Unitil (UTL) Q2 2025 earnings summary

Executive summary

• Adjusted net income for Q2 2025 was $4.7 million ($0.29 per share), up $0.4 million ($0.02 per share) year-over-year, excluding acquisition-related costs.

• Net income for Q2 2025 was $4.0 million ($0.25 per share), down $0.3 million ($0.02 per share) from Q2 2024; six-month net income was $31.5 million ($1.94 per share), unchanged year-over-year.

• Adjusted net income for the first six months was $33.1 million ($2.03 per share), up $1.6 million ($0.07 per share) year-over-year.

• Bangor Natural Gas acquisition completed in January 2025; Maine Natural Gas and Aquarion Water Company acquisitions expected to close by year-end 2025.

• Results reflect higher rates, customer growth, and colder winter weather, offset by increased O&M and depreciation expenses.

Financial highlights

• Electric adjusted gross margin for Q2 2025 was $25.8 million, up $0.9 million (3.6%) year-over-year; gas adjusted gross margin was $37.2 million, up $5.9 million (18.8%).

• Six-month electric adjusted gross margin was $53.3 million (up $1.3 million), and gas adjusted gross margin was $108.1 million (up $15.8 million) year-over-year.

• Operation and maintenance expenses rose $7.1 million in six months, including $1.7 million from Bangor and $2.2 million in transaction costs.

• Depreciation and amortization increased $7.4 million in six months due to higher rates, plant additions, and higher amortization of deferred costs.

• Interest expense increased $3.7 million in six months, mainly from higher long-term debt and regulatory liabilities.

Outlook and guidance

• Reaffirmed 2025 adjusted earnings guidance of $3.01–$3.17 per share, midpoint $3.09, representing 6.1% annual growth since 2022.

• Long-term EPS growth expected at 5–7% annually; rate base growth at 6.5–8.5%.

• Acquisitions expected to accelerate rate base growth to ~10% annually through 2029 and be earnings accretive long-term.

• Slight net loss expected in Q3, but full-year results projected to meet guidance; no impact on dividend approach.

• Dividend growth expected to align with EPS growth, targeting a payout ratio of 55–65%.