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Mar 31
Essential Utilities Q1 2025 Earnings Report
Reported results for the first quarter ended March 31, 2025, with increased net income and earnings per share compared to the prior year.
Key Takeaways
Essential Utilities reported strong first quarter 2025 results, with net income increasing to $283.8 million and diluted earnings per share rising to $1.03. Revenue grew significantly to $783.6 million, driven by regulatory recoveries and higher natural gas segment volumes. The company affirmed its 2025 earnings guidance and long-term targets, highlighting substantial infrastructure investments made during the quarter and planned for the future.
Net income increased to $283.8 million and diluted EPS rose to $1.03 for Q1 2025, up from $265.8 million and $0.97 respectively in Q1 2024.
Total operating revenues for Q1 2025 were $783.6 million, a 28% increase from $612.1 million in Q1 2024.
The company invested $270.5 million in infrastructure during the first three months of 2025 and remains on track to invest $1.4 to $1.5 billion for the full year.
Essential Utilities reaffirmed its 2025 diluted earnings per share guidance range of $2.07 to $2.11 and its long-term earnings per share growth target of 5 to 7% through 2027.
Essential Utilities
Essential Utilities
Essential Utilities Revenue by Segment
Revenue by Segment
Regulated Water Revenue
CapyFin.comRegulated Natural Gas Revenue
CapyFin.com Forward Guidance
Essential Utilities reaffirmed its 2025 earnings per share guidance and long-term targets through 2027 and 2029, including significant planned infrastructure investments and rate base growth.
Positive Outlook
- Affirmed 2025 diluted earnings per share guidance range of $2.07 to $2.11.
- Expects long-term earnings per share to grow at a compounded annual growth rate of 5 to 7% through 2027.
- Plans to invest $1.4 to $1.5 billion in regulated infrastructure in 2025 and approximately $7.8 billion through 2029.
- Regulated water segment rate base expected to grow at approx. 6% CAGR through 2029 (excluding DELCORA).
- Regulated natural gas segment rate base expected to grow at approx. 11% CAGR through 2029.
- Combined regulated utility rate base expected to grow at over 8% CAGR through 2029.
- Regulated water customer base expected to grow 2-3% annually from acquisitions and organic growth long term.
- Committed to reducing Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035 from 2019 baseline.
- Committed to ensuring finished water meets EPA timelines and standards for six regulated PFAS chemicals.
Challenges Ahead
- Guidance is subject to risks and uncertainties.
- Guidance metrics exclude the potential acquisition of DELCORA.
- Expects to continue issuing equity and debt on an as-needed basis to support investments and acquisitions.
- Specific financial impacts of PFAS remediation efforts beyond the $450M capital projects are not detailed.
- The regulated natural gas customer base is expected to be stable for 2025, indicating no growth from this source.
Revenue & Expenses
Visualization of income flow from segment revenue to net income