Core Insights - Essential Utilities Inc. (WTRG) reported first-quarter 2025 operating earnings per share (EPS) of $1.03, exceeding the Zacks Consensus Estimate of 80 cents by 28.8% and showing a year-over-year improvement of 41.1% [1] - Total operating revenues reached $784 million, surpassing the Zacks Consensus Estimate of $691 million by 13.3% and reflecting a year-over-year increase of 28.1% [2] - The regulated Water segment generated revenues of $300.8 million, a 7.5% increase from $279.9 million in the first quarter of 2024, driven by higher rates and surcharges [2] - The regulated Natural Gas segment reported revenues of $470.8 million, up from $324.3 million in the first quarter of 2024, primarily due to higher purchased gas costs and increased delivery volumes from colder weather [3] Financial Performance - Operating income totaled $338.9 million, marking a 46.9% year-over-year increase, while operation and maintenance expenses rose slightly by 0.7% to $137.8 million [4] - Interest expenses increased by 12% to $82.1 million from $73.3 million in the prior-year quarter [4] - Current assets were $494.5 million as of March 31, 2025, compared to $485.9 million as of December 31, 2024, while long-term debt rose to $7.52 billion from $7.36 billion [5] Future Outlook - The company reaffirmed its 2025 EPS guidance in the range of $2.07-$2.11, with the Zacks Consensus Estimate at $2.10, exceeding the midpoint of the projected range [6] - Management anticipates a 2-3% expansion in the customer base for the water segment through acquisitions and organic growth [6] - Essential Utilities plans to invest $1.4-$1.5 billion in infrastructure in 2025 and a total of $7.8 billion from 2025 to 2029 to enhance water and natural gas systems and improve customer service [7]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [9] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025 [6] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [31] - The company is actively working on PFAS compliance and expects to meet the $450 million capital spend rate to achieve compliance by 2028 [9][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is optimistic about the legislative developments in Texas and Ohio that could positively impact rate cases [10][11] Other Important Information - The company has been recognized for its environmental stewardship, being named to USA TODAY's list of climate leaders for three consecutive years [9] - The company is exploring opportunities related to data center development and on-site power generation, representing up to five gigawatts of needed power generation in the Pittsburgh region [20] Q&A Session Summary Question: Equity issuance and market conditions - Management indicated that they are focused on raising the remaining $315 million in equity for 2025 and will consider market conditions for further issuance [40][41] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and expect it to be consistent with other states [42][44] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [50][52] Question: PFAS operational strategy - Management confirmed that they are proceeding with their PFAS mitigation strategy and remain on track with their budget [55][56] Question: Data center opportunities - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [64][66] Question: Beaver Falls case timeline - Management expects the Beaver Falls case to be on the agenda in June and remains hopeful for a favorable outcome [90]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [6] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [24] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's non-GAAP earnings of $1.97 per share [7] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [6] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [24] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [8] - The company is in discussions with data center developers representing up to five gigawatts of needed power generation in the Pittsburgh region [21] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025, with $270.5 million already invested by March 31 [7] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is committed to addressing PFAS compliance and expects to spend approximately $450 million to achieve compliance by 2028 [10][56] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [9] - New rates went into effect for Aqua Pennsylvania, expected to increase total annual revenues by $73 million [31] Q&A Session Summary Question: Regarding equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [43] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and will provide details on revenue requests and equity layers at that time [45] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [52] Question: Impact of EPA announcement on PFAS - Management confirmed that they are proceeding with their PFAS mitigation plans and remain on track with their budget [56] Question: Data centers and gas supply - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [65] Question: Beaver Falls settlement status - Management expressed optimism about the Beaver Falls case being on the agenda in June and highlighted the importance of resolving such cases for water supply [90]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6][12] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [8] Company Strategy and Development Direction - The company is focused on infrastructure investments, planning to invest between $1.4 billion and $1.5 billion in 2025 [6] - The company is actively pursuing water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [30][31] - The company aims for a compounded annual growth rate of 8% in its combined utility rate base, with specific growth rates of 6% for regulated water and 11% for regulated natural gas segments [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, despite potential headwinds in the remaining quarters [50] - The company is committed to addressing PFAS compliance and expects to meet its $450 million capital spend target by 2028 [8][54] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [7] - Legislative developments in Texas and Ohio are seen as positive for the company's regulatory environment [10][29] Q&A Session Summary Question: Equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [40] Question: Texas rate case expectations - The company plans to file for the Texas rate case by the end of the month, with expectations for revenue increase and ROE consistent with other states [42][44] Question: EPS guidance and performance - Management noted that while the first quarter started strong, it is premature to adjust guidance due to uncertainties in the remaining quarters [50] Question: PFAS operational strategy - The company is proceeding with its PFAS mitigation plans and remains on track with its budget [54] Question: Data centers and gas supply - Discussions with data center developers are ongoing, with various approaches being considered, including behind-the-meter generation [62] Question: Beaver Falls settlement - Management expressed optimism about the Beaver Falls case, expecting it to be on the agenda in June [86]

Essential Utilities Q1 2025 Earnings Report [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported strong Q1 2025 results with increased net income and EPS while affirming full-year guidance Q1 2025 vs Q1 2024 Key Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $283.8 million | $265.8 million | | Diluted EPS | $1.03 | $0.97 | | Revenues | $783.6 million | $612.1 million | - The company affirmed its **2025 earnings per share guidance range of $2.07 to $2.11** and its long-term targets[7](index=7&type=chunk) - Invested **$270.5 million in infrastructure** in the first three months of the year, on track for a total of **$1.4 to $1.5 billion in 2025**[7](index=7&type=chunk) - The company was named to **USA Today's annual list of Climate Leaders** for the third consecutive year[4](index=4&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results) Revenues grew significantly due to regulatory recoveries and higher gas volumes, boosting overall earnings - Q1 2025 revenue increased **28% to $783.6 million** from $612.1 million in Q1 2024, primarily due to regulatory recoveries, purchased gas costs, and higher regulated natural gas volumes[6](index=6&type=chunk) - Operations and maintenance expenses rose slightly to **$137.8 million** from $136.9 million in Q1 2024[6](index=6&type=chunk) - The current quarter's earnings were favorably compared to Q1 2024, even after accounting for a prior year gain on sale of a business valued at **24 cents per share**[5](index=5&type=chunk) [Regulated Water Segment](index=2&type=section&id=Regulated%20Water%20Segment) The water segment's revenue grew due to approved rates and surcharges while O&M expenses slightly decreased Water Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $300.8 million | $279.9 million | | O&M Expenses | $89.4 million | $90.7 million | - The primary driver for the **7.5% increase in revenue** was from rates and surcharges[8](index=8&type=chunk) [Regulated Natural Gas Segment](index=2&type=section&id=Regulated%20Natural%20Gas%20Segment) The natural gas segment's revenue surged from higher purchased gas costs and colder weather-driven volumes Natural Gas Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $470.8 million | $324.3 million | | O&M Expenses | $55.7 million | $45.9 million | - Revenue growth was driven by an increase in purchased gas costs and higher volumes delivered due to colder weather conditions[9](index=9&type=chunk) [Capital Management and Financing](index=2&type=section&id=Capital%20Management%20and%20Financing) The company maintained its dividend, managed debt costs, and utilized equity and commercial paper programs for financing - The board declared a quarterly cash dividend of **$0.3255 per share**, continuing a streak of **over 80 years** of consecutive quarterly dividends[10](index=10&type=chunk) - As of March 31, 2025, the weighted average cost of fixed-rate long-term debt was **4.02%**, and the company had **$728 million available** on its credit lines[11](index=11&type=chunk) - Through its at-the-market (ATM) equity program, the company issued shares for net proceeds of approximately **$63 million in Q1 2025** and an additional **$145 million in April 2025**[12](index=12&type=chunk) - A new commercial paper program was established in March 2025, allowing for up to **$1.0 billion** in short-term unsecured notes to reduce borrowing costs for infrastructure investments[13](index=13&type=chunk) [Growth and Investment Strategy](index=2&type=section&id=Growth%20and%20Investment%20Strategy) Growth is driven by substantial infrastructure investments, rate case activity, and a robust acquisition pipeline [Rate Activity](index=2&type=section&id=Rate%20Activity) The company secured significant rate awards in 2025 and has multiple base rate cases pending Recent Rate Awards (as of May 9, 2025) | Segment | States | Amount | | :--- | :--- | :--- | | Regulated Water | PA, NC, OH | $89.6 million | | Regulated Natural Gas | KY | $0.5 million | Pending Base Rate Cases | Segment | State | Requested Revenue | | :--- | :--- | :--- | | Regulated Natural Gas | Kentucky | ~$10.9 million | | Regulated Water | North Carolina | ~$45 million | [Capital Expenditures (CapEx)](index=3&type=section&id=Capital%20Expenditures%20%28CapEx%29) The company is on track for its 2025 CapEx target and has a multi-year plan focusing on infrastructure and PFAS remediation - Invested **approximately $271 million** in the first three months of 2025[15](index=15&type=chunk) - On track to invest between **$1.4 and $1.5 billion in 2025**[15](index=15&type=chunk) - Plans to invest **approximately $7.8 billion from 2025 through 2029**, with **at least $450 million** dedicated to addressing PFAS[15](index=15&type=chunk) [Growth by Acquisition](index=3&type=section&id=Growth%20by%20Acquisition) Acquisitions continue to be a key growth driver with recent closings and a large pipeline of potential new customers - Recently acquired the Village of Midvale's water system in Ohio (**~1,000 