Core Viewpoint - Northwest Natural Holding Company (NW Natural Holdings) will release its fourth quarter and full year 2025 earnings on February 27, 2026, at 8 a.m. Pacific Time [1] Company Overview - NW Natural Holdings is headquartered in Portland, Oregon, and has been in operation for over 167 years, owning several subsidiaries including NW Natural Gas Company, SiEnergy Operating, NW Natural Water Company, and NW Natural Renewables [2][3] - The company provides essential energy, water, and wastewater services to over one million meters across seven states, emphasizing safety, environmental stewardship, and community care [3] Subsidiary Operations - NW Natural Gas Utility serves approximately 2 million people through about 806,000 meters in Oregon and Southwest Washington, featuring a modern pipeline system and 21.6 Bcf of underground gas storage capacity [4] - SiEnergy Gas Utility is one of the fastest-growing natural gas distribution utilities in the U.S., serving around 87,000 meters in the metropolitan areas of Houston, Dallas, and Austin, Texas [5] - NWN Water Utility provides water distribution and wastewater services to an estimated 197,000 people through approximately 79,000 meters, along with operation and maintenance services to an additional 38,000 connections across the Pacific Northwest, Texas, Arizona, and California [6] Commitment to Ethics and Customer Satisfaction - NW Natural Holdings has been recognized as one of the World's Most Ethical Companies for four consecutive years by Ethisphere, and consistently achieves high customer satisfaction scores according to J.D. Power & Associates [3]

Core Viewpoint - The Zacks Utility - Water Supply industry is essential for providing clean drinking water and efficient sewer services, with a focus on infrastructure upgrades to meet growing demand and address aging pipelines [1][2][3]. Industry Overview - The industry consists of companies providing drinking water and wastewater services across a vast network of nearly 2.2 million miles of aging pipelines, requiring continuous investment in infrastructure [3]. - Water utilities benefit from lower interest rates, which reduce financing costs and support infrastructure investments [4]. - The U.S. water industry is fragmented, with over 50,000 community water systems and 14,000 wastewater treatment facilities, leading to inefficiencies that consolidation could address [5]. Investment Needs - The U.S. water infrastructure is deteriorating, with an estimated $1.25 trillion needed over the next 20 years for upgrades, while the Bipartisan Infrastructure Law has committed $50 billion for improvements [6]. - The American Society of Civil Engineers rates U.S. drinking water infrastructure at C- and wastewater systems at D+, highlighting the urgent need for upgrades [6]. Market Performance - The Zacks Utility Water Supply industry has underperformed compared to the Zacks S&P 500 composite and the broader utilities sector over the past 12 months, gaining 6.1% versus 12.5% for the sector and 12.4% for the S&P 500 [11]. - The industry is currently trading at a trailing 12-month EV/EBITDA of 15.89X, lower than the S&P 500's 17.94X and the sector's 15.92X [14]. Earnings Outlook - The Zacks Utility Water Supply industry has a positive earnings outlook, with an aggregate earnings estimate of $2.27 indicating year-over-year growth of 7.1% [9]. - The Zacks Industry Rank 97 places the industry in the top 40% of over 243 Zacks industries, suggesting bullish prospects for the near term [7][8]. Company Highlights - **American States Water Company (AWR)**: Plans to invest $180-$210 million in 2025 for infrastructure upgrades, with a long-term earnings growth rate of 5.65% and a current dividend yield of 2.75% [18][19]. - **American Water Works Company (AWK)**: Aims to invest $3.3 billion in 2025 and $19-$20 billion from 2026 to 2030 for infrastructure strengthening, with a long-term earnings growth rate of 6.77% and a current dividend yield of 2.49% [23][24]. - **Essential Utilities Inc. (WTRG)**: Plans to invest $7.8 billion from 2025 to 2029 for pipeline rehabilitation, with a current dividend yield of 3.42% [27][28].

Core Viewpoint - Severn Trent presents a strong investment opportunity for investors, highlighting growth, regulatory outperformance, and inflation-linked returns as key factors for consideration [1][2]. Group 1: Investment Highlights - The company is experiencing growth in terms of Regulatory Capital Value (RCV), which is expected to create long-term value for investors [2]. - Severn Trent has achieved regulatory outperformance, which is anticipated to provide attractive returns over the medium to long term [2]. - The company's unique inflation-linked structure is expected to enhance returns for investors [2]. Group 2: Performance Overview - In the first six months of the financial year 2026, Severn Trent has maintained its leading status with the environment agency, marking six consecutive years of top performance [3].

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]

Group 1: Essential Utilities - Essential Utilities has a dividend yield of 3.50% and an annual dividend of $1.37, with a dividend increase track record of 32 years and a payout ratio of 58.80% [3][5] - The company reported a 35% year-over-year increase in GAAP EPS, driven by its gas and water businesses and operational efficiency, particularly in Texas [4] - Essential Utilities announced a 5.25% increase in its dividend, continuing its tradition of over three decades of dividend increases, indicating strong earnings growth potential [5] Group 2: Globe Life - Globe Life has a dividend yield of 0.77% and an annual dividend of $1.08, with a dividend increase track record of 20 years and a low payout ratio of 8.63% [7][10] - The company reported a net operating income of $271 million for the latest quarter, marking a 10% year-over-year improvement, and raised its full-year earnings guidance [8] - Globe Life has engaged in significant share buybacks, spending approximately $226 million in the second quarter and planning up to $650 million in repurchases through 2025 [9] Group 3: NetEase - NetEase has a dividend yield of 1.66% and an annual dividend of $2.27, with a payout ratio of 30.72% [11] - Despite facing potential downside of -9.5%, most analysts still view NetEase shares as a Buy, highlighting its successful games segment driven by popular titles [12]

