Eversource Energy ES

NYSE ES

$64.64 +0.14 (+0.22%)

As of: Oct 5, 2026 · 3:59 PM EDT

Eversource Energy (ES) stock price is $64.64, up 0.22% on the day, as of Oct 5, 2026. It has a market cap of $24.25Bn and a P/E ratio of 13.87, and is classified in the Regulated Electric Utilities industry (Utilities sector).

Key Stats

Market Cap24.25 Bn

P/E13.87

P/S1.74

Div. Yield4.84

Total Debt (Qtr)29.62 Bn

Revenue Growth (1y) (Qtr)9.37

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About

Eversource Energy is a public utility holding company engaged primarily in the energy delivery business through its wholly-owned utility subsidiaries. The company operates regulated electric, natural gas, and water distribution utilities across Connecticut, Massachusetts, and New Hampshire. Its core activities include purchasing, delivering, and selling electricity and natural gas to retail customers, as well as providing water services and maintaining transmission…

Eversource Energy generates revenue through the sale and delivery of electricity, natural gas, and water to residential, commercial, industrial, and municipal customers. Revenue is derived from regulated rates approved by state public utility commissions, which include charges for supply, delivery, transmission, and public benefits. The company does not earn a return on the cost of electricity or natural gas supplied but earns returns on investments in delivery and transmission infrastructure through approved rate mechanisms.

The company operates through the following segments: electric distribution, electric transmission, natural gas distribution and water distribution.

Electric distribution: This segment consists of the distribution businesses of CL&P, NSTAR Electric and PSNH, which are engaged in the distribution of electricity to retail customers in Connecticut, Massachusetts and New Hampshire, respectively, and the solar power facilities of NSTAR Electric. NSTAR Electric owns, operates and maintains a total of 70 MW of solar power facilities on twenty-two sites in Massachusetts. The segment serves approximately 1.32 million customers in Connecticut, 1.62 million in Massachusetts and 549,000 in New Hampshire as of December 31, 2025.
Electric transmission: This segment involves CL&P, NSTAR Electric and PSNH each owning and maintaining transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England. The segment supports coordinated planning and operation of regional transmission facilities under agreements with ISO-NE. At the end of 2025, the estimated transmission rate base was approximately $11.3 billion, including $4.6 billion at CL&P, $4.4 billion at NSTAR Electric and $2.3 billion at PSNH.
Natural gas distribution: This segment includes NSTAR Gas, EGMA and Yankee Gas, which distribute natural gas to approximately 306,000 customers in Massachusetts, 335,000 in Massachusetts and 256,000 in Connecticut. Total throughput in 2025 was approximately 69.9 Bcf for NSTAR Gas, 56.6 Bcf for EGMA and 61.6 Bcf for Yankee Gas. The segment provides firm and interruptible natural gas sales and transportation service to eligible retail customers.
Water distribution: This segment is operated by Aquarion Company, which owns five separate regulated water utility subsidiaries. Aquarion provides water services to approximately 249,000 residential, commercial, industrial, municipal and fire protection customers in 73 towns and cities across Connecticut, Massachusetts and New Hampshire. As of December 31, 2025, approximately 91 percent of Aquarion’s customers were based in Connecticut. The segment obtains water supplies from owned surface water sources and groundwater supplies with a total supply yield of approximately 135 million gallons per day.

Eversource Energy holds a dominant position as the largest energy provider in New England, serving a significant share of electric and natural gas customers across its three-state service territory. The company competes with other regulated utilities and benefits from its scale, integrated operations and regulatory approvals for rate recovery on infrastructure investments. Its transmission segment plays a critical role in the regional power grid, enabling reliable electricity delivery across New England.

Eversource Energy serves residential, commercial, industrial and municipal customers in Connecticut, Massachusetts and New Hampshire. Specific customer bases include approximately 1.32 million electric customers in Connecticut served by CL&P, 1.62 million in Massachusetts served by NSTAR Electric and 549,000 in New Hampshire served by PSNH. Natural gas customers total approximately 306,000 for NSTAR Gas, 335,000 for EGMA and 256,000 for Yankee Gas. Water services are provided to approximately 249,000 customers through Aquarion’s regulated utilities.

