Eversource Energy, the largest regulated utility in New England, is drawing fresh market attention as it completes its transformation into a pure-play electric and gas provider following the sale of its water utility and a full exit from offshore wind ventures.
The company, which traces its corporate roots back to an 1878 predecessor established the same year Thomas Edison worked on the incandescent light bulb, has evolved through major regional integrations. Formally assembled as Northeast Utilities in 1966 and rebranded in 2015 after merging with NSTAR, the enterprise delivers power and natural gas across Connecticut, New Hampshire, and Massachusetts. It operates with $64 billion in total assets serving approximately 4.6 million customers.
Cleaning Up the Balance Sheet After Offshore Wind Losses
Market observers note that the stock lagged behind regional peers over a five-year trailing stretch, compounding at just 1.3% annually. That underperformance stemmed directly from an offshore wind venture that generated a $1.26 per share net loss in fiscal 2023.
Management subsequently sold out of offshore wind entirely. Following that exit, earnings per share recovered to $2.27 in 2024 and reached $4.56 GAAP in 2025. The restructuring advanced further when Eversource closed the sale of Aquarion, a water utility it previously owned, finalizing its pivot into a pure-play regulated electric and gas operation.
Capital Expenditure Plans and Regional Electrification Demand
Electricity consumption in New England is projected to grow 15% by 2035 and 50% by 2045, driven by expanding data centers and rising electric vehicle adoption. Because utility operators earn a regulated return on capital investments in physical infrastructure, the anticipated demand growth dictates a heavy capital expenditure cycle.
To meet this rising load, Eversource is planning $26.5 billion of investment from 2026 through 2030.
- $11.2 billion allocated toward electric distribution infrastructure
- $7.2 billion designated for transmission networks
- $6.8 billion directed at natural gas systems
Additionally, Massachusetts regulators approved the company’s Electric Sector Modernization Plan
targeting a substantial increase in electrification investment to support millions of electric vehicles and residential heat pumps statewide.
Regulatory Headwinds and Current Financial Guidance
Despite strong underlying demand, the utility faces near-term margin pressures from state and federal regulators. Regulators reduced the base return on equity for New England transmission owners from 10.57% to 9.57%, creating roughly a $70 million annual after-tax hit for the firm.
That reduction forced management to adjust 2026 non-GAAP EPS guidance down to a range of $4.57 to $4.72, compared with the previous $4.80 to $4.95 expectation. Even after absorbing a $43.9 million after-tax charge in the first quarter, the company outperformed expectations by posting $1.73 in non-GAAP EPS against a $1.59 consensus estimate.
Management maintains a long-term growth projection of 5% to 7% EPS expansion through 2030, targeting the upper half of that range by 2028. Shares currently trade at approximately 16 times forward earnings with a 4.2% dividend yield, following a 5% dividend increase to $3.15 annualized.
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