Eversource Energy Q3 Earnings Call Highlights

Key Points

• Q3 earnings declined to $0.92 per share from $1.19 in recurring earnings a year earlier, amid lower transmission returns, disallowed storm costs, the Aquarion sale and higher taxes. Eversource narrowed 2026 non-GAAP guidance to $4.62–$4.70 per share, with a $4.66 midpoint.
• Eversource is pursuing a Connecticut rate case tied largely to investment, proposing a multiyear rate mechanism and planning $4 billion in distribution infrastructure spending over five years. A draft decision is scheduled for May 2027 and a final decision for June.
• A complex retroactive transmission refund may be difficult to calculate by FERC’s May 2027 deadline, as it requires reviewing more than a decade of billing data; Eversource may seek an extension. The company reaffirmed its $26.5 billion capital plan through 2030, including a new $700 million transmission project share.

Eversource Energy NYSE: ES narrowed its 2026 earnings guidance and outlined progress on a Connecticut rate case, while warning that a complex transmission refund could be difficult to process by a federal deadline next year.

The utility reported third-quarter GAAP and non-GAAP recurring earnings of $0.92 per share, down from GAAP earnings of $0.99 and recurring earnings of $1.19 per share a year earlier. Chief Financial Officer John Moreira attributed the decline in part to a lower transmission return on equity, disallowed Connecticut storm costs, the sale of the Aquarion water business and a higher effective tax rate.

Those pressures were partly offset by rate increases under performance-based rate plans and capital trackers, Moreira said. The company narrowed its 2026 non-GAAP earnings guidance to $4.62 to $4.70 per share, raising the midpoint to $4.66.

Moreira also reiterated confidence that Eversource can deliver earnings growth toward the upper half of its long-term 5% to 7% target range by 2028.

Connecticut Rate Case and Storm Costs

Chairman and CEO Joe Nolan said Eversource has made progress on its Connecticut Light & Power rate case, filed in July, and plans to invest $4 billion in Connecticut distribution infrastructure over five years. The company has proposed a multiyear performance-based rate mechanism intended to support investment while moderating customer bill impacts.

Moreira said 66% of the requested revenue deficiency relates to capital investment, while 17% is tied to annual storm restoration and vegetation management. Operating and maintenance costs account for approximately $50 million, or 12% of the request, he said.

Asked whether a settlement was possible, Nolan said there was still substantial work to do before parties could discuss one, but described the dialogue with Connecticut’s Public Utilities Regulatory Authority as constructive. Moreira said a draft rate-case decision is scheduled for May 2027 and a final decision for June.

The company has also appealed two elements of PURA’s July storm-cost decision, including the denial of carrying charges on prudently incurred costs before the decision and approximately $8 million in costs disallowed using an extrapolation method. Moreira said the regulator’s schedule calls for a final decision on securitizing deferred storm costs at the end of January, potentially bringing in cash by mid-2027.

Transmission Refund and Capital Plans

Eversource is awaiting a Federal Energy Regulatory Commission decision on a prospective transmission return on equity that would take effect Nov. 30. Separately, the company is appealing a retroactive refund in the U.S. Court of Appeals for the D.C. Circuit.

Moreira said final briefs in the appeal are due in early April 2027 and that a court decision could come in late summer or early fall. He said accounting rules may require Eversource to reflect the final refund amount in its financial statements before the case concludes.

Calculating the refund requires working with ISO New England and other parties to review more than a decade of load settlement and billing data, making FERC’s May 2027 deadline challenging, Moreira said. An extension could be requested, though he said it was too early to determine whether one would be needed. He added that cash outflows would occur over time rather than necessarily all by May.

Eversource reaffirmed its $26.5 billion capital plan through 2030. Nolan said ISO New England selected a joint transmission proposal from Eversource and Avangrid, with Eversource’s $700 million share representing an addition to its current plan. The company also sees potential investment in advanced metering in Connecticut and expects to provide a comprehensive capital-plan update with fourth-quarter results.

Moreira reaffirmed estimated equity needs of $800 million to $1.1 billion through 2030, excluding potential additional capital spending. He said he did not see a near-term need to issue equity following $1.7 billion in net proceeds from the Aquarion sale.

Revolution Wind Begins Operations

Nolan said Revolution Wind has reached commercial operation and construction is complete, reducing Eversource’s risk of further financial obligations. The company still has contractual obligations to settle with the buyer of its offshore wind assets in 2027, he said, adding that management believes its current reserve is adequate to cover the potential obligation.

In Massachusetts, Eversource has installed more than 500,000 smart meters, about one-third of its planned rollout, Nolan said. He also said a Department of Energy award for a grid modernization initiative developed with Dartmouth Engineering could provide approximately $50 million, subject to a final agreement.

About Eversource Energy (NYSE:ES)

Eversource Energy NYSE: ES is a New England-based energy delivery company that provides electric and natural gas utility services. Through its regulated operating companies, it delivers electricity to residential, commercial and industrial customers and distributes natural gas to homes and businesses.

The company owns and operates electric transmission and distribution infrastructure, natural gas distribution systems and related utility facilities. Its electric operations include Connecticut Light and Power, NSTAR Electric and Public Service Company of New Hampshire, while its natural gas operations include several utilities serving customers in Connecticut and Massachusetts.

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