Essential Utilities 2025 revenue rises driven by regulatory recoveries

Essential Utilities

25/02/2026 21:44

Overview

Water utility's 2025 revenue rose 18.6% yr/yr, driven by regulatory recoveries and gas costs

EPS for 2025 increased to $2.20 from $2.17 in the prior year

Outlook

Essential Utilities expects EPS growth at a 5-7% CAGR through 2027

Company plans $1.7 bln in regulated infrastructure investments in 2026

Result Drivers

RATE INCREASES - Essential's revenue growth was driven by rate increases across both water and gas segments, contributing to an 18.6% rise in full-year revenue

INFRASTRUCTURE INVESTMENT - Essential invested a record $1.4 bln in infrastructure to improve water and gas systems, enhancing customer service

Company press release: ID:nBw6tbQKMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$699.11 mln
$611.60 mln (1 Analyst)
Q4 EPS
$0.47
Q4 Net Income
$132.68 mln
Q4 Operating income
$227.004 mln
Q4 Pretax Profit
$147.85 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the water & related utilities peer group is "buy."

Wall Street's median 12-month price target for Essential Utilities Inc is $42.50, about 6.9% above its February 24 closing price of $39.76

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)