Eversource Energy (ES) Earnings & Analysis

Latest quarter

Eversource Energy reported Q2 FY2026 revenue of $2.9 billion, compared with $2.8 billion in Q2 FY2025, a 2.29% increase. The company reported revenue of $2.9 billion against the consensus of $3.1 billion, or 7.63% below the consensus.

Eversource reported adjusted EPS, as the consensus counts it, of $0.87 for the quarter to June 30, 2026, versus the consensus of $0.88, or 1.14% below the consensus. The company reported diluted EPS of $0.14 in Q2 FY2026, compared with $0.96 in Q2 FY2025, a decrease of 85.4%.

The company reported a gross margin of 67.6%, compared with 71.2% a year earlier, a decline of 3.5 percentage points. Eversource reported an operating margin of 18.6%, compared with 23.4% in Q2 FY2025, a decrease of 4.7 percentage points. The company reported free cash flow of $76.3 million, compared with $15.3 million a year earlier, an increase of 398.9%.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the Q1 2026 earnings call, Chairman, President and Chief Executive Officer Joseph R. Nolan said Eversource was focused on safety and reliability, strengthening the balance sheet and reducing its business risk. Nolan said the company had received final approval from PURA in March 2026 for the Aquarion sale and was awaiting the end of an additional appeal period before closing the transaction.

Nolan said a March 2026 FERC decision lowered the transmission base return on equity to 9.57%, and that Eversource had appealed the decision and made a Section 205 filing using updated market data. Chief Financial Officer John M. Moreira said that filing sought an 11.39% transmission base return on equity and that the company expected the updated rate to be implemented toward the end of 2026, subject to refund. Moreira said the FERC decision was expected to lower aggregate future after-tax earnings by approximately $70.0 million in 2026.

Nolan said Eversource expected a final decision on its Connecticut storm-cost prudency review in July 2026, which could begin the legislative-backed securitization process. Moreira said Connecticut and New Hampshire securitizations could recover approximately $2.0 billion of deferred storm costs and carrying charges within the next 12 to 18 months. When analysts asked about New Hampshire, Moreira said the company expected securitization of $400.0 million to $470.0 million, including carrying charges, by late 2027.

Moreira said Eversource had issued junior subordinated notes that brought in $1.5 billion of cash in February 2026. In response to questions about equity needs, Moreira said the company expected to issue $800 million to $1.1 billion through 2030 and was monitoring the timing of other transactions. Moreira also reaffirmed the company’s $26.5 billion capital plan through 2030, including a $5.1 billion capital-expenditure forecast for 2026.

Guidance

Eversource reaffirmed FY2026 non-GAAP recurring EPS guidance of $4.57 to $4.72. The company said this revised guidance includes the prospective reduction in the transmission return on equity from the March 2026 FERC order and the absence of Aquarion earnings in the second half of the year. Eversource also reaffirmed its long-term earnings-growth target of 5% to 7% from the midpoint of its revised 2026 guidance, and said it expects growth toward the upper half of that guidance by 2028.