Eversource Energy Q1 Earnings in Line With Estimates, Revenues Beat

Eversource Energy ES reported first-quarter 2025 adjusted earnings of $1.50 per share, in line with the Zacks Consensus Estimate. The bottom line increased 0.7% from the year-ago figure of $1.49. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total Revenues of ES

Revenues of $4.12 billion beat the Zacks Consensus Estimate of $3.65 billion by 12.7%. Total revenues also increased 23.7% from the year-ago figure of $3.33 billion.

Highlights of ES’ Q1 Results

Total operating expenses were $3.19 billion, up 28.1% year over year due to higher purchased power, purchased natural gas and transmission, higher operations and maintenance expenses and increased depreciation and amortization expenses.

Operating income totaled $926.4 million, up 9.5% year over year.

Interest expenses amounted to $300.8 million, 20% higher than the prior-year level.

ES’ Segmental Performance

Electric Transmission: Earnings totaled $199.4 million, up 12.8% year over year. This was due to a higher level of investment in Eversource Energy’s electric transmission system.

Electric Distribution: Earnings amounted to $188.4 million, up 12.1% year over year. This was due to higher revenues from base distribution rate increases at Eversource's New Hampshire and Massachusetts electric businesses, and continued investments in its distribution system.

Natural Gas Distribution: This segment reported earnings of $218.4 million compared with $190.6 million in the year-ago quarter.

Water Distribution: Earnings amounted to $3.6 million compared with $5.4 million in the year-ago quarter.  

Eversource Parent & Other Companies: The segment reported a loss of $59 million, wider than the year-ago quarter’s reported loss of $19 million. This was due to higher interest expense on account of the absence of capitalized interest as a result of the sale of its offshore wind investments, and higher interest costs from its long-term debt.

ES’ Guidance

Eversource Energy continues to expect 2025 earnings in the range of $4.67-$4.82 per share. The Zacks Consensus Estimate is pegged at $4.73 per share, lower than the midpoint of the company’s guided range.

ES expects the long-term EPS growth rate to be between 5% and 7% through 2029, using $4.57 (in 2024) as a base.

The company expects capital investments of nearly $24.2 billion for 2025-2029.

ES’ Zacks Rank

Eversource Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utility Releases

ONE Gas OGS is slated to report first-quarter results on May 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.85 per share.

OGS’ long-term (three to five years) earnings growth rate is 5.56%. The Zacks Consensus Estimate for 2025 sales is pinned at $2.34 billion, implying a year-over-year increase of 12.4%.

Evergy EVRG is slated to report first-quarter results on May 8, before market open. The Zacks Consensus Estimate for earnings is pegged at 66 cents per share.

EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 sales is pinned at $5.98 billion, implying a year-over-year increase of 2.3%.

Alliant Energy LNT is slated to report first-quarter results on May 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 57 cents per share.

LNT’s long-term earnings growth rate is 6.73%. The Zacks Consensus Estimate for first-quarter sales is pinned at $1.13 billion, which implies a year-over-year improvement of 9.2%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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