Eversource Energy Reports Mixed Q4 2025, Outlines Ambitious Growth Plan
EVERSOURCE ENERGY (NYSE:ES) released its fourth-quarter and full-year 2025 financial results, presenting a complex picture of strong underlying operational performance tempered by one-time charges and a mixed quarterly segment performance. The market's initial reaction appears muted, with the stock showing little movement in after-hours trading.
Earnings and Revenue Versus Estimates
The utility's headline numbers for the quarter showed a significant year-over-year improvement, though they came in slightly below analyst expectations on a per-share basis.
- Reported Q4 2025 Revenue: $3.37 billion
- Analyst Estimated Q4 2025 Revenue: $2.80 billion
- Reported Q4 2025 Non-GAAP EPS: $1.12
- Analyst Estimated Q4 2025 Non-GAAP EPS: $1.15
The substantial revenue beat, exceeding estimates by over 20%, is a notable positive. However, the slight miss on the bottom-line EPS figure appears to be the focal point for investors in the immediate aftermath, contributing to the flat after-market performance. For the full year 2025, the company reported non-GAAP recurring earnings of $4.76 per share, which fell within its updated guidance range of $4.72 to $4.80.
Market Reaction and Segment Performance
The stock's lack of significant movement suggests the market had largely anticipated these results or is weighing several cross-currents. The quarterly segment breakdown reveals a nuanced performance:
- Electric Transmission: Earnings were essentially flat year-over-year at $183.7 million.
- Electric Distribution: Earnings declined to $95.5 million from $110.4 million in Q4 2024, negatively impacted by customer credits from a Massachusetts settlement agreement.
- Natural Gas Distribution: A strong performer, with earnings rising to $123.6 million from $103.4 million, driven by base rate increases.
- Water Distribution: Earnings remained stable at $7.4 million.
The company's GAAP earnings were heavily influenced by non-recurring items in both years. The 2024 results included massive losses from the sale of offshore wind investments and a pending water business sale. The 2025 results included a smaller, $75 million after-tax loss related to contingent liabilities from the prior offshore wind sale. Excluding these items, the core regulated utility business showed steady growth.
Forward Outlook and Capital Investment
Management provided a confident outlook for the coming years, which may provide a floor for the stock and signal future growth potential.
- 2026 EPS Guidance: The company projects earnings between $4.80 and $4.95 per share. This range has a midpoint ($4.875) that sits above the current analyst consensus estimate of $4.76 for the full year 2026.
- Long-Term Growth: Eversource targets a 5% to 7% long-term EPS growth rate through 2030, using the 2025 non-GAAP EPS of $4.76 as a base. It expects growth to trend toward the upper half of that range by 2028.
- Major Investment Plan: A key announcement was a new five-year, $26.5 billion capital investment plan for 2026-2030, a $2.3 billion increase over the previous plan. This spending is focused on electric and gas distribution infrastructure to support reliability, load growth, and clean energy goals.
- Strategic Focus: CEO Joe Nolan emphasized the company's future as a "pure-play regulated utility" following the exit from offshore wind, highlighting a focus on affordability, prudent investment, and operational excellence.
Conclusion
Eversource Energy's Q4 2025 results underscore its transition to a streamlined, regulated utility model. While the EPS narrowly missed estimates, leading to a tepid immediate market reaction, the significant revenue beat, strong guidance for 2026 that exceeds analyst expectations, and a substantially enlarged capital investment plan paint a picture of a company positioning itself for steady, regulated growth. The increased spending plan, while requiring future equity issuance, is aimed at building rate base and should support the company's earnings growth trajectory in the long term.
For a detailed look at historical earnings and future analyst estimates for Eversource Energy, visit the earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
