Essential Utilities Reports Strong Second Quarter 2025 Results
Essential Utilities Inc. reported robust financial results for the second quarter of 2025, showcasing significant growth in key financial metrics. The company, which operates in the water, wastewater, and natural gas sectors, highlighted its commitment to infrastructure investment and strategic acquisitions.
Financial Highlights
For the second quarter of 2025, Essential Utilities reported earnings per share (EPS) of $0.38, a notable increase from $0.28 in the same period of 2024. The company's net income rose to $107.8 million, up from $75.4 million in the previous year. Revenue for the quarter reached $514.9 million, marking an 18.5% increase from $434.4 million in Q2 2024. The growth was driven by increased rates across both business segments and higher purchased gas costs.
Business and Operational Highlights
Essential Utilities' regulated water segment reported revenues of $332.3 million, a 9.9% increase compared to the previous year. The regulated natural gas segment saw a 38.3% rise in revenues, reaching $177.3 million. Operations and maintenance expenses for the water segment increased to $100.1 million, while the natural gas segment's expenses remained relatively flat at $49.8 million.
The company invested $613 million in the first half of 2025 to enhance its infrastructure, with plans to invest over $1.4 billion by the end of the year. Essential Utilities also closed the acquisition of the City of Beaver Falls Wastewater System, expanding its customer base.
Strategic Initiatives and Corporate Developments
Essential Utilities increased its quarterly dividend by 5.25%, reflecting its strong financial performance. The company has also been active in acquisitions, with a notable purchase of the City of Beaver Falls wastewater system for $37.75 million. Additionally, the company has four signed purchase agreements for wastewater systems in Pennsylvania and Texas, expected to serve over 200,000 customers.
Looking ahead, Essential Utilities plans to invest approximately $7.8 billion from 2025 through 2029 to improve its water and natural gas systems. The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035 from its 2019 baseline.
Management's Perspective
Christopher Franklin, Chairman and CEO of Essential Utilities, expressed satisfaction with the company's performance, emphasizing the strong results from both the water and gas divisions. He highlighted the company's commitment to growth, innovation, and community, noting advancements in hydrogen technology and industry-leading water quality compliance.
Future Outlook
Essential Utilities expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 for 2025, driven by non-recurring benefits. The company anticipates long-term earnings per share growth at a compounded annual rate of 5 to 7% through 2027. Infrastructure investments are projected to be between $1.4 to $1.5 billion in 2025, with a total of $7.8 billion planned through 2029.
SEC Filing: Essential Utilities, Inc. [ WTRG ] - 8-K - Aug. 01, 2025