Eversource Energy, a major utility company in the northeastern United States, continues to evolve amid changing regulatory, environmental, and financial landscapes. In 2025, several developments are shaping its trajectory — from divestments and leadership shifts, to storm resiliency, credit rating challenges, regional power outages, and its strategic repositioning in clean energy. Below is an in-depth look at the latest news about Eversource, what they mean, and where the company may head next.
Company Overview & Operating Footprint
Before diving into the latest, a refresher:
- Eversource Energy is a publicly traded utility holding company that provides electricity, natural gas, and formerly water services in parts of Connecticut, Massachusetts, and New Hampshire. Wikipedia+2Eversource+2
- It was formed by consolidating multiple legacy utilities (e.g. Northeast Utilities, NSTAR, etc.). Wikipedia
- As of 2024–2025, Eversource serves millions of residential, commercial, and industrial customers across its service territories. Eversource+2Eversource+2
- The company’s core business remains regulated electric and gas delivery, with past ventures in water and offshore wind that are now being restructured or exited.
With that foundation, let’s examine the most significant recent events and trends.
Strategic Disposals & Refocusing on Core Utilities
Exit from Offshore Wind Projects
One of the headline moves by Eversource has been its complete exit from offshore wind investments. In September 2025, the company announced the sale of its 50% interest in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP). Eversource+2Eversource+2 The adjusted gross proceeds from the transaction were reported at US$745 million. Eversource+2Eversource+2
This move marks a clear pivot away from development in offshore wind — a sector that had been a central part of Eversource’s sustainability ambitions. Eversource+2Wikipedia+2 The rationale appears to be a desire to “lean into” regulated utility operations where revenue regimes are more predictable and risk is lower.
However, the divestment was not without financial consequences. The company flagged a net loss of US$520 million in its third quarter, largely due to liabilities and lower-than-expected sale proceeds. Reuters+2Eversource+2 The divestment loss included an estimated US$360 million in liabilities, most of which are scheduled to settle by 2026. Reuters
Importantly, the company maintains that this exit will not materially derail its core financial targets — specifically its funds from operations to debt ratio of 14–15%. Reuters+2Eversource+2
Sale of Aquarion Water Business
In a related move, Eversource also agreed to sell Aquarion Water Company, its water utility business, to a newly formed quasi-public water authority linked with the South Central Connecticut Regional Water Authority. Wikipedia+4Eversource+4Eversource+4 The deal is valued at US$2.4 billion, composed of US$1.6 billion in cash plus US$800 million in net debt. CT Insider
Eversource expects that the sale will generate a loss of about US$300 million, including approximately US$140 million in tax expense. CT Insider The intention behind the sale is to sharpen Eversource’s focus on its core regulated electric and gas operations, strengthen its balance sheet, and use the proceeds to reduce debt and reinvest. Eversource+3CT Insider+3Eversource+3
Still, the sale has drawn scrutiny from stakeholders. For example, Republican lawmakers in Connecticut have expressed concern that offloading the water business to a quasi-public entity could lead to higher water rates for constituents. CT Mirror The transaction is pending regulatory approval and is expected to close in late 2025. CT Insider+1
These two divestments collectively underscore Eversource’s strategic shift toward shedding non-core or higher-risk assets and concentrating on regulated utility operations.
Financial Performance & Dividend Policy
2025 Earnings Trends
Eversource has been reporting steady results in 2025. On July 31, 2025, it released its second quarter earnings results, showing net income of US$352.7 million (or US$0.96 per share) compared to US$335.3 million (or US$0.95/share) in the prior year’s quarter. Eversource This reflects modest growth in earnings, despite the headwinds tied to its divestitures.
Earlier, in May 2025, the company reported first-quarter earnings of US$550.8 million (US$1.50 per share), up from US$521.8 million (US$1.49) in Q1 2024. Eversource These figures suggest relative stability in its regulated operations, offsetting the volatility introduced by corporate restructuring.
Dividend Declarations & Shareholder Returns
Eversource has maintained a consistent dividend policy. In September 2025, its Board of Trustees approved a quarterly dividend of US$0.7525 per share, payable on September 30, 2025, to shareholders of record as of September 22, 2025. Eversource
This represents a continuation of its approach to returning cash to shareholders despite the disruption from strategic sales. The dividend consistency may help preserve investor confidence while the company reorganizes.
Regulatory Pressures, Credit Ratings & Risk Factors
Credit Downgrade in Connecticut Unit
One of the more concerning developments in 2025 has been Moody’s downgrading of Eversource’s Connecticut Light & Power (CL&P) credit securities, from “A3” down to “Baa1” (stable outlook). CT Insider
Moody’s cited that “[Connecticut’s] regulatory environment is one of the most stringent in the U.S.,” constraining Eversource’s ability to recover storm-related costs and reducing margin flexibility. CT Insider As of 2025, the company is grappling with about US$800 million in accumulated storm damage costs that remain unreimbursed. CT Insider
In response, Eversource has signaled a plan to reduce capital spending in Connecticut (a reduction of about US$62.3 million year-on-year in Q1), and is pushing for a more transparent and stable regulatory framework. CT Insider The credit downgrade adds borrowing constraints and raises the cost of capital for future investments in that region.
Rate Pressures & Public Scrutiny
Eversource also faces ongoing regulatory and political challenges in its service states. For instance:
- In Connecticut, the company’s electricity standard service rate (the baseline electric supply rate) is set to change, which directly affects residential consumers. Eversource
- The proposed sale of Aquarion has attracted political caution about future water rates. CT Mirror+1
- Eversource previously warned that S&P had downgraded its credit due to adverse regulatory policies in Connecticut. Eversource+2Eversource+2
In sum, regulatory risk is a significant overhang, especially in Connecticut, where stricter oversight and slower cost recovery models may dampen returns.
