Unitil (UTL) Q1 2026 earnings summary

Executive summary

• Adjusted net income for Q1 2026 was $33.8 million ($1.88 EPS), up 8% year-over-year, with GAAP net income at $33.2 million ($1.85 EPS); GAAP ROE for the trailing twelve months was 9.6%.

• Growth was driven by higher rates, customer expansion, colder winter weather, and successful integration of Bangor Natural Gas and Maine Natural Gas, which contributed $4.1 million in incremental net income and 7.3% customer growth.

• The company reaffirmed its 2026 EPS guidance range of $3.20–$3.36 and long-term earnings growth target of 5%-7%.

• The company is now the largest natural gas utility in Maine, serving about 90% of gas customers.

• Order approving settlement agreement for New Hampshire electric rate case and new rate cases filed in NH and Maine support future revenue growth.

Financial highlights

• Q1 2026 adjusted net income increased by $5.4 million and adjusted EPS by $0.14 compared to Q1 2025; total operating revenue rose to $216.9 million from $170.8 million.

• Electric adjusted gross margin rose to $29.6 million, up $2.1 million year-over-year; gas adjusted gross margin was $82.1 million, up $11.2 million, driven by higher rates, customer growth, and colder weather.

• Operation and maintenance expenses increased $0.8 million, mainly due to higher utility costs and Maine Natural Gas integration; depreciation and amortization rose by $1.6 million.

• Interest expense increased by $1.7 million due to higher borrowings.

• Quarterly dividend declared at $0.475 per share, annualized to $1.90 per share.

Outlook and guidance

• 2026 EPS guidance reaffirmed at $3.20–$3.36, midpoint $3.28, representing 6.1% growth over 2025 guidance midpoint.

• Long-term earnings growth guidance remains at 5%-7%; rate base growth at 6.5%-8.5% supported by a $1.2 billion five-year capital plan.

• Regulatory approvals in place for new rate increases and multi-year rate plans in New Hampshire and Massachusetts; pending rate cases in Maine and New Hampshire expected to further support revenue growth.

• Earnings are seasonal, typically higher in Q1 and Q4 due to heating demand.

• Continued focus on system reliability, customer growth, and seamless integration of acquisitions.