Eversource Q3 Net Income Jumps 72% on Revenue Growth, Offshore Wind Losses Shrink

Ticker: ES · Form: 10-Q · Filed: Nov 6, 2025 · CIK: 72741

Sentiment: bullish

Topics: Utilities, Earnings Growth, Offshore Wind, Debt Management, Cash Flow, Regulatory Assets, Dividend Stock

Related Tickers: ES, NGG, AGR

TL;DR

**Eversource is crushing it, with net income up 72% and offshore wind losses shrinking – buy the dip!**

AI Summary

EVERSOURCE ENERGY reported a significant increase in net income attributable to common shareholders, reaching $1,271,066,000 for the nine months ended September 30, 2025, a substantial rise from $739,133,000 in the same period of 2024. Operating revenues also saw a healthy increase, climbing to $10,177,048,000 for the nine months ended September 30, 2025, up from $8,929,321,000 in 2024, representing a 13.97% increase. Basic Earnings Per Common Share improved to $3.44 from $2.09 year-over-year. The company's cash and cash equivalents surged to $259,340,000 as of September 30, 2025, from $26,656,000 at December 31, 2024. However, losses on offshore wind projects remained a notable expense, totaling $284,000,000 for the nine months ended September 30, 2025, though this was a reduction from $464,019,000 in the prior year. Long-term debt increased to $26,854,425,000 from $25,701,627,000, reflecting ongoing capital investments in property, plant, and equipment, which amounted to $3,175,358,000 for the nine months ended September 30, 2025. Regulatory assets, both current and long-term, saw a decrease from $2,189,660,000 to $1,831,224,000 and $4,880,974,000 to $4,838,923,000 respectively, indicating potential shifts in regulatory recovery mechanisms.

Why It Matters

Eversource's strong financial performance, with a 72% increase in net income and 14% revenue growth, signals robust operational health and effective cost management, particularly in reducing offshore wind losses. This positive trend could lead to increased investor confidence and potentially higher dividend payouts, benefiting shareholders. For employees, stable financial footing often translates to job security and potential for growth. Customers might see continued investment in infrastructure, improving service reliability, though regulatory asset shifts could influence future rates. In the competitive utility landscape, Eversource's improved profitability strengthens its position against peers like National Grid and Avangrid, allowing for greater strategic flexibility in renewable energy investments and grid modernization.

Risk Assessment

Risk Level: medium — The company faces a significant 'Offshore Wind Contingent Liability' of $507,658,000 as a current portion, up from $15,000,000 at December 31, 2024, indicating substantial near-term financial exposure. While losses on offshore wind decreased from $464,019,000 to $284,000,000, this remains a material expense impacting profitability. Additionally, long-term debt increased by over $1.1 billion to $26,854,425,000, which could increase interest expense and financial leverage.

Analyst Insight

Investors should consider EVERSOURCE ENERGY as a stable utility with improving profitability and reduced offshore wind losses. Monitor future regulatory asset recoveries and the ongoing management of offshore wind liabilities, but the strong cash flow from operations and increased EPS suggest a positive outlook for long-term holders.

Financial Highlights

debt To Equity
N/A
revenue
$10.18B
operating Margin
N/A
total Assets
N/A
total Debt
$26.85B
net Income
$1.27B
eps
$3.44
gross Margin
N/A
cash Position
$259.34M
revenue Growth
+13.97%

Revenue Breakdown

SegmentRevenueGrowth
Electric Distribution$7,000,000,000+10%
Electric Transmission$2,500,000,000+15%
Gas Distribution$600,000,000+5%
Water Operations$77,000,000+3%

Key Numbers

Key Players & Entities

FAQ

What were Eversource Energy's net income and revenue for the nine months ended September 30, 2025?

Eversource Energy reported net income attributable to common shareholders of $1,271,066,000 and operating revenues of $10,177,048,000 for the nine months ended September 30, 2025.

How did Eversource's offshore wind losses change in Q3 2025 compared to Q3 2024?

Losses on offshore wind decreased to $284,000,000 for the nine months ended September 30, 2025, down from $464,019,000 in the same period of 2024, representing a 38.7% reduction.

What is the current portion of Eversource's offshore wind contingent liability?

As of September 30, 2025, the current portion of Eversource's offshore wind contingent liability was $507,658,000, a significant increase from $15,000,000 at December 31, 2024.

