Chesapeake Utilities (CPK) Q2 2026 earnings summary

Executive summary

• Achieved 8% year-over-year growth in YTD adjusted EPS and 12% growth in adjusted net income compared to YTD 2025; Q2 2026 adjusted EPS was $1.05, up 1% from Q2 2025, and adjusted net income reached $25.4M, up 5%.

• Net income for Q2 2026 was $25.4M with diluted EPS of $1.05; YTD net income reached $84.7M and EPS $3.51, reflecting 6% and 13% year-over-year growth, respectively.

• Announced the $1.2B Florida Energy Pathway (FEP) pipeline project, the largest in company history, targeting service in 2030.

• Continued strong commercial and above-average residential customer growth in core service areas, with Delmarva 1.8%, FPU 2.1%, and FCG 3.0% YTD growth.

• Amended and restated credit agreement dated August 3, 2026, provides a $400 million 5-year revolving credit facility and a $250 million 364-day revolving credit facility.

Financial highlights

• Q2 2026 adjusted gross margin increased 5% to $150.2M; YTD adjusted gross margin up 10% to $356.4M.

• Q2 2026 GAAP net income was $25.4M, up 6% year-over-year; YTD GAAP net income was $84.7M, up 13%.

• Q2 2026 GAAP operating revenues rose 5% to $201.9M; YTD revenues up 13% to $555.0M.

• Dividend per share increased to $2.94 annualized, with a 10-year CAGR of 9.2%.

• Operating expenses as a percentage of adjusted gross margin reached a multi-year low in 1H 2026.

Outlook and guidance

• 2026 capital expenditure guidance raised by $100M to $550–$600M, reflecting increased investment in transmission, distribution, and infrastructure.

• Long-term capital investment expected to reach $1.4B through 2026 and exceed $2.2B by 2028.

• 2028 EPS guidance reaffirmed at $7.75–$8.00, continuing a 19-year streak of consecutive earnings growth.

• Long-term guidance update, including 2027–2031 capital and EPS growth, expected in February 2027.