Eversource Energy (ES): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at Eversource Energy (ES) right now, trying to map out where this utility giant is headed after shedding those non-core assets like offshore wind. Honestly, the strategy is crystal clear: a full pivot to a pure-play regulated utility, underpinned by a massive $24.2 billion capital plan stretching through 2029. We've broken down their four growth avenues-from doubling down on existing service areas, which saw electric load growth exceed 2% in 2025, to more aggressive moves like acquiring utilities in Maine or Vermont. This Ansoff Matrix lays out exactly how they plan to grow that rate base and justify returns; you'll want to see the specific actions planned for each quadrant below.

Eversource Energy (ES) - Ansoff Matrix: Market Penetration

Market Penetration for Eversource Energy (ES) centers on deepening its presence and increasing service utilization within its existing service territories of Connecticut, Massachusetts, and New Hampshire through infrastructure investment and regulatory alignment.

Execute the $24.2 billion capital plan to grow the rate base in Connecticut, Massachusetts, and New Hampshire. This five-year investment plan, spanning 2025 through 2029, represents a 10% increase over the prior plan. The plan targets an 8% compound annual growth rate in rate base through 2029, projecting the rate base to grow from $26.4 billion in 2023 to $41.9 billion by 2029.

Maximize electric distribution load growth, which exceeded 2% in 2025, by promoting electrification programs. Weather-normalized electricity demand increased by about 2% in Eversource Energy's service territories in New England during 2025, driven by transportation and heating electrification. The company recorded a summer peak load exceeding 12 GW in 2025, its highest since 2013. Electrification plans are expected to double electric demand by 2050.

Secure timely cost recovery and rate increases, like the $100 million New Hampshire permanent rate increase, through regulatory filings. On July 25, 2025, the New Hampshire Public Utilities Commission approved an 8.2% increase to current distribution rates for Eversource Energy's subsidiary, Public Service Co. of New Hampshire (PSNH). When factoring in a previously approved temporary increase that became permanent, distribution rates for Eversource customers in New Hampshire are effectively increasing by roughly 24%. Furthermore, the monthly fixed customer charge immediately increased by $4 per month (from $15) and is set to increase by $2 per year every August 1 until the Commission orders otherwise.

Improve system reliability to justify rate-of-return mechanisms and maintain top decile performance. Eversource highlighted achieving top decile reliability performance during record-breaking heatwaves in Q2 2025. In Connecticut in 2024, reliability efforts included installing 75 smart switches to allow for more precise isolation of outages. The company also removed nearly 22,360 trees in 2024 as part of vegetation management.

Increase natural gas distribution investment to replace aging infrastructure in existing Massachusetts and Connecticut service areas. The overall $24.2 billion capital plan allocates funds across both gas and electric businesses. Eversource serves approximately 890,000 natural gas customers daily in Massachusetts and Connecticut. The company remains committed to providing safe, reliable natural gas service while transitioning to clean energy.

• The company is exploring mixing biogas and hydrogen into the natural gas pipeline supply as a transition strategy.
• The capital plan includes nearly $2 billion allocated through 2028 for the replacement of aging infrastructure across the regulated assets.

Eversource Energy (ES) - Ansoff Matrix: Market Development

Market Development for Eversource Energy centers on expanding its existing product set-regulated electric, gas, and water utility services-into new geographic territories. This strategy relies heavily on regulatory approval and successful bidding in competitive regional markets.

The current footprint is substantial, serving approximately 4.6 million electric, natural gas, and water customers across Connecticut, Massachusetts, and New Hampshire as of the second quarter of 2025. The electric distribution segment alone served 1.30 million customers in Connecticut, 1.58 million in Massachusetts, and 544,000 in New Hampshire as of December 31, 2024.

The strategy to acquire an existing regulated electric or gas utility in an adjacent New England state, such as Maine or Vermont, is supported by existing regional coordination. Eversource Energy is actively involved in the evolving electric landscape, responding to ISO-New England's first longer-term transmission planning (LTTP) solicitation, which could unlock "billions of dollars to our future investment plans."

Leveraging transmission expertise to bid on new regional transmission projects outside the current three-state service territory is a concrete action. Eversource plans to spend about $1.4 billion on its transmission business in 2025, building upon an estimated transmission rate base of approximately $10.8 billion at the end of 2024. This activity aligns with regional needs, as a Northeast planning agreement identifies a need for an additional 1.7 GW of low-regrets transmission projects between ISO-New England and the New York Independent System Operator.

Establishing a regulated utility presence in a nearby Mid-Atlantic state represents a more aggressive geographic expansion beyond New England. While specific utility acquisitions are not confirmed for 2025, the broader Northeast interregional transmission planning agreement includes states like Delaware and Maryland, suggesting a framework for future coordinated infrastructure development that could precede a full utility acquisition.

Targeting municipal utility privatization opportunities within the US Northeast allows Eversource to gain new customer bases with its existing regulated service products. The company's long-term capital plan projects expenditures of $24.17 billion from 2025 through 2029, with the regulated rate base anticipated to grow to $41.9 billion by 2029, demonstrating the capacity to integrate new, sizable assets.

Here is a breakdown of the existing customer base that Eversource Energy would bring to any new market development effort:

The focus on core utility operations is clear, as evidenced by the planned capital allocation:

• Total planned capital expenditures for 2025-2029: $24.17 billion.
• Transmission segment earnings for H1 2025: $407.5 million.
• Asset condition transmission projects planned for 2025: about $774 million.
• Projected long-term EPS growth rate through 2029: 5 to 7 percent.

Finance: draft 13-week cash view by Friday.

Eversource Energy (ES) - Ansoff Matrix: Product Development

Accelerate the Advanced Metering Infrastructure (AMI) rollout in Massachusetts to offer new smart grid services to customers.

