Essential Utilities Inc. (WTRG) reported fourth‑quarter 2025 results that included a net income of $132.7 million and earnings per share of $0.47, compared with $184.8 million and $0.67 in the fourth quarter of 2024. Revenue for the quarter rose 15.7% year‑over‑year to $699.1 million, driven by higher rates and increased gas volumes in the regulated natural‑gas segment and a modest uptick in water‑service revenue.
For the full year 2025, the company posted net income of $616.4 million and earnings per share of $2.20, up from $595.3 million and $2.17 in 2024. Total revenue reached $2.4746 billion, an 18.6% increase from $2.1 billion in 2024, supported by a 12% rise in regulated water revenue and a 9% increase in regulated natural‑gas revenue. Capital expenditures hit a record $1.4 billion, underscoring a continued focus on infrastructure upgrades and PFAS mitigation.
The quarter’s revenue growth was offset by higher operating‑expense and tax costs. Operating‑maintenance expenses for the regulated water segment increased from $98.5 million in Q4 2024 to $109.8 million in Q4 2025, while the regulated natural‑gas segment rose from $62.5 million to $74.7 million. These increases, combined with a higher tax burden, compressed the company’s operating margin relative to the prior year, explaining the lower Q4 net income and EPS despite revenue gains.
CEO Christopher Franklin described 2025 as “a banner year for the company,” noting that the firm maintained strong operational performance while advancing its PFAS capital plan and deploying Intelis gas meters. CFO Daniel Schuller highlighted that the company’s full‑year earnings per share of $2.20 represent a significant improvement over the $1.97 of non‑GAAP income per share in 2024, reflecting disciplined cost management and a favorable rate‑award environment.
The company’s ongoing merger with American Water Works, announced in October 2025, is expected to close in the first quarter of 2027. The combined enterprise value is approximately $63 billion, and the pro‑forma rate base is about $29.3 billion. The merger is projected to be EPS‑accretive in the first year and to support long‑term dividend growth. Essential Utilities also plans to invest $1.7 billion in 2026 to continue infrastructure improvements and PFAS remediation.
Looking ahead, Essential Utilities reaffirmed its guidance for 2026, maintaining a 5% to 7% earnings‑per‑share growth target through 2027. The company’s focus on regulated rate‑award stability, coupled with its capital‑intensive investment strategy, positions it to sustain revenue growth while managing margin pressures from operating‑expense and tax increases.
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