Essential Utilities(US:WTRG) ZACKS·2025-11-05 17:26Core Insights - Essential Utilities Inc. reported third-quarter 2025 operating earnings per share (EPS) of 33 cents, exceeding the Zacks Consensus Estimate of 27 cents by 22.2% and reflecting a 32% year-over-year increase driven by rate increases across both business segments [1][8] - Operating revenues reached $476.97 million, slightly missing the Zacks Consensus Estimate by 0.06%, but showing a 9.6% year-over-year growth primarily due to increased rates [2][8] - The company announced a merger with American Water Works Company, creating a leading regulated U.S. water and wastewater utility with a pro forma market capitalization of approximately $40 billion [7][8] Revenue and Segment Performance - The regulated water segment generated revenues of $364.1 million, an 8.8% increase from $334.5 million in the third quarter of 2024, driven by higher water and wastewater rates [3] - The regulated natural gas segment reported revenues of $108.5 million, marking a 12.1% increase from $96.7 million in the same quarter last year, also primarily due to increased rates [3] Financial Highlights - Operating income totaled $169.8 million, up 9.5% year over year, while operation and maintenance expenses rose 6.0% to $153.1 million due to increased employee-related costs and other operational expenses [4] - Interest expenses increased by 7.0% to $82.3 million from $76.8 million in the prior-year quarter [5] - Current assets amounted to $433.6 million as of September 30, 2025, down from $485.9 million as of December 31, 2024, while long-term debt rose to $7.69 billion [9] Future Outlook and Guidance - The company reaffirmed its 2025 EPS guidance in the range of $2.07-$2.11, with a long-term annual earnings growth forecast of 5-7% through 2027 [10] - Essential Utilities plans to invest $1.4-$1.5 billion in infrastructure in 2025 and approximately $7.8 billion from 2025 through 2029 to enhance water and natural gas systems [11]