upper half of that range by 2028 and remain there through 2030, supported by constructive regulatory outcomes, efficient financing, and robust capital investment.
The following roadmap details key regulatory and strategic milestones expected to drive long-term performance.
Near-term catalysts include the Connecticut rate case decision expected in mid-2027, storm securitization cash proceeds in 2027 for Connecticut and late 2027 or early 2028 for New Hampshire, and the Revolution Wind commercial operation date expected by year-end 2026. The completion of Revolution Wind removes go-forward earnings risk from offshore wind and improves earnings predictability.
Longer-term implications include earnings impacts from the Connecticut rate case in 2027 and 2028, improved credit metrics and lower interest expense from securitization proceeds, and reduced parent-level debt following the deployment of $1.7 billion in Aquarion sale proceeds.
Company Profile & Operational Metrics
As the largest utility in New England, Eversource operates as a pure-play regulated electric and gas utility following the Aquarion sale. The company’s scale and operational performance provide a foundation for consistent earnings growth and shareholder returns.
Eversource serves 4.4 million electric and gas customers across Connecticut, Massachusetts, and New Hampshire through 4,500 miles of transmission lines and 59,900 miles of distribution infrastructure. The company’s $64 billion in total assets and $34 billion rate base (excluding water) support a current market capitalization of approximately $25 billion.
Operational performance metrics demonstrate the company’s reliability focus, with customers experiencing an average of 21.0 months between interruptions in 2025 and a system average interruption duration of 66.0 minutes. These metrics reflect the cumulative impact of billions of dollars in infrastructure investment over recent years.
The company’s 10,730 employees support operations across the three-state service territory, maintaining and upgrading critical energy infrastructure that serves residential, commercial, and industrial customers throughout New England.
Historical Performance & Track Record
Eversource’s earnings performance over the past decade demonstrates consistent execution and steady growth, even as the 2026 guidance reflects near-term headwinds from strategic repositioning and regulatory challenges.
The company delivered a 6% compound annual growth rate in non-GAAP EPS from 2016 through 2025, growing from $2.96 per share to $4.76 per share over the period. The 2026 guidance midpoint of $4.65 represents a temporary pause in that growth trajectory, reflecting the impacts of the Aquarion sale and FERC ROE reduction.
Management’s projection for 5% to 7% long-term growth from the 2026 base, accelerating to the upper half of that range by 2028, implies a return to the historical growth pattern as regulatory outcomes normalize and new capital investments enter rate base. The projected growth through 2030 would extend Eversource’s track record of delivering consistent shareholder returns through a combination of earnings growth and dividend income.
The company’s ability to maintain investment-grade credit ratings, secure constructive regulatory outcomes, and execute on large-scale capital programs provides confidence in the long-term growth outlook, even as near-term results reflect the costs of strategic transformation and regulatory headwinds.
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