Shares of Eversource Energy (ES) rose 4.34% to $73.36 in Friday trading after the utility provider reported full-year 2025 results that exceeded the high end of its updated guidance. The stock is currently trading near its 52-week high of $75.25, recovering from a 52-week low of $52.28. The company formalized a 2026 outlook and introduced a long-term earnings growth target through 2030, citing strong operational performance across its regulated business segments.
Company Description
Eversource Energy is a publicly traded Fortune 500 energy company and New England’s largest energy delivery system. It operates through three primary segments: Electric Transmission, Electric Distribution, and Natural Gas Distribution, serving approximately 4.6 million customers in Connecticut, Massachusetts, and New Hampshire. The company focuses on the modernization of the electric grid and natural gas infrastructure to support regional decarbonization goals.
Current Stock Price
$73.36 (Feb 13, 2026)
Market Capitalization
Approximately $27.62 billion
Valuation
Eversource trades at a forward price-to-earnings (P/E) ratio of 14.2x based on 2026 consensus estimates. This multiple is lower than its 12-month average of 24.8x, suggesting a market recalibration following the company’s exit from offshore wind investments and a shift toward its core regulated utility profile.
Fourth Quarter and Full-Year 2025 Financial Results
Eversource reported a substantial year-over-year increase in both GAAP and recurring earnings, driven by rate base growth and the absence of prior-year impairment charges.
- Adjusted Earnings: Fourth-quarter non-GAAP recurring EPS reached $1.12, surpassing the consensus estimate of $1.10. Full-year non-GAAP earnings were $4.76 per share, compared to $4.57 in 2024.
- GAAP Performance: Full-year 2025 GAAP earnings totaled $1.69 billion, or $4.56 per share, nearly doubling the $811.7 million reported in 2024.
- Revenue: Quarterly revenue totaled $3.37 billion, significantly beating analyst projections of $2.94 billion.
- Capital Investment: The company executed a record capital program in 2025—over $4 billion capital deployed in 2025 and $26.5 billion capital plan for 2026–2030—focused on reliability and clean energy integration across its service territories.
Earnings Call Themes and Strategic Outlook
During the February 13 call, management emphasized the completion of a strategic derisking phase and the formalization of new growth metrics:
- 2026 Guidance: The company initiated 2026 non-GAAP earnings guidance of $4.80 to $4.95 per share.
- Long-Term Growth: Management established a cumulative long-term EPS growth rate of 5% to 7% through 2030, using the 2025 non-GAAP results as a baseline.
- Asset Divestiture: The company noted the ongoing process for the sale of its Aquarion water business, intended to further streamline operations and strengthen the balance sheet.
- Grid Resilience: Discussion focused on “Electric Distribution” and “Electric Transmission” as the primary drivers of future rate base growth, with expected operating income in these segments remaining robust.
Macro Pressures and Geopolitical Risk
Eversource is navigating sector-wide headwinds related to financing costs and regulatory oversight in the New England region.
- Geopolitical/Tariff Exposure: While a domestic operator, the company is exposed to tariffs on critical infrastructure components like high-voltage transformers and solar equipment. Management cited lack of clarity in trade policy as a risk factor for 2026 project timelines.
- Company-Specific Challenge: Regulatory lag in Connecticut remains a focus, as the company works to align its capital deployment with state-level mandates while maintaining its targeted credit metrics.
Eversource Energy (ES) SWOT Analysis
Strengths
- Dominant Regional Position: Largest utility in New England with a captive customer base of 4.4 million.
- Derisked Portfolio: Successful exit from high-risk offshore wind ventures stabilizes earnings volatility.
- Strong Cash Flow: Significant GAAP net income growth providing support for the dividend and capital plan.
Weaknesses
- Regulatory Concentration: Highly sensitive to rate case outcomes in a few specific New England jurisdictions.
- Debt Levels: High capital intensity of grid modernization requires continuous access to debt markets.
- Revenue Misses: Susceptibility to weather patterns affecting seasonal electricity and gas demand.
Opportunities
- Clean Energy Transition: State-level decarbonization mandates provide a long runway for regulated transmission investment.
- Asset Sales: Potential capital infusion from the pending sale of the Aquarion water business.
- Digital Transformation: Deployment of advanced metering and AI grid management to lower O&M costs.
Threats
- Tariff Inflation: Rising costs for imported energy components could pressure capital budgets.
- Interest Rate Environment: Prolonged high rates increase borrowing costs for the 2026-2030 investment plan.
- Physical Risks: Exposure to severe Atlantic weather events requiring costly emergency repairs.
The post Eversource Energy (ES) Shares Climb Following 2025 Earnings Beat and New Long-Term Growth Targets first appeared on AlphaStreet News.
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