Storms, Outages & Resiliency Efforts
Weather events remain a recurring operational challenge for utility providers in the Northeast, and Eversource is no exception.
Recent Outages
- A nor’easter caused over 5,000 power outages across Connecticut, with Eversource attributing most outages to downed tree limbs from high winds. CT Insider
- During a period of heavy rain and cold front activity, Eversource reported more than 1,600 outages in Connecticut, with peaks in Danbury and Rocky Hill. CT Insider
- On a different day, a morning spike of 780 outages was subsequently reduced to fewer than 200 by afternoon as crews worked to restore service. CT Insider
- In Stamford, CT, a vehicular crash brought down wires and left ~1,176 customers without power. Crews managed to restore service by early afternoon. Stamford Advocate
- In New Hampshire, crews have been mobilized to restore power after a damaging wind and rainstorm. Eversource
These incidents underscore how vulnerable the grid remains to weather events, particularly in heavily forested or storm-prone regions.
Resilience & Infrastructure Upgrades
To mitigate outage impacts, Eversource has been investing in grid hardening, vegetation management, and transmission reliability projects:
- In Massachusetts, the company announced the energization (i.e. activation) of the Sudbury to Hudson Transmission Reliability Project, a joint initiative with National Grid to strengthen the regional transmission network. Eversource
- In New Hampshire, leadership changes include retirement of key executives in human resources and IT, perhaps reflecting a broader push toward operational modernization. Eversource
- Eversource is also participating as a host utility in the DTECH Northeast 2025 event, likely to showcase technological innovation and smart grid solutions. Factor This™
Still, the frequent outage events suggest the need for continued and accelerated investment in grid resilience, redundancy, and predictive maintenance systems.
Stock & Market Sentiment
From an investment perspective, Eversource’s stock has had some relative strength:
- The stock’s Relative Strength (RS) Rating rose from 64 to 75 in mid-2025, indicating improved price performance relative to peers (though still shy of the 80+ mark often favored by momentum investors). Investors
- Analysts have flagged that Eversource is forming a consolidation pattern with a potential buy point at US$69.01, which could signal upside if price breaks out with strong volume. Investors
- According to Yahoo Finance, Eversource (ticker: ES) continues to show steady valuation metrics for a regulated utility, with investor focus on dividends, stability, and risk management. Yahoo Finance
Market participants appear to recognize both the risks and the stabilizing factors — the core regulated operations serve as a ballast amid strategic changes.
Challenges & Risks Ahead
Eversource’s current decade is marked by both opportunity and risk. Some of the key issues it must navigate include:
Regulatory Environment & Cost Recovery
Perhaps the most significant risk is the regulatory regime, especially in Connecticut. The credit downgrade by Moody’s reflects ongoing difficulty Eversource faces in securing timely recovery of storm damage and capital investments. CT Insider Eversource must convincingly advocate for more transparent and stable rate mechanisms to reassure investors and regulators alike.
Execution Risk from Divestitures
Selling offshore wind and water assets can simplify the business, but they also carry execution risk. Post-sale liabilities, tax expenses, and the transition of operations require careful management to avoid unexpected financial hits. The US$520 million flagged loss in Q3 linked to the offshore wind divestment is a cautionary example. Reuters
Weather & Climate Risks
Power utilities in the Northeast face rising climate stresses: more intense storms, precipitation shifts, and volatility. Eversource’s ability to maintain reliability in such conditions is crucial. Frequent outages—not just occasional ones—can erode consumer trust and regulatory goodwill.
Capital Allocation & Debt Pressure
With credit downgrades, tighter regulatory oversight, and a renewed debt burden after divestitures, Eversource must allocate capital wisely. Its decisions on grid upgrades, maintenance, resilience, and modernization must balance short-term financial constraints with long-term system health.
Outlook & Strategic Focus
Given the range of developments, here’s how Eversource’s near-to-midterm strategic priorities may shape up:
- Stabilize in the regulated utility domain: By exiting higher-risk, non-core assets, Eversource shows its intent to consolidate and deepen strength in core delivery operations (electric, gas).
- Defend and improve regulatory relationships: Especially in Connecticut, where regulatory pressure is intense, Eversource must negotiate clearer frameworks for cost recovery and rate setting.
- Accelerate grid resilience and modernization: Continuing investments in predictive maintenance, redundancy, smart grid tools, and vegetation management will be essential in reducing outage frequency and duration.
- Manage debt, capital, and credit metrics: The company will need to carefully plan debt reduction, capex prioritization, and cash flow management to avoid future downgrades.
- Restore investor confidence: Through stable dividends, consistent earnings, and transparent communication, Eversource must maintain credibility as it navigates through transitions.
- Monitor external macro-factors: Interest rates, inflation, regulatory shifts, and climate trends will all influence Eversource’s flexibility and risk profile.
If the company executes well on these fronts, it may emerge leaner and more focused — though the path will not be easy, given the regulatory headwinds and climate pressures in its service territories.
Conclusion
Eversource in 2025 is a company in transition. Having divested major non-core assets like offshore wind and water utilities, it is doubling down on regulated electric and gas operations. While its core financials remain relatively stable, the company faces headwinds from regulatory strictness (especially in Connecticut), credit rating pressures, and the constant threat of severe weather-induced outages.
Yet opportunities remain. If Eversource can advocate for more transparent regulatory regimes, invest in grid modernization, and use its capital wisely, it has the potential to recalibrate itself for sustained utility-scale performance. The next 12–24 months will be pivotal in judging whether it successfully bridges today’s turbulence and returns to a smoother path.