Good day, and thank you for standing by. Welcome to the Eversource Energy Fourth Quarter and Full Year 2025 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rima Hyder, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you for joining us today on the full year and fourth quarter 2025 earnings call. During this call, we'll be referencing slides that we posted on our website. As you can see on Slide 1, some of the statements made during this investor call may be forward-looking. These statements are based on management's current expectations and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections. We undertake no obligation to update or revise any of these statements. Additional information about the various factors that may cause actual results to differ and our explanation of non-GAAP measures and how they reconcile to GAAP results is contained within our news release, the slides we posted last night and are in our most recent 10-Q and 10-K. Speaking today will be Joe Nolan, our Chairman, President and Chief Executive Officer; and John Moreira, our Executive Vice President, CFO and Treasurer. Also joining us today is Jay Buth, our Vice President and Controller. I will now turn the call over to Joe.

Thank you, Rima, and good morning, everyone, and thank you for joining us today for our year-end earnings call. I'm pleased to report that 2025 was another year of strong execution across the organization. Our team delivered excellent operational performance, continue to advance critical infrastructure needs for our customers, leveraging technology solutions to lower O&M costs, and remain focused on providing safe, reliable and affordable service to customers and communities we are proud to serve. We also made meaningful progress working collaboratively with state policymakers, regulators and stakeholders to address critical priorities like affordability, while remaining focused on reliability. This remains a top priority for Eversource. Our goal is to ensure state leaders have the tools they need to support customers and that we have the regulatory clarity to make the investments essential to balancing affordability and reliability. These challenges can only be solved through true partnerships, working together face-to-face with shared goals. Moving to Slide 4. Let me take you through some of our 2025 accomplishments. Starting with our financial performance. I am proud to report that we delivered on our commitment of non-GAAP earnings with full year earnings per share of $4.76. We also paid dividends of $3.01 per share to our shareholders, representing a 5.2% increase. Moving on to Slide 5. In 2025, our employees once again demonstrated their commitment to operational excellence. Throughout the year, we delivered high levels of service reliability, responded effectively to several significant weather events and continued making progress on projects that strengthen the resiliency and sustainability of our electric, natural gas and water systems. As a result, we had top decile performance for both the MBI and the SAIDI metrics that demonstrates our investments vastly improved reliability for customers. With this high level of performance, our electric customers, on average, experienced…

Thank you, Joe, and good morning, everyone. This morning, I will review 2025 full year earnings results, provide a regulatory update, share our updated 5-year capital investment plan and provide our 2026 EPS guidance, our 5-year financing strategy and our long-term earnings growth expectation. Let me start on Slide 8 with a review of our 2025 earnings results. Our GAAP results for 2025 were earnings of $4.56 per share compared with GAAP earnings of $2.27 per share in 2024. GAAP results for 2025 include a net loss of $75 million or $0.20 per share, related to an increase in our liability for expected future obligations to Global Infrastructure Partners, as part of the September 30, 2024, sale of South Fork Wind and Revolution Wind projects, net of tax effects associated with the sale of these projects. For the quarter, our GAAP as well as our non-GAAP earnings results were $1.12 per share compared with GAAP earnings of $0.20 per share for the fourth quarter of 2024 and non-GAAP earnings results of $1.01 per share for the fourth quarter of 2024. As a reminder, GAAP results for the full year 2024 included a net loss of $2.30 per share related to the divestiture of our offshore wind investment recognized in the third quarter of last year. As well as a loss on a potential sale of Aquarion Water, which we recognized in the fourth quarter of 2024. Excluding those after-tax losses, our non-GAAP earnings were $4.76 per share for the full year 2025 as compared to $4.57 per share in 2024. As you may recall, our revised non-GAAP earnings guidance for 2025 was in the range of $4.72 to $4.80. Breaking down the 2025 full year earnings by segment, Electric Transmission earned $2.09 per share in 2025, as compared with earnings…

Daniel, we're ready for our Q&A now. Thank you.

[Operator Instructions] Our first question comes from Shar Pourreza with Wells Fargo.

So just really quickly, the first one is, obviously, Joe, your growth trajectory is predicated on the balance sheet and funding, and you say, like, obviously, financing is somewhat flexible. If you sort of get the Aquarion sale approval on March 25 and storm cost recoveries, that will obviously eliminate the hybrids, but could that also take out some of the straight equity? And could that situation, so post-sale and storm cost recoveries be accretive to the 5% to 7% since you're already at the upper half under a base assumption and a lot of your funding needs will be eliminated?

Yes, I'm going to let John touch on that.

Shar, so to start off with -- to start off with the approach we're taking, just to your point, given the uncertainty around the Aquarion deal is we've given you all kind of range of potential alternatives, as I said in my prepared remarks, that level of $0.8 billion to $1.1 billion of common equity issuances does not -- it's not impacted by whether or not the Aquarion transaction is completed. Where we have the flexibility is in the debt and the alternative financing to your point. I do expect us -- as you know, we have not issued any junior subordinated debt. So the expectation is with or without Aquarion, we do expect to go to market to -- with that instrument.

And that's despite storm cost recoveries.