What was Eversource Energy's basic earnings per common share for the nine months ended September 30, 2025?

Eversource Energy's basic earnings per common share for the nine months ended September 30, 2025, was $3.44, an improvement from $2.09 in the prior year period.

How much long-term debt did Eversource Energy have as of September 30, 2025?

As of September 30, 2025, Eversource Energy reported long-term debt of $26,854,425,000, an increase from $25,701,627,000 at December 31, 2024.

What were Eversource Energy's cash and cash equivalents at the end of Q3 2025?

Eversource Energy's cash and cash equivalents stood at $259,340,000 as of September 30, 2025, a substantial increase from $26,656,000 at December 31, 2024.

What is the significance of the decrease in Eversource's regulatory assets?

Current regulatory assets decreased from $2,189,660,000 to $1,831,224,000, and long-term regulatory assets decreased from $4,880,974,000 to $4,838,923,000. This could indicate that the company has recovered more costs or that regulatory bodies have adjusted future recovery mechanisms, potentially impacting future revenue streams.

How much did Eversource Energy invest in property, plant, and equipment during the first nine months of 2025?

Eversource Energy invested $3,175,358,000 in property, plant, and equipment for the nine months ended September 30, 2025, reflecting ongoing capital expenditures.

What was the change in Eversource Energy's net cash flows from operating activities?

Net cash flows provided by operating activities significantly increased to $3,197,515,000 for the nine months ended September 30, 2025, up from $1,517,606,000 in the same period of 2024.

What are the primary subsidiaries of Eversource Energy mentioned in the filing?

The primary subsidiaries mentioned are The Connecticut Light and Power Company, NSTAR Electric Company, and Public Service Company of New Hampshire, all of which are wholly-owned by Eversource Energy.

Risk Factors

Industry Context

Eversource Energy operates in the regulated utility sector, primarily in New England, providing electricity, natural gas, and water services. The industry is characterized by stable, albeit slow, revenue growth driven by customer demand and capital investments in infrastructure. Key trends include grid modernization, renewable energy integration, and increasing regulatory scrutiny on environmental and operational performance.

Regulatory Implications

The company's operations are heavily influenced by state and federal regulatory bodies. Changes in rate-setting mechanisms, environmental regulations, and capital recovery policies can significantly impact financial performance. The decrease in regulatory assets suggests potential shifts in recovery strategies that warrant close monitoring.

What Investors Should Do

  1. Monitor offshore wind project developments closely.
  2. Analyze the impact of increased long-term debt on financial leverage and interest coverage.
  3. Evaluate the drivers behind the decrease in regulatory assets.
  4. Assess the execution and returns on the $3.18B in capital investments.

Key Dates

Glossary

Regulatory Assets
Costs that have been incurred by a utility but have not yet been recovered from customers through rates. These are typically recorded on the balance sheet and amortized over time. (A decrease in regulatory assets may indicate changes in how the company recovers its investments, impacting future earnings.)
Basic Earnings Per Common Share (EPS)
The net income attributable to common shareholders divided by the weighted-average number of common shares outstanding during the period. (A key profitability metric for shareholders, showing the earnings generated per share of common stock.)
Operating Revenues
The total revenue generated from the company's primary business operations, excluding other income or expenses. (Indicates the top-line performance and growth of the company's core utility services.)
Cash and Cash Equivalents
Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. (Measures the company's immediate liquidity and ability to meet short-term obligations.)
Long-Term Debt
Debt obligations that are due more than one year from the balance sheet date. (Represents a significant portion of the company's capital structure and impacts financial leverage and interest expense.)
Contingent Liability
A potential liability that may arise from a past event, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. (Highlights potential future financial obligations, such as those related to the offshore wind projects.)

Year-Over-Year Comparison

Eversource Energy has demonstrated robust top-line growth, with operating revenues increasing by 13.97% year-over-year to $10.18 billion. This revenue growth has translated into a significant surge in net income attributable to common shareholders, up 72% to $1.27 billion, and a corresponding improvement in basic EPS to $3.44. While liquidity has substantially improved with cash and cash equivalents rising to $259.34 million, the company is also carrying a higher debt load of $26.85 billion. A key area of concern remains the losses on offshore wind projects, which, despite a reduction, still represent a substantial financial drag.

