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Essential Utilities (WTRG) investor relations material

Essential Utilities Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary5 Nov, 2025

Executive summary

  • Announced a transformational merger agreement with American Water, creating the largest U.S. water and wastewater utility with a $34 billion rate base, over 5 million connections across 17 states and 18 military installations, with closing expected by Q1 2027 pending regulatory and shareholder approvals.

  • Q3 2025 net income rose to $92.1 million ($0.33/share), up 32% year-over-year, with revenues increasing 9.6% to $477 million, driven by rate increases and strong performance in both water and gas segments.

  • Year-to-date 2025 operating revenues reached $1.78 billion, up 19.8%, and net income was $483.7 million, up 17.8% from the prior year.

  • Announced a $26 million investment in a 1,400-acre data center project in Pennsylvania, with expected revenues starting FY 2029 and an option to build an 18 MGD water treatment plant.

  • Sustainability and safety remain core focuses, with updated reporting, continued progress on reliability initiatives, and plans to reduce Scope 1 and 2 GHG emissions by 60% by 2035 from a 2019 baseline.

Financial highlights

  • Q3 2025 GAAP EPS was $0.33, up from $0.25 in Q3 2024; year-to-date diluted EPS was $1.73, up from $1.50.

  • Q3 2025 operating revenues were $477 million, up 9.6% year-over-year; year-to-date revenues were $1.78 billion, up 19.8%.

  • Operations and maintenance expenses for Q3 2025 were $153.1 million, up 6% year-over-year; YTD O&M expense was $439.4 million, up 3.7%.

  • Operating cash flow for the nine months was $804.3 million, up from $622.5 million year-over-year.

  • 2024 GAAP diluted EPS was $2.17; adjusted diluted EPS was $1.97.

Outlook and guidance

  • 2025 normalized net income per diluted share guidance reaffirmed at $2.07–$2.11, with expectations to exceed due to non-recurring benefits.

  • Multi-year EPS growth guidance of 5–7% CAGR through 2027, with pro forma EPS and dividend growth targets of 7–9% long-term.

  • Capital investment of $1.4–$1.5 billion planned for 2025 and $7.8 billion through 2029 to improve infrastructure and technology.

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

  • Additional equity raise for 2025 increased to $350 million, mainly for the Greene County data center project and merger-related expenses.

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Frequently asked questions

Essential Utilities, Inc. is a public utility holding corporation. It engages in the acquisition, ownership, operation, and maintenance of regulated utilities that provide water services, wastewater disposals services, and natural gas distribution services to customers in various markets within the United States. The Company's utility subsidiaries provide drinking water, wastewater discharges, or natural gas distribution services to customers within their service regions. A subsidiary guarantees its parent company’s obligations under any debt instruments issued by its parent company.

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