Core Insights - The Zacks Utility - Water Supply industry is essential for providing clean water and sewer services, with demand fluctuating seasonally due to weather conditions [1][3] - Aging infrastructure poses challenges, but companies are investing in upgrades to ensure reliable service [2][6] Industry Overview - The industry consists of companies delivering drinking water and wastewater services across a vast network of approximately 2.2 million miles of pipelines [3] - Water utilities are capital-intensive and benefit from lower interest rates, which reduce borrowing costs for infrastructure projects [4] Trends Impacting the Industry - Falling interest rates, recently reduced by 100 basis points to 4.25%-4.50%, are expected to further decrease capital costs, aiding infrastructure investments [4] - The U.S. water industry is highly fragmented, with over 50,000 community water systems, leading to a need for consolidation to improve service quality and efficiency [5] Infrastructure Investment Needs - The American Society of Civil Engineers reports water main breaks occur every two minutes, highlighting the urgent need for infrastructure upgrades [6] - An estimated $1.25 trillion is required over the next 20 years for maintenance and expansion, with the Bipartisan Infrastructure Law committing $50 billion to these efforts [6] Industry Performance - The Zacks Utility Water Supply industry ranks 46 among over 244 Zacks industries, indicating strong prospects [7][8] - The industry has underperformed compared to the S&P 500 and the Utility sector over the past year, gaining 11.1% versus 11.4% for the S&P 500 [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA of 11.27X, lower than the S&P 500's 16.85X and the sector's 15.09X, suggesting it is undervalued [13] Companies to Watch - Companhia de Saneamento Basico do Estado de Sao Paulo plans to invest $10.6 billion from 2024-2029 to enhance its infrastructure [17] - Artesian Resources Corporation is set to invest $46.4 million in 2025 for infrastructure improvements [22] - Middlesex Water Company has a long-term earnings growth estimate of 6.1% and plans to strengthen its operations [27] - American Water Works Company aims to invest $3.3 billion in 2025 and $17-19 billion from 2025-2029 for infrastructure expansion [30]

Core Viewpoint - Middlesex Water Company reported a decrease in net income and diluted EPS for Q1 2025 compared to the same period in 2024, primarily due to a one-time recovery in the previous year, despite growth in operating revenue and customer base [2][3]. Financial Performance - Net income for Q1 2025 was $9.5 million, with diluted EPS of $0.53, down from $10.7 million and $0.59 in Q1 2024 [2][9]. - Operating revenue increased to $44.3 million, up $3.8 million from $40.5 million in the same quarter last year, driven by rate increases, higher consumption, and customer growth [3][14]. - Operating expenses rose to $32.7 million, an increase of approximately $2.0 million from $30.7 million in Q1 2024, mainly due to higher variable production costs and increased weather-related main break activity [4][14]. Growth Initiatives - The company completed the acquisition of Ocean View water utility assets for approximately $4.6 million, expanding its customer base by serving around 900 customers in Sussex County, Delaware [5][9]. - Middlesex plans to invest approximately $93 million in 2025 to upgrade and enhance its water and wastewater utility infrastructure, having already invested about $19 million in Q1 2025 [7][11]. Rate Applications and Revenue - Middlesex filed a third Distribution System Improvement Charge (DSIC) rate application expected to generate $1.9 million in annual revenues starting June 2025, in addition to existing revenues from previous DSIC filings [6][11]. Dividend Declaration - The Board of Directors declared a second quarter cash dividend of $0.34 per common share, to be paid on June 2, 2025, marking 52 consecutive years of dividend increases [10][11].

Core Viewpoint - The Competition Authority has approved a new pricing structure for water services in Tallinn and Saue, with prices set at €2.10 per cubic metre for private customers and €3.33 for business customers, effective from May 1, 2025, to ensure sustainability and compliance with legal requirements [1][2][3]. Pricing Changes - The average price for water services will increase by approximately 8%, with private customers experiencing a price hike and business customers seeing a decrease [3]. - The average household's water bill is expected to rise by around €2 per month, with the new pricing structure still keeping costs lower than in neighboring capitals [1][4]. Investment and Infrastructure - The price adjustment is partly driven by the need for investments to maintain service quality and infrastructure sustainability, with over €109 million invested in assets over the last three years [6]. - The company plans to produce around 7,000 MWh of electricity at the wastewater treatment plant this year, which will help reduce daily electricity costs [5]. Regulatory Compliance - The price harmonization is mandated by the Public Water Supply and Sewerage Act, which requires pricing principles for different customer groups to be aligned by July 2026 [2][5]. - The pricing for wastewater services will not be harmonized during the transition period, with future pricing based on the pollutant load discharged by customers [7]. Service Area Specifics - In the Maardu service area, water service prices will change by approximately 4%, reflecting the different business model and infrastructure ownership [8]. - AS Tallinna Vesi serves over 25,000 private customers and businesses, reaching a total of 500,000 end consumers in Tallinn and surrounding municipalities [9].