FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File number 1-6659 ESSENTIAL UTILITIES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-1702594 (St ...

Key Takeaways WTRG reports Q4 EPS of 47 cents, beating estimates, as revenues jump 15.7% year over year. Essential Utilities' water and gas segments post 8% and 23% revenue gains on higher rates and volumes. WTRG advances its merger with American Water Works; shareholders approve deal set to close by Q1'27. Essential Utilities Inc. (WTRG) reported fourth-quarter 2025 operating earnings per share (EPS) of 47 cents, which beat the Zacks Consensus Estimate of 36 cents by 30.56%. The bottom line decreased 29.85 ...

Essential Utilities (NYSE:WTRG) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsBrian Dingerdissen - VP of Financial Planning and Analysis, Treasury, and Investor RelationsChristopher Franklin - Chairman and CEODaniel Schuller - EVP and CFOConference Call ParticipantsPaul Zimbardo - Managing Director and Research AnalystTravis Miller - Senior Equity AnalystOperatorStanding by. My name is Jericho, and I'll be your conference operator today. At this time, I would like to welcome everyo ...

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $2.20 for 2025, exceeding the guidance range of $2.07-$2.11, marking a significant increase from the previous year's non-GAAP EPS of $1.97 [7][12][18] - Revenues increased by 18.6%, rising from approximately $2.1 billion to nearly $2.5 billion, with regulatory recoveries contributing $177.6 million to this growth [12][13] - Operating and maintenance (O&M) expenses rose by 8.9% year-over-year, totaling an increase of $52.3 million [15] Business Line Data and Key Metrics Changes - The water business executed a $450 million PFAS capital plan, deploying over 50 advanced treatment systems [9] - The natural gas segment achieved the installation of its 100,000th Intelis meter in 2025 [9] - The company completed three municipal acquisitions in 2025, adding over 12,700 new customers [21] Market Data and Key Metrics Changes - Customer growth contributed $5.6 million to revenue, while lower water volumes due to wetter weather offset revenue growth by $8.6 million [13] - The company reported a favorable regulatory recovery totaling $101.5 million in incremental annualized revenue, with $92.6 million related to water and wastewater business [20] Company Strategy and Development Direction - The company aims to maintain a long-term goal of delivering 5%-7% EPS growth from 2024 through 2027, excluding non-recurring items [19][24] - The merger with American Water is expected to create a premier multi-state utility with low risk and first quartile growth, with regulatory approvals anticipated to close in the first quarter of 2027 [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory relationships built over the years, which are expected to facilitate a constructive outcome for the merger [5] - The company remains committed to balancing responsible investments in infrastructure with customer affordability amid ongoing discussions about utility costs [11] Other Important Information - The company was recognized as one of Newsweek's America's Most Responsible Companies for the fifth consecutive year and named to USA Today's America's Climate Leaders for the third consecutive year [10] - The company plans to invest $1.7 billion in regulated infrastructure in 2026 [25] Q&A Session Summary Question: What would the non-GAAP 2025 be with adjustments? - Management did not specify the number but indicated that favorable non-recurring items would still place results above the guidance range [30][31] Question: Timing for the next round of Pennsylvania rate cases? - Management indicated that filings would follow a historical two-year cadence, suggesting a relatively quick timeline [32] Question: Could regulatory activity be combined with the merger sign-off? - Management clarified that these would be considered separate dockets and adjudicated separately [41][42]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $2.20 for 2025, exceeding the guidance range of $2.07-$2.11, and representing significant growth from the previous year's non-GAAP EPS of $1.97 [6][12][18] - Revenues increased by 18.6%, rising from approximately $2.1 billion in 2024 to nearly $2.5 billion in 2025, with regulatory recoveries contributing $177.6 million to this increase [12][13] - Operating and maintenance (O&M) expenses rose by 8.9% year-over-year, totaling an increase of $52.3 million, driven by higher employee-related costs and increased production costs [14] Business Line Data and Key Metrics Changes - The water business executed a $450 million PFAS capital plan, deploying over 50 advanced treatment systems across Pennsylvania and North Carolina [9] - The natural gas segment achieved the installation of its 100,000th Intelis meter in 2025, contributing to operational efficiency [9] - The company completed three municipal acquisitions in 2025, adding over 12,700 new customers and showcasing its growth strategy [21] Market Data and Key Metrics Changes - The company experienced customer growth that added $5.6 million in revenue, although lower water volumes due to wetter weather offset this growth by $8.6 million [13] - Regulatory recoveries totaled $101.5 million in 2025, with $92.6 million related to the water and wastewater business [20] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, improving cash flow, and delivering consistent dividend growth while keeping the payout ratio between 60% and 65% [24] - The merger with American Water is expected to close in the first quarter of 2027, with the company optimistic about leveraging combined resources for business development [5][21] - The company reaffirmed its long-term goal of delivering 5%-7% EPS growth from 2024 through 2027, excluding non-recurring items [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory relationships built over the years, which are expected to facilitate a constructive outcome for the merger [5] - The company emphasized its commitment to sustainability and affordability, balancing investments in infrastructure with customer bill impacts [11][25] - Management highlighted the importance of maintaining high-quality service while managing operating costs amid national discussions on affordability [11] Other Important Information - The company was recognized as one of Newsweek's America's Most Responsible Companies for the fifth consecutive year and named to USA Today's America's Climate Leaders for the third consecutive year [10] - The company plans to invest $1.7 billion in regulated infrastructure in 2026, reflecting its commitment to enhancing service reliability [25] Q&A Session Summary Question: What would the non-GAAP 2025 be with adjustments? - Management did not specify the exact number but indicated that the results remained favorable to the guidance range [30][31] Question: Timing for the next round of Pennsylvania rate cases? - Management suggested that filings would occur relatively quickly, following a historical two-year cadence [32] Question: Could regulatory activity be combined with merger sign-off? - Management clarified that rate cases and regulatory activities are considered separate dockets and will be adjudicated separately [40][41] Question: Options for the bankruptcy exit for Chester? - Management discussed the implications of the Supreme Court ruling and potential negotiations regarding assets related to the Chester Water Authority [44][46]

