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Key Takeaways WTRG's Q2 adjusted EPS met estimates, while revenues rose 3.1% and topped expectations.Water revenues grew 7.6% on regulatory recoveries and higher volume; gas revenues declined.WTRG plans $1.7B in 2026 infrastructure spending and expects its merger with AWK to close in Q1 2027. Essential Utilities Inc. (WTRG - Free Report) reported second-quarter 2026 adjusted earnings of 38 cents per share, in line with the Zacks Consensus Estimate and reflecting no surprise.

GAAP earnings were 37 cents per share, down 2.6% from 38 cents a year ago, as merger-related costs weighed on results.

Total RevenuesQuarterly revenues of $530.9 million rose 3.1% year over year and beat the consensus estimate of $502 million by 5.76%. Regulatory recoveries and purchased gas costs supported the top line, while regulated water revenues advanced 7.6%.

WTRG Segment DetailsRegulated water segment revenues totaled $357.5 million, up from $332.3 million in the second quarter of 2025. Regulatory recoveries and increased volume were the largest contributors to the growth.

Regulated natural gas revenues declined to $169.3 million from $177.3 million a year ago. Higher rates and surcharges provided support, but lower purchased gas costs and reduced volumes due to warmer weather pressured the segment.

WTRG’s Operational HighlightsOperations and maintenance expenses increased 3.5% year over year to $153.6 million in the second quarter of 2026 from $148.5 million a year earlier. The rise was mainly caused by higher employee-related costs, including annual merit increases and increased medical claims, along with higher water and wastewater production expenses.

Operating income reached $193.3 million, up 4.3% from $185.3 million a year earlier.

Net income, however, declined 1.9% to $105.7 million from $107.8 million, reflecting higher interest expense and other cost pressures.

WTRG Expands Capital and Rate Base SupportEssential invested $662.2 million in regulated water and natural gas infrastructure during the first six months of 2026. The company remains on track to invest $1.7 billion in infrastructure for the full year.

Rate awards and infrastructure surcharges secured so far in 2026 are expected to increase annual water revenues by $43.9 million and natural gas revenues by $12.7 million. Pending water and wastewater cases seek $79.7 million in incremental annual revenues, while a Pennsylvania natural gas case requests a $163.2 million increase.

WTRG’s Balance Sheet Supports Investment PlansAs of June 30, 2026, net property, plant and equipment totaled $14.75 billion, up from $14.26 billion at the end of 2025. Long-term debt, excluding the current portion, increased to $8.42 billion from $8.11 billion.

The company had $960 million available under its credit lines, while the weighted average cost of fixed-rate long-term debt was 4.16%. Essential also raised its quarterly dividend 5.25% to 36.06 cents per share, payable on Sept. 1, 2026, to shareholders of record as of Aug. 11.

Essential Maintains Growth and Merger OutlookThe company reaffirmed its expectation for adjusted earnings growth of 5% to 7% annually from adjusted 2024 earnings of $1.97 per share through 2027. Its guidance continues to incorporate signed municipal water and wastewater acquisitions, excluding the pending DELCORA transaction. The Zacks Consensus Estimate is currently pegged at $2.21 per share.

Essential also continues to expect its merger with American Water to close in the first quarter of 2027. The transaction has received regulatory approvals in Kentucky, Ohio and Virginia, while shareholders of both companies approved the merger-related proposals in February 2026.

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

Other Recent ReleasesAmerican Water Works Company Inc. (AWK - Free Report) reported second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter.

Revenues of $1.36 billion surpassed the Zacks Consensus Estimate of $1.28 billion by 6.2% and rose 6.2% year over year. The company added nearly 52,000 customer connections through acquisitions in the first half.

California Water Service Group (CWT - Free Report) reported second-quarter 2026 earnings of 93 cents per share, up 31% year over year. The figure beat the Zacks Consensus Estimate of 79 cents per share by 17.72%.

Quarterly revenues rose 16.5% to $308.6 million and surpassed the Zacks Consensus Estimate of $277 million by 11.41%. Results benefited from regulatory catch-up revenues, rate changes and higher customer consumption, while infrastructure investment reached a record $147 million.

