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Utilities

Eversource Energy

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Market Data

Financials

XBRL · SEC EDGAR

2009–2025(17yr)

Revenue

Net Income

Free CF

Metric	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$5.4B	$4.9B	$4.5B	$6.3B	$7.3B	$7.7B	$8.0B	$7.6B	$7.8B	$8.4B	$8.5B	$8.9B	$9.9B	$12.3B	$11.9B	$11.9B	$13.5B	+13.8%
Operating Income	$751.4M	$799.9M	$794.2M	$1.1B	$1.5B	$1.6B	$1.8B	$1.9B	$1.9B	$1.7B	$1.6B	$2.0B	$2.0B	$2.2B	$2.4B	$2.4B	$3.0B	+24.1%
Operating Margin	13.8%	16.3%	17.8%	17.8%	20.9%	21.1%	22.2%	24.3%	24.7%	20.1%	18.7%	22.3%	20.2%	17.9%	20.1%	20.2%	22.1%	+1.8pp
Net Income	$335.6M	$394.1M	$400.5M	$533.1M	$793.7M	$827.1M	$886.0M	$949.8M	$995.5M	$1.0B	$916.6M	$1.2B	$1.2B	$1.4B	-$434.7M	$819.2M	$1.7B	+107.5%
Net Margin	6.2%	8.0%	9.0%	8.5%	10.9%	10.7%	11.1%	12.4%	12.8%	12.3%	10.7%	13.6%	12.5%	11.5%	-3.6%	6.9%	12.5%	+5.7pp
Free Cash Flow	$81.0M	$139.0M	-$106.3M	-$311.0M	$206.8M	$31.7M	-$300.1M	$198.2M	-$343.2M	-$739.4M	-$901.9M	-$1.3B	-$1.2B	-$1.0B	-$2.7B	-$2.3B	-$45.1M	+98.1%
FCF Margin	1.5%	2.8%	-2.4%	-5.0%	2.8%	0.4%	-3.8%	2.6%	-4.4%	-8.8%	-10.6%	-14.2%	-12.3%	-8.5%	-22.6%	-19.5%	-0.3%	+19.2pp
EPS (Diluted)	$1.91	$2.19	$2.22	$1.89	$2.49	$2.58	$2.76	$2.96	$3.11	$3.25	$2.81	$3.55	$3.54	$4.05	$-1.26	$2.27	$4.56	+100.9%

Total Debt$26.9B

Cash & Equiv.$135.4M

Net Debt$26.7B

3 min read

1. THE BIG PICTURE

Eversource is executing a strategic pivot, offloading its offshore wind interests to refocus on its core identity as a regulated utility. While it markets itself as a primary catalyst for New England’s green transition, its success depends entirely on navigating the friction between massive infrastructure spending and the state regulators who decide if customers should foot the bill.

2. WHERE THE RISKS HIT HARDEST

Eversource’s "technological differentiation" through its Smartinspect platform and drone-based monitoring is directly threatened by cybersecurity risks; these operational technology systems are vulnerable to disruptions that could trigger significant repair costs and regulatory fines (Risks, Competitive Position). Furthermore, the "clean energy transition" strategy is specifically undermined by offshore wind contingent liabilities. Despite selling its interests in the South Fork and Revolution Wind projects, Eversource remains financially exposed to capital expenditure overruns and internal rate of return guarantees for the buyer (Risks, Competitive Position).

3. WHAT THE NUMBERS SAY TOGETHER

The financial profile reveals a company growing faster than its peers but struggling to convert that growth into bottom-line efficiency. While revenue grew 13.8% (TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter), placing it third among six peers, its net margin of 8.8% is the lowest in the group (Peer Benchmarking). This disconnect is partly explained by the transition toward a regulated model and recent settlements, such as the Massachusetts agreement approved in late 2025 (8-K). Furthermore, while Eversource leads its peer group in Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin at -3.7%, the figure remains negative, reflecting the heavy capital demands of its Electric Sector Modernization and Gas System Enhancement programs (Peer Benchmarking, Business). Short interest is relatively low at 2.2% of the float, suggesting limited bearish conviction despite the negative FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders (Supplemental Signals).

