Net income attributable to common shareholders rose to $606.8 million from $550.8 million YoY.
FERC order reducing base ROE to 9.57% creates a potential liability up to $932 million.
Operating income grew 16.2% to $1.08 billion, outpacing revenue growth.
PURA approval of the $2.4 billion Aquarion water business sale provides a potential deleveraging catalyst.
The Q1 2026 filing presents a company at a crossroads between operational success and regulatory volatility. While Eversource has successfully raised rates and increased its operating income, these gains are being offset by a hostile shift in FERC's stance on transmission ROE. The tension between the company's aggressive capital deployment and its mounting debt load creates a high-stakes environment for investors. The ultimate trajectory of the stock likely depends on two catalysts: the final resolution of the FERC refund obligations and the successful closing of the Aquarion sale. If Eversource can navigate these hurdles, its core distribution business remains a formidable cash generator. However, the risk of a multi-hundred-million-dollar refund and continued wind-related losses suggests that the 5-7% growth target may be overly optimistic in the current regulatory climate.