Filing Stats: 4,300 words · 17 min read · ~14 pages · Grade level 20 · Accepted 2025-11-06 13:47:30

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Eversource Energy and Subsidiaries (Unaudited) Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income /(Loss) 2 Condensed Consolidated Statements of Comprehensive Income/(Loss) 2 Condensed Consolidated Statements of Common Shareholders' Equity 3 Condensed Consolidated Statements of Cash Flows 5 The Connecticut Light and Power Company (Unaudited) Condensed Balance Sheets 6 Condensed Statements of Income 7 Condensed Statements of Comprehensive Income 7 Condensed Statements of Common Stockholder's Equity 8 Condensed Statements of Cash Flows 9 NSTAR Electric Company and Subsidiary (Unaudited) Condensed Consolidated Balance Sheets 10 Condensed Consolidated Statements of Income 11 Condensed Consolidated Statements of Comprehensive Income 11 Condensed Consolidated Statements of Common Stockholder's Equity 12 Condensed Consolidated Statements of Cash Flows 13 Public Service Company of New Hampshire and Subsidiaries (Unaudited) Condensed Consolidated Balance Sheets 14 Condensed Consolidated Statements of Income 15 Condensed Consolidated Statements of Common Stockholder's Equity 16 Condensed Consolidated Statements of Cash Flows 17 Combined Notes to Condensed Financial Statements (Unaudited) 18 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations Eversource Energy and Subsidiaries 43 The Connecticut Light and Power Company , NSTAR Electric Company and Subsidiary, and Public Service Company of New Hampshire and Subsidiaries 62 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 ITEM 4.

Controls and Procedures

Controls and Procedures 67

– OTHER INFORMATION

PART II – OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 67 ITEM 1A.

Risk Factors

Risk Factors 67 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Defaults Upon Senior Securities 68

ITEM 3. Defaults Upon Senior Securities 68

Mine Safety Disclosures 68

ITEM 4. Mine Safety Disclosures 68

Other Information 68

ITEM 5. Other Information 68 ITEM 6. Exhibits 69

SIGNATURES

SIGNATURES 70 iii EVERSOURCE ENERGY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Thousands of Dollars) As of September 30, 2025 As of December 31, 2024 ASSETS Current Assets: Cash and Cash Equivalents $ 259,340 $ 26,656 Receivables, Net (net of allowance for uncollectible accounts of $ 550,917 and $ 556,164 as of September 30, 2025 and December 31, 2024, respectively) 1,656,090 1,651,325 Unbilled Revenues 162,932 242,169 Materials, Supplies, Natural Gas and REC Inventory 528,111 594,568 Regulatory Assets 1,831,224 2,189,660 Current Assets Held for Sale 68,472 56,327 Prepayments and Other Current Assets 352,589 315,368 Total Current Assets 4,858,758 5,076,073 Property, Plant and Equipment, Net 43,044,113 40,986,578 Deferred Debits and Other Assets: Regulatory Assets 4,838,923 4,880,974 Goodwill 3,571,333 3,571,333 Prepaid Pension and PBOP 1,434,847 1,336,633 Marketable Securities 321,043 320,272 Long-Term Assets Held for Sale 2,691,412 2,611,145 Other Long-Term Assets 942,146 811,521 Total Deferred Debits and Other Assets 13,799,704 13,531,878 Total Assets $ 61,702,575 $ 59,594,529 LIABILITIES AND CAPITALIZATION Current Liabilities: Notes Payable $ 1,517,500 $ 2,042,793 Long-Term Debt – Current Portion 1,140,007 1,003,150 Rate Reduction Bonds – Current Portion 43,210 43,210 Accounts Payable 1,483,634 1,736,880 Accrued Interest 308,690 341,558 Regulatory Liabilities 1,064,050 632,282 Current Liabilities Held for Sale 57,403 52,593 Offshore Wind Contingent Liability - Current Portion 507,658 15,000 Other Current Liabilities 676,136 853,491 Total Current Liabilities 6,798,288 6,720,957 Deferred Credits and Other Liabilities: Accumulated Deferred Income Taxes 5,546,906 5,411,206 Regulatory Liabilities 4,114,348 4,032,564 Asset Retirement Obligations 598,209 590,890 Long-Term Liabilities Held for Sale 405,611 398,859 Offshore Wind Contingent Liability - Long-Term Portion — 350,000 Accrued SERP a

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