customers**) and Greenville Sanitary Authority's wastewater assets in Pennsylvania (**~2,300 customers**)[17](index=17&type=chunk) - Has five signed purchase agreements pending for systems in Pennsylvania and Texas, expected to serve **over 210,000 customers**, including the large DELCORA system[18](index=18&type=chunk) - The active pipeline of potential municipal acquisitions represents **approximately 400,000 total customers**[19](index=19&type=chunk) [2025 Guidance and Long-Term Outlook](index=4&type=section&id=2025%20Guidance%20and%20Long-Term%20Outlook) The company reaffirmed its 2025 EPS guidance and long-term growth targets, excluding the potential DELCORA acquisition 2025 Full-Year Guidance | Metric | Guidance | | :--- | :--- | | Diluted EPS | $2.07 to $2.11 | | Regulated Infrastructure Investments | $1.4 to $1.5 billion | Long-Term Growth Targets (through 2029) | Metric | Target | | :--- | :--- | | EPS CAGR (through 2027) | 5% to 7% | | Total Regulated Investments | ~$7.8 billion | | Water Segment Rate Base CAGR | ~6% | | Natural Gas Segment Rate Base CAGR | ~11% | | Combined Utility Rate Base CAGR | >8% | - The company plans to reduce Scope 1 and Scope 2 greenhouse gas emissions by **60% by 2035** from its 2019 baseline[22](index=22&type=chunk) - Guidance assumptions exclude the DELCORA acquisition, though the company remains confident in its ability to close the deal[21](index=21&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited Q1 2025 operating data, statement of operations, and balance sheets [Selected Operating Data](index=6&type=section&id=Selected%20Operating%20Data) A high-level summary shows year-over-year increases in Q1 revenues, net income, and earnings per share Selected Operating Data (Unaudited, In thousands, except per share) | | Quarter Ended March 31, 2025 | Quarter Ended March 31, 2024 | | :--- | :--- | :--- | | Operating revenues | $783,626 | $612,069 | | Operations and maintenance expense | $137,824 | $136,900 | | Net income | $283,789 | $265,772 | | Diluted net income per common share | $1.03 | $0.97 | [Consolidated Statement of Operations](index=7&type=section&id=Consolidated%20Statement%20of%20Operations) The detailed income statement shows operating revenues of $783.6 million and net income of $283.8 million for Q1 2025 Consolidated Statement of Operations (Unaudited, In thousands) | | Quarter Ended March 31, 2025 | Quarter Ended March 31, 2024 | | :--- | :--- | :--- | | **Operating revenues** | **$783,626** | **$612,069** | | Operating income | $338,905 | $230,666 | | Income before income taxes | $263,194 | $255,130 | | **Net income** | **$283,789** | **$265,772** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $18.33 billion and total equity increased to $6.46 billion as of March 31, 2025 Condensed Consolidated Balance Sheets (Unaudited, In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$18,327,161** | **$18,026,554** | | Net property, plant and equipment | $13,320,374 | $13,143,476 | | **Total Liabilities** | **$11,867,070** | **$11,827,745** | | Long-term debt, net | $7,524,985 | $7,368,381 | | **Total Equity** | **$6,460,091** | **$6,198,809** |

Financial Performance & Guidance - Q1 2025 EPS reached $103[9], with 2025 EPS guidance set at $207-$211[9] - Infrastructure investments for 2025 are projected to be $14 billion - $15 billion[9] - The company issued approximately $210 million of equity via ATM[9] - Q1 2025 operating revenues increased by 280% to $7836 million, compared to $6121 million in Q1 2024[30] - Net income for Q1 2025 increased by 68% to $2838 million, compared to $2658 million in Q1 2024[30] - Net income per share for Q1 2025 increased by 62% to $103, compared to $097 in Q1 2024[30] Growth & Investment - Infrastructure investments of approximately $78 billion are planned for 2025-2029[14] - The company is targeting approximately 11% rate base CAGR for Peoples[16] - The company expects to raise approximately $315 million in equity in 2025[48] Regulatory & Acquisitions - Completed regulatory recoveries in the water segment are expected to increase annualized revenue by $896 million[43] - Pending regulatory recoveries in the water segment are requesting an annualized revenue increase of $472 million[43] - Gas segment surcharges in KY with annualized revenue increase of $05 million[43]

分组1 - Essential Utilities reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.73 per share a year ago, representing an earnings surprise of 28.75% [1] - The company posted revenues of $783.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 13.34%, compared to year-ago revenues of $612.07 million [2] - Essential Utilities shares have increased approximately 12.2% since the beginning of the year, while the S&P 500 has declined by 3.8% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $468.99 million, and for the current fiscal year, it is $2.10 on revenues of $2.3 billion [7] - The Utility - Water Supply industry is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] 分组3 - The estimate revisions trend for Essential Utilities is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Wall Street expects a year-over-year increase in earnings on higher revenues when Essential Utilities (WTRG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1 ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Essential Utilities (WTRG) , which belongs to the Zacks Utility - Water Supply industry, could be a great candidate to consider.This water utility has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.11%.For the most recent quarter, Essential Util ...

Group 1 - Water utilities are considered appealing due to their defensiveness and long dividend track records amidst broader market volatility [1] - Despite a flat-to-negative performance over the past six months, there are specific companies within the water utility sector that exhibit growth potential [1] - Joseph Jones, a professor with extensive market research experience, emphasizes the importance of portfolio construction from a dividend growth investor's perspective [1]