NYSE LISTED WTRG February 2024 Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations 2 Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such f ...

Financial Performance - Essential Utilities reported a net income of $616.4 million or $2.20 per share for the full year of 2025, an increase from $595.3 million and $2.17 per share in 2024[2][5]. - Revenues for 2025 were $2,474.6 million, representing an 18.6% increase from $2,086.1 million in 2024[6]. - Operating revenues for Q4 2025 reached $699,111,000, a 15.7% increase from $604,383,000 in Q4 2024[34]. - Net income for Q4 2025 was $132,676,000, down 28.2% from $184,755,000 in Q4 2024[34]. - Basic net income per common share for Q4 2025 was $0.47, a decrease of 30% compared to $0.67 in Q4 2024[34]. - Total operating expenses for the year ended December 31, 2025, were $1,553,664,000, an increase of 16.9% from $1,328,445,000 in 2024[34]. - Operating income for the year ended December 31, 2025, was $920,951,000, up 21.5% from $757,668,000 in 2024[34]. - Long-term debt as of December 31, 2025, was $8,110,167,000, an increase from $7,368,381,000 in 2024[42]. - Total equity increased to $6,857,456,000 as of December 31, 2025, compared to $6,198,809,000 in 2024[42]. - Adjusted income for the year ended December 31, 2024, was $540,898,000, reflecting adjustments for asset sales and weather impacts[40]. Revenue Segments - The regulated water segment generated revenues of $1,326.6 million in 2025, an 8.6% increase compared to $1,221.9 million in 2024[7]. - The regulated natural gas segment reported revenues of $1,117.9 million for 2025, a 32.6% increase from $843.0 million in 2024[8]. Investments and Acquisitions - Essential invested a record $1.4 billion in infrastructure improvements during 2025[4][19]. - In 2026, regulated infrastructure investments are expected to reach $1.7 billion[26]. - Essential completed three acquisitions in 2025, adding over 12,700 new customers, and has signed agreements for additional acquisitions expected to serve over 200,000 customers[20][21]. - The company has a pipeline of potential acquisitions representing approximately 400,000 total customers[22]. Future Projections - Anticipated long-term earnings per share growth is projected at a compounded annual growth rate of 5 to 7% from the adjusted 2024 earnings per share of $1.97[26]. - The company secured shareholder approval for its merger with American Water, which is expected to close in the first quarter of 2027[3][23]. Share Information - The average diluted common shares outstanding for Q4 2025 was 283,598,000, compared to 275,161,000 in Q4 2024[34].

of 2024, the Company completed the sale of its interest in three non-utility local microgrid and distributed energy projects and recognized a gain of $91,236, net of transaction expenses. In October 2023, the Company completed the sale of its regulated natural gas utility assets in West Virginia. In 2024, the Company received additional proceeds from this sale of regulated natural gas utility assets in West Virginia and post-transaction activities.(2) Estimated impact to Peoples Natural Gas (PNG) operating ...

