Essential Utilities | 8-K: FY2026 Q2 Revenue: USD 530.85 M

Revenue: As of FY2026 Q2, the actual value is USD 530.85 M.

EPS: As of FY2026 Q2, the actual value is USD 0.37, beating the estimate of USD 0.36.

EBIT: As of FY2026 Q2, the actual value is USD 197.72 M.

Overall Company Performance - Second Quarter 2026 (Q2 2026) vs. Q2 2025

• GAAP Net Income was $105.7 million in Q2 2026, compared to $107.8 million in Q2 2025.
• Adjusted Earnings Per Share (Non-GAAP) was $0.38 in Q2 2026, excluding transaction costs associated with the pending merger with American Water.
• Operating Revenues were $530.9 million in Q2 2026, an increase of 3% from $514.9 million in Q2 2025.
• Operations and Maintenance Expenses were $153.6 million in Q2 2026, an increase of 3.5% from $148.5 million in Q2 2025; excluding merger-related costs, O&M expenses increased by 2.6%.
• Operating Income was $193.273 million in Q2 2026, compared to $185.271 million in Q2 2025.

Overall Company Performance - First Six Months 2026 vs. First Six Months 2025

• Operating Revenues were $1,392.6 million in the first six months of 2026, a 7.2% increase from $1,298.5 million in the first half of 2025.
• Operations and Maintenance Expenses were $329.4 million in the first half of 2026, compared to $286.3 million in 2025, including $17.5 million of merger-related expenses in 2026.
• Net Income was $330.1 million in the first half of 2026, compared to $391.6 million for the same period in 2025.
• Adjusted Net Income (Non-GAAP) was $342.922 million for the six months ended June 30, 2026.
• Operating Income was $503.913 million in the first half of 2026, compared to $524.176 million in 2025.

Segment Performance (Q2 2026 vs. Q2 2025)

• Regulated Water Segment Revenues: $357.5 million in Q2 2026, an increase of 7.6% from $332.3 million in Q2 2025.
• Regulated Water Segment Operations and Maintenance Expenses: Increased to $109.4 million in Q2 2026 from $100.1 million in Q2 2025.
• Regulated Natural Gas Segment Revenues: $169.3 million in Q2 2026, compared to $177.3 million in Q2 2025.
• Regulated Natural Gas Segment Operations and Maintenance Expenses: Essentially flat at $49.9 million in Q2 2026, compared to $49.8 million in Q2 2025.

Infrastructure Investments

• Essential Utilities, Inc. invested approximately $662.2 million in infrastructure during the first six months of 2026.
• The company is on track to invest $1.7 billion in infrastructure in 2026.

Dividend

• The quarterly cash dividend was increased by 5.25% to $0.3606 per share of common stock.

Rate Activity

• In 2026, the regulated water segment received rate awards or infrastructure surcharges expected to increase annual revenues by $43.9 million across multiple states.
• The regulated natural gas segment received rate awards or infrastructure surcharges totaling $12.7 million in Kentucky and Pennsylvania.
• Pending base rate cases or infrastructure surcharges for the regulated water and wastewater segment are estimated to generate $79.7 million in incremental annual revenues.
• A base rate case is pending in Pennsylvania for the natural gas segment, requesting a $163.2 million revenue increase.

Acquisitions

• In May 2026, Essential Utilities, Inc. acquired Integra Water Texas, LLC’s wastewater system for approximately $4.9 million.
• The company has signed purchase agreements for additional water and wastewater systems, including DELCORA, totaling approximately $282 million, expected to serve over 200,000 customers.
• The pipeline of potential water and wastewater municipal acquisitions being actively pursued represents approximately 400,000 total customers.

Financing

• As of June 30, 2026, the weighted average cost of fixed-rate long-term debt was 4.16%.
• The company had $960 million available on its credit lines.

Outlook / Guidance

Essential Utilities, Inc. anticipates long-term earnings per share growth at a compound annual rate of 5% to 7% from the adjusted 2024 earnings per share of $1.97 through 2027. Regulated infrastructure investments are projected to reach $1.7 billion in 2026, and the merger with American Water is expected to close in the first quarter of 2027. The company also has a multiyear plan to address PFAS chemicals in finished water to meet federal maximum contaminant levels.