CL&P Swings to Profit, Offshore Wind Losses Shrink

TL;DR

**CL&P is back in the black, slashing offshore wind losses and boosting earnings, making it a solid buy for utility investors.**

AI Summary

CONNECTICUT LIGHT & POWER CO (CL&P) reported a significant turnaround in net income, reaching $369.4 million for the three months ended September 30, 2025, compared to a net loss of $116.2 million in the same period of 2024. For the nine months ended September 30, 2025, net income attributable to common shareholders surged to $1.27 billion, a substantial increase from $739.1 million in the prior year. Operating revenues also saw healthy growth, climbing to $3.22 billion for the three-month period in 2025 from $3.06 billion in 2024, and to $10.18 billion for the nine-month period from $8.93 billion. A key factor in this improved performance was a dramatic reduction in 'Losses on Offshore Wind,' which decreased to $284.0 million for the nine months ended September 30, 2025, from $464.0 million in the comparable 2024 period. The company also experienced a positive shift in income tax, reporting a benefit of $197.0 million for the three months ended September 30, 2025, compared to an expense of $76.5 million in 2024. Total assets increased to $61.7 billion as of September 30, 2025, from $59.6 billion at December 31, 2024, driven by a rise in Property, Plant and Equipment, Net to $43.0 billion from $41.0 billion. Cash and cash equivalents also saw a substantial increase to $259.3 million from $26.7 million over the same period.

Why It Matters

This filing reveals a strong financial rebound for CL&P, a subsidiary of Eversource Energy, primarily driven by reduced offshore wind losses and robust revenue growth. For investors, the significant increase in net income and basic EPS to $0.99 from -$0.33 year-over-year signals improved profitability and potentially stronger dividend sustainability. Employees benefit from a more stable and growing company, while customers could see continued investment in infrastructure, as evidenced by the $3.18 billion investment in property, plant and equipment. In the competitive utility landscape, CL&P's ability to mitigate offshore wind risks and grow its core business positions it favorably against peers facing similar renewable energy transition challenges, demonstrating effective risk management and operational efficiency.

Risk Assessment

Risk Level: medium — While net income improved significantly, the company still reported 'Losses on Offshore Wind' of $284.0 million for the nine months ended September 30, 2025. This indicates ongoing exposure to the volatile offshore wind market, despite the reduction from $464.0 million in the prior year. Additionally, long-term debt increased to $26.85 billion from $25.70 billion, and notes payable remain substantial at $1.52 billion, posing a financial leverage risk.

Analyst Insight

Investors should consider increasing their exposure to Eversource Energy (ES) given CL&P's strong performance, particularly the significant reduction in offshore wind losses and robust net income growth. Monitor future filings for continued progress on offshore wind project de-risking and sustained operational profitability, as these are key to long-term value creation.

Financial Highlights

revenue

$10.18B

total Assets

$61.7B

total Debt

$26.85B

net Income

$1.27B

eps

$0.99

cash Position

$259.3M

revenue Growth

+14.0%

Key Numbers

• $1.27B — Net Income Attributable to Common Shareholders (Increased from $739.1M in 2024 for the nine months ended September 30, 2025)
• $0.99 — Basic Earnings Per Common Share (Improved from a loss of $0.33 in 2024 for the three months ended September 30, 2025)
• $284.0M — Losses on Offshore Wind (Decreased from $464.0M in 2024 for the nine months ended September 30, 2025)
• $10.18B — Operating Revenues (Increased from $8.93B in 2024 for the nine months ended September 30, 2025)
• $197.0M — Income Tax Benefit (Shifted from an expense of $76.5M in 2024 for the three months ended September 30, 2025)
• $61.7B — Total Assets (Increased from $59.6B at December 31, 2024)
• $259.3M — Cash and Cash Equivalents (Increased significantly from $26.7M at December 31, 2024)
• $3.18B — Investments in Property, Plant and Equipment (Reflects capital expenditure for the nine months ended September 30, 2025)
• $26.85B — Long-Term Debt (Increased from $25.70B at December 31, 2024)
• 375,189,145 — Eversource Energy Common Shares Outstanding (As of October 31, 2025)

