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Assenagon Asset Management S.A. increased its position in shares of Essential Utilities Inc. (NYSE:WTRG – Free Report) by 1,224.0% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 3,233,682 shares of the company’s stock after purchasing an additional 2,989,455 shares during the period. Assenagon Asset Management S.A. owned approximately 1.14% of Essential Utilities worth $126,728,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Fortitude Family Office LLC raised its position in Essential Utilities by 1,235.3% during the third quarter. Fortitude Family Office LLC now owns 2,310 shares of the company’s stock worth $91,000 after acquiring an additional 2,137 shares during the last quarter. First Citizens Bank & Trust Co. raised its stake in Essential Utilities by 108.2% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 29,056 shares of the company’s stock valued at $1,139,000 after purchasing an additional 15,099 shares during the last quarter. RTD Financial Advisors Inc. raised its stake in Essential Utilities by 30.1% in the 3rd quarter. RTD Financial Advisors Inc. now owns 9,238 shares of the company’s stock valued at $362,000 after purchasing an additional 2,135 shares during the last quarter. Wedmont Private Capital raised its stake in Essential Utilities by 54.8% in the 3rd quarter. Wedmont Private Capital now owns 8,058 shares of the company’s stock valued at $312,000 after purchasing an additional 2,851 shares during the last quarter. Finally, GAMMA Investing LLC lifted its holdings in Essential Utilities by 12.1% in the 3rd quarter. GAMMA Investing LLC now owns 8,436 shares of the company’s stock valued at $331,000 after purchasing an additional 912 shares in the last quarter. Institutional investors and hedge funds own 74.78% of the company’s stock.

Insider Buying and Selling at Essential Utilities In other news, insider Colleen Arnold sold 2,855 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $39.55, for a total value of $112,915.25. Following the completion of the transaction, the insider directly owned 17,347 shares in the company, valued at approximately $686,073.85. This represents a 14.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.36% of the company’s stock.

Analyst Upgrades and Downgrades A number of research firms have recently weighed in on WTRG. Weiss Ratings raised shares of Essential Utilities from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, September 2nd. UBS Group cut their price target on Essential Utilities from $49.00 to $47.00 and set a “buy” rating for the company in a report on Friday. Wall Street Zen raised Essential Utilities to a “sell” rating in a research note on Saturday, July 4th. Finally, Barclays raised their price objective on Essential Utilities from $38.00 to $40.00 and gave the stock an “underweight” rating in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $43.25. Check Out Our Latest Analysis on WTRG

Essential Utilities Stock Performance Essential Utilities stock opened at $40.84 on Friday. The company has a market cap of $11.59 billion, a price-to-earnings ratio of 20.05, a price-to-earnings-growth ratio of 3.03 and a beta of 0.63. Essential Utilities Inc. has a 12 month low of $36.10 and a 12 month high of $42.51. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.78 and a quick ratio of 0.62. The stock’s 50-day moving average is $40.38 and its 200-day moving average is $39.21.

Essential Utilities (NYSE:WTRG – Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. The firm had revenue of $530.85 million during the quarter, compared to the consensus estimate of $538.90 million. Essential Utilities had a net margin of 21.60% and a return on equity of 8.23%. The company’s revenue was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.38 EPS. Equities analysts anticipate that Essential Utilities Inc. will post 2.21 earnings per share for the current year.

Essential Utilities Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were given a dividend of $0.3606 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This is an increase from Essential Utilities’s previous quarterly dividend of $0.3426. This represents a $1.44 dividend on an annualized basis and a dividend yield of 3.5%. Essential Utilities’s dividend payout ratio is presently 73.47%.

Essential Utilities Company Profile (Free Report)

Essential Utilities, Inc is a regulated utility company that provides essential water, wastewater and natural gas services to residential, commercial, industrial and municipal customers. Its water operations include the treatment, distribution and supply of drinking water, while its wastewater business manages the collection and treatment of sewage. The company also distributes natural gas through regulated utility operations.

The company serves customers across several U.S. states, including Pennsylvania, Ohio, Illinois, Texas, North Carolina, New Jersey, Indiana, Virginia, Georgia and West Virginia.

