Chesapeake Utilities Corporation reported fiscal‑year 2025 net income of $140.3 million, or $5.97 per share, up 18% from $118.6 million ($5.26) in 2024. Adjusted net income rose to $141.1 million, or $6.01 per share, a 16% increase from $121.5 million ($5.39) the year before. The growth was driven by stronger demand in the company’s Florida and Delmarva service territories, the successful integration of Florida City Gas, and disciplined cost management that preserved margin expansion.
The company’s revenue reached $638.5 million, a 12.5% year‑over‑year increase, while adjusted gross margin expanded to 12.5% from 10.8% in 2024. The margin lift reflects a higher mix of regulated‑energy sales, pricing power in key markets, and ongoing operational efficiencies that offset inflationary cost pressures.
In the fourth quarter, Chesapeake posted earnings per share of $1.94 and revenue of $258.9 million, beating consensus estimates of $1.94 and $253.76 million, respectively. The Q4 performance was supported by robust demand for natural‑gas services, efficient deployment of capital assets, and a favorable mix of regulated and unregulated business segments. Compared with Q4 2024, net income grew from $36.7 million ($1.60) to $46.1 million ($1.93), and adjusted net income rose from $37.3 million ($1.63) to $46.2 million ($1.94).
Capital expenditures for 2025 totaled $470.4 million, exceeding the upper end of the company’s 2026 guidance range of $450‑$500 million by about $20 million. The investment, largely directed toward infrastructure upgrades and the integration of Florida City Gas, positions Chesapeake to support future growth and maintain service reliability.
Chesapeake reaffirmed its 2028 earnings‑per‑share guidance of $7.75‑$8.00 and confirmed a 2026 capital‑expenditure range of $450‑$500 million. The guidance signals management’s confidence in sustained demand, continued regulatory approvals, and the ability to execute its long‑term investment strategy. Investors responded cautiously, with a muted reaction, as the company’s valuation sits near a 52‑week high and analysts noted a depreciation‑study headwind.
Investors’ cautious stance reflects a balance between the company’s strong earnings performance and the valuation premium it carries, rather than a fundamental concern about the underlying business. The company’s continued focus on infrastructure investment and strategic acquisitions, such as Florida City Gas, underpins its long‑term growth trajectory.
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