Unitil (UTL) Q1 2025 earnings summary

Executive summary

• Adjusted net income for Q1 2025 was $28.4 million ($1.74/share), up $1.2 million year-over-year, with reported net income at $27.5 million ($1.69/share), reflecting acquisition-related adjustments.

• Recent acquisitions include Bangor Natural Gas, Maine Natural Gas, and three Aquarian Water subsidiaries, expanding regulated operations and customer base.

• Strategic focus on growth through acquisitions, diversification, and maintaining a fully regulated utility model.

• Dividend maintained at $0.45 per share quarterly, continuing a long record of uninterrupted payments.

• Long-term guidance for earnings, dividend, and rate base growth reaffirmed, with acquisitions expected to drive growth toward the upper end of the 5%-7% range over five years.

Financial highlights

• Gas adjusted gross margin for Q1 2025 was $70.9 million, up 16.2% year-over-year, driven by higher rates, customer growth, and colder weather.

• Electric adjusted gross margin was $27.5 million, up 1.5% year-over-year, reflecting higher rates and customer growth.

• Operation and maintenance expenses increased $4.4 million, including $1.2 million in acquisition costs.

• Depreciation and amortization rose $3.7 million due to higher rates, plant in service, and amortization of storm and deferred costs.

• Interest expense increased $1.8 million, mainly from higher long-term debt and regulatory liabilities.

Outlook and guidance

• 2025 earnings guidance reaffirmed at $3.01-$3.17 per share, with long-term EPS growth expected at 5%-7% and rate base growth at 6.5%-8.5%.

• Acquisitions expected to be earnings-neutral short-term, accretive long-term, and support rate base growth of about 10% annually through 2029.

• Capital budget for existing operations is $1 billion over five years, 46% higher than the previous period, excluding acquisition-driven growth.

• Dividend growth expected to align with EPS growth.

• Ongoing focus on grid modernization, climate compliance, and energy efficiency initiatives in Massachusetts and New Hampshire.