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4 Utility Stocks Poised to Outperform in the Upcoming Earnings Cycle
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The Zacks Utilities sector’s second-quarter 2025 earnings are expected to have continued to benefit from new electric, natural gas and water rates, cost-saving initiatives and customer growth. The bottom line is also likely to have gained from growing demand from data centers. Per the latest Earnings Preview, the sector’s quarterly earnings are expected to rise 0.7% on 7.5% higher revenues.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors That Might Impact Utility Stocks’ Q2 Results
Utility service providers continue to benefit from certain factors, including higher electricity rates, accretive acquisitions, cost reductions and the implementation of energy-efficiency programs. Utilities also gain from continuous efforts to make existing infrastructure more resilient to adverse weather conditions and the ongoing switch to affordable, renewable energy sources for electricity production.
Utilities have been focusing on installations of smart meters, which help enhance data collection, improve operational efficiency and encourage better customer engagement. These advancements lead to reduced costs, increased revenue and improved grid management.
Improvement in economic conditions in the service territories has created fresh demand for utility services and boosted the companies' revenues and performance.
Utilities are also set to take advantage of the growing demand from data centers. The rise of data centers, particularly those supporting artificial intelligence, has led to a significant increase in electricity consumption. This should have directly benefited utilities and generated higher revenues in the yet-to-be-reported quarter. Reshoring of industries due to geo-political uncertainties is also creating fresh demand for utility services.
All these factors are expected to have had a positive impact on the utilities' second-quarter overall performance.
Potential Utility Outperformers for This Earnings Season
MDU Resources is now a pure-play regulated energy delivery business after the successful spinoff of Everus Construction Group. The company is likely to have benefited from electric and natural gas customer growth, which would have increased demand and boosted earnings. The bottom line is also expected to have gained from the continued availability of necessary equipment and materials and increased demand from data centers.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 13 cents per share, indicating a decrease of 59.4% from the year-ago reported figure. MDU currently has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
ONE Gas is a 100% regulated natural gas distribution utility. Its quarterly earnings are expected to have benefited from new rates effective in the second and previous quarters. ONE Gas is also likely to have gained from its investments in infrastructure improvements. Continuous customer growth and installations of new meter sets are expected to have had a positive impact on the company’s quarterly performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.75 per share, indicating an increase of 37.8% from the year-ago reported figure. OGS currently has an Earnings ESP of +3.22% and a Zacks Rank #2.
Sempra Energy is involved in the sale, distribution, storage and transportation of electricity and natural gas. The company is expected to have continued to benefit from its investments and operations in renewable energy generation facilities that have long-term purchase power agreements to sell the electricity they generate to their customers. Sempra Energy is also expected to have gained from rising demand from data centers.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 83 cents per share, indicating a decrease of 6.7% from the year-ago reported figure. SRE currently has an Earnings ESP of +0.60% and a Zacks Rank #2.
Spire continues to expand business organically via making systematic investments to expand infrastructure and advance through innovation. Its fiscal third-quarter earnings are likely to have benefited from advanced meter installations and customer growth. The bottom line is also expected to have benefited from its Midstream operations, which are likely to have improved due to increased storage capacity and higher contract rates.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at a loss of 9 cents per share, indicating an improvement of 35.7% from the year-ago quarter’s reported loss. SR currently has an Earnings ESP of +14.81% and a Zacks Rank #3.
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4 Utility Stocks Poised to Outperform in the Upcoming Earnings Cycle
The Zacks Utilities sector’s second-quarter 2025 earnings are expected to have continued to benefit from new electric, natural gas and water rates, cost-saving initiatives and customer growth. The bottom line is also likely to have gained from growing demand from data centers. Per the latest Earnings Preview, the sector’s quarterly earnings are expected to rise 0.7% on 7.5% higher revenues.
With the assistance of the Zacks Stock Screener, we have identified four utilities, namely MDU Resources Group (MDU - Free Report) , ONE Gas (OGS - Free Report) , Sempra Energy (SRE - Free Report) and Spire (SR - Free Report) , which are poised to beat on earnings this reporting cycle.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors That Might Impact Utility Stocks’ Q2 Results
Utility service providers continue to benefit from certain factors, including higher electricity rates, accretive acquisitions, cost reductions and the implementation of energy-efficiency programs. Utilities also gain from continuous efforts to make existing infrastructure more resilient to adverse weather conditions and the ongoing switch to affordable, renewable energy sources for electricity production.
Utilities have been focusing on installations of smart meters, which help enhance data collection, improve operational efficiency and encourage better customer engagement. These advancements lead to reduced costs, increased revenue and improved grid management.
Improvement in economic conditions in the service territories has created fresh demand for utility services and boosted the companies' revenues and performance.
Utilities are also set to take advantage of the growing demand from data centers. The rise of data centers, particularly those supporting artificial intelligence, has led to a significant increase in electricity consumption. This should have directly benefited utilities and generated higher revenues in the yet-to-be-reported quarter. Reshoring of industries due to geo-political uncertainties is also creating fresh demand for utility services.
All these factors are expected to have had a positive impact on the utilities' second-quarter overall performance.
Potential Utility Outperformers for This Earnings Season
MDU Resources is now a pure-play regulated energy delivery business after the successful spinoff of Everus Construction Group. The company is likely to have benefited from electric and natural gas customer growth, which would have increased demand and boosted earnings. The bottom line is also expected to have gained from the continued availability of necessary equipment and materials and increased demand from data centers.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 13 cents per share, indicating a decrease of 59.4% from the year-ago reported figure. MDU currently has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
MDU Resources Group, Inc. Price and EPS Surprise
MDU Resources Group, Inc. price-eps-surprise | MDU Resources Group, Inc. Quote
ONE Gas is a 100% regulated natural gas distribution utility. Its quarterly earnings are expected to have benefited from new rates effective in the second and previous quarters. ONE Gas is also likely to have gained from its investments in infrastructure improvements. Continuous customer growth and installations of new meter sets are expected to have had a positive impact on the company’s quarterly performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.75 per share, indicating an increase of 37.8% from the year-ago reported figure. OGS currently has an Earnings ESP of +3.22% and a Zacks Rank #2.
ONE Gas, Inc. Price and EPS Surprise
ONE Gas, Inc. price-eps-surprise | ONE Gas, Inc. Quote
Sempra Energy is involved in the sale, distribution, storage and transportation of electricity and natural gas. The company is expected to have continued to benefit from its investments and operations in renewable energy generation facilities that have long-term purchase power agreements to sell the electricity they generate to their customers. Sempra Energy is also expected to have gained from rising demand from data centers.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 83 cents per share, indicating a decrease of 6.7% from the year-ago reported figure. SRE currently has an Earnings ESP of +0.60% and a Zacks Rank #2.
Sempra Energy Price and EPS Surprise
Sempra Energy price-eps-surprise | Sempra Energy Quote
Spire continues to expand business organically via making systematic investments to expand infrastructure and advance through innovation. Its fiscal third-quarter earnings are likely to have benefited from advanced meter installations and customer growth. The bottom line is also expected to have benefited from its Midstream operations, which are likely to have improved due to increased storage capacity and higher contract rates.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at a loss of 9 cents per share, indicating an improvement of 35.7% from the year-ago quarter’s reported loss. SR currently has an Earnings ESP of +14.81% and a Zacks Rank #3.
Spire Inc. Price and EPS Surprise
Spire Inc. price-eps-surprise | Spire Inc. Quote