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Key Takeaways WTRG's Aqua Pennsylvania bought Ulster's water system assets for $0.5M, adding 180 customers.Aqua Pennsylvania plans $2M of upgrades over five years to modernize facilities and replace aging lines.Essential Utilities has signed deals covering over 200,000 customers and an active 400,000-customer pipeli Essential Utilities, Inc. (WTRG - Free Report) announced that its subsidiary, Aqua Pennsylvania, acquired the water system assets of the Ulster Municipal Authority in Bradford County for $0.5 million.  This new acquisition will increase the existing water customer base by 180 customers.

Aqua Pennsylvania plans to invest $2 million in upgrades to the acquired water system assets of the Ulster Municipal Authority in Bradford County over the next five years and provide quality services to the customers in the region.

These infrastructure upgrades aim to modernize facilities, replace aging lines and provide safe, high-quality water for all residents of Ulster.

Fragmented Water Utilities Offer Acquisition OpportunitiesEssential Utilities is quite active in expanding its operations through acquisition. Since 2015, the company has added more than 138,000 customers or equivalent dwelling units and about $570 million of rate base through acquisitions. In May 2026, Essential Utilities acquired Integra Water Texas for $4.9 million, adding about 1,100 wastewater customers after closing Greenville earlier in the year. Signed purchase agreements represent more than 200,000 customers and about $282 million in purchase price, while the active municipal acquisition pipeline is about 400,000 customers. Essential Utilities’ proposed American Water Works (AWK - Free Report) merger remains targeted for the first quarter of 2027.

American Water Works is expanding its customer base through regulated acquisitions as well as organic growth. Through June 30, 2026, the company added about 52,000 customer connections from acquisitions, including roughly 47,000 connections from the Nexus systems acquired on June 1. The Nexus transaction expanded operations across eight states and was completed ahead of the company’s initial timeline.

Another water utility, California Water Service Group (CWT - Free Report) , stated that it has agreed to acquire Nexus Water Group’s Nevada and Oregon water and wastewater systems for $218 million. The company completed the acquisition of Palm Mutual Water Company in July 2026, which added more than 300 customers.

Recently, Select Water Solutions (WTTR - Free Report) agreed to acquire Pilot Water Solutions for $700 million, plus up to $15 million in contingent consideration. Pilot Water Solutions adds extensive Delaware Basin infrastructure, long-term contracted revenues and significant disposal capacity. The combination will expand Select Solutions’ water midstream platform, pipeline network, recycling capacity and produced-water storage footprint

Published in utilities

Key Takeaways Essential Utilities added over 138,000 customers since 2015, with 200,000 more tied to pending deals. WTRG's purchase agreements cover more than 200,000 customers for about $282 million. Essential Utilities plans $1.7 billion in 2026 investment and targets 5-7% annual EPS growth through 2027. Essential Utilities (WTRG - Free Report) is benefiting from customer-base growth driven by organic expansion and water and wastewater acquisitions. This expansion broadens its service footprint, increases demand for essential utility services and supports infrastructure expansion across its regulated operations.

The company added more than 138,000 customers or equivalent dwelling units since 2015, while pending acquisitions are expected to serve more than 200,000 additional customers. It also completed the acquisition of Integra Water Texas’ wastewater system, adding approximately 1,100 customers, while its active municipal acquisition pipeline represents about 400,000 potential customers.

The company’s signed purchase agreements cover more than 200,000 customers for about $282 million.  WTRG’s customer expansion is also supported by infrastructure spending, and it plans to invest about $1.7 billion in 2026 while targeting 5-7% annual EPS growth through 2027.

Overall, acquisitions and infrastructure investments are expected to support WTRG’s long-term expansion and customer growth.

Customer Growth Strengthens Utility ExpansionGrowing customer numbers can benefit water utilities by increasing demand for essential services and creating opportunities to expand infrastructure. A broader customer base can also help utilities generate stable revenues while enabling continued investments in water systems, treatment facilities and network upgrades.

American Water Works (AWK - Free Report) added about 52,700 customer connections through acquisitions in the first half of 2026, supporting expansion across its regulated water footprint.

California Water Service Group (CWT - Free Report) serves about 2 million people through 497,600 California connections, while acquisitions and infrastructure investments provide additional opportunities for customer and rate-base growth.

