Eversource Energy ((ES)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Eversource Energy’s recent earnings call painted a picture of robust financial health and strategic growth, with a strong emphasis on infrastructure investments and positive regulatory outcomes in New Hampshire. Despite some challenges, particularly high interest expenses and regulatory hurdles in Connecticut, the overall sentiment was optimistic, driven by growth and regulatory achievements.
Strong Earnings Growth
Eversource Energy reported earnings of $0.96 per share for the second quarter, aligning with market expectations. The company reaffirmed its 2025 EPS guidance range of $4.67 to $4.82 per share, maintaining a long-term EPS growth projection of 5% to 7% through 2029. This steady growth trajectory underscores Eversource’s solid financial footing.
Infrastructure Investment Plan Increase
The company announced a 10% increase in its 5-year infrastructure investment plan. This move reinforces Eversource’s commitment to capitalizing on growth momentum and aligns with the rising demand for electrification and decarbonization.
Positive Developments in New Hampshire
Eversource achieved a significant regulatory milestone in New Hampshire with a favorable decision on the rate case for a public service company, resulting in a $100 million rate increase based on a 9.5% ROE. Additionally, a new performance-based rate mechanism with a 4-year term was approved, further strengthening the company’s position.
Progress in Regulatory Approvals
In Connecticut, Senate Bill 4 allows for the securitization of storm costs, and the Aquarion divestiture process is on track to close by the year’s end. These regulatory advancements are pivotal for Eversource’s strategic objectives.
Innovative Projects and Sustainability Achievements
Eversource’s annual sustainability report highlighted key projects like the Cambridge Underground substation and the Outer Cape battery energy storage system, both of which have garnered industry recognition. These initiatives underscore the company’s commitment to sustainability and innovation.
High Interest Expenses
The earnings call noted that higher interest expenses, following the sale of the offshore wind business, impacted Eversource’s parent and other earnings. This financial challenge is a key area of focus for the company moving forward.
Challenges in Connecticut
Moody’s downgrade of Connecticut Light & Power to Baa1 from A3, citing the regulatory environment, poses a challenge. Eversource is actively engaging with stakeholders to address these concerns and align with the PBR structure.
Regulatory Concerns
The Connecticut PBR docket draft decision has raised concerns, prompting Eversource to work closely with stakeholders to ensure alignment with the PBR structure. This proactive approach is crucial for navigating regulatory complexities.
Forward-Looking Guidance
Eversource reiterated its solid financial performance and strategic progress, highlighted by a 2% load growth in the first half of 2025, nearly double the rate from the previous year. This growth supports the 10% increase in the 5-year infrastructure investment plan, aligning with the demand for electrification and decarbonization. The company’s commitment to grid modernization and system resilience is expected to enhance reliability during extreme weather events.
In summary, Eversource Energy’s earnings call conveyed a positive outlook, with strong financial performance and strategic growth initiatives. While challenges remain, particularly in Connecticut, the company’s focus on infrastructure investment and regulatory achievements positions it well for future success.