Investment Thesis

▲ Bull case

Eversource Energy is positioned to benefit significantly from regulatory progress in storm cost securitization, with Connecticut and New Hampshire laws enabling recovery of approximately $2 billion in deferred storm costs and carrying charges over the next 12 to 18 months, which will materially improve FFO-to-debt metrics and provide immediate cash flow relief while addressing affordability concerns, as explicitly noted by management as a key near-term catalyst that strengthens the balance sheet without requiring equity dilution. This securitization pathway, already legislatively approved in both states, represents a de-risked source of liquidity that management is actively pursuing, with New Hampshire filings expected imminently and Connecticut’s final PURA decision anticipated in July 2026, creating a predictable timeline for cash infusion that supports ongoing capital investments and reduces reliance on external financing amid elevated interest rates. The company’s strategic focus on this initiative, highlighted by both Nolan and Moreira, underscores its confidence in executing this plan efficiently, which will directly enhance financial flexibility and support the reaffirmed long-term earnings growth target of 5% to 7% off the revised 2026 guidance midpoint.
The ongoing FERC ROE proceeding presents a meaningful upside catalyst through Eversource’s Section 205 filing, which, using current market data and FERC’s own methodology, derives a just and reasonable base ROE of 11.39%—well above the current 9.57% rate—and includes a proposal to raise the ROE cap on transmission investments to 12.89%, a development management views as potentially settlement-ready later this year, with the appointment of a settlement judge expected within 60 days of filing and a path to implementation subject to refund by year-end, which would reverse the approximately $70 million annual after-tax earnings drag from the March decision and unlock higher returns on the company’s $26.5 billion five-year capital plan, particularly in transmission where continued investment has historically delivered billions in customer savings through congestion reduction. Despite the initial negative guidance impact, the legal and procedural steps taken—including the stay motion, rehearing request, and extended refund deadline to May 2027—demonstrate a disciplined, multi-pronged approach to challenging an arbitrary decision based on outdated data, with Moreira explicitly noting confidence in the legal merits and the potential for a favorable outcome that aligns with the need to attract capital for grid modernization amid rising regional electricity demand projections of 15% by 2035 and 50% by 2045 per ISO New England, as cited in the Massachusetts executive order.
Eversource Energy’s strategic alignment with state-led energy initiatives, particularly Massachusetts’ executive order to expand energy resources and modernize infrastructure in response to rising demand and federal policy shifts, creates a durable growth runway through increased opportunities to interconnect clean energy projects like Revolution Wind (95% complete, expected COD H2 2026) and Clean Energy Connect, while actively resisting low-value loads such as data centers that would strain the grid and increase customer costs, a stance reiterated by Nolan as a deliberate prioritization of residential affordability and system stability, which positions the company as a critical enabler of state energy goals without compromising its core service mandate, thereby reducing regulatory friction and enhancing the likelihood of favorable rate case outcomes in upcoming proceedings like the CL&P filing later this year, where the company aims to demonstrate the value of eight years of reliability investments in a constructive, customer-focused manner that supports stable, predictable rates and aligns with PURA’s recent RAM decision approving storm reserve funding and forecast-based rate setting—a model Eversource has long advocated for and which enhances cash flow predictability.