The Zacks Rundown on WTRGWTRG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 0.45% and 9.73%, respectively.

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WTRG’s Stock Trading at a Premium WTRG is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 17.45 versus the industry average of 17.34X.

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WTRG’s Stock Price PerformanceIn the past month, the company’s shares have risen 5.9% compared with the industry’s 0.7% growth.

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WTRG’s Zacks RankWTRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Essential Utilities (NYSE:WTRG) reported second-quarter 2026 GAAP earnings of $0.37 per share, compared with $0.38 per share in the prior-year quarter, as higher regulatory recoveries and water volumes were offset by lower gas volumes, increased operating expenses, depreciation and interest costs.

Excluding approximately $0.01 per share of merger-related expenses, the company reported adjusted non-GAAP earnings of $0.38 per share. Chairman and CEO Chris Franklin said Essential remains confident it can achieve its target of 5% to 7% annual earnings-per-share growth, using 2024 adjusted earnings of $1.97 per share as the baseline.

Quarterly Earnings Drivers Chief Financial Officer Dan Schuller said earnings benefited from a $0.06-per-share increase in regulatory recoveries and surcharges, a $0.02 increase from higher water volumes, and a $0.01 benefit from water customer growth. The customer growth reflected both acquisitions and organic expansion, he said.

Those gains were partly offset by $0.02 per share of higher operating expenses, a $0.02 impact from lower gas volumes, and $0.06 of other costs. The latter category included $0.03 from increased depreciation and $0.03 from higher interest expense and lower allowance for funds used during construction, or AFUDC.

Operating and maintenance expenses rose about $5.1 million, or 3.5%, from a year earlier. Schuller attributed the increase primarily to higher employee-related costs, including merit increases and medical claims, along with greater water and wastewater production costs and expenses associated with newly acquired customers.

The increase was partly offset by lower insurance expense due largely to an insurance recovery, reduced gas-segment bad debt expense, and lower customer-assistance surcharge costs. Excluding merger-related costs, operating and maintenance expenses increased 2.6%, which Schuller said was in line with the company’s historical norms.

American Water Merger Advances Franklin said Essential has received regulatory approvals for its planned merger with American Water in Kentucky, Ohio and Virginia. The company continues to expect the transaction to close during the first quarter of 2027.

Proceedings are continuing in the remaining jurisdictions. Essential has reached a settlement in principle in Texas, while public input hearings in New Jersey are scheduled for August. Testimony was filed in North Carolina at the end of the prior week, and the Illinois matter is before an administrative law judge with a statutory process scheduled to conclude by November.

In Pennsylvania, the companies remain in negotiations with parties while evidentiary hearings are underway. Franklin said the administrative law judge’s timing in issuing a recommendation could affect the closing schedule, but he characterized the current first-quarter 2027 expectation as “comfortable” based on known timelines.

“Things have gone largely according to plan,” Franklin said, while noting that regulatory approvals involve negotiations with different stakeholders across multiple states.

Essential is also conducting integration planning with American Water. Franklin said employee collaboration between the companies has exceeded his expectations and that the combined organization is intended to begin operating as a “world-class organization” immediately following closing.

Infrastructure Spending and Regulatory Pipeline Essential invested $662 million in regulated water and natural gas infrastructure during the first half of 2026 and remains on track to spend a record $1.7 billion for the full year. Franklin said the investments are intended to improve service, reliability, safety and regulatory compliance.

The company finalized rate cases or surcharges representing $56.6 million in annualized revenue during 2026 through the second quarter, with about 78% coming from water and wastewater operations. Its water and wastewater segment has five rate cases and one surcharge proceeding pending, representing roughly $79.7 million in requested annualized increases.

Essential’s Pennsylvania natural gas subsidiary has a base rate case pending that seeks $163.2 million in additional annual revenue. The company plans to file its next Aqua Pennsylvania water rate case around year-end.

Franklin said Essential delayed the Aqua Pennsylvania filing amid several ongoing regulatory matters, including the merger proceeding and the Peoples Natural Gas rate case. He described the anticipated water filing as largely driven by capital investment and said the company expects to follow its usual process while considering positions raised by Pennsylvania’s Governor’s Office on energy affordability.

