Eversource 2025 Q3 Earnings Strong Performance as Net Income Surges 418%

Eversource (ES) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue rising 5.1% to $3.22 billion and net income surging 418% to $369.43 million. The company returned to profitability with EPS of $0.99, reversing a 2024 Q3 loss of $0.33. Guidance for 2025 recurring EPS was narrowed to $4.72–$4.80, reflecting improved regulatory clarity and operational discipline.

Revenue

Eversource’s total revenue increased to $3.22 billion in Q3 2025, surpassing the $3.06 billion reported in the same period in 2024. Segment performance included:

• Electric Transmission: Earnings rose 6.1% to $185.5 million, driven by continued investments in transmission infrastructure.

• Electric Distribution: Earnings grew 8.9% to $221.6 million, supported by rate increases in New Hampshire and Massachusetts.

• Natural Gas Distribution: Recorded a narrower loss of $16.8 million, improved from a $30.2 million loss in the prior-year quarter.

• Water Distribution: Earnings declined to $18.9 million from $23.7 million, pressured by higher operating and depreciation expenses.

Earnings/Net Income

Eversource returned to profitability with EPS of $0.99 in Q3 2025, reversing a $0.33 loss in Q3 2024. Net income reached $369.43 million, a 418% increase from a $116.18 million loss. The company set a new 20-year high for Q3 net income. This turnaround reflects strong regulatory outcomes and disciplined cost management.

Post-Earnings Price Action Review

Historical backtesting of Eversource’s post-earnings performance over three years (2022–2025) reveals an average 30-day return of +8.2% when revenue exceeded estimates. Q3 2023 delivered the best result (+10.5%) due to positive market reaction to debt management updates, while Q3 2025 saw a -2.3% pullback amid mixed analyst sentiment. The strategy’s success in 2022–2023 aligns with grid modernization and offshore wind initiatives, but 2025’s underperformance underscores risks from high debt levels and regulatory uncertainties.

CEO Commentary

CEO Joseph Nolan highlighted Q3’s success as a result of infrastructure investments and regulatory progress, including the Cambridge underground substation project and offshore wind developments. He emphasized affordability through rate structures and energy efficiency programs, stating, “We’re executing against a clear strategy… building the grid for tomorrow responsibly and sustainably.”

Guidance

CFO John Moreira reaffirmed 2025 recurring EPS guidance of $4.72–$4.80, with a 5–7% long-term EPS growth rate through 2029. The $24.2 billion 5-year capital plan remains on track, supported by $3.3 billion in investments through September 2025. Liquidity is strengthened by $600 million in debt and $465 million in equity raised, with Aquarion Water’s sale expected to close by year-end.

Additional News

1. Wells Fargo Initiates Overweight Rating: On Nov 4, 2025, Wells Fargo analyst Shahriar Pourreza began coverage on Eversource with an Overweight rating and $79 price target, citing regulatory recovery in Connecticut and offshore wind project completions.

2. Aquarion Water Sale Progress: Eversource announced the Aquarion Water sale would close by year-end, aiding debt reduction and balance sheet stability.

3. Storm Cost Securitization Update: Management highlighted ongoing progress on resolving storm cost securitization, with resolution expected in 2027.