Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.33, a 32% increase year-over-year [5] - Revenues increased by 9.6%, from $435.3 million to $477 million, primarily due to rate increases [14][15] - The company expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 due to non-recurring benefits [6][21] Business Line Data and Key Metrics Changes - Both water and natural gas businesses performed well, contributing to the overall growth [5] - The water business contributed $27.9 million to revenue growth, while the natural gas segment added $6.3 million [14][15] - The company has installed 93,000 new Intelis gas meters, exceeding its 2025 goal [9] Market Data and Key Metrics Changes - The combined entity from the merger with American Water will serve over 5 million connections across 17 states [3] - The company is well-positioned in a fragmented water industry, with 85% being municipal [4] Company Strategy and Development Direction - The merger with American Water is seen as a transformational opportunity to create a leading water and wastewater utility [3] - The company aims to achieve a compounded annual growth rate of 8% for its combined utility rate base [21] - Focus on expanding water and wastewater business through acquisitions, with $58 million spent on systems serving approximately 10,300 customers [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent growth despite economic fluctuations [21] - The company is committed to maintaining a strong balance sheet and improving cash flow while delivering consistent dividend growth [22] - Management highlighted the importance of infrastructure investment in aging water and wastewater systems [4] Other Important Information - The company has a pending rate case in North Carolina with a requested annualized revenue increase of $96.5 million [18] - The company is actively pursuing opportunities related to data centers, with a $26 million investment in a data center project in Pennsylvania [10][11] Summary of Q&A Session - No questions were taken during this earnings call, with a reminder that the normal Q&A process will resume in the year-end call in February 2026 [24]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.33, a 32% increase year-over-year [5] - Revenues increased by 9.6%, from $435.3 million to $477 million, driven primarily by rate increases [14][15] - The company expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 due to non-recurring benefits [6][21] Business Line Data and Key Metrics Changes - Both water and natural gas businesses performed well, contributing to the overall growth [5] - Water business revenue increased by approximately $27.9 million, while natural gas revenue increased by $6.3 million [15] - The natural gas division has successfully installed over 60,000 Intellis gas meters, exceeding its 2025 goal [9] Market Data and Key Metrics Changes - The combined entity from the merger with American Water will serve over 5 million connections across 17 states [3] - The company is well-positioned in a fragmented water industry, with 85% being municipal [4] - The company is actively pursuing opportunities in states like Pennsylvania, Ohio, Indiana, and Virginia, which are attractive for data center development [12] Company Strategy and Development Direction - The merger with American Water is seen as a transformational opportunity to create a leading water and wastewater utility [3] - The company aims to achieve a compounded annual growth rate of 8% for its combined utility rate base, with water expected to grow at 6% and natural gas at 11% [21][22] - The company is committed to infrastructure investments, targeting approximately $1.4 billion for 2025 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent growth despite economic fluctuations [21] - The company is focused on addressing infrastructure investment needs, particularly in aging water and wastewater systems [4] - Management highlighted the importance of sustainability and responsible business practices as foundational to the company's operations [8] Other Important Information - The company has made a $26 million investment in a data center project in Greene County, Pennsylvania, which includes plans for an 18 million-gallon-per-day water treatment plant [10][11] - The company is in discussions with data center developers representing over 5 gigawatts of power demand [12] - The company has adjusted its expectation for 2025 equity raises from $315 million to $350 million, largely due to the data center project [22] Summary of Q&A Session - No questions were taken during this earnings call, and the company will return to its normal Q&A process for the year-end call in February 2026 [24]

NYSE LISTED WTRG Third Quarter 2025 November 5th, 2025 February 2024 Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations 2 Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that may cause actual results to be materially different from any future ...

Core Insights - Essential Utilities (WTRG) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and up from $0.25 per share a year ago, representing an earnings surprise of +22.22% [1] - The company posted revenues of $476.97 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $435.26 million year-over-year [2] - Essential Utilities has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $598.76 million, and for the current fiscal year, it is $2.10 on revenues of $2.37 billion [7] - The estimate revisions trend for Essential Utilities was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Market Performance - Essential Utilities shares have increased by approximately 4.9% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The outlook for the Utility - Water Supply industry, where Essential Utilities operates, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Core Insights - The third-quarter 2025 investor letter from Aristotle Capital Boston, LLC indicates that U.S. small/mid-cap equities performed well, with the strategy returning 2.57% net of fees, underperforming the Russell 2500 Index's 9.00% total return [1] Company Overview - Essential Utilities, Inc. (NYSE:WTRG) is a regulated utilities operator providing water, wastewater, and natural gas services across nine states through its subsidiaries Aqua and Peoples Gas [3] - As of October 31, 2025, Essential Utilities, Inc. had a market capitalization of $10.947 billion, with its stock closing at $39.03 per share [2] Performance Metrics - Essential Utilities, Inc. reported a one-month return of -2.60% and a 52-week gain of 1.04% [2] - In Q2 2025, the company reported revenues of $514.9 million, an increase from $434.4 million in Q2 2024 [4] Investment Potential - The company is recognized as a "Dividend Aristocrat," having raised its dividend for 34 consecutive years, supported by a favorable regulatory environment in its core markets [3] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with 34 hedge fund portfolios holding its stock at the end of Q2 2025, up from 25 in the previous quarter [4]