Upcoming ReleaseAmerican States Water (AWR - Free Report) is slated to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for AWR’s second-quarter EPS is pegged at 93 cents, implying an increase of 6.9% from the prior-year figure. The company has a dividend yield of 2.29%.
 

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

More News From Essential Utilities Inc.

BRYN MAWR, Pa.--(BUSINESS WIRE)--The board of directors of Essential Utilities, Inc. (NYSE: WTRG) today declared a quarterly cash dividend of $0.3606 per share, an increase of 5.25%, payable September 1, 2026, to all 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. About Essential Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable service.

Posted by Defense World Staff on Jul 21st, 2026

Bank of New York Mellon Corp cut its stake in shares of Essential Utilities Inc. (NYSE:WTRG – Free Report) by 8.2% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,523,064 shares of the company’s stock after selling 224,208 shares during the period. Bank of New York Mellon Corp owned approximately 0.89% of Essential Utilities worth $101,604,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC bought a new position in Essential Utilities during the fourth quarter worth about $638,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Essential Utilities by 7.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,861 shares of the company’s stock valued at $508,000 after acquiring an additional 928 shares during the period. NewEdge Advisors LLC boosted its stake in Essential Utilities by 1.8% during the 1st quarter. NewEdge Advisors LLC now owns 29,674 shares of the company’s stock worth $1,173,000 after acquiring an additional 530 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Essential Utilities by 122.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 943,797 shares of the company’s stock worth $37,308,000 after acquiring an additional 519,933 shares during the last quarter. Finally, Focus Partners Wealth grew its holdings in Essential Utilities by 4.9% during the first quarter. Focus Partners Wealth now owns 22,322 shares of the company’s stock valued at $882,000 after purchasing an additional 1,044 shares during the period. Institutional investors own 74.78% of the company’s stock.

Essential Utilities Stock Down 0.7% WTRG stock opened at $39.39 on Tuesday. The company has a debt-to-equity ratio of 1.21, a current ratio of 0.95 and a quick ratio of 0.84. The stock has a market capitalization of $11.17 billion, a P/E ratio of 20.00 and a beta of 0.65. Essential Utilities Inc. has a fifty-two week low of $36.10 and a fifty-two week high of $42.37. The business has a 50-day moving average of $37.73 and a 200-day moving average of $38.79.

Essential Utilities (NYSE:WTRG – Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.83 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.07). Essential Utilities had a net margin of 21.82% and a return on equity of 8.34%. The firm had revenue of $861.76 million during the quarter, compared to analyst estimates of $782.90 million. During the same period in the prior year, the business posted $1.03 EPS. The firm’s quarterly revenue was up 10.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Essential Utilities Inc. will post 2.21 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In WTRG has been the topic of a number of recent analyst reports. Barclays lifted their price target on shares of Essential Utilities from $38.00 to $40.00 and gave the stock an “underweight” rating in a research report on Wednesday, July 15th. Argus raised Essential Utilities to a “strong-buy” rating in a research note on Monday, March 23rd. UBS Group lifted their target price on Essential Utilities from $43.00 to $46.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Wall Street Zen upgraded Essential Utilities to a “sell” rating in a report on Saturday, July 4th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Essential Utilities in a report on Friday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Essential Utilities currently has an average rating of “Moderate Buy” and an average price target of $43.80.

Get Our Latest Report on WTRG

About Essential Utilities (Free Report)

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.

Read More Five stocks we like better than Essential Utilities The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding WTRG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Essential Utilities Inc. (NYSE:WTRG – Free Report).

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BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities (NYSE: WTRG) expects to report earnings for quarter ended June 30, 2026, following market close on August 4, 2026.

The company’s conference call with financial analysts will take place on August 5, 2026, at 11 a.m. Eastern Time. 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. Additionally, a replay of the call will be via link https://events.q4inc.com/attendee/439960801.

Chris Franklin, Chief Executive Officer, and Dan Schuller, Chief Financial Officer, will host the conference call. There will be a question & answer session as part of 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.

More News From Essential Utilities, Inc.

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After the upcoming dividend reset in its ongoing merger with American Water Works, Essential Utilities' dividend growth will accelerate well beyond what it was doing independently. Joining forces with AWK, Essential Utilities will emerge as the most dominant regulated water utility in the United States. The company's S&P credit rating is set to improve from A- with a positive outlook (considering the merger) to an A grade with a stable outlook.