Schuller said approximately 55% of Essential’s Pennsylvania capital spending for 2026 is eligible for recovery through the distribution system improvement charge, or DSIC. Franklin said the company will continue advocating to expand the DSIC mechanism to cover additional capital items.

Acquisitions, Dividend and Outlook Essential completed the acquisition of Integra Water LLC for $4.9 million, adding approximately 1,100 customers in Texas. The company also has signed agreements to acquire small systems in Pennsylvania, Texas, North Carolina, Virginia and New Jersey.

Including those signed agreements, Essential expects to add about 200,000 customers for a combined purchase price of approximately $282 million. That figure includes the DELCORA transaction, whose progress remains stalled by a federal bankruptcy court stay related to the City of Chester’s bankruptcy.

Franklin said the DELCORA agreement remains fully enforceable and assumable by American Water, and Essential does not expect the proposed merger to negatively affect its pursuit of the transaction. The company’s potential municipal water and wastewater acquisition pipeline stands at approximately 400,000 customers.

Separately, Essential’s board approved a 5.25% increase in its quarterly cash dividend. The dividend is payable Sept. 1, 2026, to shareholders of record as of Aug. 11, 2026.

Looking ahead, Schuller said Essential expects its effective tax rate to remain in the low single digits for the full year, generally below 5%. He also said a previously disclosed one-time item remains expected later in 2026 and should benefit earnings. The company has experienced higher fuel costs across its fleet and equipment base amid developments in the Middle East, which Schuller said have been incorporated into current results.

About Essential Utilities (NYSE:WTRG) Essential Utilities, Inc, formerly known as Aqua America, is a publicly traded water and natural gas utility holding company. Through its regulated water and wastewater subsidiaries, the company provides essential water services to residential, commercial and industrial customers. In addition, Essential Utilities delivers natural gas distribution services in Pennsylvania through its Peoples Gas subsidiary, offering integrated utility solutions under a unified corporate framework.

The company traces its roots to the Philadelphia Suburban Water Company, founded in 1886 to serve growing communities outside Philadelphia.

BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities Inc. (NYSE: WTRG) today reported results for the second quarter ended June 30, 2026.

Company Highlights

“Our commitment to operational efficiency, proactive cost optimization, and value driven customer experience investments underpins our confidence in driving strong performance for 2026. While our organization transitions towards the targeted Q1 2027 merger with American Water, we remain steadfast in our commitment to driving peak operational performance,” said Essential Utilities Chairman and Chief Executive Officer Christopher Franklin. “We are confident that the combination with American Water will bring exciting new opportunities, and we believe that, together, we will deliver significant benefits to our combined customers and shareholders. Crucially, both companies share a dedicated focus on smart capital deployment targeting measurable reliability and quality service. This will allow us to uphold our strong safety and reliability metrics while continuing to deliver affordable, cost-effective utility solutions,” Franklin added.

“The regulatory approval processes for our merger with American Water continue to progress. On June 22nd, we received approval of the merger from the Virginia State Corporation Commission, and on May 14th we received approval from the Public Utilities Commission of Ohio. Previously, we received regulatory approval for the merger from the Kentucky Public Service Commission.

As a reminder, we filed in all pertinent states before the end of 2025. In February, at the special shareholder meeting to approve the merger, approximately 95% of the voted shares were cast in favor of the transaction. This overwhelming mandate supports what we have believed from the start: that this combination creates a premier, multi-state utility with a high growth profile,” Franklin added.

Second Quarter 2026 Operating Results

Essential reported GAAP net income of $105.7 million and earnings per share of $0.37 for the second quarter of 2026, compared to GAAP net income of $107.8 million and earnings per share of $0.38 for the same period in 2025.

The second quarter Q2 2026 non-GAAP EPS of $0.38, reflects business results without the impact of merger-related expenses incurred in the quarter.

