ESHIGH SIGNALRISK10-K

Eversource experienced a dramatic swing from $1.4B profit to -$434.7M loss while facing regulatory denial of its Aquarion water business sale.

The regulatory denial of the Aquarion sale represents a significant setback to management's strategic plans and capital allocation strategy, forcing the company to appeal the decision rather than complete the expected divestiture. The massive swing from profitability to substantial losses, despite revenue growth and higher operating income, suggests extraordinary charges or non-operating losses that warrant immediate investor scrutiny.

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

The financial picture shows a company in transition with mixed signals - revenue grew 13.8% to $13.5B and operating income increased 24.1% to $3.0B, indicating solid operational performance. However, the dramatic reversal from $1.4B net income to -$434.7M loss, combined with 26.1% higher interest expense and significantly increased current liabilities, suggests major one-time charges or write-downs that overshadowed operational gains. The 90.5% surge in operating cash flow to $4.1B provides some reassurance about underlying cash generation capabilities despite the reported losses.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+407.1%
$26.7M→$135.4M

Cash position surged 407.1% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
-130.8%
$1.4B→-$434.7M

Net income declined 130.8% — review whether driven by operations, interest costs, or non-recurring items.

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.
+7 more — sign up free →
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 .
+7 more — sign up free →
MORE RISK SIGNALS
CAPSHIGHCAPS underwent a major business expansion through acquisitions while experiencin...
2026-04-16
KALAHIGHKALA has undergone a dramatic business transformation with massive share dilutio...
2026-04-15
RAINHIGHRain Enhancement Technologies underwent a financial restatement revealing signif...
2026-04-15
POLAHIGHPOLA experienced severe financial deterioration with gross profit turning negati...
2026-04-15
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →