ES earnings analysis
What we found in ES's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Eversource delivered 2.3% year-over-year Q2 revenue growth to $2.903B, but GAAP EPS fell from $0.96 to $0.14 and operating margin declined from 23.4% to 18.6%, driven chiefly by Aquarion-sale and Revolution Wind charges. Underlying non-GAAP EPS was $0.87, and management maintained its $4.57-$4.72 2026 non-GAAP EPS range. Liquidity improved substantially following the Aquarion divestiture, but the FERC ROE refund range of up to $968.4M and $409.2M offshore-wind liability remain significant overhangs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rose modestly; gross margin fell YoY
- Q2 operating revenue rose $65.1M, or 2.3%, year over year to $2.903B, but declined 35.5% sequentially from Q1 revenue of $4.504B. The calculated gross margin was 67.6%, versus 71.2% in Q2 2025 and 66.3% in Q1 2026.
- GAAP EPS and operating margin contracted sharply
- GAAP diluted EPS fell to $0.14 from $0.96 a year earlier and $1.61 in Q1, while operating margin contracted to 18.6% from 23.4% in Q2 2025 and 23.9% in Q1. The quarter included $0.73 per share of after-tax charges: $0.30 from Aquarion and $0.43 from offshore wind; non-GAAP EPS was $0.87.
- All core utility segments posted revenue growth
- Core operating revenue expanded across the three remaining principal utility segments: Natural Gas Distribution increased $67.9M to $528.7M, Electric Distribution rose $17.1M to $2.184B, and Electric Transmission increased $12.3M to $581.0M.
- Aquarion proceeds materially strengthened liquidity
- The June 30 Aquarion sale generated approximately $1.7B of adjusted net equity proceeds targeted for parent-debt reduction. It lifted cash and equivalents to $1.819B from $135.4M at year-end, while notes payable fell to $393.7M from $1.525B.
- Operating cash flow exceeded capital spending
- Six-month operating cash flow increased $316.9M year over year to $2.415B. Cash capex was $2.023B, producing approximately $391.3M of operating cash flow less capex, while capex represented 83.8% of operating cash flow.
- Large transmission investment pipeline remains
- Management's capital outlook includes a preliminary ISO-NE-selected project with Eversource's estimated share of cost at approximately $700M and anticipated 2032 in-service, plus the Greater Cambridge project with a total estimated cost of $1.84B and initial in-service targeted for June 2029.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- FERC ROE ruling creates large refund exposure
- FERC's March decision lowered the transmission base ROE to 9.57% from 10.57%. Eversource recorded a $62.0M pre-tax refund liability, but estimates a reasonably possible pre-tax refund range of $62.0M-$968.4M; management estimates the ROE reduction lowers annual after-tax earnings by approximately $70M using 2025 rate base.
- Offshore-wind liability remains material
- Revolution Wind cost revisions caused a $194.0M pre-tax Q2 charge, and the offshore-wind contingent liability remained $409.2M at June 30, 2026. The company states additional cost overruns, construction delays, or a reduction from the assumed 40% federal investment-tax-credit level could create material further losses.
- Connecticut storm-cost recovery remains uncertain
- PURA approved $869.4M of CL&P storm costs versus the $974.2M requested, postponed review of $63.3M, and denied recovery of carrying costs incurred before its July 29 decision. Management will record the decision's impact in Q3 2026 and is evaluating potential legal action.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.14
- Gross margin
- 67.6%
- Operating margin
- 18.6%
- Segment
- Electric Distribution revenue: $2.184B, up $17.1M (+0.8%) YoY
- Segment
- Natural Gas Distribution revenue: $528.7M, up $67.9M (+14.7%) YoY
- Segment
- Electric Transmission revenue: $581.0M, up $12.3M (+2.2%) YoY
- Segment
- Water Distribution revenue: $62.4M, up $1.3M (+2.1%) YoY; business was sold on June 30, 2026
- Segment
- Other revenue: $439.8M, up $34.0M (+8.4%) YoY
What they said about what is next.
Management reaffirmed 2026 non-GAAP recurring EPS guidance of $4.57-$4.72, including the prospective FERC transmission-ROE reduction and the absence of Aquarion earnings in 2H26. It also reaffirmed 5%-7% cumulative long-term EPS growth through 2030 from the $4.65 2026 midpoint, expecting growth toward the upper half of that range by 2028.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- Eversource Energy reported Q1 2026 results with revenues of $4.5 billion and diluted EPS of $1.61, marking a 9.4% increase in revenue and an increase of 7.4% in EPS from Q1 2025. The company's strong performance is…
- 10-Q · November 6, 2025
- Eversource Energy reported a strong performance in Q3 2025, achieving net income of $367.5 million, up from a loss of $118.1 million in Q3 2024. Revenues increased to $3.22 billion from $3.06 billion in the prior year,…
- 10-Q · August 4, 2025
- Eversource Energy's Q2 earnings demonstrate strong growth, with net income rising to $352.7 million, or $0.96 per share, a slight increase from $335.3 million (or $0.95 per share) a year prior. Operating revenues also…
- 10-Q · May 5, 2025
- Eversource Energy reported strong Q1 2025 results with revenues of $4.12 billion, up 23.6% YoY, driven by higher sales volumes and favorable rate increases. However, EPS came in at $1.50, slightly below the consensus of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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