Revenues for the quarter were $530.9 million compared to $514.9 million in the second quarter of 2025, an increase of 3%. Additional revenues from regulatory recoveries and purchased gas costs were the main revenue drivers. Operations and maintenance expenses were $153.6 million for the second quarter of 2026, compared to $148.5 million in the second quarter of 2025, an increase of 3.5%, primarily due to increases in employee-related costs of $5.9 million, including annual merit increases and higher medical claims, and an increase in production costs for water and wastewater operations of $2.3 million, offset by a decrease in insurance expenses of $4.9 million primarily due to insurance recoveries, a decrease in bad debt expense of $2.9 million, a decrease in customer assistance surcharge costs of $1.5 million, which generally has an offsetting amount in revenues, and merger-related expenses of $1.2 million. Excluding merger related costs, O&M expenses increased by 2.6%.

Essential’s regulated water segment reported revenues for the quarter of $357.5 million, an increase of 7.6% compared to $332.3 million in the second quarter of 2026. Regulatory recoveries and increased volume were the largest contributors to the increase in revenues for the period. Operations and maintenance expenses for Essential’s regulated water segment increased to $109.4 million for the second quarter of 2026 compared to $100.1 million in the second quarter of 2025, driven by increased employee-related costs, increases in production costs for water and wastewater operations particularly purchased water and chemical costs, and additional operating costs associated with acquisitions of water and wastewater systems. Excluding the one-time items and the impact of abnormal weather, operations and maintenance expenses for the full year are expected to be in line with historic norms.

Essential’s regulated natural gas segment reported revenues for the quarter of $169.3 million, compared to $177.3 million in the second quarter of 2025, driven primarily by higher rates and surcharges, a decrease in purchased gas costs, and lower volumes due to warm weather conditions during the second quarter of 2026 as compared to 2025. Operations and maintenance expenses for Essential’s regulated natural gas segment were essentially flat at $49.9 million for the second quarter of 2026 compared to $49.8 million in the second quarter of 2025.

For the first six months of 2026, the Company reported revenues of $1,392.6 million, a 7.2% increase, primarily due to regulatory recoveries, increased purchased gas costs, and higher volumes in the regulated natural gas segment, compared to $1,298.5 million in the first half of 2025. Operations and maintenance expenses for the first half of 2026 totaled $329.4 million, compared to $286.3 million in 2025, including $17.5 million of merger related expenses in 2026. Net Income for the first half of 2026 totaled $330.1 million, or $1.16 per share, compared to $391.6 million, or $1.41 per share for the same period of 2025.

Dividend

As previously announced on July 29, 2026, Essential’s board of directors increased the quarterly cash dividend, 5.25% to $0.3606 per share of common stock. This dividend will be payable on September 1, 2026, to shareholders of record on August 11, 2026.

Essential Utilities has paid consecutive quarterly cash dividends for over 80 years and has increased the dividend 36 times in the last 35 years.

Financing

As of June 30, 2026, Essential’s weighted average cost of fixed-rate long-term debt was 4.16%, and the company had $960 million available on its credit lines.

Rate Activity

Thus far in 2026, the Company’s regulated water segment received rate awards or infrastructure surcharges that will increase annual revenues in Pennsylvania, Illinois, Ohio, North Carolina and Indiana by $43.9 million, and its regulated natural gas segment received rate awards or infrastructure surcharges in Kentucky and Pennsylvania of $12.7 million.

The Company currently has base rate cases or infrastructure surcharges pending in Texas, Virginia, Illinois, Indiana and New Jersey for its regulated water and wastewater segment for an estimated $79.7 million in incremental annual revenues. The company currently has a base rate case pending in Pennsylvania for its natural gas segment with a requested revenue increase of $163.2 million to support its Long-Term Infrastructure Improvement Plan, which involves the replacement and retirement of aging gas mains and the associated reduction of greenhouse gas emissions.

Capital Expenditures

Essential invested approximately $662.2 million in the first six months of 2026 to improve its regulated water and natural gas infrastructure systems and to enhance customer service across its operations. The Company continues to be a leader in the United States at replacing miles of aged underground utility pipes and is committed to maintaining elevated levels of infrastructure investment. Essential is on track to invest $1.7 billion in needed infrastructure investments in 2026.

Water Utility Growth by Acquisition

Essential’s continued growth by acquisition allows the company to provide safe and reliable water and wastewater service to a larger customer base than it could from organic customer growth alone.

Since 2015, Essential has acquired approximately $570 million in rate base and added more than 138,000 new customers or equivalent dwelling units to the company’s footprint.

