Eversource Energy (ES) Q2 2024 earnings summary

Executive summary

• Q2 2024 GAAP earnings were $335.3M ($0.95/share), up from $15.4M ($0.04/share) in Q2 2023, with prior year impacted by offshore wind impairment charges; 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; South Fork and Revolution Wind sales expected to close in Q3, marking exit from offshore wind and focus on regulated utility growth.

• Nearly $6 billion in transmission investments planned over five years, supporting electrification and clean energy goals.

• Significant progress on Massachusetts AMI program and new customer billing system, with upcoming smart meter deployment.

• Released 2023 Sustainability and DEI reports, with over 30% reduction in operational emissions since 2018.

Financial highlights

• Q2 2024 GAAP and recurring earnings were $0.95 per share, compared to $0.04 GAAP and $1.00 recurring in Q2 2023; H1 2024 diluted EPS was $2.43, up from $1.45 in H1 2023.

• Electric transmission earnings rose to $0.54 per share and $189.0M in Q2 2024 from $0.46 per share and $161.0M in Q2 2023.

• Electric distribution earnings declined to $0.42 per share and $149.7M, mainly due to higher O&M and storm costs.

• Natural gas distribution earnings increased to $0.08 per share and $27.1M, while water distribution contributed $0.02 per share and $8.0M.

• Parent and other companies posted a loss of $0.11 per share or $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 $23.1 billion, supporting robust investment in regulated infrastructure.

• Targeting 14%–15% FFO to debt ratio at S&P by 2025, with $2.6 billion in known cash flow improvements identified.