Eversource Q2 income plunges on transmission ROE, offshore wind charges
Eversource Energy reported Q2 2026 income of $53.7 million, down from $352.7 million a year earlier, citing one-time charges including $111.4 million tied to its Aquarion sale, $62 million for a transmission ROE refund, and $164 million from offshore Revolution Wind liability increases. EPS fell to 14 cents. The company reaffirmed 2026 ongoing income guidance of $4.57 to $4.72 per share and expects 5% to 7% annual EPS growth through 2030.
How this was made
The 30-second read
Why it matters
Reported Q2 earnings were heavily impacted by one-time charges tied to the Aquarion sale, a pending transmission ROE refund, and increased offshore wind liability. However, the company reaffirmed its 2026 ongoing EPS range and reiterated longer-term adjusted EPS growth through 2030, while also citing stop-work orders that could raise offshore wind costs.
Market read
Traders should focus on the magnitude of one-time earnings charges, the quantified ROE refund exposure, and whether reaffirmed guidance offsets concerns about regulatory and offshore wind cost risk.
What to watch
The CP&L advanced metering infrastructure proposal has a negative net present value per Jefferies, which could become a separate regulatory overhang beyond the ROE refund exposure.
Background
Eversource is navigating FERC’s mid-March decision that New England transmission ROEs were too high, alongside execution and policy risks tied to offshore wind and grid investment plans.
Ticker impact
Eversource reported Q2 income of $53.7M vs $352.7M a year ago, driven by Aquarion sale charges, transmission ROE refund, and offshore Revolution Wind liability increases.
Near-term sentiment likely negative on earnings quality and ROE refund exposure, partially offset by reaffirmed EPS outlook and continued project progress.
The article discloses sizable specific charges ($111.4M, $62M, $164M) and quantifies potential ROE-related refunds up to $968.4M, which can affect investor perception even with guidance reiterated.
Market effects
Reinforces ongoing regulatory ROE pressure and the earnings volatility utilities face from transmission return mechanisms and offshore project risk.
ISO-NE transmission selection and New England affordability framing may influence regional grid investment expectations and congestion cost narratives.
Offshore wind stop-work orders and liability increases highlight cross-border supply chain and policy risk for US offshore wind developers and partners.
Counterpoint
Despite the earnings plunge, management reaffirmed 2026 ongoing EPS ($4.57 to $4.72) and said Revolution Wind is 97% complete, suggesting the market may over-discount non-recurring items.
Key entities
- companyEversource Energy
Utility reporting Q2 earnings plunge and reaffirming 2026 ongoing EPS guidance amid ROE refund and offshore wind liability charges.
- market_operatorISO New England
Tentatively selected a $2.2B transmission project proposal with a 2032 in-service date.
- regulatorFederal Energy Regulatory Commission (FERC)
Issued a mid-March decision that New England transmission ROEs were too high, driving potential refunds.
- projectRevolution Wind
704-MW offshore wind project 97% complete, delayed by stop-work orders and associated liability increases.
- regulatorConnecticut Public Utilities Regulatory Authority (CPURA)
Regulatory body for CP&L’s proposed advanced metering infrastructure initiative and rate-related filings.
