Eversource Energy (ES) Q1 2025 Earnings Call Highlights: Strategic Investments and Steady ...

In This Article:

  • GAAP and Recurring Earnings: $1.50 per share for Q1 2025, compared to $1.49 per share in Q1 2024.

  • Transmission Earnings: Increased by $0.04 per share due to higher revenues from system investments.

  • Electric Distribution Earnings: Increased by $0.03 per share, benefiting from grid modernization and rate mechanisms.

  • Natural Gas Segment Earnings: Improved by $0.06 per share due to higher revenues from infrastructure investments.

  • Parent Losses: Increased by $0.12 per share, primarily due to higher interest expenses.

  • Five-Year Capital Plan: $24.2 billion, a 10% increase over the previous plan.

  • Transmission Infrastructure Investments: Nearly $7 billion over the next five years.

  • Electric Distribution Investments: Over $10 billion planned, with 60% in Massachusetts.

  • 2025 EPS Guidance: Reaffirmed at $4.67 to $4.82 per share.

  • Long-term EPS Growth Rate: 5% to 7% through 2029.

  • FFO to Debt Ratio: Expected to improve significantly over 2024 levels.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Eversource Energy (NYSE:ES) reaffirmed its 2025 EPS guidance and long-term EPS growth rate of 5% to 7% through 2029.

  • The company projects an 8% rate base growth over the five-year forecast period, with additional opportunities beyond this period.

  • Eversource Energy (NYSE:ES) is making significant progress on its AMI project in Massachusetts, which is expected to empower customers with data-driven energy usage decisions.

  • The acquisition of the Mystic site in Everett presents a strategic opportunity for multiuse energy resource interconnection in New England.

  • Eversource Energy (NYSE:ES) is actively collaborating with state leaders to address affordability and stabilize rates, including a 10% reduction in winter gas rates in Massachusetts.

Negative Points

  • Higher utility earnings were offset by a decrease in parent and other earnings, impacting overall financial performance.

  • The company faces challenges related to tariffs, which could potentially increase capital project costs by 3% to 6%.

  • Eversource Energy (NYSE:ES) is dealing with regulatory uncertainties in Connecticut, including pending rate proceedings and the composition of PURA.

  • The company has increased interest expenses and the absence of capitalized interest from its former offshore wind investment, affecting financial results.

  • There is ongoing uncertainty regarding the timing and impact of performance-based ratemaking plans in New Hampshire and Connecticut.