Financial Performance - Q2 2025 EPS was $0.38, with 2025 EPS guidance set at $2.07 - $2.11[9] - Operating revenues for Q2 2025 increased by 18.5% to $514.9 million, compared to $434.4 million in Q2 2024[41] - Net income for Q2 2025 increased by 43.0% to $107.8 million, compared to $75.4 million in Q2 2024[41] - YTD 2025 operating revenues increased by 24.1% to $1,298.5 million, compared to $1,046.5 million in YTD 2024[75] - YTD 2025 net income increased by 14.8% to $391.6 million, compared to $341.2 million in YTD 2024[75] Investments and Growth - Infrastructure investments for 2025 are projected to be $1.4 billion - $1.5 billion[9] - The company anticipates approximately $7.8 billion in infrastructure investments from 2025-2029[20] - The company targets a rate base CAGR of approximately 6% through 2029 for Aqua[23] - The company targets a rate base CAGR of approximately 11% through 2029 for Peoples[65] Regulatory and Acquisitions - Completed regulatory recoveries in 2025 are expected to increase annualized revenue by $92.6 million for the water segment and $8.2 million for the gas segment[53] - Pending regulatory recoveries are expected to increase annualized revenue by $96.6 million for the water segment[53] - Over 135,000 water and wastewater customers and approximately $550 million in rate base have been acquired through M&A since 2015[60]

[Q2 2025 Earnings Release](index=1&type=section&id=Essential%20Utilities%20Reports%20Strong%20Second%20Quarter%202025%20Results) Essential Utilities delivered strong Q2 and H1 2025 results, driven by financial growth, strategic investments, and a positive future outlook [Financial Performance](index=1&type=section&id=Operating%20Results) Essential Utilities achieved significant financial growth in Q2 and H1 2025, driven by increased net income and revenue from rate adjustments | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $107.8 million | $75.4 million | +43.0% | | Diluted EPS | $0.38 | $0.28 | +35.7% | | Revenues | $514.9 million | $434.4 million | +18.5% | | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $391.6 million | $341.2 million | +14.8% | | Diluted EPS | $1.41 | $1.25 | +12.8% | | Revenues | $1,298.5 million | $1,046.5 million | +24.1% | - Primary drivers for the quarterly earnings increase were rate hikes in both business segments, which were partially offset by higher depreciation, interest, and operations and maintenance expenses[5](index=5&type=chunk)[6](index=6&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Both regulated water and natural gas segments reported robust Q2 2025 revenue growth, primarily due to new rates and higher purchased gas costs | Regulated Water Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $332.3 million | $302.5 million | +9.9% | | O&M Expenses | $100.1 million | $95.6 million | +4.7% | | Regulated Natural Gas Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $177.3 million | $128.2 million | +38.3% | | O&M Expenses | $49.8 million | - | Relatively flat | [Shareholder Returns & Financing](index=2&type=section&id=Shareholder%20Returns%20%26%20Financing) The company increased its quarterly dividend by 5.25% and maintains a stable financial position with available credit lines - The board of directors declared a **5.25% increase** in the quarterly cash dividend to **$0.3426 per share**[11](index=11&type=chunk) - This marks the **35th dividend increase** in the last **34 years** and continues an **80-year streak** of consecutive quarterly cash dividends[11](index=11&type=chunk) - As of June 30, 2025, the company's weighted average cost of fixed-rate long-term debt was **4.03%**, with **$802 million** available on its credit lines[12](index=12&type=chunk) [Operational Highlights & Strategy](index=2&type=section&id=Operational%20Highlights%20%26%20Strategy) Essential Utilities advanced its strategy through substantial infrastructure investments, strategic acquisitions, and successful rate adjustments - Invested **$613 million** in the first half of 2025 and is on track to invest over **$1.4 billion** for the full year[7](index=7&type=chunk)[14](index=14&type=chunk) - Long-term capital plan includes investing approximately **$7.8 billion** from 2025 through 2029 to improve water and gas systems, address PFAS, and reduce methane emissions[14](index=14&type=chunk) - Closed the acquisition of the City of Beaver Falls wastewater system for **$37.75 million**, serving approximately **7,000 customers** and equivalent dwelling units (EDUs)[17](index=17&type=chunk) - The company has four signed purchase agreements pending for additional systems, expected to serve over **200,000 customers**, and is actively pursuing a pipeline representing approximately **400,000 total customers**[18](index=18&type=chunk)[19](index=19&type=chunk) - As of July 31, 2025, the company received rate awards and surcharges totaling **$100.8 million** (**$92.6 million** for water, **$8.2 million** for gas) and has pending cases for an additional **$96.5 million** in annual revenue[13](index=13&type=chunk) [Future Outlook & Guidance](index=3&type=section&id=Multi-Year%20Financial%20and%20Growth%20Guidance) The company updated its 2025 EPS guidance upward and reaffirmed long-term growth targets, including significant rate base CAGR and emission reduction goals - For 2025, the company expects to achieve GAAP earnings per share above the guidance range of **$2.07-$2.11** due to non-recurring benefits[7](index=7&type=chunk)[20](index=20&type=chunk) | Long-Term Guidance (through 2029 unless noted) | Target | | :--- | :--- | | EPS CAGR (through 2027) | 5% to 7% | | 2025 Regulated Infrastructure Investments | $1.4 to $1.5 billion | | Total Regulated Infrastructure Investments | ~$7.8 billion | | Regulated Water Segment Rate Base CAGR | ~6% | | Regulated Natural Gas Segment Rate Base CAGR | ~11% | | Combined Regulated Utility Rate Base CAGR | >8% | - Reaffirms commitment to reduce Scope 1 and 2 greenhouse gas emissions by **60% by 2035** from a 2019 baseline[21](index=21&type=chunk)[25](index=25&type=chunk) - Guidance assumptions exclude the potential DELCORA acquisition and assume the company will continue to issue equity to support capital plans[22](index=22&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Unaudited financial statements detail Q2 2025 operating results and the company's financial position, showing growth in income and assets | Selected Operating Data (Q2 Ended June 30, in thousands, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | Operating revenues | $514,907 | $434,406 | | Net income | $107,827 | $75,385 | | Diluted net income per common share | $0.38 | $0.28 | | Condensed Balance Sheet Data (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Net property, plant and equipment | $13,579,450 | $13,143,476 | | Total Assets | $18,554,285 | $18,026,554 | | Long-term debt (net) | $7,622,994 | $7,368,381 | | Total equity | $6,720,202 | $6,198,809 |

