Essential Utilities Q2 Earnings Call Highlights

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Sun, August 9, 2026 astatine 12:03 PM CDT 6 min read

Key Points

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Second-quarter net were broadly stable: GAAP EPS was $0.37 versus $0.38 a twelvemonth earlier, portion adjusted EPS was $0.38. Higher regulatory recoveries, h2o volumes and lawsuit maturation were offset by little state volumes, accrued operating expenses, depreciation and involvement costs.
The American Water merger remains connected way for first-quarter 2027 closing. Essential has secured approvals successful Kentucky, Ohio and Virginia, reached a colony successful rule successful Texas, and continues regulatory proceedings successful different states.
Essential is expanding concern and lawsuit growth: It invested $662 cardinal successful infrastructure during the archetypal fractional of 2026 and expects grounds full-year spending of $1.7 billion. The committee besides approved a 5.25% dividend increase, portion planned acquisitions could adhd astir 200,000 customers for astir $282 million.

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Essential Utilities (NYSE:WTRG) reported second-quarter 2026 GAAP net of $0.37 per share, compared with $0.38 per stock successful the prior-year quarter, arsenic higher regulatory recoveries and h2o volumes were offset by little state volumes, accrued operating expenses, depreciation and involvement costs.

Excluding astir $0.01 per stock of merger-related expenses, the institution reported adjusted non-GAAP net of $0.38 per share. Chairman and CEO Chris Franklin said Essential remains assured it tin execute its people of 5% to 7% yearly earnings-per-share growth, utilizing 2024 adjusted net of $1.97 per stock arsenic the baseline.

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Chief Financial Officer Dan Schuller said net benefited from a $0.06-per-share summation successful regulatory recoveries and surcharges, a $0.02 summation from higher h2o volumes, and a $0.01 payment from h2o lawsuit growth. The lawsuit maturation reflected some acquisitions and integrated expansion, helium said.

Those gains were partially offset by $0.02 per stock of higher operating expenses, a $0.02 interaction from little state volumes, and $0.06 of different costs. The second class included $0.03 from accrued depreciation and $0.03 from higher involvement disbursal and little allowance for funds utilized during construction, oregon AFUDC.

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