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Essential Utilities Q1 Earnings & Sales Surpass Estimates, Rise Y/Y

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Essential Utilities Inc. (WTRG - Free Report) delivered first-quarter 2025 operating earnings per share (EPS) of $1.03, which beat the Zacks Consensus Estimate of 80 cents by 28.8%.

EPS improved 41.1% from the year-ago quarter’s figure. The year-over-year improvement was driven by an increase in revenues from regulatory recoveries, higher regulated natural gas segment volumes and lower expenses.

Total Revenues of WTRG

Operating revenues of $784 million surpassed the Zacks Consensus Estimate of $691 million by 13.3%. Total revenues were up 28.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Essential Utilities Inc. Price, Consensus and EPS Surprise

Essential Utilities Inc. Price, Consensus and EPS Surprise

Essential Utilities Inc. price-consensus-eps-surprise-chart | Essential Utilities Inc. Quote

WTRG’s Segment Details

Essential Utilities’ regulated Water segment generated $300.8 million in revenues for the quarter, reflecting a 7.5% increase from $279.9 million reported in the first quarter of 2024. The primary driver of this growth was higher rates and surcharges.

Essential Utilities’ regulated Natural Gas segment reported quarterly revenues of $470.8 million, up from $324.3 million in the first quarter of 2024. This year-over-year increase was primarily driven by higher purchased gas costs and increased delivery volumes resulting from colder weather conditions in the first quarter of 2025 compared with the same period in 2024.

Highlights of WTRG’s Q1 Release

Operation and maintenance expenses amounted to $137.8 million, up 0.7% from the year-ago figure of $136.9 million.

Operating income totaled $338.9 million, up 46.9% year over year. Interest expenses increased 12% to $82.1 million from $73.3 million in the prior-year quarter.

Essential Utilities invested $271 million in the first three months of 2025 to improve its regulated water and natural gas infrastructure systems and enhance customer service across operations.

WTRG’s Financial Highlights

Current assets amounted to $494.5 million as of March 31, 2025, compared with $485.9 million as of Dec. 31, 2024.

Long-term debt was $7.52 billion as of March 31, 2025, up from $7.36 billion as of Dec. 31, 2024.

Guidance of WTRG

Essential Utilities reaffirmed its 2025 EPS guidance in the range of $2.07-$2.11. The Zacks Consensus Estimate for EPS is pegged at $2.10, exceeding the midpoint of the projected range.

Management anticipates its customer base in the water segment to expand 2-3% through acquisitions and organic customer growth.

The company plans to invest $1.4-$1.5 billion in its infrastructure in 2025. Essential Utilities also plans to invest $7.8 billion during 2025-2029 to improve the water and natural gas systems and better serve its customers using improved information technology.

WTRG’s Zacks Rank

Essential Utilities currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

American Water Works Company (AWK - Free Report) posted first-quarter 2025 operating EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by nearly 1%.

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year growth of 6.1% and 7.7%, respectively.

American States Water Company (AWR - Free Report) reported first-quarter 2025 operating EPS of 70 cents, which was in line with the Zacks Consensus Estimate.

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year growth of 3.5% and 6.2%, respectively.

Middlesex Water Company (MSEX - Free Report) reported first-quarter 2025 operating EPS of 53 cents, lagging the Zacks Consensus Estimate of 55 cents by 3.64%.

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year growth of 2.4% and 5.5%, respectively.

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