Key Players & Entities

• CONNECTICUT LIGHT & POWER CO (company) — Registrant and subsidiary of Eversource Energy
• EVERSOURCE ENERGY (company) — Parent company and public utility holding company
• $369,429 (dollar_amount) — Net Income for the three months ended September 30, 2025
• $116,177 (dollar_amount) — Net Loss for the three months ended September 30, 2024
• $1,276,705 (dollar_amount) — Net Income for the nine months ended September 30, 2025
• $744,772 (dollar_amount) — Net Income for the nine months ended September 30, 2024
• $284,000 (dollar_amount) — Losses on Offshore Wind for the nine months ended September 30, 2025
• $464,019 (dollar_amount) — Losses on Offshore Wind for the nine months ended September 30, 2024
• $196,982 (dollar_amount) — Income Tax Benefit for the three months ended September 30, 2025
• $61,702,575 (dollar_amount) — Total Assets as of September 30, 2025

FAQ

Risk Factors

• Offshore Wind Project Performance [medium — operational]: Losses on offshore wind projects significantly impacted the company's performance in the prior year. While these losses decreased to $284.0 million for the nine months ended September 30, 2025, from $464.0 million in the comparable 2024 period, they still represent a substantial cost. Continued volatility or underperformance in these projects could negatively affect future earnings.
• Rate Case Outcomes [high — regulatory]: As a regulated utility, CL&P's profitability is heavily influenced by decisions made in rate cases by state regulatory commissions. Adverse outcomes in future rate proceedings could limit the company's ability to recover costs and achieve its desired rate of return, impacting financial performance.
• Interest Rate Fluctuations [medium — market]: The company's long-term debt increased to $26.85 billion as of September 30, 2025. Rising interest rates could increase the cost of servicing this debt, putting pressure on net income. Conversely, favorable rate environments can reduce financing costs.
• Infrastructure Investment and Maintenance [medium — operational]: CL&P is investing heavily in its infrastructure, with Property, Plant and Equipment, Net increasing to $43.0 billion. The company must effectively manage these capital expenditures and ensure ongoing maintenance to prevent service disruptions and ensure reliability, which is critical for customer satisfaction and regulatory compliance.
• Environmental Regulations and Climate Change [high — regulatory]: Increasingly stringent environmental regulations and the impacts of climate change necessitate significant investments in grid modernization and cleaner energy sources. Failure to comply or adapt could lead to fines, increased operating costs, and reputational damage.

Industry Context

Connecticut Light & Power Co. operates within the highly regulated electric utility sector in Connecticut. The industry is characterized by significant capital investments in infrastructure, a transition towards renewable energy sources, and evolving environmental regulations. Competition is limited due to the nature of regulated monopolies, with performance largely dictated by regulatory approvals and operational efficiency.

Regulatory Implications

As a regulated entity, CL&P is subject to oversight by the Connecticut Public Utilities Regulatory Authority (PURA). Decisions on rate increases, capital investments, and service standards directly impact financial performance. The company must navigate evolving environmental mandates and energy transition policies, which can require substantial compliance investments.

What Investors Should Do

1. Monitor offshore wind project performance and associated costs for potential future impacts.
2. Analyze upcoming rate case filings and regulatory decisions for their effect on future revenue and profitability.
3. Assess the company's capital expenditure plans and their impact on asset growth and future operational efficiency.
4. Evaluate the sustainability of the current tax benefit and its contribution to net income.
5. Track the company's debt levels and interest rate exposure given the increase in long-term debt.

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Key period for assessing year-to-date financial performance, including significant improvements in net income and revenue growth.
• 2025-09-30: End of Third Quarter Reporting Period — Highlights a strong turnaround in quarterly net income, driven by reduced offshore wind losses and a tax benefit.
• 2024-12-31: Previous Fiscal Year End — Provides a baseline for comparison of asset growth and changes in cash position.
• 2024-09-30: Prior Year Nine Months End — Used as a comparative period to demonstrate the substantial year-over-year improvement in net income and revenue.
• 2024-09-30: Prior Year Third Quarter End — Crucial for understanding the magnitude of the net income turnaround from a loss to a significant profit.
• 2025-10-31: Eversource Energy Common Shares Outstanding Date — Provides context for per-share metrics and potential dilution analysis.