In May 2026, the Company acquired Integra Water Texas, LLC's wastewater system in Bastrop County, Texas, for approximately $4.9 million. The Company has signed purchase agreements for additional water and wastewater systems in Pennsylvania, Texas, North Carolina and New Jersey that are pending closing and are expected to serve over 200,000 customers or equivalent dwelling units and total approximately $282 million in purchase price. The Company’s $276.5 million agreement to acquire the Delaware County Regional Water Quality Control Authority (DELCORA), a Pennsylvania sewer authority that serves approximately 198,000 equivalent dwelling units in the Philadelphia suburbs, is included among these signed purchase agreements.

The pipeline of potential water and wastewater municipal acquisitions the Company is actively pursuing represents approximately 400,000 total customers.

Merger with American Water Works Company, Inc.

The Company is continuing to progress through the process of obtaining the consents and approvals needed to successfully consummate the proposed merger with American Water. On February 10, 2026, shareholders of both companies voted overwhelmingly in favor of merger-related proposals. In 2025, Essential submitted applications for required regulatory approval in all states where applicable. On June 22, 2026, we received an order from the Virginia State Corporation Commission approving the merger. Previously we had obtained regulatory approval for the merger from public utility commissions in Kentucky and Ohio.

We continue to expect the merger to close in the first quarter of 2027.

Financial and Growth Guidance

The Company’s latest expectations are the following:

Anticipated growth in long-term earnings per share at a compound annual growth rate of 5% to 7% from the adjusted 2024 earnings per share of $1.97 (non-GAAP) for the three-year period through 2027. In 2026, regulated infrastructure investments are expected to be $1.7 billion. Multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level of the six EPA-regulated PFAS chemicals. Guidance Assumptions

Essential Utilities does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission. The earnings per share and infrastructure investment include the municipal water and wastewater acquisitions for which the company has entered into signed purchase agreements as of the date the guidance was announced, but do not include DELCORA or other potential acquisitions from the company’s list of acquisition opportunities that currently represents over 400,000 customer equivalents. While the company remains confident in its ability to close DELCORA, for guidance purposes, DELCORA has been removed from all guidance metrics. The company’s guidance includes the expectation that the company will continue to issue equity and debt on an as-needed basis to support acquisitions and capital investment plans.

Essential Utilities believes that the non-GAAP financial measure “adjusted earnings per share” used for 2024 and identified as part of its multi-year financial and growth guidance supplements investors the ability to measure the company’s financial operating performance for 2024, including by adjustment, as compared to the Company’s operating performance in 2024.

2Q 2026 Earnings Call Information

Date: August 5th, 2026
Time: 11 a.m. EDT (please dial in by 10:45 a.m.)
Webcast and slide presentation link: https://www.essential.co/events-and-presentations/events-calendar

The call and presentation will be webcast live so interested parties may listen over the internet by logging on to Essential.co and following the link for Investors. The conference call will be archived in the Investor Relations section of the company’s website following the call.

About Essential

Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater, and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint.

Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates,” and similar expressions. The Company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, among others: the anticipated receipt of regulatory approvals for, and closing of, the company’s proposed merger with American Water; the guidance range of net income per diluted common share; the anticipated amount of infrastructure investment in 2026; and the Company’s anticipated use of equity and debt financing. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: the expected timing and likelihood of completion of our proposed merger with American Water; changes in the EPAs regulations; changes in the United States’ governmental policies, including those from the Executive Branch; disruptions in the global economy; potential disruptions in the supply chain for raw and finished materials; the continuation of the company's growth-through-acquisition program; general economic business conditions; the company’s ability to successfully execute any equity or debt financing transactions, including on an as needed basis; housing and customer growth trends; unfavorable weather conditions; the success of certain cost-containment initiatives; changes in regulations or regulatory treatment; the company’s ability to successfully close municipally owned systems presently under agreement and successfully complete other acquisitions and dispositions; and other factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential's business, please refer to Essential's annual, quarterly, and other SEC filings. Essential is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

  Essential Utilities, Inc. and Subsidiaries Selected Operating Data (In thousands, except per share amounts) (Unaudited)   Quarter Ended Six Months Ended June 30, June 30, 2026

