Eversource Energy Reports Significant Decline in Q2 2026 Net Income

Eversource Energy, through its subsidiaries including NSTAR Electric Company, reported a significant decline in financial performance for the second quarter of 2026 compared to the same period in 2025. The company recorded a net income of $53.7 million, or $0.14 per share, down from $352.7 million, or $0.96 per share, in the prior year. For the first half of 2026, net income was $660.5 million, or $1.75 per share, compared to $903.5 million, or $2.45 per share, in the first half of 2025. The results were adversely impacted by a non-cash, after-tax charge of $111.4 million related to the sale of Aquarion, the company’s water distribution business, and a $164 million charge associated with increasing its offshore wind contingent liability.

Operating revenues for the second quarter of 2026 increased to $2.9 billion, a rise of $65.1 million from $2.8 billion in the same quarter of 2025. For the first half of 2026, revenues reached $7.4 billion, up $451.2 million from $7.0 billion in the first half of 2025. The increase in revenues was primarily driven by higher base distribution rates at NSTAR Electric and PSNH, effective January 1, 2026, and August 1, 2025, respectively. However, the overall operating income decreased to $540.9 million in the second quarter, down from $663 million in the previous year, largely due to increased operating expenses, including a notable rise in purchased power and transmission costs.

In terms of operational metrics, Eversource's customer base remained stable, serving approximately 4.4 million electric and natural gas customers across Connecticut, Massachusetts, and New Hampshire. The company reported a slight decrease in electric sales volumes, with total sales volumes for the second quarter of 2026 at 11,918 GWh, down from 11,938 GWh in the same quarter of 2025. Natural gas sales volumes showed a modest increase, reflecting ongoing demand in the region.

Strategically, Eversource completed the sale of Aquarion on June 30, 2026, for approximately $2.4 billion, which included the repayment of $650 million in long-term debt. The net proceeds of about $1.7 billion are expected to be used to reduce parent company debt. Additionally, the company is actively pursuing regulatory approvals for various rate adjustments and capital projects, including a proposed increase in base distribution rates by CL&P to generate additional annual revenues of approximately $451 million. The company anticipates that these strategic moves will support its long-term growth objectives, with a projected cumulative long-term earnings per share growth rate of 5 to 7 percent through 2030.

Looking ahead, Eversource has reaffirmed its guidance for 2026 non-GAAP recurring earnings to be between $4.57 and $4.72 per share, factoring in the impact of the recent FERC decision that reduced the allowed return on equity. The company remains focused on enhancing its infrastructure and service reliability while navigating regulatory challenges and market conditions.