It has been about a month since the last earnings report for Essential Utilities (WTRG - Free Report) . Shares have added about 2.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Essential Utilities due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Essential Utilities Inc. before we dive into how investors and analysts have reacted as of late.

Essential Utilities Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Essential Utilities Inc. reported fourth-quarter 2025 operating earnings per share (EPS) of 47 cents, which beat the Zacks Consensus Estimate of 36 cents by 30.56%. The bottom line decreased 29.85% from 67 cents in the year-ago quarter.

WTRG’s fourth-quarter earnings are positively impacted by the increase in rate and natural gas volume, reflecting stronger customer demand. These benefits are more than offset by growth in taxes, along with increased operations and maintenance expenses.

Revenues of WTRGOperating revenues of $699.1 million surpassed the Zacks Consensus Estimate of $589 million by 18.69%. The top line rose 15.67% from the prior-year quarter’s $604.4 million.

WTRG reported total revenues of $2.47 billion in 2025, marking an 18.62% rise from $2.09 billion in 2024.

WTRG’s Segment DetailsEssential Utilities’ regulated water segment generated $329.4 million in revenues, up 8% from $305 million in the fourth-quarter of 2024. The primary drivers of this growth were higher water and wastewater rates.

WTRG’s regulated natural gas segment reported quarterly revenues of $361.3 million, marking a 23% increase from $293.7 million in the fourth quarter of 2024.

Highlights of WTRG’s Q4 ReleaseOperation and maintenance expenses amounted to $200.2 million, up 22.45% from the year-ago figure of $163.5 million due to increases in purchased gas costs, rates across both the water and gas businesses, and gas volume.

Operating income totaled $227 million, up 0.17% year over year.

     Interest expenses increased 7.11% to $84.9 million from $79.3 million in the prior-year quarter.

The company continues to expand its operations through acquisitions and organic initiatives. During 2025, the company added 12,700 customers through organic growth, and three acquisitions of water and wastewater systems that were completed in the same period. Since 2015, through closed acquisition, the company added nearly 135,000 wastewater customers.

The new water and natural gas rates approval received by the company in 2025 increased annual revenues by $92.6 million and $8.9 million, respectively.

The new water and gas rate approvals received by the company in the first two months of 2026 are expected to increase annual revenues by $4.6 million and $7.6 million, respectively.

WTRG’s Financial HighlightsCurrent assets amounted to $610.4 million as of Dec. 31, 2025, compared with $485.9 million as of Dec. 31, 2024.

Long-term debt was $8.11 billion as of Dec. 31, 2025, up from $7.37 billion as of Dec. 31, 2024.

The company invested $1.4 billion in 2025 to improve its regulated water and natural gas infrastructure systems and enhance operations and customer service.

Latest Update on the Merger With American Water WorksEssential Utilities is moving forward with its previously announced merger deal with American Water Works by securing the necessary regulatory consents and approvals. During 2025, the company submitted applications for regulatory clearance in the applicable states.

On Feb. 10, 2026, shareholders of both companies voted in favor of the proposed merger. The merger is expected to close by the end of the first quarter of 2027.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

VGM ScoresCurrently, Essential Utilities has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Essential Utilities has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerEssential Utilities is part of the Zacks Utility - Water Supply industry. Over the past month, American States Water (AWR - Free Report) , a stock from the same industry, has gained 1.6%. The company reported its results for the quarter ended December 2025 more than a month ago.

American States Water reported revenues of $164.28 million in the last reported quarter, representing a year-over-year change of +14.8%. EPS of $0.74 for the same period compares with $0.69 a year ago.

For the current quarter, American States Water is expected to post break-even earnings per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for American States Water. Also, the stock has a VGM Score of C.

For the last 34 years, Essential Utilities has delivered payout raises to its shareholders. On a standalone basis, the company is positioned to keep generating 5% to 7% annual adjusted EPS growth. Essential Utilities sports an A- S&P credit rating with a stable outlook.

