Chesapeake Utilities (CPK) investor relations material

Executive summary

• Q1 2026 adjusted net income rose 16% to $59.3 million, with adjusted EPS up 11% to $2.47, reflecting strong performance in both regulated and unregulated segments.

• Adjusted gross margin increased 13% to $206.2 million, driven by regulatory initiatives, infrastructure programs, and organic growth.

• Capital expenditures reached $122 million in Q1 2026, supporting ongoing growth and infrastructure projects.

• Strong commercial and residential customer growth, with Delmarva up 3.3%, Florida Public Utilities up 2.2%, and Florida City Gas up 2%.

• Announced CFO transition: Beth Cooper retiring, Jeff Sylvester to assume CFO role July 1, 2026.

Financial highlights

• Operating revenues grew 18% to $353.1 million compared to Q1 2025.

• Adjusted net income was $59.3 million ($2.47 per share), up from $51.1 million ($2.22 per share) in Q1 2025.

• Regulated segment adjusted gross margin increased 15% to $147.7 million; unregulated segment rose 8% to $58.6 million.

• Operating income rose to $99.4 million, a 14.5% increase year-over-year.

• Dividend increased by $0.20 (7.3%) to $2.94 per share, marking the 66th consecutive year of payments.

Outlook and guidance

• Full-year 2026 capital expenditure guidance remains $450–$500 million, with five-year (2024–2028) guidance at $1.5–$1.8 billion.

• 2028 EPS guidance reaffirmed at $7.75–$8.00 per share, with a long-term EPS CAGR target of 8%.

• Will revisit capital guidance range by February 2027.

• Full-year EPS for 2026 will be reduced by ~$0.10 due to WRU project delays.

• Major pipeline and regulatory projects expected to drive continued margin and earnings growth through 2027.