Eversource Energy is positioned to benefit significantly from regulatory progress in storm cost securitization, with Connecticut and New Hampshire laws enabling recovery of approximately $2 billion in deferred storm costs and carrying charges over the next 12 to 18 months, which will materially improve FFO-to-debt metrics and provide immediate cash flow relief while addressing affordability concerns, as explicitly noted by management as a key near-term catalyst that strengthens the balance sheet without requiring equity dilution. This securitization pathway, already legislatively approved in both states, represents a de-risked source of liquidity that management is actively pursuing, with New Hampshire filings expected imminently and Connecticut’s final PURA decision anticipated in July 2026, creating a predictable timeline for cash infusion that supports ongoing capital investments and reduces reliance on external financing amid elevated interest rates. The company’s strategic focus on this initiative, highlighted by both Nolan and Moreira, underscores its confidence in executing this plan efficiently, which will directly enhance financial flexibility and support the reaffirmed long-term earnings growth target of 5% to 7% off the revised 2026 guidance midpoint.
The ongoing FERC ROE proceeding presents a meaningful upside catalyst through Eversource’s Section 205 filing, which, using current market data and FERC’s own methodology, derives a just and reasonable base ROE of 11.39%—well above the current 9.57% rate—and includes a proposal to raise the ROE cap on transmission investments to 12.89%, a development management views as potentially settlement-ready later this year, with the appointment of a settlement judge expected within 60 days of filing and a path to implementation subject to refund by year-end, which would reverse the approximately $70 million annual after-tax earnings drag from the March decision and unlock higher returns on the company’s $26.5 billion five-year capital plan, particularly in transmission where continued investment has historically delivered billions in customer savings through congestion reduction. Despite the initial negative guidance impact, the legal and procedural steps taken—including the stay motion, rehearing request, and extended refund deadline to May 2027—demonstrate a disciplined, multi-pronged approach to challenging an arbitrary decision based on outdated data, with Moreira explicitly noting confidence in the legal merits and the potential for a favorable outcome that aligns with the need to attract capital for grid modernization amid rising regional electricity demand projections of 15% by 2035 and 50% by 2045 per ISO New England, as cited in the Massachusetts executive order.
Eversource Energy’s strategic alignment with state-led energy initiatives, particularly Massachusetts’ executive order to expand energy resources and modernize infrastructure in response to rising demand and federal policy shifts, creates a durable growth runway through increased opportunities to interconnect clean energy projects like Revolution Wind (95% complete, expected COD H2 2026) and Clean Energy Connect, while actively resisting low-value loads such as data centers that would strain the grid and increase customer costs, a stance reiterated by Nolan as a deliberate prioritization of residential affordability and system stability, which positions the company as a critical enabler of state energy goals without compromising its core service mandate, thereby reducing regulatory friction and enhancing the likelihood of favorable rate case outcomes in upcoming proceedings like the CL&P filing later this year, where the company aims to demonstrate the value of eight years of reliability investments in a constructive, customer-focused manner that supports stable, predictable rates and aligns with PURA’s recent RAM decision approving storm reserve funding and forecast-based rate setting—a model Eversource has long advocated for and which enhances cash flow predictability.

▼ Bear case

Eversource Energy faces material near-term earnings pressure from the FERC ROE decision, which reduced the base transmission return from 10.57% to 9.57% and triggered an after-tax charge of $43.9 million ($0.12 per share) in Q1 2026, with management acknowledging that the change is expected to lower future after-tax earnings by approximately $70 million annually for 2026, a significant headwind that directly contradicts the company’s long-term 5% to 7% earnings growth target and was not offset by operational improvements in other segments, as the $0.23 per share non-GAAP EPS increase year-over-year was driven almost entirely by gas and distribution rate base increases, leaving transmission—a core, capital-intensive segment—structurally impaired by a regulatory outcome management itself describes as “arbitrary and capricious” and based on evidence over a decade old, raising concerns about the sustainability of returns on its $26.5 billion five-year capital plan if the current rate persists or if legal challenges fail to overturn the decision, particularly given the extended refund period through May 2027 and the company’s admission that it booked the refund under protest while acknowledging it is subject to the 15-month period under the Federal Power Act.
The company’s reliance on securitization for storm cost recovery, while legislatively enabled in Connecticut and New Hampshire, introduces execution and timing risks that management understated, as New Hampshire filings are hoped for “soon” but not guaranteed, with completion targeted for a “reasonable timeframe” by late 2027—potentially extending beyond the 12 to 18 month window cited—while Connecticut’s recovery is contingent on a final PURA decision in July 2026 followed by legislative-backed securitization, a process that remains subject to regulatory approval and potential delays, and though PURA authorized a $100 million storm reserve and forecast-based rate setting in the RAM decision, these are interim measures that do not replace the need for full cost recovery, leaving Eversource exposed to ongoing carrying charges on deferred storm costs if securitization is delayed, which would continue to drag on cash flow and FFO-to-debt metrics despite the positive framing of these mechanisms as near-term catalysts.
Eversource Energy’s equity financing needs over the next five years, ranging from $800 million to $1.1 billion, remain elevated and are not being adequately addressed by near-term cash inflows, as the $1.5 billion from the February 2026 junior subordinated notes offering—while oversubscribed—represents debt, not equity, and the anticipated $2 billion from storm securitization proceeds, though significant, is debt-like in nature and does not reduce the underlying equity requirement for funding the $26.5 billion capital plan, meaning the company may still need to access equity markets despite expressing no urgency to do so, a stance that could prove problematic if securitization timelines slip, FERC litigation prolongs, or interest rates remain high, increasing the cost of any future equity issuance and potentially pressuring valuation, especially given that management’s confidence in avoiding near-term equity issuance is contingent on the successful and timely execution of multiple complex, externally dependent transactions—storm securitization in two states, FERC settlement, and Aquarion closing—any delay or failure in which would force a reconsideration of financing priorities and undermine the narrative of balance sheet strength reflected in current FFO-to-debt metrics of 14.2%–14.5%, which, while above downgrade thresholds, leave limited cushion for adverse developments.

