Chesapeake Utilities (CPK) Q3 2026 earnings summary

Executive summary

• Q3 adjusted diluted EPS rose 9% YoY to $0.89; adjusted net income increased 11% to $21.6M and adjusted gross margin grew 8% to $148.7M.

• Nine-month adjusted net income rose 12% to $106.3M and adjusted diluted EPS increased 8.4% to $4.40.

• Q3 growth was supported by rate actions, infrastructure programs, transmission expansion, natural gas demand and organic growth.

Financial highlights

• Q3 revenue was $195.8M versus $179.6M; operating income was $48.6M versus $45.0M, and GAAP net income was $21.6M versus $19.4M.

• Nine-month revenue rose to $750.8M from $671.1M; operating income increased to $200.9M from $182.1M.

• Nine-month adjusted gross margin was $505.1M versus $462.4M; Q3 adjusted gross margin increased $11.5M YoY.

• Q3 EPS headwinds included $0.12 higher payroll and benefits, $0.09 higher O&M, $0.06 higher depreciation, amortization and property taxes, and $0.05 from debt and equity issuance.

Outlook and guidance

• FY2026 capital guidance is $550M–$600M; $412.8M was invested in the first nine months, including $148M in transmission, $102M in distribution and $71M in infrastructure.

• Capital investment through 2028 is expected to exceed $2.2B; 2028 EPS guidance remains $7.75–$8.00.

• Florida City Gas rate-case final order was expected January 4, 2027; staff recommendations were expected November 18, with a $16.2M annualized interim increase in effect.

• 1CORE ERP testing is underway and Q2 2027 go-live remains on track; no further ERP-related O&M is expected until 2028.