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for 2025 were $5.64, an increase from $5.18 in 2024, reflecting an 8.9% growth [4][10] - Consolidated earnings increased by $0.46 per share compared to the previous year, with revenues rising by $1.70 per share due to authorized rate increases [10][11] - Operating costs increased by $0.42 per share, primarily due to employee-related costs and higher production costs [11] Business Line Data and Key Metrics Changes - The company invested over $3 billion in infrastructure in 2025 to enhance service reliability and quality [5][19] - The company completed six rate cases in 2025, with significant revenue increases authorized in various states [11][12] Market Data and Key Metrics Changes - The company serves approximately 14 million people, maintaining residential water bills under 1% of median household income [5][20] - The company has over 104,000 customer connections under agreement heading into 2026, indicating growth in customer base [6][21] Company Strategy and Development Direction - The company is focused on addressing aging infrastructure and water quality challenges while ensuring customer affordability [8][19] - A definitive merger agreement with Essential Utilities was announced, expected to close by the end of Q1 2027, which aims to enhance service offerings [6][9] Management's Comments on Operating Environment and Future Outlook - Management affirmed 2026 EPS guidance of $6.02-$6.12, representing an expected 8% growth compared to 2025 [7][15] - The company is committed to responsible investments and operational efficiencies to support customer affordability and regulatory compliance [15][19] Other Important Information - The company plans to issue approximately $2.5 billion in external equity from 2026 to 2030 to fund growth and maintain financial stability [15][17] - The total debt to capital ratio as of December 31 was 59%, with expectations to remain below 60% [17] Q&A Session Summary Question: What are the plans for the Peoples Gas business post-merger? - The company will review strategic alternatives for Peoples after the merger closes, with proceeds potentially used for debt repayment and reinvestment [24] Question: What is the 2025 realized FFO to debt? - The company typically does not disclose FFO to debt but suggests it can be calculated from financial statements [25] Question: What is the status of the rate cases in Pennsylvania, New Jersey, and Illinois? - The company is progressing as expected in rate cases and is open to settlements if they are beneficial [26][36] Question: What approvals are remaining for the Nexus acquisition? - The company has received approvals in several states but still requires approvals in about five states, with no current challenges anticipated [30] Question: How does affordability scrutiny affect ongoing rate cases in Pennsylvania? - Rate cases are driven by necessary investments, and the company does not foresee changes in the current pace of filings [35]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for 2025 were $5.64, an increase of 8.9% from $5.18 in 2024 [4][10] - Revenues increased by $1.70 per share, driven by authorized rate increases and acquisitions [10] - Operating costs increased, with O&M expenses up by $0.42 per share, primarily due to employee-related costs and higher production costs [11] Business Line Data and Key Metrics Changes - The company invested over $3 billion in infrastructure in 2025 to enhance service reliability and quality [5] - The company completed six rate cases in 2025, with significant revenue increases authorized [11][12] Market Data and Key Metrics Changes - The company serves approximately 14 million people, maintaining residential water bills under 1% of median household income [5][20] - The company has 104,000 customer connections under agreement heading into 2026, indicating growth in customer base [6][21] Company Strategy and Development Direction - The company is focused on addressing aging infrastructure and water quality challenges while ensuring affordability for customers [8] - A definitive merger agreement with Essential Utilities was announced, expected to close by the end of Q1 2027, which aims to enhance service offerings [6][9] Management's Comments on Operating Environment and Future Outlook - Management affirmed 2026 EPS guidance of $6.02-$6.12, representing an expected 8% growth compared to 2025 [7][14] - The company is committed to responsible investments and operational efficiencies to support customer affordability and regulatory compliance [15][20] Other Important Information - The company plans to issue approximately $2.5 billion in external equity from 2026 to 2030 to fund growth [15][17] - The company maintains a strong financial position with an A-rated credit rating and stable outlook from S&P and Moody's [17] Q&A Session Summary Question: What are the plans for the People's Gas business post-merger? - The company will review strategic alternatives for People's after the merger closes, with proceeds potentially used for debt repayment and business reinvestment [24] Question: What is the 2025 realized FFO to debt? - The company typically does not disclose FFO to debt but suggests it can be calculated from financial statements [25] Question: Expectations for settlements in Pennsylvania, New Jersey, and Illinois rate cases? - The company is progressing as expected in rate cases and is open to constructive settlements [26] Question: Key approvals remaining for Nexus? - The company has received approvals in several states for Nexus but still requires approvals in about five states [29] Question: How does affordability scrutiny affect rate cases in Pennsylvania? - Rate cases are driven by necessary investments, and the company does not foresee changes in the current pace of filings [34] Question: How does the New Jersey rate case timing interact with the BPU study? - The New Jersey case is also driven by system investments, and the company maintains that its bills remain below 1% of median household income [36]