The Advanced Metering Infrastructure rollout in Massachusetts is reported as 70% complete as of the second quarter of 2025. Eversource Energy has a goal to achieve full AMI deployment by 2029. The transition to smart meters for all Eversource Energy's Massachusetts electric customers is projected to take approximately three years to complete. The company began replacing electric meters with smart meters in the second half of 2025. This initiative includes an investment of $850 million specifically for AMI deployment in Massachusetts. As of the third quarter of 2025, the company noted ongoing investments in grid infrastructure, including over 40,000 AMI meters in Massachusetts.

Invest in utility-scale battery storage solutions to manage peak demand and integrate renewables on the existing grid.

Eversource Energy has demonstrated commitment through projects like the Outer Cape Battery energy storage system. Nationally, utility-scale battery storage capacity is expected to grow 22% Year-over-Year in 2025. In Connecticut, a 200 megawatt grid-scale battery storage system, selected via competitive bidding, is projected to save state ratepayers $424 million over 20 years of operation and meet about 3% of state energy needs.

Develop and offer regulated Electric Vehicle (EV) charging infrastructure programs to meet the doubling electric demand by 2050.

Eversource Energy is collaborating with local, state, and regional partners to support the installation of EV charging stations across its service territory, including along major U.S. travel corridors. The company played a key role in the electrification pilot for Boston Public Schools by providing incentives for the electrical infrastructure and charging stations. Boston Public Schools currently operate over 35 electric school buses in their fleet, with a goal of converting the entire fleet to electric by 2030. Management noted opportunities for electric vehicle infrastructure deployment in Connecticut.

Introduce new energy efficiency programs that allow for cost recovery and rate base expansion in all three states.

The utility has successfully implemented energy efficiency programs, which have generated $1.4 billion in savings for customers. Regulatory actions have supported rate base expansion:

• Regulatory wins in New Hampshire and Connecticut enabled $100 million rate hikes.
• Electric distribution segment results improved due to higher revenues from base distribution rate increases in New Hampshire and Massachusetts.
• Improved results in the natural gas segment were attributed to base distribution rate increases at Eversource Energy's Massachusetts gas businesses, effective November 1, 2024.

The overall five-year capital plan, spanning 2025-2029, totals $24.2 billion. The reaffirmed 2025 recurring earnings per share guidance midpoint is in the range of $4.72 to $4.80 per share.

Here's a quick look at the state-specific progress related to grid modernization and rate recovery:

Eversource Energy (ES) - Ansoff Matrix: Diversification

You're looking at how Eversource Energy (ES) could expand beyond its core New England regulated footprint. While management has emphasized a pivot to a 'pure play pipes and wires regulated utility' model, focusing capital on its existing service area-with a five-year capital plan totaling $24.2 billion through 2029-diversification remains a theoretical path for growth outside that core mandate.

The company reaffirmed its 2025 EPS guidance range of $4.67-$4.82, supported by ongoing infrastructure investments of nearly $5 billion planned for 2025. The rate base is expected to climb from $26.4 billion in 2023 to a projected $41.9 billion by 2029, reflecting an 8% compound annual growth rate. Still, exploring diversification means looking at markets where Eversource Energy's existing operational knowledge could translate into revenue.

Here are the potential avenues for diversification, grounded in the latest market sizing:

• Form a non-regulated, third-party construction management service for utility infrastructure projects outside New England.
• Acquire a small, regulated water utility in a new, non-New England state, reversing the Aquarion sale strategy for geographic diversification.
• Invest in a regulated, non-utility infrastructure asset, like a natural gas pipeline or storage facility, in a new US region.
• Partner with a technology firm to offer grid-edge cybersecurity services to other utilities nationally, leveraging internal expertise.

The recent regulatory setback in Connecticut, where regulators rejected the proposed sale of Aquarion Water Company in late November 2025, forces a rethink on asset disposition, making the acquisition of a different water utility a strategic reversal of the reversal.

The potential scale of these non-regulated or adjacent markets is substantial, even if Eversource Energy's current strategy leans away from them. Consider the broader construction and adjacent infrastructure sectors:

Forming a non-regulated construction management service taps into the broader utility system construction market, which is projected to be worth $807.33 billion in 2025. This market is driven by smart infrastructure integration and aging infrastructure replacement. To be fair, the overall U.S. construction industry growth is tempered, projected at only 1.4% in 2025.

Acquiring a water utility outside New England means entering a fragmented market. Small systems (fewer than 3,300 people) represent 78% of U.S. community water assets, many of which are undercapitalized. The total U.S. water and wastewater treatment infrastructure capital expenditure is massive, projected to surpass $515.4 billion through 2035. This contrasts with the planned use of proceeds from the rejected Aquarion sale, which was valued at $2.4 billion and intended for debt reduction.

Investing in natural gas storage assets outside the current footprint targets a market with significant scale. The U.S. Natural Gas Storage Market was valued at $43.8 Billion in 2024, with a projected CAGR of 4.2% through 2030. The larger U.S. gas pipeline infrastructure market size is calculated at $1,149.26 billion in 2025.

Cybersecurity services leverage internal expertise in a rapidly growing adjacent field. The U.S. smart grid cybersecurity market reached $2.9 billion in 2025. The broader U.S. Utilities Security Market is valued at $6.77 billion, with North America holding 40% of the global revenue share in 2024. This segment is seeing growth due to federal funding, such as the DOE's nearly $23 billion allocated for ten projects focused on energy system security in March 2025.

Eversource Energy's Q3 2025 recurring non-GAAP earnings per share was $1.19, and the company recognized a net after-tax nonrecurring charge of $75 million related to its offshore wind liability. The FFO to debt ratio target for year-end 2025 is 14%.

Finance: draft 13-week cash view by Friday.