Eversource Energy faces material near-term earnings pressure from the FERC ROE decision, which reduced the base transmission return from 10.57% to 9.57% and triggered an after-tax charge of $43.9 million ($0.12 per share) in Q1 2026, with management acknowledging that the change is expected to lower future after-tax earnings by approximately $70 million annually for 2026, a significant headwind that directly contradicts the company’s long-term 5% to 7% earnings growth target and was not offset by operational improvements in other segments, as the $0.23 per share non-GAAP EPS increase year-over-year was driven almost entirely by gas and distribution rate base increases, leaving transmission—a core, capital-intensive segment—structurally impaired by a regulatory outcome management itself describes as “arbitrary and capricious” and based on evidence over a decade old, raising concerns about the sustainability of returns on its $26.5 billion five-year capital plan if the current rate persists or if legal challenges fail to overturn the decision, particularly given the extended refund period through May 2027 and the company’s admission that it booked the refund under protest while acknowledging it is subject to the 15-month period under the Federal Power Act.
The company’s reliance on securitization for storm cost recovery, while legislatively enabled in Connecticut and New Hampshire, introduces execution and timing risks that management understated, as New Hampshire filings are hoped for “soon” but not guaranteed, with completion targeted for a “reasonable timeframe” by late 2027—potentially extending beyond the 12 to 18 month window cited—while Connecticut’s recovery is contingent on a final PURA decision in July 2026 followed by legislative-backed securitization, a process that remains subject to regulatory approval and potential delays, and though PURA authorized a $100 million storm reserve and forecast-based rate setting in the RAM decision, these are interim measures that do not replace the need for full cost recovery, leaving Eversource exposed to ongoing carrying charges on deferred storm costs if securitization is delayed, which would continue to drag on cash flow and FFO-to-debt metrics despite the positive framing of these mechanisms as near-term catalysts.
Eversource Energy’s equity financing needs over the next five years, ranging from $800 million to $1.1 billion, remain elevated and are not being adequately addressed by near-term cash inflows, as the $1.5 billion from the February 2026 junior subordinated notes offering—while oversubscribed—represents debt, not equity, and the anticipated $2 billion from storm securitization proceeds, though significant, is debt-like in nature and does not reduce the underlying equity requirement for funding the $26.5 billion capital plan, meaning the company may still need to access equity markets despite expressing no urgency to do so, a stance that could prove problematic if securitization timelines slip, FERC litigation prolongs, or interest rates remain high, increasing the cost of any future equity issuance and potentially pressuring valuation, especially given that management’s confidence in avoiding near-term equity issuance is contingent on the successful and timely execution of multiple complex, externally dependent transactions—storm securitization in two states, FERC settlement, and Aquarion closing—any delay or failure in which would force a reconsideration of financing priorities and undermine the narrative of balance sheet strength reflected in current FFO-to-debt metrics of 14.2%–14.5%, which, while above downgrade thresholds, leave limited cushion for adverse developments.

Peer group

Peer Comparison

Companies in the Regulated Electric Utilities

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S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ENIC	Enel Chile S.A.	287.73 Bn	217.32	24.79	-
2	NEE	Nextera Energy Inc	160.25 Bn	17.21	5.58	108.46 Bn
3	SO	Southern Co	96.31 Bn	20.44	3.19	75.58 Bn
4	DUK	Duke Energy CORP	88.79 Bn	17.47	2.68	90.25 Bn
5	NGG	National Grid Plc	79.16 Bn	16.82	3.34	-6.27 Bn
6	AEP	American Electric Power Co Inc	65.09 Bn	23.56	2.86	52.84 Bn
7	D	Dominion Energy, Inc	53.95 Bn	21.28	2.98	53.22 Bn
8	ES	Eversource Energy	24.25 Bn	13.87	1.74	29.62 Bn

Eversource Energy ES

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