Eversource Energy Q2 Earnings Lag Estimates, Revenues Rise Y/Y

Revenues of $2.90 billion missed the Zacks Consensus Estimate of $3.14 billion by 7.63%. Total revenues also increased 2.3% from the year-ago figure of $2.84 billion.

Rising Operating Costs Pressure ES’ Profitability

Total operating expenses were $2.36 billion, up 8.6% year over year, including the charge associated with the Aquarion sale. The increase was primarily due to a 14.8% rise in purchased power, purchased natural gas and transmission expenses, a 2.8% increase in operations and maintenance costs, 9.9% growth in depreciation expense, a 28% jump in energy efficiency program costs and a 7.5% surge in taxes other than income taxes.

Operating income declined 18.4% year over year to $540.9 million. 

Interest expenses amounted to $355.5 million, 21.3% higher than the prior-year level.

Eversource Energy Reports Mixed Segment Results

Electric Transmission: Earnings totaled $183.7 million, down 11.7% from $208 million a year earlier. The decrease reflected the lower allowed return on equity ordered by the Federal Energy Regulatory Commission and higher interest expense, partly offset by continued transmission investment.

Electric Distribution: Earnings increased 5.5% to $170.4 million. Higher base distribution rates in Massachusetts and New Hampshire and ongoing system investments more than offset increased interest, depreciation and property-tax expenses.

Natural Gas Distribution: Earnings fell 15.9% to $29.7 million. The decline primarily reflected the absence of a prior-year benefit tied to previously expensed costs that were subsequently approved for recovery. 

Water Distribution: Earnings decreased to $11.6 million from $14.4 million due to higher operating and maintenance expenses and depreciation.

Eversource Parent & Other Companies: The segment reported a loss of $66.3 million, narrower than the year-ago quarter’s reported loss of $66.5 million.

ES Reaffirms Earnings Growth & Capital Investment Plans

Eversource Energy expects 2026 earnings in the range of $4.57-$4.72 per share. 

Management also maintained its long-term earnings growth target of 5-7% through 2030, using the adjusted 2026 guidance midpoint of $4.65 as the base. The Zacks Consensus Estimate for 2026 EPS is pegged at $4.64, slightly below the midpoint of the company's guided range.

The company expects cash from operations of $23.6-$23.9 billion during 2026-2030. 

Eversource Eergy reaffirmed its five-year utility capital plan of $26.5 billion. Potential additions include part of the company's roughly $700 million share of a proposed New England transmission project and advanced-metering infrastructure investments in Connecticut. The preliminary transmission selection carries a total estimated cost of $2.2 billion and an expected 2032 in-service date.

Eversource Energy expects to fund $7.0-$7.5 billion of its capital program through debt and alternative financing solutions, including hybrid securities, while minimizing common equity issuances. The company also intends to use the $1.7 billion in net proceeds from the completed Aquarion divestiture to repay parent-company debt.

The company expects to distribute dividends of $6.7-$7.2 billion during 2026-2030.

ES’ Zacks Rank

Eversource Energy currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utility Releases

Evergy EVRG is scheduled to report second-quarter 2026 results on Aug. 6, before the market opens. The Zacks Consensus Estimate for sales is pegged at $1.47 billion, which suggests a year-over-year increase of 2.63%.

EVRG’s long-term (three to five years) earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2026 earnings is pinned at $4.25 per share, which implies a year-over-year improvement of 10.97%.

Consolidated Edison ED is slated to report second-quarter 2026 results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.

ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.

Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.02 per share, which implies year-over-year growth of 100%.

VST's dividend yield is 0.92%. The Zacks Consensus Estimate for 2026 earnings is pinned at $9.39 per share, which implies a year-over-year improvement of 78.52%.

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