Core Insights - American Water Works (AWK) announced its acquisition of Essential Utilities (WTRG), marking a significant merger in the U.S. water utility sector [1]. Company Summary - American Water Works (AWK) is expanding its portfolio through the acquisition of Essential Utilities (WTRG), which is expected to enhance its market position within the water utility industry [1]. - Essential Utilities (WTRG) will be integrated into American Water Works, potentially leading to increased operational efficiencies and market reach [1].

Core Insights - Essential Utilities, Inc. is involved in a significant merger with American Water Works Company, valued at approximately $63 billion, including debt, which aims to enhance service offerings and operational efficiencies [2][5] - Northcoast Research has set a price target of $46 for Essential Utilities, indicating a potential upside of about 11.62% from its current price of $41.21 [1][5] - Legal investigations are ongoing regarding potential breaches of fiduciary duty and the fairness of the sale terms for Essential shareholders, led by Ademi Firm and Halper Sadeh LLC [3][5] Company Overview - Essential Utilities provides water and wastewater services and has a current market capitalization of approximately $11.55 billion [4] - The stock price of Essential Utilities has shown minor fluctuations, currently at $41.19, with a trading volume of 2,985,795 shares today [4] Merger Details - The merger structure involves Essential shareholders receiving 0.305 shares of American Water for each share they own, resulting in American Water shareholders controlling about 69% of the combined entity, while Essential shareholders will own approximately 31% [2]

Core Viewpoint - Monteverde & Associates PC is investigating Essential Utilities, Inc. regarding its merger with American Water Works Company, Inc., questioning the fairness of the deal where Essential shareholders will receive 0.305 shares of American Water for each share of Essential [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Legal Investigation - The investigation focuses on the merger terms between Essential Utilities, Inc. and American Water Works Company, Inc., specifically evaluating if the exchange ratio of 0.305 shares is fair for Essential shareholders [1]. - The firm encourages shareholders with concerns to reach out for additional information at no cost [2].

Core Insights - The Ademi Firm is investigating Essential (NYSE: WTRG) for potential breaches of fiduciary duty and other legal violations related to its transaction with American Water Works Company, Inc. [1] - Essential shareholders will receive 0.305 shares of American Water for each share of Essential they own, resulting in American Water shareholders owning approximately 69% and Essential shareholders owning about 31% of the combined company on a fully diluted basis [2]. - The transaction agreement imposes significant penalties on Essential for accepting competing bids, raising concerns about the conduct of the Essential board of directors and their fiduciary duties to all shareholders [3].

Core Viewpoint - American Water Works and Essential Utilities are merging in an all-stock deal to create a public water utility valued at approximately $40 billion [1] Company Structure and Ownership - Essential shareholders will receive 0.305 shares of American Water for each share they own, resulting in American Water shareholders owning about 69% and Essential shareholders owning approximately 31% of the combined company [2] - The combined company's board will consist of 15 members, including 10 directors from American Water and 5 designated by Essential [5] Operational Impact - There will be no change in customer rates associated with the merger, and employee compensation or benefits are not expected to materially change [2][3] - The combined company plans to review strategic options for its non-water and non-wastewater businesses after the merger closes [2] Leadership and Headquarters - John Griffith will serve as president and CEO of the combined company, while Christopher Franklin will become executive vice chair for the board [4] - The headquarters will be located in Camden, NJ, with Essential's offices in Bryn Mawr and Pittsburgh maintaining a strong operational presence [6] Timeline and Market Reaction - The merger is expected to close by the end of the first quarter of 2027, pending shareholder and public utility commission approvals [6] - Following the announcement, shares of American Water Works fell by 3.5%, while Essential Utilities' stock experienced a slight decline [6]