EVERSOURCE ENERGY (ES)

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AI: Fair-priced

Price checkThe shares look fairly priced because a solid income yield offsets heavy financing needs.

At the latest verified close of $72.36, the shares cost 15.6 times the midpoint of Eversource’s $4.57–$4.72 recurring 2026 earnings guidance and 1.7 times June book value, the accounting value attributable to shareholders, of about $43.39 per share. The $0.7875 quarterly dividend implies a 4.4% yearly yield. These levels are reasonable, not cheap: the price assumes management delivers 5%–7% annual earnings growth through 2030 while controlling dilution and financing costs. That balance supports Fair-priced.

Big pictureRegulated earnings are recovering, but reported profit still carries costly cleanup from past projects.

Regulated networks make results steadier than most businesses: 2025 operating income rose 24% to $2.99 billion, while operating cash reached $4.11 billion. Yet reported net income swung from a $435 million loss in 2023 to $1.70 billion in 2025 because offshore-wind and water-sale charges obscure the core. In 2026’s second quarter, recurring profit was $0.87 per share but reported profit was $0.14. Gas earnings remain seasonal: the second quarter supplied only $29.7 million of the first half’s $325.1 million gas profit.

Business strengthDependable utility cash supports growth, yet debt and new shares weaken shareholder protection.

Cash production is meaningful but not comfortably surplus. In 2025, $4.11 billion of operating cash almost matched $4.16 billion of capital spending, leaving slightly negative free cash flow—cash left after running and investing in the business—before $1.09 billion of dividends. Debt reached $29.11 billion by June 2026, versus $16.34 billion of equity, although $1.7 billion of Aquarion proceeds was earmarked for debt reduction. Shares increased 9.8% from 2020 to June 2026, and another $0.8–$1.1 billion equity raise is planned through 2030.

What could change the storyBetter rate recovery could unlock growth, while further wind costs or financing strain would hurt.

The bull case needs regulators to convert planned grid spending into timely customer-rate recovery: Connecticut approved $861 million of storm costs, while a preliminary Maine transmission selection could add about $700 million of Eversource investment. The bear case is that recoveries fall short while interest and offshore-wind obligations rise; the March federal decision already cut the transmission allowed return—the permitted profit rate on shareholder capital—from 10.57% to 9.57%. Earnings growth above 7% with falling debt per share would strengthen the thesis; fresh wind charges or continued dilution would weaken it.

$72.36 price considered

AI: News

Quarterly results expose costsQuarterly recurring profit missed expectations, while old wind obligations sharply reduced reported earnings.

On July 30, 2026, Eversource reported second-quarter recurring earnings of $0.87 per share, below the $0.94 market forecast, while reported earnings fell to $0.14 from $0.96. A $111.4 million Aquarion charge and $164.0 million offshore-wind liability increase drove the gap. Management retained its $4.57–$4.72 full-year recurring guidance. Shares fell 3.05% on July 31 on 5.24 million shares traded; the timing is consistent with a reaction, but does not prove this announcement alone caused the decline.

Aquarion sale closesSelling Aquarion raised cash for debt reduction but removed a small regulated earnings source.

Eversource completed the Aquarion Water sale on June 30, 2026, for $2.4 billion in cash. Approximately $1.7 billion of adjusted net equity proceeds was designated to reduce debt. The sale removed Aquarion’s future earnings and produced a $111.4 million after-tax, non-cash accounting charge, both reflected in revised guidance. Shares fell 2.03% on June 30, were nearly flat July 1, then gained 3.10% July 2; that mixed sequence does not support confident attribution.

Storm recovery partly approvedRegulators approved most storm costs but rejected substantial interest, limiting the expected cash recovery.

On July 29, 2026, Connecticut regulators approved approximately $861 million of deferred storm costs but rejected hundreds of millions in retrospective interest. After credits and amounts already collected, customers will repay about $668 million plus future carrying charges. This converts old restoration spending into future cash collections, but below Eversource’s request and therefore demonstrates regulatory risk. Shares fell 0.84% that day; timing alone cannot establish that the ruling caused the move.

Grid expansion moves forwardA preliminary grid selection offers new regulated growth, though final approval and funding remain uncertain.

On July 31, 2026, ISO New England selected the Central Maine Power and Eversource proposal as its preliminary preferred northern Maine transmission solution. Eversource’s expected portion is about $700 million of a roughly $2.2 billion project, outside its existing $26.5 billion investment plan. If finalized and recovered through customer rates, it could expand long-lived regulated earnings. The selection still faces comments, final confirmation, cost allocation, technical review, and additional financing, so its value remains uncertain.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$13.49B	$11.80B	$11.89B	$12.27B	$9.81B	$8.77B	$8.45B	$8.47B	$7.75B	$7.64B	$7.95B	$7.74B	$7.30B	$6.27B	$4.47B	$4.90B	$5.44B
Operating expenses	$10.56B	$9.49B	$9.51B	$10.09B	$7.87B	$6.92B	$6.94B	$6.75B	$5.86B	$5.80B	$6.19B	$6.11B	$5.77B	$5.16B	$3.67B	$4.10B	$4.69B
Operating income	$2.99B	$2.41B	$2.40B	$2.20B	$1.99B	$1.99B	$1.59B	$1.70B	$1.89B	$1.84B	$1.76B	$1.63B	$1.53B	$1.12B	$794.2M	$799.9M	$751.4M
EBITDAderived	$5.39B	$4.19B	$3.22B	$3.84B	$3.33B	$3.15B	$2.67B	$2.77B	$2.75B	$2.63B	$2.45B	$2.26B	—	$1.86B	$1.26B	$1.42B	$1.29B
Net income	$1.70B	$819.2M	−$434.7M	$1.41B	$1.23B	$1.21B	$916.6M	$1.04B	$995.5M	$949.8M	$886.0M	$827.1M	$793.7M	$533.1M	$400.5M	$394.1M	$335.6M
Basic EPSper diluted share	$4.56	$2.27	-$1.27	$4.05	$3.55	$3.56	$2.83	$3.25	$3.11	$2.97	$2.77	$2.59	$2.49	$1.90	$2.22	$2.20	$1.91
Diluted EPSper diluted share	$4.56	$2.27	-$1.26	$4.05	$3.54	$3.55	$2.81	$3.25	$3.11	$2.96	$2.76	$2.58	$2.49	$1.89	$2.22	$2.19	$1.91

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys12$338.3K disclosed value

Sells (SEC code S)34$6.08M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 4, 2026Form 4	BUTLER GREGORY BExecutive VP & General Counsel	SellCommon Shares, $5.00 par value	7.0K	$69.88	$489.2K	56.2K
May 8, 2026Form 4	Mudge W RobertOther	BuyCommon Shares, $5.00 par value · indirect	750	$66.49	$49.9K	2.1K
Mar 4, 2026Form 4	Conner Penelope MEVP-Cust Exp & Energy Strategy	SellCommon Shares, $5.00 par value	1.4K	$75.00	$105.0K	10.4K
Feb 24, 2026Form 4	CLEVELAND COTTON MOther	SellCommon Shares, $5.00 par value	2.6K	$74.87	$193.2K	79.4K
Feb 23, 2026Form 4	Kim John YOther	SellCommon Shares, $5.00 par value · indirect	6.3K	$74.49	$472.2K	0

Review ownership filings at SEC.gov ↗

EVERSOURCE ENERGY (ES)

Financial charts

Financial statements

Insider buys & sells