• Earnings Per Share (EPS): Up 5.3% year-over-year, with non-GAAP EPS at $4.57 for 2024.
• GAAP Earnings: $2.27 per share for 2024 compared to a GAAP loss of $1.26 per share in 2023.
• Electric Transmission Earnings: $2.03 per share in 2024, up from $1.84 per share in 2023.
• Electric Distribution Earnings: $1.77 per share in 2024, compared to $1.74 per share in 2023.
• Natural Gas Distribution Earnings: $0.81 per share in 2024, up from $0.64 per share in 2023.
• Water Distribution Earnings: $0.12 per share in 2024, excluding the loss on the pending sale of Aquarion.
• 2025 EPS Guidance: Projected in the range of $4.67 to $4.82.
• Capital Investment Plan: $24.2 billion planned for 2025-2029, a 10% increase from the previous plan.
• Rate Base Growth: 8% growth from 2023 through 2029.
• Dividend Increase: First quarter 2025 dividend increased by 5.2% on an annualized basis.
• Aquarion Sale: Aggregate enterprise value of approximately $2.4 billion, including $1.6 billion in cash.
• Cash Flow Improvement: Nearly 50% increase in cash flows from operations expected in 2025 compared to 2024.

• Warning! GuruFocus has detected 11 Warning Signs with ES.

Release Date: February 12, 2025

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

Positive Points

• Eversource Energy (NYSE:ES) reported a 5.3% year-over-year increase in earnings per share, exceeding the midpoint of their revised guidance.
• The company successfully issued $1 billion of equity through their ATM program, strengthening their balance sheet.
• Eversource Energy (NYSE:ES) was recognized by Newsweek as one of America's most responsible companies for the sixth consecutive year.
• The company announced the sale of Aquarion Water at an attractive multiple of 1.7 times rate base, which will help reduce debt and reinvest in regulated utilities.
• Eversource Energy (NYSE:ES) has a new five-year capital investment plan that increases investment by nearly 10%, focusing on transmission investments to address aging infrastructure needs.

Negative Points

• The company faced headwinds in 2024, including higher interest expenses and the absence of prior year net benefits from asset sales.
• Eversource Energy (NYSE:ES) is dealing with regulatory challenges, particularly in Connecticut, where they are seeking to improve the regulatory environment.
• The sale of Aquarion Water, while financially beneficial, will result in a loss of $0.83 per share in earnings.
• The company's 2025 earnings guidance is below the long-term growth target of 5% to 7%, partly due to the dilutive effect of equity issued in 2024.
• Eversource Energy (NYSE:ES) is facing pressure to maintain a healthy FFO to debt ratio, with Moody's currently having them on a negative outlook.

Q & A Highlights

Q: Joe, regarding Connecticut's legislative session, do you support expanding PURA to three or five commissioners, and what is the pathway for broader reforms? A: Joseph Nolan, CEO: We don't have a position on the number of commissioners. We seek a fair, transparent, and lawful process. The Governor has nominated two commissioners, and the process is pending. We await further developments.

Q: John, there's pressure on shares due to credit questions. What's the FFO to debt target for 2025-2029, and how does it relate to the $1.2 billion equity for CT storm recovery? A: John Moreira, CFO: Nothing has changed. We expect a significant improvement in cash flows, driven by regulatory deferrals and minimal storms in 2025. Our equity needs are $1.2 billion, and we aim to maintain a healthy FFO to debt ratio above Moody's 13% threshold.

Q: Carly, regarding equity financing, will you use an ATM program or block sales for future equity needs? A: John Moreira, CFO: We are pleased with the ATM program and plan to use it for future equity needs, allowing us to control market timing.

Q: Steve, did you provide an FFO to debt target? A: John Moreira, CFO: We aim to improve our position and change Moody's negative outlook to stable. Our financing plan keeps us solidly above the 13% threshold.

Q: Andrew, regarding Mystic, what are the investment opportunities, and is it included in your CapEx plan? A: John Moreira, CFO: Mystic is not included in the CapEx plan. We are exploring opportunities, and it could materialize within or beyond the forecast period. We are comfortable with potential investments due to favorable regulatory climates.

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