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what it is
It runs regulated electric, gas, and water utilities for about 4.5 million customers across New England.
how it gets paid
Last year Eversource Energy made $13.5B in revenue. natural gas distribution was the main engine at $4.46B, or 33% of sales.
why it's growing
Revenue grew 13.8% last year. The latest quarter was huge on paper, with revenue up 216% vs. prior year and EPS up 247%.
what just happened
Revenue hit $10.2B and EPS reached $3.44, both far above last year.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
14.8x trailing p/e — the market's not buying it — or you found a deal
5.5% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
It runs regulated electric, gas, and water utilities for about 4.5 million customers across New England.
Its moat is geography and regulation. Regulated utility model → state-approved monopolies → your utility bill goes to the same company because there usually is no second wire in the street. Eversource serves about 4.5 million customers through 12 regulated utilities, and that captive footprint makes cash flows steadier than most energy businesses.
How they make money
$13.5B
annual revenue · their business grew +13.8% last year
electric residential
$4.23B
electric commercial and industrial
$3.33B
natural gas distribution
$4.46B
water distribution
$1.49B
The products that matter
electric, gas, and water service
regulated utilities
$13.5B revenue · 100% of sales
it's the whole $13.5B business, serving about 4.5 million customers through regulated franchises. that scale is why the earnings stream is so predictable.
core
electric distribution network
electric distribution
inside the 4.5M customer footprint
this sits inside the 4.5 million-customer base and is where much of the planned $24B investment cycle is meant to earn regulated returns from here.
rate base
water utility business for sale
Aquarion Water Company
$2.4B proposed sale
the proposed sale would bring $1.6B in cash and move $800M of debt to the buyer. for a company with $27.1B in long-term debt, that matters.
balance-sheet lever
Key numbers
$27.1B
long-term debt
That is 51% of capital. Capital structure → how the business is funded → so what: debt is not a side issue here, it is the architecture.
22.1%
operating margin
Operating margin → profit after running the business → so what: for a utility, 22.1% says the core franchise is stable even if growth stays slow.
$16B
2029 revenue est.
Revenue is expected to rise from $13.5 billion to $16 billion by fiscal 2029. Sales growth → how fast the top line expands → so what: this is a 3.0% annual growth story, not a rocket ship.
5.5%
return on capital
Return on capital → profit earned on invested money → so what: Eversource earns $0.055 for every $1 it puts to work, which is safe but hardly thrilling.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $27.1B (51% of capital)
- return on equity 12% — $0.12 profit for every $1 investors have put in
A — balance sheet grade looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in ES 3 years ago → it's now worth $10,010.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $10.2B and EPS reached $3.44, both far above last year.
The latest quarter was huge on paper, with revenue up 216% vs. prior year and EPS up 247%. The cleaner signal is the regular quarterly run rate: fourth-quarter 2025 EPS was $1.10 versus $1.01 a year earlier.
$10.2B
revenue
$3.44
eps
22.1%
gross margin
the number that mattered
The key number was $1.12 in the latest reported quarter versus a $1.10 estimate. Small beat, but for a utility the point is consistency.
-
eversource shares traded down sharply late last year after connecticut’s public utilities regulatory authority (pura) voted to block the sale of the company’s water utility.pura deemed the purchaser to be ‘‘managerially unsuitable [to regulate] due to structural and local control issues.’’ the aquarion water company was to be sold to a group of local new england quasipublic and private investors, structured as a nonprofit water authority, for $2.4 billion ($1.6 billion in cash and $800 million in assumed debt). the deal would have helped eversource shore up its balance sheet and better focus its resources on the core electric and gas utilities. it was also seen as a key strategic piece in the company’s recovery from the toll it had suffered in recent years from the divestiture of the offshore wind generation business at substantially marked down prices. in december, eversource and the regional water authority appealed pura’s decision through a state superior court filing, arguing the regulatory body exceeded its authority and ignored state statutes.
-
in january, a judge overturned the rejection and ordered a reconsideration from pura.
-
if approval is not forthcoming, the company could shop aquarion to other parties.
-
solid growth looks feasible in 2026 and beyond.
-
starting from last year and tallying through late decade, eversource plans to invest about $24 billion, with the majority of the money going into transmission and distribution (t&d) projects.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the Aquarion sale staying stuck in regulatory limbo.
med
Aquarion sale delay or failure
the proposed deal was worth $2.4B, including $1.6B in cash and $800M of assumed debt. if it stays blocked, ES keeps carrying the asset and loses a clean balance-sheet release valve.
impact: less relief against $27.1B of long-term debt and a 51% debt-to-capital structure.
med
regulators cap the upside
utilities do not get to decide their own economics. ES plans to invest about $24B through the late decade, but those dollars only work if regulators allow reasonable recovery and returns.
impact: even small pressure matters when return on equity is 11% and return on capital is 5.5%.
med
financing a large capex cycle
ES is entering a $24B investment program while already carrying $27.1B in long-term debt. that's manageable for a regulated utility, but only if financing stays available and affordable.
impact: valuation can stay stuck when leverage and spending both move up at the same time.
if the sale stays blocked while the $24B buildout keeps ramping, ES is funding a long investment cycle with a balance sheet that already has $27.1B of debt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
Aquarion ruling timeline
the $2.4B sale is the cleanest path to balance-sheet relief. this matters more than one routine quarter.
metric
debt load versus asset sales
start with $27.1B of long-term debt and 51% debt-to-capital. any real deleveraging should show up there.
trend
$24B capital spending plan
most of the planned investment is aimed at transmission and distribution. you want that spending to translate into a larger earning base, not just a larger bill.
risk
steady earnings, weak stock
100/100 predictability sounds great. a $10,000 investment turning into $10,010 over three years does not. something in the story still needs fixing.
Analyst rankings
short-term outlook
average
timeliness score 3 — in human-speak, analysts expect middle-of-the-pack performance near term.
risk profile
safer than most
stability score 2 — safer than roughly 80% of stocks. utility math helps.
chart momentum
average
technical score 3 — the chart is not sending an extreme message either way.
earnings predictability
100 / 100
management's earnings pattern has been highly consistent. surprises are not the usual problem here.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 509 buyers vs. 349 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$47
$81
$70
current price
$64
target midpoint · 9% from current · 3-5yr high: $120 (+70% · 18% ann'l return)
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