Essential Utilities(WTRG) - 2025 Q3 - Quarterly Results

Financial Performance - Essential Utilities reported net income of $92.1 million or $0.33 per share for Q3 2025, compared to $69.4 million or $0.25 per share for Q3 2024, reflecting a 32.5% increase in net income [3][5]. - Revenues for Q3 2025 were $477.0 million, a 9.6% increase from $435.3 million in Q3 2024, primarily driven by rate increases [7]. - Operating revenues for the quarter ended September 30, 2025, were $476,971,000, an increase of 9.1% from $435,255,000 in the same quarter of 2024 [34]. - Net income for the quarter ended September 30, 2025, was $92,077,000, representing a 32.5% increase compared to $69,402,000 for the same quarter in 2024 [34]. - Basic and diluted net income per common share for the quarter ended September 30, 2025, was $0.33, up from $0.25 in the same quarter of 2024, reflecting a 32% increase [34]. - The company reported operating income of $169,771,000 for the quarter ended September 30, 2025, compared to $155,089,000 for the same quarter in 2024, marking a 9.8% increase [36]. Revenue Segments - The regulated water segment generated revenues of $364.1 million, an 8.8% increase from $334.5 million in Q3 2024, with water and wastewater rates being the largest contributor [8]. - The regulated natural gas segment reported revenues of $108.5 million, a 12.1% increase from $96.7 million in Q3 2024, also driven by increased rates [9]. Investment and Infrastructure - Essential invested $983 million in infrastructure in the first nine months of 2025, on track to invest $1.4 to $1.5 billion for the full year [6][15]. - The company plans to invest approximately $7.8 billion in regulated infrastructure from 2025 through 2029, focusing on improving water and natural gas systems [15][26]. - The company plans to invest $1.4 to $1.5 billion in infrastructure in 2025, contributing to anticipated rate base growth through 2029 [32]. - The company announced a $26 million investment in a major data center in Western Pennsylvania, expected to support both power generation and data center cooling needs [6][21]. Mergers and Acquisitions - Essential's merger with American Water Works Company, Inc. is expected to create a leading regulated U.S. water and wastewater utility with a pro forma market capitalization of approximately $40 billion [23][24]. - The expected closing date of the pending merger with American Water is anticipated by the end of the first quarter of 2027 [32]. - Essential has signed agreements for additional wastewater systems in Pennsylvania and Texas, expected to serve over 200,000 customers for a total purchase price of approximately $301 million [18]. Environmental Goals - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035 from the 2019 baseline [32]. Customer Growth - The water utility customer base is expected to grow at an average annual long-term growth rate of 2-3% for acquisitions and organic customer growth [32]. Equity and Debt - Total equity increased to $6,816,299,000 as of September 30, 2025, compared to $6,198,809,000 at the end of 2024 [38]. - Long-term debt, excluding current portion, increased to $7,692,091,000 as of September 30, 2025, from $7,368,381,000 at the end of 2024 [38].