Company Highlights - American Water Works Company's subsidiary, New Jersey American Water, has acquired the water system of South Orange Village for $19.7 million, adding 5,000 consumers to its customer base [1][10] - New Jersey American Water plans to invest $50 million in upgrades to the South Orange Village's water system over the next 10 years [1][10] - American Water has completed six acquisitions and has 20 pending deals that will add another 40,650 consumers to its customer base [4][10] Industry Overview - The U.S. water industry is highly fragmented, with over 50,000 community water systems and 14,000 wastewater treatment systems, many of which are struggling with aging infrastructure [2] - The American Society of Civil Engineers reports that water main breaks occur every two minutes, highlighting the deteriorating state of U.S. water infrastructure [3] - The Environmental Protection Agency estimates that $1.25 trillion will be needed over the next 20 years to maintain and expand water services [3] Strategic Acquisitions - California Water Service Group is actively pursuing strategic acquisitions to expand operations and upgrade assets for high-quality service [5][6] - Essential Utilities is also pursuing acquisitions, with agreements signed for additional water and wastewater systems in Pennsylvania, Texas, and Ohio, expected to serve over 200,000 equivalent retail customers [7][8]

Core Insights - Global Water Resources (GWRS) is positioned as a strong investment option in the utility sector due to its regulated water, wastewater, and recycled water operations, along with growth opportunities [1] Growth Projections - The Zacks Consensus Estimate for GWRS's 2025 earnings per share (EPS) is 22 cents, with a projected increase to 28 cents in 2026, reflecting a year-over-year growth of 25% [2] - The estimated sales for 2025 are $55.85 million, indicating a year-over-year increase of 6% [2] Solvency - GWRS's time-to-interest earned ratio was 2.3 at the end of Q2 2025, demonstrating the company's capability to meet future interest obligations comfortably [3] Liquidity - The current ratio for GWRS stands at 1.09, surpassing the industry average of 0.9, indicating sufficient short-term assets to cover liabilities [4] Dividend History - GWRS has been increasing shareholder value through dividend hikes, currently offering a quarterly dividend of 2.53 cents per share, leading to an annualized dividend of 30.4 cents and a dividend yield of 2.83%, which is higher than the S&P 500 average of 1.09% [5] Focus on M&A - The company has executed a Total Water Management strategy, acquiring 23 smaller water and wastewater systems since 2017, resulting in 9,889 new connections and an expansion of service area by 69.9 square miles [6] Share Price Performance - Over the past month, GWRS stock has returned 9.5%, significantly outperforming the industry's growth of 1.6% [7] Summary of Financial Metrics - GWRS's 2025 EPS is projected at 22 cents, with sales expected to reach $55.85 million, alongside a strong current ratio of 1.09 and solid interest coverage of 2.3 [8]

Core Viewpoint - Essential Utilities (WTRG) is positioned for growth through strategic investments and acquisitions, enhancing its water, wastewater, and natural gas infrastructure [1][2] Investment Plans - The company plans to invest $7.8 billion from 2025 to 2029 to improve its water and natural gas systems, with an expected investment of $1.4-$1.5 billion in 2025 [2][9] - These investments aim to utilize enhanced information technology to better serve customers [2] Customer Growth and Acquisitions - Since 2015, WTRG has expanded its utility operations through numerous acquisitions, adding over 135,000 customers [3] - The company anticipates a 2-3% growth in its water segment customer base through both acquisitions and organic growth [3][9] - Pending acquisitions are expected to add more than 200,000 customers, with additional opportunities totaling 400,000 customers [4][9] Industry Consolidation - The U.S. water utility sector is fragmented, necessitating consolidation for infrastructure improvements [7] - Other companies, such as American Water Works (AWK) and California Water Service Group (CWT), are also pursuing acquisitions to expand their customer bases and enhance service delivery [7][8] Competitive Landscape - AWK has completed six acquisitions as of June 30, 2025, adding 7,600 customers, with 20 pending acquisitions expected to add another 40,650 customers [7] - CWT focuses on expanding operations in high-growth regions through strategic acquisitions [10] - Middlesex Water Company (MSEX) is actively consolidating the sector by acquiring smaller, independent water systems [10]