Posted by Defense World Staff on Apr 14th, 2026

Deprince Race & Zollo Inc. lessened its position in shares of Essential Utilities Inc. (NYSE:WTRG – Free Report) by 37.4% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 231,228 shares of the company’s stock after selling 138,378 shares during the period. Deprince Race & Zollo Inc. owned 0.08% of Essential Utilities worth $8,870,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of WTRG. GoalVest Advisory LLC bought a new position in Essential Utilities during the fourth quarter worth $25,000. American National Bank & Trust bought a new position in Essential Utilities during the third quarter worth $27,000. Atlantic Union Bankshares Corp raised its stake in Essential Utilities by 1,163.8% during the third quarter. Atlantic Union Bankshares Corp now owns 733 shares of the company’s stock worth $29,000 after buying an additional 675 shares during the last quarter. Rosenberg Matthew Hamilton raised its stake in Essential Utilities by 31,466.7% during the fourth quarter. Rosenberg Matthew Hamilton now owns 947 shares of the company’s stock worth $36,000 after buying an additional 944 shares during the last quarter. Finally, Bessemer Group Inc. raised its stake in Essential Utilities by 43.6% during the third quarter. Bessemer Group Inc. now owns 1,114 shares of the company’s stock worth $45,000 after buying an additional 338 shares during the last quarter. Institutional investors own 74.78% of the company’s stock.

Wall Street Analyst Weigh In A number of equities analysts recently weighed in on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Essential Utilities in a research note on Monday, December 29th. Argus raised shares of Essential Utilities to a “strong-buy” rating in a research note on Monday, March 23rd. Finally, Barclays set a $38.00 price target on shares of Essential Utilities and gave the company an “underweight” rating in a research note on Wednesday, December 17th. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $43.20.

Get Our Latest Stock Analysis on WTRG

Essential Utilities Stock Down 2.7% Shares of NYSE WTRG opened at $39.56 on Tuesday. The stock has a market capitalization of $11.21 billion, a P/E ratio of 17.90 and a beta of 0.78. The company has a 50-day moving average price of $39.79 and a 200-day moving average price of $39.43. Essential Utilities Inc. has a 1 year low of $36.32 and a 1 year high of $42.37. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.80 and a quick ratio of 0.65.

Essential Utilities (NYSE:WTRG – Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.11. The firm had revenue of $699.11 million during the quarter, compared to analysts’ expectations of $611.60 million. Essential Utilities had a net margin of 24.91% and a return on equity of 9.18%. The business’s revenue was up 15.7% on a year-over-year basis. During the same period last year, the company earned $0.67 earnings per share. On average, equities research analysts forecast that Essential Utilities Inc. will post 1.99 EPS for the current fiscal year.

Essential Utilities Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Tuesday, May 12th will be issued a dividend of $0.3426 per share. This represents a $1.37 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Tuesday, May 12th. Essential Utilities’s dividend payout ratio (DPR) is currently 61.99%.

Essential Utilities Profile (Free Report)

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.

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, /PRNewswire/ -- American Water Works Company, Inc. (NYSE: AWK) ("American Water") and Essential Utilities, Inc. (NYSE: WTRG) ("Essential Utilities") today announced that the Kentucky Public Service Commission (PSC) has approved the companies' proposed merger, marking the first regulatory approval obtained in the path toward completing the combination of the two companies.

The Kentucky PSC's approval follows the overwhelming approval of the transaction by shareholders of both companies at their respective special shareholder meetings held in February 2026. The all-stock transaction, announced October 27, 2025, will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections. The combined company will operate under the American Water name and be headquartered in Camden, New Jersey.

The merger is expected to close by the end of the first quarter of 2027, but remains subject to customary closing conditions, including, among others, clearance under the Hart-Scott-Rodino Act, and required regulatory approvals, including approval from applicable public utility commissions.

