Eversource Q1 2026: EPS Beat Offset by FERC ROE Cut, $2B Storm Securitization Ahead

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What changed

Q1 non-GAAP EPS came in at $1.73 versus $1.63 estimated (a 6.1% beat), with revenue of $4.50 billion beating the $4.21 billion estimate by 7.1%. GAAP EPS was $1.61. The major new development was the FERC decision on March 19, 2026, which reduced the base transmission ROE to 9.57% and created a $70 million earnings headwind. Eversource responded with a Section 205 filing proposing an 11.39% ROE. Separately, New Hampshire enacted storm-cost securitization legislation (House Bill 1539) enabling recovery of approximately $2 billion in deferred storm costs. The Aquarion sale received PURA approval but cannot close until an appeal period ending mid-June 2026 expires. If the sale does not close, Eversource plans an $88 million rate increase to fund water infrastructure. The stock's event reaction was modestly negative at -1.85% (benchmark down 0.31%), but it subsequently drifted +5.31% on 1.9x normal volume.

Guidance delta

Prior quarter (FY2025 Q4): 2026 EPS guidance raised to $4.80-$4.95 with expectations of stronger earnings growth from 2027 onward; capex outlook described as increasing after the 5-year plan was raised by $2.3B to $26.5B. Current quarter (FY2026 Q1): guidance sentiment lowered, reflecting the $70M FERC ROE headwind; capex outlook now stable at $5.1B for 2026. Management reaffirmed long-term earnings growth of 5-7%.

Key takeaways

• Q1 2026 non-GAAP EPS of $1.73 beat the $1.63 estimate by 6.1%; revenue of $4.50B beat the $4.21B estimate by 7.1%. GAAP EPS was $1.61.
• FERC lowered the base transmission ROE to 9.57% on March 19, 2026, creating a $70M earnings headwind; Eversource filed a Section 205 proposal seeking an 11.39% ROE.
• Storm-cost securitization in Connecticut and New Hampshire is expected to deliver approximately $2B of cash over the next 12-18 months.
• Revolution Wind is approximately 95% built, adding ~1.4 GW of clean capacity; Clean Energy Connect is also nearing completion.
• Aquarion sale received PURA approval but awaits an appeal period ending mid-June 2026; if the sale does not close, an $88M rate increase is planned to fund water infrastructure.
• Guidance sentiment shifted from raised (prior quarter) to lowered this quarter; long-term earnings growth target of 5-7% was reaffirmed.

Management priorities

• Finalize Revolution Wind and Clean Energy Connect projects and integrate new megawatts into the grid.
• Pursue storm-cost securitization in Connecticut and New Hampshire to unlock approximately $2B in cash.
• File CL&P rate case with PURA and seek rate adjustments.
• Continue capital investments under the $26.5B five-year plan, targeting $5.1B in 2026 capex.
• Resolve FERC ROE through litigation and the Section 205 filing for an 11.39% ROE.
• Complete the Aquarion sale or implement the $88M rate increase alternative.