Core Viewpoint - American States Water Company (AWR) is positioned to benefit from an expanding customer base and regulatory approvals, which enhance its financial performance, although it faces risks related to groundwater contamination and reliance on California for earnings [1][6][7]. Group 1: Growth Factors - AWR is steadily increasing its electricity and water utility customer base, contributing to its robust utility customer foundation [2]. - The subsidiary, American States Utility Services (ASUS), has successfully initiated operations at two new military bases, securing long-term contracts that stabilize earnings. In 2024, ASUS was awarded $56.5 million for capital upgrade projects across military bases, with completion expected by 2027 [3][4]. - Approved rate cases for regulated utilities provide a clear path for revenue and earnings growth, with projected investments of nearly $573.1 million in infrastructure from 2025 to 2027 [5][9]. Group 2: Risks and Challenges - Groundwater contamination remains a significant risk for water service providers, potentially leading to additional costs for AWR in the future [6]. - AWR's financial performance is heavily dependent on California, particularly Southern California, exposing it to various risks including political, water supply, labor, utility costs, and regulatory challenges [7]. Group 3: Market Performance - Over the past month, AWR shares have decreased by 3.4%, contrasting with a 0.1% growth in the industry [8].

Core Viewpoint - Essential Utilities (WTRG) is positioned as a strong investment option in the utility sector due to its growth opportunities from acquired assets, organic growth initiatives, and capital expenditures [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 0.5% to $2.11 over the past 30 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $2.35 billion, reflecting a year-over-year increase of 12.7% [2] - The long-term earnings growth rate for Essential Utilities is estimated at 5.18% over the next three to five years [2] - The company has achieved a trailing four-quarter average earnings surprise of 17.5% [2][8] Debt Position - Essential Utilities has a total debt to capital ratio of 53.63%, which is better than the sector average of 59.89% [3] - The time-to-interest earned ratio was 2.9 at the end of Q2 2025, indicating the company's capability to meet future interest obligations [3] Return on Equity - The current return on equity (ROE) for Essential Utilities is 10.1%, surpassing the sector average of 9.78%, demonstrating effective utilization of funds [4] Dividend History - Essential Utilities has a strong dividend history, having paid dividends for 80 years and increased them 35 times in the past 34 years [5] - The current quarterly dividend is 34.26 cents per share, leading to an annualized dividend of $1.37 and a dividend yield of 3.5%, which is significantly higher than the Zacks S&P 500 composite average of 1.16% [5] Customer Base Expansion - The company has been actively expanding its utility operations through municipal asset acquisitions, adding over 135,000 customers since 2015 [6] - Pending acquisitions are expected to add more than 200,000 customers, which will enhance demand and positively impact revenue [6] Share Price Performance - In the past month, WTRG's stock has returned 3.2%, outperforming the industry's growth of 2.2% [9]

Core Insights - American States Water Company (AWR) reported second-quarter 2025 operating earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents by 5.4% and up from 85 cents in the same quarter last year [1][9] AWR's Total Revenues - Total operating revenues reached $163.1 million, falling short of the Zacks Consensus Estimate of $169 million by 3.5%, but increased by 5% from $155.3 million in the prior-year period [2][9] Highlights of AWR's Q2 Release - Operating expenses were $112.1 million, an increase of 8.2% from $103.6 million in the year-ago quarter, driven by higher water purchases, administrative costs, depreciation, and maintenance expenses [3] - Operating income was $51 million, down 1.3% from $51.7 million in the corresponding period of 2024 [3] Interest and Income - Interest expenses totaled $12.1 million, a decrease of 7.6% year over year, while interest income was $1.5 million compared to $2.1 million in the previous year [4] AWR's Segmental Details - Water segment earnings were 73 cents per share, up 9% from 67 cents a year ago, attributed to new rate increases authorized by the CPUC effective January 1, 2025 [5] - Electric segment EPS was 3 cents, an increase of 2 cents from the year-ago quarter, due to revenue increases from new rates implemented in 2025 [6] - Contracted Services segment EPS was 13 cents, down from 19 cents in the year-ago quarter, while AWR (Parent) reported a loss of 1 cent per share compared to a loss of 2 cents previously [7] AWR's Financial Update - As of June 30, 2025, cash and cash equivalents were $20.2 million, down from $26.7 million as of December 31, 2024 [8] - Long-term debt increased to $789.5 million from $640.4 million as of December 31, 2024 [8] Cash Flow - Cash provided by operating activities in the first half of 2025 totaled $109.6 million, compared to $70.5 million in the same period last year [10]

