Essential Utilities Q2 adjusted EPS beats estimates

Essential Utilities

04/08/2026 21:54

Overview
U.S. water and gas utility's Q2 revenue rose 3% yr/yr
Adjusted EPS for Q2 beat analyst expectations
Company raised quarterly dividend 5.25% and affirmed long-term EPS growth guidance

Outlook
Essential Utilities affirms long-term EPS growth at 5-7% CAGR through 2027 from 2024 adjusted EPS
Company expects 2026 regulated infrastructure investments to total $1.7 bln
Essential targets Q1 2027 for merger completion with American Water

Result Drivers
REGULATORY RECOVERIES - Co said additional revenues from regulatory recoveries and purchased gas costs were main revenue drivers
WATER SEGMENT GROWTH - Regulated water segment revenue rose 7.6%, driven by regulatory recoveries and increased volume
NATURAL GAS SEGMENT DECLINE - Natural gas segment revenue fell due to lower volumes from warm weather, partly offset by higher rates and surcharges

Company press release: ID:nBw4xxQcpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$530.85 mln
$551.30 mln (1 Analyst)
Q2 Adjusted EPS
Beat
$0.38
$0.37 (3 Analysts)
Q2 EPS
 
$0.37
 
Q2 Net Income
 
$105.73 mln
 
Q2 Operating income
 
$193.27 mln
 
Q2 Pretax Profit
 
$109.12 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 $41.50, about 7% above its August 3 closing price of $38.78
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

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(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.)