Glossary

Losses on Offshore Wind

Financial losses incurred from the development, construction, or operation of offshore wind energy projects. (A significant factor in CL&P's improved net income, as these losses decreased substantially compared to the prior year.)

Income Tax Benefit

A reduction in the amount of income tax expense a company is required to pay, often due to tax credits, deductions, or changes in tax law. (CL&P reported a significant income tax benefit in the current period, contributing positively to net income, a reversal from an expense in the prior year.)

Property, Plant and Equipment, Net

The net book value of a company's tangible assets used in its operations, such as buildings, machinery, and infrastructure, after deducting accumulated depreciation. (This account increased, indicating significant investment in the company's utility infrastructure.)

Cash and Cash Equivalents

Highly liquid short-term investments that can be readily converted into cash, including physical currency, bank deposits, and short-term government securities. (The substantial increase in this category suggests improved liquidity and financial flexibility for CL&P.)

Operating Revenues

The total income generated from a company's primary business activities, such as providing electricity and gas services. (Shows the top-line growth of the company's core utility operations.)

Net Income Attributable to Common Shareholders

The portion of a company's profit that is available to its common shareholders after all expenses, taxes, and preferred dividends have been paid. (A key indicator of profitability and value creation for equity investors, showing a strong increase.)

Year-Over-Year Comparison

CONNECTICUT LIGHT & POWER CO has demonstrated a significant financial turnaround compared to the prior year. Operating revenues for the nine months ended September 30, 2025, increased to $10.18 billion from $8.93 billion in 2024, a growth of approximately 14%. Most notably, net income attributable to common shareholders surged to $1.27 billion from $739.1 million, a substantial improvement driven by a reduction in 'Losses on Offshore Wind' and a shift to an income tax benefit from an expense. Total assets have also grown, reflecting ongoing infrastructure investments.

Key Financial Figures

• $5.00 — nge on which registered Common Shares, $5.00 par value per share ES New York Stock E
• $10.00 — t Light and Power Company Common Stock, $10.00 par value 6,035,205 shares NSTAR Elect
• $1.00 — s NSTAR Electric Company Common Stock, $1.00 par value 200 shares Public Service Co

Filing Documents

• es-20250930.htm (10-Q) — 4420KB
• q3202510q-ex31xeversource.htm (EX-31) — 10KB
• q3202510q-ex311xeversource.htm (EX-31.1) — 10KB
• q3202510q-ex32xeversource.htm (EX-32) — 7KB
• q3202510q-exhibit31xclp.htm (EX-31) — 10KB
• q3202510q-exhibit311xclp.htm (EX-31.1) — 10KB
• q3202510q-exhibit32xclp.htm (EX-32) — 7KB
• q3202510q-exhibit31xnste.htm (EX-31) — 10KB
• q3202510q-exhibit311xnste.htm (EX-31.1) — 10KB
• q3202510q-exhibit32xnste.htm (EX-32) — 7KB
• q3202510q-exhibit31xpsnh.htm (EX-31) — 10KB
• q3202510q-exhibit311xpsnh.htm (EX-31.1) — 10KB
• q3202510q-exhibit32xpsnh.htm (EX-32) — 7KB
• es-20250930_g1.jpg (GRAPHIC) — 11KB
• 0001628280-25-050033.txt ( ) — 20199KB
• es-20250930_def.xml (EX-101.DEF) — 662KB
• es-20250930_lab.xml (EX-101.LAB) — 892KB
• es-20250930_pre.xml (EX-101.PRE) — 914KB
• es-20250930_cal.xml (EX-101.CAL) — 130KB
• es-20250930.xsd (EX-101.SCH) — 96KB
• es-20250930_htm.xml (XML) — 4397KB

– 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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View this 10-Q filing on SEC EDGAR