2025

2026

2025

  Operating revenues $

530,854

$

514,907

$

1,392,613

$

1,298,533

Operations and maintenance expense $

153,635

$

148,510

$

329,430

$

286,334

Net income $

105,725

$

107,827

$

330,117

$

391,616

Basic net income per common share $

0.37

$

0.38

$

1.16

$

1.41

Diluted net income per common share $

0.37

$

0.38

$

1.16

$

1.41

  Basic average common shares outstanding 283,655

280,275

283,419

277,748

Diluted average common shares outstanding 284,088

280,725

283,998

278,335

  Essential Utilities, Inc. and Subsidiaries Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited)   Quarter Ended Six Months Ended June 30, June 30, 2026

2025

2026

2025

  Operating revenues $

530,854

$

514,907

$

1,392,613

$

1,298,533

  Cost & expenses: Operations and maintenance 153,635

148,510

329,430

286,334

Purchased gas 46,201

56,735

284,816

241,376

Depreciation 109,578

99,542

216,687

196,306

Amortization 3,714

3,977

7,334

6,590

Taxes other than income taxes 24,453

20,872

50,433

43,751

Total 337,581

329,636

888,700

774,357

  Operating income 193,273

185,271

503,913

524,176

  Other expense (income): Interest expense 89,111

79,809

176,418

161,874

Interest income (510

)

(301

)

(2,121

)

(530

)

Allowance for funds used during construction (5,739

)

(7,027

)

(11,499

)

(12,859

)

Other, net 1,295

391

1,220

98

Income before income taxes 109,116

112,399

339,895

375,593

Income tax expense (benefit) 3,391

4,572

9,778

(16,023

)

Net income $

105,725

$

107,827

$

330,117

$

391,616

  Net income per common share: Basic $

0.37

$

0.38

$

1.16

$

1.41

Diluted $

0.37

$

0.38

$

1.16

$

1.41

  Average common shares outstanding: Basic 283,655

280,275

283,419

277,748

Diluted 284,088

280,725

283,998

278,335

  Essential Utilities, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands of dollars) (Unaudited)   June 30, December 31, 2026

2025

  Net property, plant and equipment 14,746,257

14,263,682

Current assets 465,309

610,396

Regulatory assets and other assets 4,730,421

4,590,767

19,941,987

19,464,845

    Total equity 7,018,256

6,857,456

Long-term debt, excluding current portion, net of debt issuance costs and unamortized discount on debt 8,421,198

8,110,167

Current portion of long-term debt and loans payable 83,312

171,961

Other current liabilities 515,677

592,522

Deferred credits and other liabilities 3,903,544

3,732,739

19,941,987

19,464,845

  Essential Utilities, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

(In Thousands, except per share amounts)

The Company is providing disclosure of the reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. The Company believes that the non-GAAP financial measures "adjusted income” and “adjusted diluted income per common share” provide investors the ability to measure the Company's financial operating performance by adjustment, which is more indicative of the Company's ongoing operating performance. The Company further believes that the presentation of these non-GAAP financial measures is useful to investors as a more meaningful way to compare the Company's operating performance against its guidance range for 2024.   This reconciliation includes a presentation of the non-GAAP financial measures “adjusted income” and “adjusted diluted income per common share” and have been adjusted for the following items:   (1) During the first quarter of 2024, the Company completed the sale of its interest in three non-utility local microgrids and distributed energy projects and recognized a gain of $91,236, net of transaction expenses. In October 2023, the Company completed the sale of its regulated natural gas utility assets in West Virginia. In 2024, the Company received additional proceeds from the sale of regulated natural gas utility assets in West Virginia and post-transaction activities.   (2) Estimated impact to Peoples Natural Gas (PNG) operating revenues from warmer than normal weather conditions during 2024 and nonrecurring usage. These impacts are partially offset by favorable water consumption in 2024 due to drier than normal weather conditions.   (3) The income tax impact of the non-GAAP adjustments described above.   These financial measures are measures of the Company's operating performance that do not comply with U.S. generally accepted accounting principles (GAAP), and are thus considered to be “non-GAAP financial measures” under applicable Securities and Exchange Commission regulations. These non-GAAP financial measures are derived from our consolidated financial information, if available, and is provided to supplement the Company's GAAP measures, and should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP.   The following reconciles our GAAP results to the non-GAAP information we disclose:   Year Ended
December 31, 2024 Net Income (GAAP financial measure) $

