Eversource Reports Q1 Earnings Beat, Reaffirms Lowered Guidance Amid Major FERC ROE Decision & Aquarion Sale Uncertainty
ES is trading near its 52-week low of $59.4 (13% above the low).
Summary
Eversource Energy reported a Q1 earnings beat but reaffirmed its previously lowered 2026 guidance, primarily due to a significant FERC ROE decision resulting in a $60.4 million charge and ongoing uncertainty surrounding the $2.4 billion Aquarion water business sale.
Key Events · Earnings and Guidance · ES
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Q1 Earnings Beat with Lowered Guidance Reaffirmed
Eversource reported Q1 2026 GAAP EPS of $1.61, up from $1.50 in Q1 2025. Non-GAAP EPS was $1.73, excluding a $0.12/share FERC charge. However, the company reaffirmed its lowered 2026 non-GAAP EPS guidance range of $4.57-$4.72, reflecting the impact of the FERC ROE decision and Aquarion sale uncertainty.
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Significant FERC ROE Decision Impact
A March 19, 2026 FERC decision lowered the base Return on Equity (ROE) to 9.57% (from 10.57%) for the transmission segment, resulting in a $60.4 million pre-tax charge ($43.9 million after-tax, or $0.12/share) for the first complaint period. The company estimates a reasonably possible pre-tax loss range of $60.4 million to $932 million, with ongoing legal challenges.
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Aquarion Water Business Sale Faces Continued Uncertainty
PURA approved the $2.4 billion Aquarion sale on March 25, 2026, following a court remand. However, legal opposition and potential appeals introduce significant uncertainty, preventing the business from being classified as 'held for sale' as of March 31, 2026.
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Reduction in Offshore Wind Contingent Liability
Payments made in Q1 2026 reduced the offshore wind contingent liability from $448.2 million to $298.2 million, related to cost overruns for the Revolution Wind project.
Analysis · ES · Energy & Transportation
This 10-Q provides comprehensive details following the recent 8-K and news reports, confirming Eversource's Q1 earnings beat but reiterating its lowered 2026 guidance. The most significant development is the detailed impact of the FERC ROE decision, which resulted in a $60.4 million pre-tax charge and a potential loss range up to $932 million, directly affecting the company's transmission segment earnings and future profitability. While the Aquarion sale received regulatory approval, ongoing legal opposition introduces material uncertainty, preventing its classification as 'held for sale.' Investors should monitor the outcome of the FERC rehearing request and the Aquarion sale's legal challenges, as these events carry substantial financial implications for Eversource's future earnings and strategic direction.
At the time of this filing, ES was trading at $67.03 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $25.2B. The 52-week trading range was $59.40 to $76.41. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.