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]

分组1 - Essential Utilities reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.28 per share a year ago, representing an earnings surprise of +31.03% [1] - The company achieved revenues of $514.91 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.76%, compared to $434.41 million in the same quarter last year [2] - Essential Utilities has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has added approximately 1.7% since the beginning of the year, while the S&P 500 has gained 8.2%, suggesting underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $475.49 million, and for the current fiscal year, it is $2.10 on revenues of $2.34 billion [7] - The Utility - Water Supply industry is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Company Overview - Essential Utilities (WTRG) is headquartered in Bryn Mawr and operates in the Utilities sector [3] - The stock has experienced a price change of 2.42% since the beginning of the year [3] Dividend Information - Essential Utilities currently pays a dividend of $0.33 per share, resulting in a dividend yield of 3.5% [3] - The Utility - Water Supply industry's average yield is 2.64%, while the S&P 500's yield is 1.48% [3] - The company's annualized dividend of $1.30 has increased by 2.8% from the previous year [4] - Over the last 5 years, the company has raised its dividend 5 times, averaging an annual increase of 6.53% [4] - The current payout ratio is 58%, indicating that the company paid out 58% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 earnings is $2.10 per share, reflecting a year-over-year growth rate of 6.60% [5] Investment Appeal - Essential Utilities is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [6]

