Essential Utilities(US:WTRG) ZACKS·2026-02-26 18:36Core Insights - Essential Utilities Inc. (WTRG) reported fourth-quarter 2025 operating earnings per share (EPS) of 47 cents, exceeding the Zacks Consensus Estimate of 36 cents by 30.56%, although this represents a 29.85% decrease from 67 cents in the same quarter last year [1] - The company's operating revenues reached $699.1 million, surpassing the Zacks Consensus Estimate of $589 million by 18.69%, and increased by 15.67% from $604.4 million in the prior-year quarter [2] - Total revenues for WTRG in 2025 amounted to $2.47 billion, reflecting an 18.62% rise from $2.09 billion in 2024 [2] Revenue Segments - The regulated water segment generated revenues of $329.4 million, an 8% increase from $305 million in the fourth quarter of 2024, driven by higher water and wastewater rates [3] - The regulated natural gas segment reported quarterly revenues of $361.3 million, marking a 23% increase from $293.7 million in the fourth quarter of 2024 [3] Financial Performance - Operation and maintenance expenses were $200.2 million, up 22.45% from $163.5 million in the previous year, attributed to increased purchased gas costs and higher rates [4] - Operating income totaled $227 million, reflecting a slight increase of 0.17% year over year [4] - Interest expenses rose by 7.11% to $84.9 million from $79.3 million in the prior-year quarter [4] Growth Initiatives - The company expanded its operations by adding 12,700 customers through organic growth and completed three acquisitions of water and wastewater systems in 2025 [5] - New water and natural gas rate approvals in 2025 are expected to increase annual revenues by $92.6 million and $8.9 million, respectively [5] - Additional rate approvals received in early 2026 are projected to increase annual revenues by $4.6 million and $7.6 million, respectively [6] Financial Position - Current assets as of December 31, 2025, were $610.4 million, compared to $485.9 million as of December 31, 2024 [7] - Long-term debt increased to $8.11 billion as of December 31, 2025, up from $7.37 billion as of December 31, 2024 [9] - The company invested $1.4 billion in 2025 to enhance its regulated water and natural gas infrastructure systems [9] Merger Update - Essential Utilities is advancing its merger with American Water Works, having secured necessary regulatory approvals, with the merger expected to close by the end of Q1 2027 [10]