For additional details regarding the transaction, please visit americanwateressentialutilitiesmerger.com.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Essential Utilities
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.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this communication are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "forecast," "outlook," "future," "likely," "pending," "goal," "objective," "potential," "continue," "seek to," "may," "can," "will," "should" and "could," or the negative of such terms or other variations or similar expressions. Forward-looking statements may relate to, among other things: statements about the benefits of the proposed merger, including future financial and operating results; the parties' respective plans, objectives, expectations and intentions; the expected timing and likelihood of completion of the merger and related transactions; the results of any strategic review; expected synergies of the proposed merger; the timing and result of various regulatory proceedings related to the proposed merger, and other general rate cases, filings for infrastructure surcharges and other governmental agency authorizations and proceedings, and filings to address regulatory lag; the combined company's ability to execute its current and long-term business, operational, capital expenditures and growth plans and strategies; the amount, allocation and timing of projected capital expenditures and related funding requirements; the future impacts of increased or increasing transaction and financing costs associated with the proposed merger or otherwise, as well as inflation and interest rates; each party's ability to finance current and projected operations, capital expenditure needs and growth initiatives by accessing the debt and equity capital markets and sources of short-term liquidity; impacts of the proposed merger on the future settlement or settlements of a party's forward sale agreements, including potential adjustments to the forward sale price or other economic terms thereunder, and the amount of and the intended use of net proceeds from any such future settlement or settlements; the outcome and impact on other governmental and regulatory investigations; the filing of class action lawsuits and other litigation and legal proceedings related to the proposed merger; the ability to complete, and the timing and efficacy of, the design, development, implementation and improvement of technology and other strategic initiatives; each party's ability to comply with new and changing environmental regulations; regulatory, legislative, tax policy or legal developments; and impacts that future significant tax legislation may have on each such party and on its business, results of operations, cash flows and liquidity.

These forward-looking statements are predictions based on currently available information, the parties' current respective expectations and assumptions regarding future events that American Water Works Company, Inc. ("American Water") and Essential Utilities, Inc. ("Essential Utilities") believe to be reasonable. They are not, however, guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. You should not regard any forward-looking statement as a representation or warranty by American Water, Essential Utilities or any other person that the expectation, plan or objective expressed in such forward-looking statement will be successfully achieved in any specified time frame, or at all. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this communication as a result of the factors discussed in American Water's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "SEC") on February 18, 2026 (available at: ir.amwater.com), Essential Utilities' Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 26, 2026 (available at: essential.co), and each party's other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the parties' ability to consummate the proposed merger pursuant to the terms of the definitive merger agreement or at all; (2) each party's requirement to obtain required governmental and regulatory approvals required for the proposed merger (and/or that such approvals may result in the imposition of burdensome or commercially undesirable conditions, including required dispositions, that could adversely affect the combined company or the expected benefits of the proposed merger); (3) an event, change or other circumstance that could give rise to the termination of the merger agreement; (4) the failure to satisfy or waive a condition to closing of the proposed merger on a timely basis or at all; (5) a delay in the timing to consummate the proposed merger; (6) the failure to integrate the parties' businesses successfully; (7) the failure to fully realize benefits, efficiencies and cost savings from the proposed merger or that such benefits, efficiencies and cost savings may take longer to realize or be more costly to achieve than expected; (8) negative or adverse impacts of the announcement of the proposed merger on the market price of American Water's or Essential Utilities' common stock; (9) the risk of litigation, legal proceedings or other challenges related to the proposed merger; (10) disruption from the proposed merger making it more difficult to maintain relationships with customers, employees, contractors, suppliers, regulators, vendors, elected officials, governmental agencies, or other stakeholders; (11) the diversion of each party's management's time and attention from ongoing business operations and opportunities of such party on merger-related matters; (12) the challenging macroeconomic environment, including disruptions in the water and wastewater utility industries; (13) the ability of each party to manage its respective existing operations and financing arrangements on favorable terms or at all, including with respect to future capital expenditures and investments, operations, and maintenance costs; (14) changes in environmental laws and regulations regarding each party's respective operations that may adversely impact such party's businesses or increase the cost of operations; (15) changes in each party's key management and personnel; (16) changes in tax laws that could adversely affect beneficial tax treatment of the proposed merger; (17) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the parties' respective utility subsidiaries; and (18) other economic, business and other factors, including inflation, interest rate fluctuations or tariffs. The foregoing factors should not be construed as exhaustive.