Core Insights - Essential Utilities (WTRG) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 15.13% [1][5] - The most recent earnings report showed a surprise of 28.75%, with actual earnings of $0.80 per share against an expectation of $1.03 [2] - The previous quarter also saw a positive surprise of 1.52%, with actual earnings of $0.67 per share compared to a consensus estimate of $0.66 [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Essential Utilities, indicated by a positive Earnings ESP (Expected Surprise Prediction) of +6.90% [5][8] - The combination of a positive Earnings ESP and a Zacks Rank 1 (Strong Buy) suggests a high likelihood of another earnings beat in the upcoming report [8] - Historically, stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [6][8] Earnings ESP Metric - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [9] - Companies often beat consensus EPS estimates for various reasons, and the Earnings ESP is a crucial metric to consider before earnings releases [10]

Company Overview - Essential Utilities (WTRG) is based in Bryn Mawr and operates in the Utilities sector, with a year-to-date share price change of 2.78% [3] - The company currently pays a dividend of $0.33 per share, resulting in a dividend yield of 3.49%, which is higher than the Utility - Water Supply industry's yield of 2.53% and the S&P 500's yield of 1.52% [3] Dividend Performance - The current annualized dividend of Essential Utilities is $1.30, reflecting a 2.8% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 6.53% [4] - The current payout ratio is 58%, indicating that the company paid out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Investment Appeal - The Zacks Consensus Estimate for 2025 projects earnings of $2.10 per share, which represents a year-over-year earnings growth rate of 6.60% [5] - Essential Utilities is considered an attractive investment opportunity due to its strong dividend yield and a Zacks Rank of 2 (Buy), suggesting favorable market conditions for the stock [6]

Core Viewpoint - Essential Utilities (WTRG) is experiencing growth through acquisitions, organic ventures, and capital expenditures, which are enhancing its water and wastewater operations [1] Group 1: Investment Plans and Infrastructure - The company plans to invest $7.8 billion from 2025 to 2029 to improve its water and natural gas systems, with an investment of $1.4-$1.5 billion in infrastructure planned for 2025 [2][8] - Essential Utilities has expanded its utility operations significantly since 2015, completing numerous acquisitions that have added over 129,000 customers, with five pending acquisitions expected to add more than 210,000 customers [4][8] Group 2: Operational Stability and Emission Reduction - A majority of the water distributed by the company is self-sourced, which contributes to business stability, and the company aims to reduce annual Scope 1 and 2 emissions by 60% by 2035 compared to 2019 levels [3] - The focus on new and advanced assets is expected to lower operational costs [3] Group 3: Challenges and Risks - Water utilities face risks related to water contamination, which can lead to service disruptions and additional costs for testing and treatment [5] - Weather fluctuations, such as cooler winters and increased rainfall, can negatively impact water demand and the company's performance [6] Group 4: Stock Performance - Over the past six months, WTRG's shares have increased by 3.8%, which is lower than the industry's growth of 17.6% [7][8]

Company Overview - Essential Utilities (WTRG) shares have increased by approximately 2.2% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the stock's performance and future outlook [1] Earnings Estimates - Fresh estimates for Essential Utilities have trended downward, with the consensus estimate shifting by -13.68% [2] - The stock has a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [4] VGM Scores - Essential Utilities has a Growth Score of B and a Momentum Score of B, but a Value Score of D, placing it in the bottom 40% for value investment strategy [3] - The overall aggregate VGM Score for the stock is C, which is relevant for investors not focused on a single strategy [3] Industry Comparison - Essential Utilities is part of the Zacks Utility - Water Supply industry, where California Water Service Group (CWT) has seen a 3.3% increase in the past month [5] - California Water Service Group reported revenues of $203.97 million, reflecting a year-over-year decline of -24.7%, with an EPS of $0.22 compared to $1.21 a year ago [6] - The expected earnings for California Water Service Group for the current quarter is $0.40 per share, indicating a year-over-year change of -42.9% [6] - California Water Service Group holds a Zacks Rank of 2 (Buy) based on the direction and magnitude of estimate revisions, despite having a VGM Score of F [7]

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