Chesapeake Utilities (CPK) investor relations material

Executive summary

• Achieved record financial performance in 2025, with adjusted EPS up 12% to $6.01, marking the 19th consecutive year of earnings growth.

• Added nearly 11,000 new customers, with strong residential and commercial growth in key regions, and continued successful integration of Florida City Gas.

• Executed significant capital investments, including $470 million in 2025, and launched a multi-year ERP transformation project to drive operational efficiency.

• Reaffirmed long-term EPS growth target of 8% CAGR and 2028 adjusted EPS guidance of $7.75–$8.00.

• Major growth drivers included regulatory initiatives, infrastructure programs, and increased demand for CNG/LNG/RNG services.

Financial highlights

• Adjusted gross margin reached $639 million, up 13% year-over-year, with Q4 2025 margin at $176.1 million, up 14%.

• Adjusted net income was $141 million, up 16% year-over-year; operating income for 2025 was $255.9 million, up 12.1%.

• Regulated segment adjusted gross margin grew 12% to $494 million; unregulated segment up 13% to $145 million.

• Record $470 million capital invested in 2025, a 32% increase over 2024.

• Annualized dividend per share increased 7% to $2.74, with a payout ratio of 45–50%.

Outlook and guidance

• 2026 capital expenditure guidance set at $450–$500 million, with a five-year capital plan of $1.5–$1.8 billion through 2028.

• Reaffirmed 2028 adjusted EPS guidance of $7.75–$8.00 and focus on long-term 8% EPS CAGR.

• Interim rates for Florida City Gas expected by July 2026, with permanent rates to follow.

• Dividend policy targets 45–50% payout ratio, with 2025 dividend up 7% and a 10-year CAGR of 9%.