Unitil(UTL) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, the company reported adjusted earnings of $53.3 million, or $3.16 per share, representing an increase of $0.19 per share, or 6.4% over 2024 [4][10] - The adjusted net income increased by $5.5 million compared to 2024, supported by acquisitions and higher distribution rates [10] - The company expects 2026 earnings to be in the range of $3.20-$3.36 per share, with a midpoint of $3.28 per share, indicating a 6.1% increase compared to the midpoint of 2025 guidance [5][19] Business Line Data and Key Metrics Changes - Electric adjusted gross margin for 2025 was $114.6 million, an increase of $7.3 million compared to 2024, driven by higher distribution rates and customer growth [10][11] - Gas adjusted gross margin for 2025 was $199.1 million, an increase of $32.2 million compared to 2024, attributed to acquisitions and higher rates [10][12] - The company added approximately 600 electric customers and 15,900 new gas customers in 2025, including 8,900 from Bangor Natural Gas and 6,500 from Maine Natural Gas [11][12] Market Data and Key Metrics Changes - Maine has the highest percentage of homes heated with fuel oil in the nation, with two-thirds of homes using oil, propane, or kerosene, presenting a significant opportunity for natural gas conversions [6][7] - The company anticipates filing a base rate case for both Bangor Natural Gas and Maine Natural Gas in 2027, with final rate decisions expected in 2028 [8] Company Strategy and Development Direction - The company expanded its gas operations in Maine by acquiring two distribution companies, positioning itself as the largest gas utility in the state [4][6] - The updated five-year capital investment plan through 2030 totals approximately $1.2 billion, an increase of 20% compared to the previous plan, focusing on low-risk regulated assets [17][18] - The company remains committed to delivering predictable and sustainable returns while maintaining financial flexibility for capital investments [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value for stakeholders, emphasizing operational excellence and customer service [20] - The company highlighted the affordability benefits of natural gas for home heating in northern New England, reinforcing its commitment to environmental objectives [5][8] Other Important Information - The company announced a quarterly dividend increase of 2.5 cents per share, resulting in an annualized dividend of $1.90 per share, a 5.6% increase compared to 2025 [19] - The company reported strong customer satisfaction, achieving 87% overall satisfaction and the highest customer trust score among northeastern peers [9] Q&A Session Summary - The Q&A session was not detailed in the provided content, and no specific questions or answers were recorded [23]