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Jun 30
Essential Utilities Q2 2025 Earnings Report
Essential Utilities reported strong second quarter 2025 results with increased earnings per share and revenue, driven by rate increases across both water and natural gas segments.
Key Takeaways
Essential Utilities delivered a strong second quarter in 2025, with net income increasing to $107.8 million and EPS rising to $0.38, up from $75.4 million and $0.28 respectively in Q2 2024. Total revenues grew by 18.5% to $514.9 million, primarily due to higher rates in both regulated water and natural gas segments, along with increased purchased gas costs. The company also continued its significant infrastructure investments and increased its quarterly dividend.
Net income for Q2 2025 increased to $107.8 million, up from $75.4 million in Q2 2024.
Earnings per share (EPS) for Q2 2025 rose to $0.38, compared to $0.28 in Q2 2024.
Total revenues for the quarter were $514.9 million, an 18.5% increase from $434.4 million in Q2 2024.
The company invested $613 million in infrastructure during the first half of 2025 and is on track to invest over $1.4 billion for the full year.
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 expects to exceed its GAAP earnings per share guidance for 2025 due to non-recurring benefits, while reaffirming long-term growth targets. The company plans significant infrastructure investments and continued equity raises to support growth.
Positive Outlook
- Expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 for 2025.
- Anticipates long-term earnings per share growth at a compounded annual growth rate of 5% to 7% through 2027.
- Regulated infrastructure investments are expected to be $1.4 billion to $1.5 billion in 2025.
- Plans to invest approximately $7.8 billion in regulated infrastructure from 2025 through 2029.
- Regulated water customer base is expected to grow at an average annual rate of 2% to 3% from acquisitions and organic growth over the long term.
Challenges Ahead
- Guidance does not guarantee future results and is subject to various risks and uncertainties.
- The guidance excludes the DELCORA acquisition, despite the company's confidence in its closure.
- The company expects to continue issuing equity and debt on an as-needed basis, which could dilute existing shareholders.
- The regulated natural gas customer base is expected to be stable for 2025, indicating no significant growth in this segment's customer count.
- The guidance is based on certain assumptions, and actual results may differ.