Yes, storm cost recoveries will come in, in 2027. And given the procedural schedule that PURA just issued with a final decision by July, we probably won't be able to complete the securitization and get the cash in the door until Q3 time frame of 2027. So that's why we feel that even with an Aquarion sale moving forward, we still need to go to market with these junior subs. As you know, it is accretive to issuing straight equity. And yes, yes, let me just leave it at that.

And your 5% to 7%. So obviously, in that situation, you would need less funding. And your base assumption is already at the higher end of 5% to 7%.

Correct.

Yes, exactly, Shar.

Correct. So where we have the lever to push and pull, if Aquarion happens, then the alternative financing solutions will be pulled back. So I would view it this way. With an Aquarion deal closing in a timely fashion, it moves our growth rate for the outer years to a much better start.

All right. That's perfect. Okay. And then just lastly, another obviously, uncertain here is Revolution Wind. I guess, where do we stand on potential post-close liabilities to Orsted? And at what point does that liability end? So like, at EEI, you guys mentioned first power was the cutoff point. So does that mean that if the project reaches first power, even if the BOEM lawsuits are still ongoing, you are off the hook?

Yes. Thank you. I'll tell you, we have not had this level of clarity around some of the uncertainty, certainly in my tenure as CEO. We expect first power in the next couple of weeks. That is not the trigger though. The trigger is COD, we deliver just as we did with South Fork. We feel very comfortable with the number that we're carrying now. I'm watching weather as we speak, and we expect that 60th turbine to head out to the lease area, and we will have first power in a few weeks. So it's going very, very well. All the land construction that we were responsible for was done. So you take Revolution Wind and the clarity around that and the end being very near, you take the Aquarion decision coming in March, whether it's approved or not, at least it's bringing clarity. You've got storm costs recovery. You've got a decision coming in July. We already have the securitization vehicle in place. So all of these things, coupled with the rate base roll-in that we've got in Massachusetts, we feel very, very comfortable about our future.

Shar, one more. Just to be clear, we don't have any liability to Orsted. Our obligation is to GIP just for...

Our next question comes from Carly Davenport with Goldman Sachs.

Maybe just a follow-up on the sources and uses of cash. Maybe could you just dive in a little bit more on what could potentially make sense from a minority interest sale standpoint and how you might consider structuring that in the context of regulatory approval needs?

Yes. Sure, Carly. This is John. So that's -- we're looking at -- as I said in my formal remarks, we're looking at many alternatives. I would say from a minority interest sale, we wouldn't -- we're looking at kind of a traditional equity interest or a kind of think of it as a minority interest capital structure deal. So it's a little bit different than a true minority interest in the equity position at a line of business or at one of our utilities. So I think it's a little premature for us to start talking about the level of details because that would be -- we're not looking to do that immediately. It's just something that we have on the table or as I like to refer, it's a tool that we have in our toolkit.

Great. Okay. That's helpful. And then you're still highlighting $1 billion of upside to the new capital plan tied to Connecticut AMI. Obviously, a lot going on in Connecticut at the moment. So just kind of any sense of when you think from a timing standpoint, you could get some resolution on that and potentially see that start to roll into the plan?

Yes, sure. So we expect that we'll be meeting in Connecticut on AMI. All we want really is to get a lawful application of the prudent standard. And then we'll have to update the implementation schedule, and that meeting is going to be next week. So we're optimistic that we can at least get additional clarity around, number one, the desire and the rules of the road down there to make it fair for us to make that investment. But we're not going to make the investment until we feel comfortable with the recovery mechanism. As you know, we've got a lot of money on the line down there right now, and we want to get our storm costs back. We've got a CL&P rate case, and if AMI is important to them, we certainly are ready to implement. I'm thrilled to tell you that 100,000 meters have been put in, in Massachusetts. It's going very, very well. And I think it's to be a great opportunity for the [ customers ] of Connecticut to be able to enjoy the benefits of AMI. And I think that we're in a good position to be able to deliver on that.

And Carly, I would just add that $1 billion that we have on the slide, you need to, at this point in time, view that as a placeholder. That number from a cost perspective is kind of stale. So the team is looking at updating that. As Joe mentioned, we do have some discussions happening next week, and we will file a revised cost estimate for that program.

Our next question comes from Bill Appicelli with UBS.

Just going back one step to something you guys said earlier, and I think to make sure I understand it. When you guys say that the upper half -- towards the upper half, I guess, one, just to be clear, that means into the upper half in '28, and then -- and when you say -- you mean rebasing that essentially off of the '27, right? So you're not -- there's no risk of rebasing off of '26, which is obviously a lower number, right? When you say you're sort of off of '27, you're referring to more normalized earnings power in '27 and then growing into the upper half into '28. That's the intention there?

That you are spot on, and that's why in my formal remarks, I made it perfectly clear as to what the base year was. So we -- the expectation is we're going to be at the upper half, which implies over 6% off of the earnings that we delivered for 2027.

All right. Understood. And then as far as the tax benefits from South Fork and how much of that is reflected in earnings for '26? And what's the runway there?

