Essential Utilities (WTRG) Q1 2026 earnings summary

Executive summary

• Q1 2026 GAAP EPS was $0.79 and adjusted EPS was $0.83–$0.84, reflecting strong operating metrics and excluding $0.04 per share in merger-related costs with American Water.

• Revenues rose 10% year-over-year to $861.8 million, driven by both Regulated Water and Natural Gas segments.

• Net income for Q1 2026 was $224.4 million, down from $283.8 million in Q1 2025, primarily due to higher O&M expenses, including $16.3 million in merger-related costs.

• Merger with American Water progressing, with Kentucky regulatory approval and 95% shareholder support; closing expected by end of Q1 2027.

• Closed Greenville Water acquisition in March for $18 million, expanding the customer base.

Financial highlights

• Q1 2026 operating revenues: $861.8 million, up $78.1 million (10%) year-over-year.

• Q1 2026 net income: $224.4 million, down from $283.8 million in Q1 2025.

• Q1 2026 GAAP EPS: $0.79; adjusted non-GAAP EPS: $0.83–$0.84, both down from Q1 2025.

• Operations and maintenance expenses increased to $175.8 million, mainly due to merger and weather-related costs.

• $269 million invested in infrastructure in Q1 2026.

Outlook and guidance

• Reaffirmed 5–7% annual EPS growth target from 2024 non-GAAP base of $1.97 through 2027.

• 2026 infrastructure investment expected to total $1.7 billion; long-term plan of $8.7 billion through 2030.

• Guidance excludes DELCORA acquisition, which remains delayed due to bankruptcy proceedings.

• Ongoing plan to comply with EPA PFAS regulations.