Essential Utilities (WTRG) investor relations material

Executive summary

• Q2 2025 net income rose to $107.8 million ($0.38/share), up 43% year-over-year, driven by strong water and gas performance and rate increases.

• Revenues for Q2 2025 increased 18.5% to $514.9 million, with both water and gas segments contributing.

• Board approved a 5.25% dividend increase, marking 80 consecutive years of payments and over 30 years of growth.

• Closed $37.75 million acquisition of Beaver Falls Wastewater System, expanding the customer base.

• Over $7.8 billion in infrastructure investments planned through 2029, with $613 million deployed year-to-date and $1.4–$1.5 billion targeted for 2025.

Financial highlights

• Q2 2025 operating income increased 27.5% to $185.3 million year-over-year.

• First half 2025 revenues reached $1,298.5 million, a 24.1% increase year-over-year.

• Net income per share for Q2 2025 was $0.38, up 35.7% from Q2 2024.

• O&M expenses increased 4.2% year-over-year, mainly due to higher employee costs and bad debt expense.

• Purchased gas costs rose 68.2% in Q2 2025 compared to Q2 2024.

Outlook and guidance

• 2025 GAAP EPS expected to exceed the $2.07–$2.11 guidance range due to non-recurring benefits.

• Long-term EPS growth targeted at 5–7% CAGR through 2027, excluding DELCORA acquisition.

• Combined utility rate base projected to grow at 8% CAGR through 2029, with water at 6% and gas at 11%.

• $1.4–$1.5 billion infrastructure investment planned for 2025; $7.8 billion through 2029.

• Expectation to raise ~$315 million in equity in 2025, with $210 million already issued via ATM.