These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in American Water's and Essential Utilities' respective annual and quarterly reports as filed with the SEC and in the definitive joint proxy statement/prospectus, as filed with the SEC on December 31, 2025 (available at: https://www.sec.gov/Archives/edgar/data/1410636/000119312525337598/d15683d424b3.htm), and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date this communication is first used or given. Neither American Water nor Essential Utilities has any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for American Water or Essential Utilities to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on American Water's or Essential Utilities' businesses, viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

Proposed Merger
For additional information regarding the proposed merger, please see American Water's registration statement on Form S-4 (Registration No. 333-292182), which was declared effective by the SEC on December 30, 2025, and the other documents that American Water or Essential Utilities has filed or may file with the SEC.

No Offer or Solicitation
This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

AWK-IR

SOURCE American Water

Posted by Defense World Staff on Apr 26th, 2026

AEGON ASSET MANAGEMENT UK Plc cut its stake in shares of Essential Utilities Inc. (NYSE:WTRG – Free Report) by 10.5% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 801,918 shares of the company’s stock after selling 94,083 shares during the period. AEGON ASSET MANAGEMENT UK Plc owned 0.28% of Essential Utilities worth $30,754,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Pekao Towarzystwo Funduszy Inwestycyjnych S.A. purchased a new stake in Essential Utilities in the fourth quarter worth about $3,547,000. Synergy Asset Management LLC increased its position in Essential Utilities by 351.4% in the third quarter. Synergy Asset Management LLC now owns 234,179 shares of the company’s stock worth $9,057,000 after buying an additional 182,301 shares in the last quarter. Citigroup Inc. increased its position in Essential Utilities by 39.8% in the third quarter. Citigroup Inc. now owns 99,453 shares of the company’s stock worth $3,968,000 after buying an additional 28,329 shares in the last quarter. Nordea Investment Management AB increased its position in Essential Utilities by 25.5% in the third quarter. Nordea Investment Management AB now owns 8,972,565 shares of the company’s stock worth $354,057,000 after buying an additional 1,822,306 shares in the last quarter. Finally, ProShare Advisors LLC grew its position in shares of Essential Utilities by 16.4% during the third quarter. ProShare Advisors LLC now owns 966,685 shares of the company’s stock worth $38,571,000 after purchasing an additional 135,899 shares in the last quarter. 74.78% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets Several analysts recently issued reports on WTRG shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of Essential Utilities in a research report on Monday, December 29th. Argus upgraded Essential Utilities to a “strong-buy” rating in a research report on Monday, March 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Essential Utilities presently has a consensus rating of “Hold” and a consensus target price of $43.20.

View Our Latest Stock Report on WTRG

Essential Utilities Price Performance NYSE:WTRG opened at $39.46 on Friday. The firm has a market capitalization of $11.18 billion, a price-to-earnings ratio of 17.86 and a beta of 0.78. Essential Utilities Inc. has a 1 year low of $36.32 and a 1 year high of $42.37. The business has a 50 day simple moving average of $40.05 and a 200-day simple moving average of $39.42. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.80 and a quick ratio of 0.65.

Essential Utilities (NYSE:WTRG – Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.11. The business had revenue of $699.11 million during the quarter, compared to analyst estimates of $611.60 million. Essential Utilities had a return on equity of 9.18% and a net margin of 24.91%.The company’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same period last year, the company earned $0.67 EPS. Equities analysts forecast that Essential Utilities Inc. will post 2.25 EPS for the current year.

Essential Utilities Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Tuesday, May 12th will be issued a $0.3426 dividend. This represents a $1.37 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Tuesday, May 12th. Essential Utilities’s dividend payout ratio is presently 61.99%.

Essential Utilities Company Profile (Free Report)

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.

Read More Five stocks we like better than Essential Utilities Want to see what other hedge funds are holding WTRG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Essential Utilities Inc. (NYSE:WTRG – Free Report).

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BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities Inc. (NYSE: WTRG) today reported results for the first quarter ended March 31, 2026.

Company Highlights

“Through continued strong operating performance, a focus on cost control, and making investments designed to improve customer experience, we expect another strong year in 2026. While our team is preparing for our merger with American Water, expected to close in the first quarter of 2027, our primary focus remains on operating the company with excellence,” said Essential Utilities Chairman and Chief Executive Officer Christopher Franklin. “We are excited by the combination of American and Essential because of the expected benefits for customers and shareholders. Equally as exciting is the commitment, made by both companies, to continued strong robust investment in our infrastructure that makes us among the top performers in safety and reliability in the nation while working to provide affordable service for all customers,” Franklin added.

