EVERSOURCE ENERGY 8-K

What Happened

• Eversource Energy (filed on July 1, 2026) announced it completed the sale of Aquarion Water Company on June 30, 2026 to the Aquarion Water Authority (a quasi‑public corporation and political subdivision of Connecticut). The total purchase price was $2.4 billion in cash.
• Eversource said the adjusted net equity proceeds are approximately $1.7 billion and will be used to displace Eversource debt. The company expects to record an after‑tax, non‑cash, non‑recurring charge of about $115 million (approximately $0.31 per share) in Q2 2026 related to the sale. A news release was attached as Exhibit 99.1 to the 8‑K.

Key Details

• Closing date: June 30, 2026; 8‑K filed July 1, 2026.
• Buyer: Aquarion Water Authority (quasi‑public, political subdivision of Connecticut).
• Consideration: $2.4 billion in cash; adjusted net equity proceeds ≈ $1.7 billion (to reduce debt).
• Expected accounting impact: ~ $115M after‑tax non‑cash, non‑recurring charge (~$0.31/share) in Q2 2026.
• Presentation notes: Eversource disclosed non‑GAAP measures excluding the loss on sale and a separate FERC ROE charge and said it will not reconcile recurring non‑GAAP EPS guidance to GAAP for 2026 due to uncertainty.

Why It Matters

• The transaction generates significant cash that management plans to use to pay down debt, which can affect the company’s leverage and interest expense going forward.
• The $115M one‑time accounting charge will reduce reported GAAP Q2 2026 earnings, but management is highlighting non‑GAAP recurring results that exclude this and a separate FERC‑related charge to show underlying operating performance.
• Investors should note the use of non‑GAAP measures and that Eversource did not provide a reconciliation for forward guidance because the timing and amount of future items are uncertain.