- Price
- $66.85
- Fair value
- $74.00
- Discount
- 9.7%
- Uncertainty
- Low
- LSEG rating
- 2.82
- Moat
- None
- Next earnings
- 2026-10-30
- Next earnings is estimate
- Yes
- Company name
- Eversource Energy
- Sector
- Electric & gas utilities
- About
- Eversource Energy delivers electricity and natural gas in Connecticut, Massachusetts and New Hampshire. Its main subsidiaries are Connecticut Light and Power (CL&P), NSTAR Electric, Public Service Company of New Hampshire (PSNH), and the gas companies NSTAR Gas, Eastern Massachusetts Gas (EGMA) and Yankee Gas. It reports three main segments: electric transmission, electric distribution and natural gas distribution. State regulators set its distribution rates, and the Federal Energy Regulatory Commission (FERC) sets its transmission rates. Eversource sold its offshore wind projects in 2024 and its water business, Aquarion, on June 30, 2026. It plans to invest $26.5 billion from 2026 to 2030.
- Thesis
- The market prices Eversource for difficult regulators and for the cost of a large building plan. In March 2026, FERC cut the base return on equity for New England transmission owners from 10.57% to 9.57% and ordered refunds. Eversource expects this to lower its 2026 earnings by about $70 million, and it cut its 2026 guidance to $4.57 to $4.72 per share from $4.80 to $4.95. In Connecticut, CL&P filed its first rate case since 2017 in July 2026, and it asks for a large rate increase while customers and state officials focus on high energy bills. Eversource also raised its offshore wind contingent liability in Q2 2026, and it expects to issue $0.8 billion to $1.1 billion of new shares from 2026 to 2030. For the gap to close, three things must be true. Connecticut regulators must give CL&P a fair rate decision, expected in mid-2027. Eversource must grow earnings per share at 5% to 7% a year from the $4.65 base of 2026, as it plans. It must keep its credit ratings stable while it uses the $1.7 billion from the Aquarion sale to cut debt. The Q3 2026 report, estimated for about October 30, 2026, gives the next test. The 2027 guidance in February 2027 and the CL&P decision in mid-2027 are the main tests. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is another unfavorable decision in Connecticut.
- Risks
- Regulators set most of Eversource's revenue. The CL&P rate case asks for $451 million more base revenue, and the decision is expected in mid-2027. Eversource says that it is working with state officials on concerns about the cost of energy. A low allowed return or rejected costs would reduce earnings growth.
The FERC order of March 2026 cut the transmission return on equity and requires refunds. Eversource is challenging the retroactive refunds. A further cut or larger refunds would lower earnings.
The $26.5 billion building plan from 2026 to 2030 needs new debt and $0.8 billion to $1.1 billion of new shares. Higher interest rates or a lower share price make this funding more costly.
Eversource still owes payments to Global Infrastructure Partners under the 2024 sale of its offshore wind projects. It raised this liability in Q2 2026, and the liability was $409 million at June 30, 2026. A further increase would lead to new charges.
- Balance sheet
- Cash: $1.8B
Debt: $29.8B
Net debt: $28.0B
Undrawn credit line: $2.2B, to October 2030
Debt due within 12 months: $2.9B
Eversource funds its building plan with long-term debt at the parent and at each utility, commercial paper and new shares. At June 30, 2026, long-term debt was $29.11 billion, of which $2.50 billion was due within 12 months, and total debt was about $29.8 billion. Notes payable were $394 million, and rate reduction bonds were $302 million. Cash was $1.82 billion, mostly from the Aquarion sale on June 30, 2026, and Eversource will use about $1.7 billion to reduce debt. The parent and the utilities share a $2.00 billion revolving credit facility, and NSTAR Electric has a $650 million facility. Both end in October 2030 and back the commercial paper programs, which had $2.16 billion available at June 30, 2026. Interest expense was $721 million in the first half of 2026, up from $594 million a year earlier. Moody's changed its outlook for Eversource parent to stable on July 6, 2026.
As of 2026-06-30.
- Checkpoints
- Oct 30, 2026 (estimate): Q3 2026 results: guidance and debt reduction. Pending. Watch: Eversource keeps its 2026 guidance of $4.57 to $4.72 per share and shows lower debt after the Aquarion sale passes; a lower guidance or a new large charge fails.
Feb 2027 (estimate): 2027 guidance and financing plan. Pending. Watch: 2027 guidance within the 5% to 7% growth path from the $4.65 base and no increase in the planned new shares pass; lower growth or more new shares fail.
Q2 2027 (estimate): CL&P rate case decision in Connecticut. Pending. Watch: A decision that gives CL&P a large part of the $451 million it asks for, with a return on equity near the national average, passes; a low return or large rejected costs fail.
- Recent events
- 2026-07-30: Eversource reported Q2 2026 results. GAAP earnings were $0.14 per share, after a $0.30 charge on the Aquarion sale and a $0.43 charge from a higher offshore wind contingent liability. Non-GAAP recurring earnings were $0.87 per share. Eversource kept its 2026 guidance of $4.57 to $4.72 per share and its long-term growth target of 5% to 7% a year through 2030. ISO New England made a preliminary selection of the incumbent utilities, including Eversource, to build new transmission from northern Maine to southern New England.
2026-07-14: CL&P filed a rate case in Connecticut, its first since 2017. It asks for $451 million more base revenue, without storm costs, with a return on equity of 10.25% and about 54% equity. It proposes a four-year rate plan, and Eversource expects a decision in mid-2027.
2026-07-06: Moody's changed the outlook for Eversource parent and NSTAR Electric to stable from negative, because the Aquarion sale closed and Connecticut regulators approved storm costs. In their final decision of July 29, 2026, Connecticut regulators found most of CL&P's storm costs prudent and approved them for securitization.
2026-06-30: Eversource completed the sale of Aquarion Water Company to the Aquarion Water Authority for $2.4 billion in cash. Eversource will use the adjusted net equity proceeds of about $1.7 billion to reduce debt.
2026-03-19: FERC reduced the base return on equity for New England transmission owners from 10.57% to 9.57%. Eversource said that it will take legal action against retroactive refunds. It cut its 2026 guidance to $4.57 to $4.72 per share, which also removes Aquarion earnings after the sale.