Shares declined 2.9% post-earnings as investors reacted to a cautious outlook driven primarily by a lowered transmission ROE from FERC and the resulting downward revision to 2026 guidance. The regulatory uncertainty and margin pressure in the transmission segment likely weighed on sentiment despite operational resilience during severe weather.

• FERC’s recent decision cut the transmission base ROE to 9.57%, below the company’s updated estimate of a fair 11.39%, prompting an appeal and a revision of 2026 guidance downward.
• The Aquarion sale is pending final close after regulatory appeals expire mid-June, delaying expected balance sheet improvements.
• Operationally, strong storm response restored power to over 500,000 customers during a severe blizzard, reflecting ongoing grid investments.
• Macro headwinds noted include rising electricity demand in Massachusetts and a challenging regulatory environment impacting capital returns.
• Company maintains a long-term earnings growth target of 5% to 7%, but near-term results and outlook are tempered by regulatory and margin pressures.