Jun 30, 2024

Essential Utilities Q2 2024 Earnings Report

Essential Utilities reported earnings per share of $0.28, impacted by weather conditions, while increasing the quarterly dividend rate by 6.0%.

Key Takeaways

Essential Utilities reported a net income of $75.4 million, or $0.28 per share, for the second quarter of 2024. Revenues decreased slightly by 0.5% to $434.4 million. The company's regulated water segment saw revenue growth, while the regulated natural gas segment experienced a decrease due to warmer weather and lower volumes.

Net income for Q2 2024 was $75.4 million, or $0.28 per share.

Revenues for the quarter were $434.4 million, a 0.5% decrease compared to Q2 2023.

Regulated water segment revenues increased by 3.0% to $302.5 million.

The quarterly dividend rate increased by 6.0% to $0.3255 per share.

Total Revenue
$434M
Previous year: $437M
-0.5%
EPS
$0.28
Previous year: $0.34
-17.6%
Gross Profit
$168M
Previous year: $261M
-35.9%
Cash and Equivalents
$18.8M
Previous year: $11.6M
+61.6%
Total Assets
$17.3B
Previous year: $16.1B
+7.1%

Essential Utilities

Essential Utilities

Forward Guidance

Essential Utilities reaffirms its commitment to substantially reduce Scope 1 and 2 greenhouse gas emissions by 2035 and provides guidance on earnings per share, infrastructure investment, and rate base growth, including signed municipal water and wastewater acquisitions.

Positive Outlook

  • The company plans to achieve emissions reductions through extensive gas pipeline replacement.
  • The company plans to achieve emissions reductions through the purchase of renewable energy.
  • The company plans to achieve emissions reductions through accelerated methane leak detection and repair.
  • The company expects to continue issuing equity and debt on an as needed basis to support acquisitions and capital investment plans.
  • The company's average annual regulated water segment growth guidance reflects its acquisition track record.

Challenges Ahead

  • Guidance is subject to risks and uncertainties, including changes in EPA regulations.
  • Guidance is subject to risks and uncertainties, including changes in the United States' government policies.
  • Guidance is subject to risks and uncertainties, including potential disruptions in the supply chain.
  • Guidance is subject to risks and uncertainties, including the company's ability to raise additional equity.
  • Guidance is subject to risks and uncertainties, including unfavorable weather conditions.