Essential Utilities (WTRG) Q4 2024 earnings summary

Executive summary

• Achieved GAAP EPS of $2.17 for 2024, with adjusted non-GAAP EPS at $1.97, supported by asset sales and regulatory recoveries.

• Net income for 2024 was $595.3 million, up from $498.2 million in 2023, with a 6% dividend increase and 80th consecutive year of payments.

• Over $1.3 billion invested in infrastructure, including PFAS mitigation at 13+ sites and replacement of 370+ miles of pipe.

• Closed and pending municipal acquisitions expected to add over 210,000 customers, with $344 million pending rate base to generate ~$17 million incremental annual earnings.

• Significant regulatory wins in Pennsylvania, including PA PUC approval of Aqua Pennsylvania rate case and closure of Greenville Wastewater acquisition.

Financial highlights

• Full year 2024 operating revenues rose to $2,086.1 million from $2,053.8 million; net income increased to $595.3 million from $498.2 million.

• GAAP EPS rose to $2.17 from $1.86 in 2023; adjusted EPS (non-GAAP) was $1.97.

• Annualized rate or surcharge increases totaled $148 million in 2024, a record year.

• O&M expenses grew just 2% year-over-year, reflecting disciplined cost control.

• Dividend per share for 2024 was $1.265, continuing a long-term upward trend.

Outlook and guidance

• 2025 EPS guidance set at $2.07–$2.11; 5–7% annual EPS growth expected through 2027, based on $1.97 non-GAAP 2024 base.

• $1.4–$1.5 billion in capital expenditures planned for 2025; $7.8–$8 billion over five years.

• Water segment rate base projected to grow at 6% CAGR, gas at 11% CAGR, and combined at over 8% through 2029.

• Water customer base expected to grow 2–3% annually, driven by consolidation and organic growth.

• $315 million in equity to be raised in 2025 via ATM program to support growth and maintain credit metrics.