Core Insights - Essential Utilities Inc. (WTRG) reported second-quarter 2025 operating earnings per share (EPS) of 38 cents, exceeding the Zacks Consensus Estimate of 29 cents by 31% and reflecting a year-over-year increase of 35.7% [1][7] - Total operating revenues reached $515 million, surpassing the Zacks Consensus Estimate of $473 million by 8.8% and showing an 18.7% increase year over year, driven by higher rates and purchased gas costs [2][7] Revenue Breakdown - The regulated water segment generated revenues of $332.3 million, a 9.9% increase from $302.5 million in the second quarter of 2024, primarily due to higher water and wastewater rates [3] - The regulated natural gas segment reported revenues of $177.3 million, a significant 38.3% increase from $128.2 million in the same quarter last year, driven by higher purchased gas costs and increased rates and surcharges [4] Expense and Investment Highlights - Operation and maintenance expenses were $148.5 million, up 4.2% from $142.5 million in the prior year [5] - Operating income totaled $185.3 million, reflecting a 27.5% year-over-year increase [5] - The company invested $613 million in the first half of 2025 to upgrade its regulated water and natural gas infrastructure [5] Strategic Acquisitions and Future Guidance - Essential Utilities acquired systems serving nearly 10,300 customers for approximately $58 million in 2025, with new water and gas rate approvals expected to increase annual revenues by $92.6 million and $8.2 million, respectively [6] - 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% to 7% through 2027 [9] - Planned investments for infrastructure in 2025 are projected to be between $1.4 billion and $1.5 billion, with a total of $7.8 billion planned from 2025 to 2029 [10]

Second Quarter 2025 Earnings Presentation July 31, 2025 Today's Speakers Marty Kropelnicki Chairman & CEO James Lynch Sr. Vice President, CFO & Treasurer Shilen Patel Chief Business Development Officer and Vice President, TWSC, Inc. 2 Signed agreements to add up to 15,000+ new wastewater connections through a master planned community in Silverwood, California 5 Received first PFAS settlement payment for California, Washington, and New Mexico Maintained industry leading credit rating for Cal Water of A+/stab ...

Core Insights - California Water Service (Cal Water) has signed a 20-year power purchase agreement with EDPR NA Distributed Generation LLC for a solar photovoltaic array to be installed at its Northeast Bakersfield Treatment Plant, aimed at reducing environmental impact and energy costs [1][2][3] Group 1: Partnership Details - The solar array will have a capacity of 2.35 MWdc / 1.75 MWac and is expected to generate approximately 3,800 megawatt-hours of renewable energy annually [1][2] - The partnership is projected to save about $1.7 million in grid energy costs over the agreement's term, based on current electric rates in the Bakersfield District [2] Group 2: Company Commitments - Cal Water emphasizes its commitment to environmental stewardship and aims to meet greenhouse gas emissions reduction targets through this partnership [3] - The company has been recognized as one of "America's Most Responsible Companies" and "World's Most Trustworthy Companies" by Newsweek, highlighting its dedication to sustainability and community well-being [4] Group 3: EDPR NA DG Overview - EDPR NA Distributed Generation focuses on accelerating the adoption of distributed generation and has an operating capacity of 337 MW across 545 active sites [5] - The company provides a comprehensive range of renewable energy services, including financing, development, construction, and operation of energy and storage assets [5]

Core Viewpoint - Consolidated Water Co. Ltd. (CWCO) is leveraging advanced technology for seawater desalination to meet potable water demands, enhancing its operational performance despite facing challenges related to accounts receivable and weather fluctuations [1][8]. Group 1: Company Operations and Technology - CWCO utilizes Reverse Osmosis Technology at all its water treatment plants, which is crucial for converting seawater to potable water, positioning the company favorably in the desalination market [2][8]. - The company operates 10 desalination plants with a total capacity of 26.2 million gallons per day across four countries, and is actively seeking new market opportunities to expand its drinking water and wastewater services [3][8]. - CWCO aims to grow its operations in complementary service industries through independent ventures or partnerships, targeting advanced water-treatment businesses under medium to long-term contracts with government entities [4][8]. Group 2: Financial Challenges - The Bahamas subsidiary of CWCO is experiencing significant delays in collecting accounts receivable, with balances of $25.5 million and $28.4 million as of March 31, 2025, and December 31, 2024, respectively, with approximately 78% and 81% of these balances being delinquent [5][8]. - Fluctuations in demand for water services are influenced by weather conditions and tourism levels, which could negatively impact the company's operational results and cash flows [6][8]. Group 3: Stock Performance - Over the past three months, CWCO's stock has returned 26.8%, contrasting with a 0.3% decline in the industry, indicating strong market performance [7][8].