Eversource 2025 Q1 Earnings Record Net Income Growth of 5.5%

Eversource (ES) reported its fiscal 2025 Q1 earnings on May 05th, 2025. Eversource Energy's Q1 2025 financial results exceeded market expectations, primarily driven by significant revenue growth in its electric and natural gas segments. The company reaffirmed its earnings guidance for 2025, projecting an EPS range between $4.67 and $4.82. This reflects confidence in continued growth and financial stability, aligning with its long-term EPS growth target of 5-7% through 2029. The positive outlook underscores Eversource's strategic investments and operational efficiency.

Revenue
Eversource's total revenue for Q1 2025 surged by 23.6%, reaching $4.12 billion compared to $3.33 billion in Q1 2024. The electric distribution segment generated $2.78 billion, while natural gas distribution contributed $1.14 billion. Electric transmission added $547.80 million, and water distribution accounted for $50.30 million. Other revenue sources brought in $439 million, with eliminations reducing the total by $837.80 million.

Earnings/Net Income
Eversource's earnings per share increased slightly by 0.7%, reaching $1.50 in Q1 2025 compared to $1.49 in the previous year. Net income also rose by 5.5%, achieving $552.67 million, setting a new record for fiscal Q1 net income. These results indicate stable EPS growth.

Price Action
The stock price of Eversource saw a modest increase of 0.51% on the latest trading day, a rise of 0.32% over the past week, but a decline of 5.33% month-to-date.

Post-Earnings Price Action Review
Investing in Eversource shares post-earnings release and holding for 30 days has historically led to poor performance, with a return of -12.27% over the past five years. This performance significantly lags behind the benchmark return of 82.65%, resulting in an excess return of -94.92%. The compound annual growth rate stands at -2.61%, demonstrating considerable losses. The strategy also faced a high maximum drawdown of -30.06% and a Sharpe ratio of -0.17, highlighting substantial risk and negative returns. These figures suggest that holding Eversource shares post-earnings may not be favorable.

CEO Commentary
Joe Nolan, Chairman, President, and Chief Executive Officer of Eversource Energy, expressed optimism about the company's strong start to 2025, highlighting significant growth in the transmission and distribution segments. Nolan emphasized the successful execution of strategic initiatives, including a focus on innovative technology and customer affordability. He noted the positive impact of investments in infrastructure and collaboration with regulatory bodies to enhance service reliability and meet electrification goals in Massachusetts. The leadership remains committed to maintaining financial discipline while pursuing growth opportunities, positioning Eversource as a leading regulated utility with sustainable long-term prospects.

Guidance
Eversource Energy reaffirmed its earnings per share (EPS) guidance for 2025 in the range of $4.67 to $4.82. The company projects an 8% rate-based growth over the next five years, with a cumulative long-term EPS growth rate of 5% to 7% through 2029, based on a 2024 EPS of $4.57. Additionally, Eversource's five-year capital investment plan amounts to $24.2 billion, reflecting a 10% increase from the previous plan, aimed at enhancing infrastructure across its operations.

Additional News
Eversource Energy announced the strategic divestiture of its Aquarion Water Company, valued at approximately $2.4 billion. This move, expected to close by late 2025, will allow Eversource to focus on its core electric and natural gas businesses. Additionally, Eversource declared a quarterly dividend of $0.7525 per share, scheduled for payout on June 30, 2025, to shareholders of record as of May 15, 2025. Moreover, the company was recognized as one of America’s Climate Leaders for 2025 by USA TODAY, ranking #1 among energy companies for emissions reduction.