4. IS IT WORTH IT AT THIS PRICE?

At 14.2x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Eversource trades at a modest discount to the peer median of 17.9x. At this multiple, the market is pricing in ~1.6% long-term growth (Computed Valuation Context). This appears conservative relative to management’s projected long-term EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth of 5% to 7% through 2030 (8-K). The discount is likely a reflection of "structural vulnerability" to state-level commissions like PURA and DPU, which can impose rate freezes or performance penalties (Competitive Position). However, with a sector-leading dividend yield of 4.3%, the stock offers a premium income stream that compensates for these regulatory hurdles (Peer Benchmarking). If growth were to align with the GDP pace of 2.5%, the justified multiple would rise to 16.3x (Computed Valuation Context).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if state regulators disallow cost recoveries for major infrastructure projects or impose service quality penalties that erode the 5% to 7% growth target (Competitive Position).
Cautious if Eversource Energy triggers financial obligations related to offshore wind expenditure overruns or fails to monetize investment tax credits (Risks).
Constructive if 2026 earnings hit the upper end of the $4.80 to $4.95 range, validating the "pure-play" transition (8-K).

6. BOTTOM LINE

Structural Advantage: Regulated monopoly status in New England territories combined with proprietary AI-driven grid inspection technology.

Bottom Line: Eversource is an attractively valued utility for income-seekers, provided they can stomach the regulatory volatility inherent in its aggressive grid modernization plans.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Cybersecurity and System Integrity: Cyberattacks targeting utility infrastructure or third-party systems could impair the ability of Eversource Energy to operate its electric, natural gas, and water systems. Such events threaten the accuracy of financial reporting and may result in litigation, fines, and heightened regulatory scrutiny.
Rate Regulation and Cost Recovery: Eversource Energy is subject to federal and state regulation that dictates service rates. Adverse regulatory outcomes, such as the disallowance of costs or reductions in allowed rates of return, directly threaten the financial position and cash flows of Eversource Energy.
Offshore Wind Contingent Liabilities: Following the sale of its 50 percent interest in the South Fork Wind and Revolution Wind projects, Eversource Energy retains financial obligations, including capital expenditure overrun sharing and the maintenance of internal rates of return for the buyer. Failure to meet these obligations or the inability to monetize investment tax credits (ITCs) could result in material losses.
Climate Change and Severe Weather: Physical risks from climate change, including extreme storms, threaten the physical assets of Eversource Energy. Eversource Energy faces the risk that regulators may deem storm restoration costs imprudent, preventing their recovery from customers.
Environmental Compliance: Extensive federal and state regulations governing water quality, hazardous materials, and greenhouse gas emissions require significant expenditures. Failure to recover these compliance costs promptly could adversely affect the results of operations.

2. Company-Specific Risks

Water Supply and Dam Infrastructure: Eversource Energy faces strategic risks regarding water scarcity and the potential failure of dams. New regulations in Connecticut requiring increased downstream releases may deplete storage volumes, while dam failure could lead to unrecoverable liabilities.
Holding Company Liquidity: As a holding company with no revenue-generating operations, Eversource Energy depends entirely on dividends from its subsidiaries to meet its own debt service and dividend obligations.
Pension and Postretirement Obligations: Eversource Energy maintains defined benefit plans for a substantial number of employees. Underperformance of plan investments or changes in actuarial assumptions could necessitate significant additional funding contributions.
Goodwill Impairment: Eversource Energy carries $4.23 billion in goodwill on its consolidated balance sheet as of December 31, 2025. A determination that this goodwill is impaired would result in a non-cash charge affecting total capitalization.

3. Regulatory/Legal Risks

FERC Transmission Policy: The FERC has jurisdiction over transmission cost recovery and allowed returns on equity (ROEROEReturn on Equity — net income as a percentage of shareholder equity; how efficiently a company uses the capital investors have put in). Changes in methodology or the elimination of transmission incentives could negatively impact financial results. Additionally, four pending complaints against transmission-owning companies within ISO-NE allege that current ROEs are unjust and unreasonable.
Competitive Solicitation Processes: New frameworks like ISO-NE’s Longer-Term Transmission Planning (LTTP) introduce uncertainty regarding project timing and cost recovery, potentially forcing Eversource Energy to compete against non-incumbent developers.
State-Level Regulatory Composition: Eversource Energy specifically monitors the evolving regulatory environment in Connecticut, including changes in the composition of the Public Utilities Regulatory Authority (PURA), which may affect its electric, natural gas, and water businesses.

4. Financial Impact Map

Cybersecurity Events → Operating Expenses → Significant costs to investigate, repair, and address litigation or fines. Rate Regulation/Disallowances → Results of Operations → Reductions in allowed rate of return or denial of cost recovery. Offshore Wind Contingent Liability → Financial Position → Potential for additional losses if construction costs exceed projections or tax credits are not realized. Climate Change/Storm Restoration → Cash Flows → Inability to recover restoration costs from customers if deemed imprudent by regulators. Goodwill Impairment → Total Capitalization → Non-cash charge resulting from a reduction in the carrying value of goodwill.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
14A	Mar 2025	—