Eversource Energy (ES) Q4 2023 earnings summary

Executive summary

• FY 2023 adjusted diluted EPS was $4.34, up $0.25 YoY; GAAP loss was $442.2M, or $1.26/share, reflecting offshore wind impairments and other charges.

• Core electric and natural gas distribution and transmission operations remain the strategic focus, with investment and regulatory recovery supporting growth.

Financial highlights

• Q4 2023 adjusted diluted EPS was $0.95 versus $0.92 in Q4 2022; reported EPS was $(3.68) versus $0.92.

• FY 2023 adjusted diluted EPS was $4.34 versus $4.09 in 2022; reported EPS was $(1.26) versus $4.05.

• FY 2023 reported loss was $442.2M versus earnings of $1,404.9M in 2022; Q4 loss was $1,288.5M versus earnings of $320.2M in Q4 2022.

• After-tax offshore wind impairment charges were $1,953M for FY 2023 and $1,622M for Q4; other non-recurring costs were $6.9M for FY 2023.

Outlook and guidance

• 2024 diluted EPS guidance is $4.50–$4.67; drivers include transmission investment, MA and NH base-rate changes, lower O&M and tax rates, and higher depreciation, property taxes, interest expense and share dilution.

• EPS growth target is 5%–7% through 2028 off the 2023 adjusted EPS base; rate base is projected to grow at a 7.7% CAGR, from $25.4B in 2022 to $39.6B in 2028.

• Planned core-business capital expenditures total $23.1B for 2024–2028.

• 2024–2025 FFO/debt target is 14%–15% at S&P; cited drivers include offshore wind proceeds, tax equity, rate increases, deferral and storm-cost recovery, equity issuances and a water sale.