Essential Utilities (WTRG) Q1 2026 earnings summary

Executive summary

• Q1 2026 GAAP EPS was $0.79, with adjusted EPS ranging from $0.83 to $0.84, reflecting merger-related costs and strong operating metrics.

• 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 and merger costs.

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

• Closed Greenville Municipal Water Authority acquisition, expanding customer base; acquisition pipeline remains robust.

Financial highlights

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

• Q1 2026 GAAP EPS was $0.79, down from $1.03 in Q1 2025; adjusted non-GAAP EPS was $0.83–$0.84.

• Net income: $224.4 million, down 20.9% year-over-year.

• $269 million invested in water, wastewater, and natural gas infrastructure during Q1.

• Regulatory recoveries and surcharges contributed $0.07 to EPS; $15.1 million in annualized revenue increases completed YTD.

Outlook and guidance

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

• 2026 regulated infrastructure investments expected to total $1.7 billion.

• Capital investment plan of $8.7 billion through 2030 to improve water and gas systems.

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

• Multiyear plan in place to comply with EPA PFAS regulations.