ESMEDIUM SIGNALREGULATORY10-K

Eversource's Aquarion water business sale faced regulatory denial requiring an appeal, while the company showed strong financial performance across key metrics.

The regulatory setback on the Aquarion divestiture creates uncertainty around the timeline and ultimate success of this strategic initiative, potentially affecting capital allocation plans. However, the company's core utility operations appear robust, with meaningful growth in operating income and revenue supporting the underlying business strength.

Comparing 2026-02-17 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

Eversource delivered solid financial performance with revenue growing 13.8% to $13.5B and operating income expanding 24.1% to $3.0B, indicating strong operational execution. Operating cash flow grew substantially to $4.1B, demonstrating enhanced cash generation capabilities. Interest expense increased 26.1% to $855.4M, reflecting higher debt levels or borrowing costs, while current liabilities rose 16.2% to $7.8B, suggesting increased short-term obligations.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+90.5%
$2.2B→$4.1B

Operating cash flow surged 90.5% — exceptional cash generation, highest quality earnings signal.

Interest Expense
P&L
+26.1%
$678.3M→$855.4M

Interest costs rose 26.1% — monitor debt levels and coverage ratio in rising rate environment.

Operating Income
P&L
+24.1%
$2.4B→$3.0B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Current Liabilities
Balance Sheet
+16.2%
$6.7B→$7.8B

Current liabilities rose 16.2% — increased short-term obligations, watch current ratio.

Revenue
P&L
+13.8%
$11.9B→$13.5B

Revenue growing 13.8% — solid top-line momentum, watch margins for quality of growth.

Accounts Receivable
Balance Sheet
+11.9%
$1.7B→$1.8B

Receivables grew 11.9% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-14
ADDED
For information regarding the sale status of Aquarion, regulatory denial and subsequent appeal, see "Business Development and Capital Expenditures Aquarion Sale Status and Regulatory Denial" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations .
As of December 31, 2025, CL P furnished retail franchise electric service to approximately 1.32 million customers in 157 cities and towns in Connecticut.
3 CL P is required by both state legislation and regulation to purchase electric generation from Millstone and Seabrook under PURA-approved PPAs entered in 2019.
The net cost or net sales amount is recovered from, or refunded to, customers in the non-bypassable component of the FMCC rate.
During 2025, CL P supplied approximately 50 percent of its customer load at SS or LRS rates while the other 50 percent of its customer load had migrated to competitive energy suppliers.
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REMOVED
FMCC Federally Mandated Congestion Charge GAAP Accounting principles generally accepted in the United States of America GSEP Gas System Enhancement Program i GWh Gigawatt-Hours IPP Independent Power Producers ISO-NE Tariff ISO-NE FERC Transmission, Markets and Services Tariff kV Kilovolt kVa Kilovolt-ampere kW Kilowatt (equal to one thousand watts) LNG Liquefied natural gas LPG Liquefied petroleum gas LRS Supplier of last resort service MG Million gallons MGP Manufactured Gas Plant MMBtu Million British thermal units MMcf Million cubic feet Moody's Moody's Investors Services, Inc.
Other risk factors are detailed in our reports filed with the SEC and are updated as necessary and available on our website at www.eversource.com and on the SEC s website at www.sec.gov, and we encourage you to consult such disclosures.
Eversource is currently in the process of selling its Aquarion water distribution business.
For further information, see "Business Development and Capital Expenditures Pending Sale of Aquarion" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations .
For more information, see "Business Development and Capital Expenditures Offshore Wind Business" in the accompanying Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations .
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