“The regulatory approval processes for our merger with American Water continue to progress. Two weeks ago, we received our first approval of the merger from the Kentucky Public Service Commission. As a reminder, we have filed in all pertinent states. 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.

First Quarter 2026 Operating Results

Essential reported GAAP net income of $224.4 million and earnings per share of $0.79 for the first quarter of 2026, compared to GAAP net income of $283.8 million and earnings per share of $1.03 for the same period in 2025. The first quarter of 2025 included the benefit of non-recurring items, including the release of an income tax reserve regulatory liability resulting from a rate order, proceeds from an insurance carrier reimbursing expenses related to a legal proceeding, and rate recovery of a regulated asset associated with bad debt.

Essential reported Q1 2026 non-GAAP EPS of $0.83, which reflects business results without the impact of merger-related expenses incurred in the quarter.

Revenues for the quarter were $861.8 million compared to $783.6 million in the first quarter of 2025, an increase of 10%. Additional revenues from regulatory recoveries and purchased gas costs were the main revenue drivers. Operations and maintenance expenses increased to $175.8 million for the first quarter of 2026, compared to $137.8 million in the first quarter of 2025, primarily due to increases in employee-related costs, including increases in overtime pay and outside service costs due to activities related to the cold weather in January and February, water production expenses, and merger-related expenses of $16.3 million.

Essential’s regulated water segment reported revenues for the quarter of $323 million, an increase of 7.4% compared to $300.8 million in the first quarter of 2025. 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 $103.1 million for the first quarter of 2026 compared to $89.4 million in the first quarter of 2025, driven by increased employee-related costs, increases in bad debt expense, and an increase in contractor services due to higher main break activity given the abnormal weather. 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 $529.4 million, compared to $470.8 million in the first quarter of 2025, driven primarily by an increase in purchased gas costs, higher regulatory recoveries and an offset due to the weather normalization adjustment. Operations and maintenance expenses for Essential’s regulated natural gas segment increased slightly to $56.2 million for the first quarter of 2026 compared to $55.7 million in the first quarter of 2025.

Dividend

As previously announced on February 17, 2026, Essential’s board of directors declared a quarterly cash dividend of $0.3426 per share of common stock. This dividend will be payable on June 1, 2026, to shareholders of record on May 12, 2026.

Financing

On March 9, 2026, the Company issued $500 million of senior notes due March 15, 2036, with an interest rate of 5.125%. The Company used the net proceeds from the issuance to repay a portion of its commercial paper borrowings and for general corporate purposes.

As of March 31, 2026, Essential’s weighted average cost of fixed-rate long-term debt was 4.16%, and the company had $1.035 billion 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 Illinois, Indiana, Pennsylvania, and Ohio by $5.7 million, and its regulated natural gas segment received rate awards or infrastructure surcharges in Kentucky and Pennsylvania of $9.4 million.

The Company currently has base rate cases or infrastructure surcharges pending in Texas, Ohio, North Carolina, Virginia, and New Jersey for its regulated water and wastewater segment for an estimated $101.9 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 $269 million in the first three 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.

On March 4, 2026, Essential announced that it had closed on its $18 million purchase of the Greenville Municipal Water Authority in Mercer County, PA. The system serves more than 2,900 customers in Greenville Borough as well as Hempfield and West Salem Townships. The Pennsylvania Public Utility Commission (PUC) approved the transaction on January 15, 2026.

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.

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 201,000 customers or equivalent dwelling units and total approximately $285 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 April 20, 2026, we received an order from the Kentucky Public Utility Commission approving the merger. The merger remains on track for closing 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.

