CHESAPEAKE UTILITIES CORPORATION REPORTS THIRD QUARTER 2025 RESULTS

Core Insights - Chesapeake Utilities Corporation reported a net income of $19.4 million ($0.82 per share) for Q3 2025, an increase from $17.5 million ($0.78 per share) in Q3 2024, with adjusted net income at $19.5 million ($0.82 per share) compared to $18.1 million ($0.80 per share) in the prior year [2][4][17] - For the first nine months of 2025, net income reached $94.2 million ($4.03 per share), up from $81.9 million ($3.66 per share) in the same period of 2024, with adjusted net income at $94.9 million ($4.06 per share) compared to $84.2 million ($3.76 per share) [4][26] - The company reaffirmed its 2025 EPS guidance range of $6.15 to $6.35 per share and increased its capital guidance range to $425 million to $450 million [8][9] Financial Performance - Adjusted gross margin for Q3 2025 increased by $15.2 million (12.5%) to $137.2 million compared to Q3 2024, driven by natural gas transmission service expansions, regulatory initiatives, and increased CNG, RNG, and LNG services [17][20] - Operating income for Q3 2025 was $45.0 million, a 10.0% increase from $40.9 million in Q3 2024, with adjusted operating income also reflecting growth [18][26] - Year-to-date adjusted gross margin for 2025 was $462.4 million, an increase of $49.3 million (11.9%) from $413.1 million in 2024 [25][31] Growth Initiatives - The company invested $123 million in capital during Q3 2025, generating over $20 million in gross margin from transmission, infrastructure, and transportation projects [7][6] - Chesapeake Utilities completed its Delaware rate case, resulting in tariff-related changes and rate design adjustments [7] - The company is focusing on a multi-year Enterprise Resource Plan (ERP) process to drive business transformation and growth [7] Segment Performance - The regulated energy segment's adjusted gross margin for Q3 2025 was $114.7 million, up from $102.2 million in Q3 2024, reflecting a 12.2% increase [19] - The unregulated energy segment's adjusted gross margin for Q3 2025 was $22.4 million, a 13.1% increase from $19.8 million in Q3 2024, driven by increased CNG, RNG, and LNG services [22][31] - For the nine months ended September 30, 2025, the regulated energy segment's adjusted gross margin was $360.5 million, up from $324.0 million in 2024, while the unregulated segment's adjusted gross margin increased to $101.9 million from $89.2 million [27][31]