595,314

Adjustments: (1) Gain on sales of assets and related transaction activities (94,024

)

(2) Adjustments for estimated effects of unfavorable weather (addback) $

18,749

(3) Income tax effect of non-GAAP adjustments $

20,859

Adjusted income (Non-GAAP financial measure) $

540,898

Net income per common share (GAAP financial measure (Earnings per share)): Basic $

2.17

Diluted $

2.17

Adjusted income per common share (Non-GAAP financial measure (Adjusted Earnings per share)): Basic $

1.97

Diluted $

1.97

Average common shares outstanding: Basic 273,914

Diluted 274,421

  Essential Utilities, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) The Company is providing disclosure of the reconciliation of adjusted earnings per share, a non-GAAP financial measures referenced in this release, to the most comparable GAAP financial measure. Adjusted earnings per share does not comply with U.S. generally accepted accounting principles (GAAP), and is thus considered to be a “non-GAAP financial measures” under applicable SEC regulations.

  Adjusted earnings per share is one of the primary metrics used by management to evaluate the Company’s financial performance and compare it to that of its peers, evaluate the effectiveness of the Company’s business strategies, and in connection with executive compensation decisions. This measure is also frequently used by analysts, investors, and others to evaluate industry peers. Further, the Company believes adjusted earnings per share is helpful in highlighting trends in the Company’s results because it allows for more consistent comparisons of performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management. The Company further believes that this non-GAAP financial measure is useful to investors as a more meaningful way to compare the Company’s operating performance against its guidance. This non-GAAP measure does, however, have certain limitations and should not be considered as an alternative to earnings per share or any other performance.

  Adjusted earnings per share adjusts for the following items:

  (1) costs associated with the pending merger with American Water; and   (2) the income tax impact of the non-GAAP adjustment described above.   Three Months Ended June 30, 2026 Net income (GAAP financial measure) $

105,725

Adjustments: (1) Costs associated with the pending merger with American Water 1,191

(2) The income tax impact of the non-GAAP adjustment described above (321

)

Adjusted income (Non-GAAP financial measure) $

106,595

  Net income per common share (GAAP financial measure): Basic $

0.37

Diluted $

0.37

  Adjusted income per common share (Non-GAAP financial measure): Basic $

0.38

Diluted $

0.38

  Average common shares outstanding: Basic 283,655

Diluted 284,088

  Essential Utilities, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) The Company is providing disclosure of the reconciliation of adjusted earnings per share, a non-GAAP financial measures referenced in this release, to the most comparable GAAP financial measure. Adjusted earnings per share does not comply with U.S. generally accepted accounting principles (GAAP), and is thus considered to be a “non-GAAP financial measures” under applicable SEC regulations.

  Adjusted earnings per share is one of the primary metrics used by management to evaluate the Company’s financial performance and compare it to that of its peers, evaluate the effectiveness of the Company’s business strategies, and in connection with executive compensation decisions. This measure is also frequently used by analysts, investors, and others to evaluate industry peers. Further, the Company believes adjusted earnings per share is helpful in highlighting trends in the Company’s results because it allows for more consistent comparisons of performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management. The Company further believes that this non-GAAP financial measure is useful to investors as a more meaningful way to compare the Company’s operating performance against its guidance. This non-GAAP measure does, however, have certain limitations and should not be considered as an alternative to earnings per share or any other performance.   Adjusted earnings per share adjusts for the following items:   (1) costs associated with the pending merger with American Water; and   (2) the income tax impact of the non-GAAP adjustment described above.   Six Months Ended June 30, 2026 Net income (GAAP financial measure) $

330,117

Adjustments: (1) Costs associated with the pending merger with American Water 17,521

(2) The income tax impact of the non-GAAP adjustment described above (4,716

)

Adjusted income (Non-GAAP financial measure) $

342,922

  Net income per common share (GAAP financial measure): Basic $

1.16

Diluted $

1.16

  Adjusted income per common share (Non-GAAP financial measure): Basic $

1.21

Diluted $

1.21

  Average common shares outstanding: Basic 283,419

Diluted 283,998

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