Essential Utilities Q2 revenue beats expectations, raises quarterly dividend

Essential Utilities

31/07/2025 22:10

Overview

Essential Q2 revenue rises 18.5% yr/yr, beating analyst expectations, per LSEG data

Q2 net income up to $107.8 mln from $75.4 mln in Q2 2024

Co raises quarterly dividend by 5.25%

Outlook

Essential expects 2025 EPS above $2.07-$2.11 due to non-recurring benefits

Co reaffirms long-term targets

Company plans $1.4-$1.5 bln infrastructure investment in 2025

Regulated water rate base to grow 6% CAGR through 2029

Result Drivers

RATE INCREASES - Co attributes revenue growth to increased rates across segments

PURCHASED GAS COSTS - Higher purchased gas costs contributed to revenue growth

EXPENSE INCREASES - Operations and maintenance expenses rose due to higher employee-related costs and bad debt expense

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$514.91 mln
$467.20 mln (2 Analysts)
Q2 EPS
$0.38
Q2 Net Income
$107.83 mln
Q2 Operating income
$185.27 mln
Q2 Pretax Profit
$112.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "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 $44.50, about 17.3% above its July 31 closing price of $36.80

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1D52Rda

(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.)