From an ITC standpoint associated with our tax equity ownership, 0. Okay? We have not dipped into that bucket yet. So we still have roughly $500 million that we will be utilizing in the coming years. And quite honestly, that will allow us to be, for all intents and purposes, a noncash taxpayer, certainly at the federal level for the next several years and hopefully, towards even the tail end of our forecast period.

Okay. And then -- so you're utilizing other credits that are available to you this year because there...

Correct. I mean, yes, we always have puts and takes from a credit standpoint, a tax standpoint. As I continue -- as I've highlighted throughout 2025, in 2025, we were able to harvest a bit more than what we were planning on. And I've also guided you all that don't expect it to be at the same level for 2026. So -- and then Bill, I just want to clarify that the ITC credits that we are yet to utilize, those do not generate a P&L impact, just to be clear. So that is strictly a cash.

Right. Okay. Understood. And then, I guess, the last question, just any other color you can give on drivers into '27 because of sort of the importance of that. Obviously, the CL&P case, but anything else you can sort of frame out when we think about how earnings will shape up in '27 over this '26 number you gave today?

Sure, Bill, and thank you for raising that question. To address that topic, we did introduce a brand-new slide that I hope you find -- everyone finds useful. It highlights those major drivers, and the timing of when we would expect things to start materializing. So if you look at that slide, it's Slide 17 in the deck that we disseminated. We have the Aquarion transaction. We have the storm case. We have the Aquarion rate case. We have the securitization. And we have Revolution get behind us. All key overhangs that we've had for a long time will not be solidified in 2026. The 2027 enhancements will be, obviously, if Aquarion closes, the CL&P rate case as we continue to forecast, we will likely file that case midyear of '26 with a rate adjustment kicking in midyear of 2027. And the storm cost prudency, securitization transaction will happen around the Q3 of 2027. So those are the major drivers that will give us the momentum from a growth standpoint into '27 and beyond.

Our next question comes from Sophie Karp with KBCM.

So I guess I'm wondering, can you give us some sense when is the COD on the Revolution Wind going to occur after you have first power, which you will have in a few weeks? Like what's the time line there? And that just -- will you press release that? Will we know that? Or are you going to wait until the next time you report?

Yes. We're targeting the second half of 2026. We are very, very pleased with the progress. As you know, we've pulled that schedule in significantly. It continues to improve. I see nothing standing in the way of that schedule only getting better. And again, the only situation that we worry about is weather and something that none of us can control. But -- so second half of 2026 at this point, yes, and as we get more clarity, as we get first power in another week or 2, I think that Orsted, who actually has the lead, we're not really the one that's able to disclose that. We'll give updates to the market.

[Operator Instructions] Our next question comes from Paul Patterson with Glenrock Associates.

So just to sort of -- and I apologize for being a little slow on this. With the Aquarion sale, what is the difference if you get it or you don't in terms of the incremental amount of equity or equity hybrids that were -- that we're talking about? Could you just fill that out for me? I just -- I'm not completely clear. I apologize.

Sure. So once again, Paul, this is John. No change to what we just rolled out as our equity needs, $800 million to $1.1 billion from a pure-play equity raise. Where we have the flexibility is in the other alternative financing. We were assuming that in the current transaction to get $1.6 billion of the equity portion of the sale of Aquarion. So that's what you should think about as being the impact.

And also, we'll put them on notice if we do not transact, we will file for a rate case to improve those earnings down there as well. I mean it is a phenomenal asset, but we made the decision to exit that business to improve our balance sheet. And that was a decision that we made. But if, in fact, we don't exit it, it still is a very, very good business.

Yes, I see that. Also on the Eversource Gas benefit in the fourth quarter that -- if I read the press release correctly, it was in the parent. I was just wondering, could you -- how much was that? And why is it in the parent and not in the gas business? Or what am I missing?

Okay. Very, very good question, Paul. So those are costs that we had incurred several years ago when we were integrating EGMA. It's not NSTAR Gas. It's EGMA. And per the settlement agreement that we executed back when we acquired the company back in 2020, it did provide similar to what we have been granted in previous M&A transactions in all 3 jurisdictions, quite honestly, okay? Those costs -- those integration-related costs were incurred by the parent company as the source of fund. So those costs are at the parent company. We recorded the benefit at the parent company to reimburse the parent. The recovery, the recovery, the dollars will come in from EGMA customers because the EGMA is the -- are the customers that are reaping the benefits of that.

I'm showing no further questions at this time. I would now like to turn it back to Joe Nolan for closing remarks.

Thank you all for joining us today. 2025 was a solid execution of our business plan. Our team delivered top-tier reliability for our customers. We advanced major strategic priorities. We enhanced our financial condition, and we strengthened the foundation of the business. As we move into 2026, we're carrying that momentum forward with a clear focus on derisking our business profile, resolving the key open items ahead of us and positioning the company for sustainable long-term growth. We are firing on all cylinders to finish this work, and I'm confident that the disciplined execution you've seen for us this year will continue as we deliver on the commitments we've made to our customers, communities and shareholders. Thank you very much.

This concludes today's conference call. Thank you for participating. You may now disconnect.