Key Highlights

  • Third quarter EPS was USD 0.92 with no adjustments, against an estimate of USD 0.90 and USD 0.99 last year.
  • Operating revenues were USD 2.98 billion against an estimate of USD 3.20 billion and USD 3.22 billion last year.
  • The 2026 non-GAAP recurring EPS guidance range was set at USD 4.62 to USD 4.70, with a USD 4.66 midpoint.
  • The 2026 through 2030 Capital Investment plan totals USD 26.5 billion, focused on load growth and reliability.

Eversource Energy (NYSE:ES) framed its third quarter around four stated priorities: executing its capital investment plan, maintaining Balance Sheet strength, delivering operating performance and engaging with regulators. Chairman, President and CEO Joe Nolan pointed to a decision from Connecticut's PURA on previously deferred storm costs that gives a path to securitization. The quarter's results sit against that regulatory backdrop.

Priorities and Regulatory Items Management Named

The capital plan of USD 26.5 billion through 2030 excludes Aquarion, which was sold on June 30, 2026, and management listed potential incremental investments of USD 1 billion for Connecticut advanced metering and approved incremental investments of USD 700 million for the TIDE transmission project, with TIDE construction scheduled for 2029 through 2032.

On transmission, a March FERC decision lowered the base Return on Equity to 9.57% from 10.57%. The company filed an appeal with the D.C. Circuit Court, which denied a motion for stay, and filed for a prospective ROE of 11.39%, with a new rate effective November 30. The refund due date was extended to May 2027. In Connecticut, rates from the CL&P rate case are effective in July 2027, and storm cost securitization for CL&P and PSNH is scheduled for mid-2027 or early 2028.

Financial Results for the Quarter

EPS was USD 0.92, with GAAP and non-GAAP figures the same because there were no adjustments, against USD 0.99 GAAP and USD 1.19 non-GAAP recurring in the third quarter of 2025. Earnings were USD 346.0 million against USD 367.5 million. Operating revenues were USD 2,978.9 million against USD 3,220.6 million.

By segment, electric transmission earned USD 182.0 million against USD 185.5 million, reflecting the lower allowed ROE and higher interest expense. Electric distribution earned USD 200.9 million against USD 221.6 million, with management citing disallowed storm costs from PURA's July 29 decision, higher depreciation, interest expense and property taxes, partly offset by Base Rate increases in Massachusetts and New Hampshire. Natural Gas distribution had a loss of USD 43.4 million against a loss of USD 16.8 million, which the company tied to a seasonal rate design change.

Nine-month GAAP EPS was USD 2.67, against USD 3.44, and included charges of USD 0.30 per share for the Aquarion sale, USD 0.43 for offshore wind divestiture payments and USD 0.12 for FERC refunds.

Guidance, Financing and Balance Sheet Actions

The company narrowed 2026 non-GAAP recurring EPS guidance to USD 4.62 to USD 4.70, with an increased midpoint of USD 4.66, and reaffirmed its cumulative long-term EPS growth rate of 5% to 7% through 2030 using that revised midpoint as the base year. Management said annual growth is targeted toward the upper half of that range by 2028.

Aquarion sale proceeds were USD 1.7 billion. In August the parent issued USD 750 million of junior subordinated notes at 6.10% and another USD 750 million at 6.35%, both due in 2056. Management stated that all rating agency outlooks are stable.

Dates and Milestones Named

Quarterly EPS of USD 0.92 sits alongside 2026 guidance of USD 4.62 to USD 4.70, a capital plan of USD 26.5 billion and Aquarion proceeds of USD 1.7 billion.

Management named November 30 for the new FERC transmission rate, May 2027 for the refund due date, July 2027 for CL&P rates, mid-2027 or early 2028 for storm cost securitization and 2029 through 2032 for TIDE construction. The CEO described the focus as disciplined execution of the 2026 objectives.