Eversource Energy (ES) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 GAAP earnings of $335.3M ($0.95/share), up from $15.4M ($0.04/share) in Q2 2023, with prior year impacted by $331M–$337M after-tax offshore wind impairment; H1 2024 net income was $857.2M ($2.43/share), up from $506.6M ($1.45/share) in H1 2023.

• Completed sale of Sunrise Wind project to Ørsted; expects South Fork and Revolution Wind sales to close in Q3, marking exit from offshore wind and focus on regulated utility growth.

• Advancing grid modernization, electrification, and clean energy transition, including Massachusetts AMI program and network geothermal pilot.

• Ongoing regulatory engagement and approvals in Connecticut, Massachusetts, and New Hampshire to support investment and rate recovery.

• Cash flows from operating activities were $962M in H1 2024, with $2.22B invested in property, plant, and equipment.

Financial highlights

• Q2 2024 GAAP and recurring EPS were $0.95, compared to $0.04 GAAP and $1.00 recurring EPS in Q2 2023; prior year included $331M–$337M offshore wind impairment and other non-recurring charges.

• Electric transmission earnings rose to $0.54/share ($189.0M), up from $0.46/share ($161.0M), driven by rate-based growth and infrastructure investment.

• Electric distribution earnings fell to $0.42/share ($149.7M), down from $0.47/share ($165.5M), mainly due to higher O&M, storm costs, and interest expense.

• Natural gas distribution earnings increased to $0.08/share ($27.1M), up from $0.03/share ($11.7M); water distribution earnings decreased to $0.02/share ($8.0M), down from $0.03/share ($9.3M).

• Parent and other companies posted a loss of $0.11/share ($38.5M), mainly due to higher interest expense.

Outlook and guidance

• Reaffirmed 2024 non-GAAP EPS guidance of $4.50–$4.67 and long-term 5%–7% EPS growth rate through 2028.

• Five-year capital forecast remains at $23.1B, supporting robust investment in transmission, distribution, and clean energy initiatives.

• Targeting FFO to debt ratio of 14%–15% at S&P by 2025.