1Q 2026 Earnings Call Information

Date: May 7th, 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 company’s belief that it will comply with the finalized EPA PFAS rules, the guidance range of net income per diluted common share; the anticipated amount of infrastructure investment in 2026; the Company’s anticipated use of equity and debt financing and, that the Company has a multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level for the six EPA regulated PFAS chemicals. 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 March 31, 2026

2025

  Operating revenues $

861,759

$

783,626

Operations and maintenance expense $

175,795

$

137,824

  Net income $

224,392

$

283,789

  Basic net income per common share $

0.79

$

1.03

Diluted net income per common share $

0.79

$

1.03

  Basic average common shares outstanding 283,181

275,194

Diluted average common shares outstanding 283,636

275,687

Essential Utilities, Inc. and Subsidiaries Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited)   Quarter Ended March 31, 2026

2025

  Operating revenues $

861,759

$

783,626

  Cost & expenses: Operations and maintenance 175,795

137,824

Purchased gas 238,615

184,641

Depreciation 107,109

96,764

Amortization 3,620

2,613

Taxes other than income taxes 25,980

22,879

Total 551,119

444,721

  Operating income 310,640

338,905

  Other expense (income): Interest expense 87,307

82,065

Interest income (1,611

)

(229

)

Allowance for funds used during construction (5,760

)

(5,832

)

Other, net (75

)

(293

)

Income before income taxes 230,779

263,194

Income tax expense (benefit) 6,387

(20,595

)

Net income $

224,392

$

283,789

  Net income per common share: Basic $

0.79

$

1.03

Diluted $

0.79

$

1.03

  Average common shares outstanding: Basic 283,181

275,194

Diluted 283,636

275,687

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

2025

  Net property, plant and equipment 14,441,097

14,263,682

Current assets 622,630

610,396

Regulatory assets and other assets 4,716,388

4,590,767

19,780,115

19,464,845

    Total equity 6,893,209

6,857,456

Long-term debt, excluding current portion, net of debt issuance costs and unamortized discount on debt 8,361,623

8,110,167

Current portion of long-term debt and loans payable 62,054

171,961

Other current liabilities 592,392

592,522

Deferred credits and other liabilities 3,870,837

3,732,739

19,780,115

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 inludes a presentation of the non-GAAP financial measures "adjusted income" and "adjusted diluted income per common share" and have been adjsted 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 accrodance 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 March 31, 2026 Net income (GAAP financial measure) $

224,392

Adjustments: (1) Costs associated with the pending merger with American Water 16,300

(2) The income tax impact of the non-GAAP adjustment described above (4,388

)

Adjusted income (Non-GAAP financial measure) $

236,304

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

0.79

Diluted $

0.79

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

0.83

Diluted $

0.83

  Average common shares outstanding: Basic 283,181

Diluted 283,636

More News From Essential Utilities Inc.

Q1: 2026-05-06 Earnings SummaryEPS of $0.83 misses by $0.04

 |

Revenue of

$861.76M

(9.97% Y/Y)

beats by $78.86M

Essential Utilities, Inc. (WTRG) Q1 2026 Earnings Call May 7, 2026 11:00 AM EDT

Company Participants

Brian Dingerdissen - Vice President of Financial Planning & Analysis, Treasury, and Investor Relations
Christopher Franklin - Chairman, President & CEO
Daniel Schuller - Executive VP & CFO

Conference Call Participants

Paul Zimbardo - Jefferies LLC, Research Division
Travis Miller - Morningstar Inc., Research Division
Davis Sunderland - Robert W. Baird & Co. Incorporated, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to Essential Utilities, Inc. Q1 2026 Earnings Call. [Operator Instructions]

I will now hand the conference over to Brian Dingerdissen. Brian, please go ahead.

Brian Dingerdissen
Vice President of Financial Planning & Analysis, Treasury, and Investor Relations

Thank you. Good morning, everyone, and thank you for joining us for our first quarter 2026 earnings call. If you did not receive a copy of the press release, you can find it on our Investor Relations website. The slides can also be found on the website along with the webcast.

As a reminder, some of the matters discussed today may include forward-looking statements that involve risks, uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. Please refer to our most recent 10-Q, 10-K and other SEC filings for a description of such risks and uncertainties. References may be made to certain non-GAAP financial measures. Reconciliation of any non-GAAP to GAAP financial measures is posted in the Investor Relations section of our website.

We will begin with Chris Franklin, our Chairman and CEO, who will provide an update on the company. Then Dan Schuller, our Chief Financial Officer, will provide an overview of the financial results. With that, I will turn it over to Chris Franklin.

Key Takeaways WTRG posted Q1 operating EPS of 83 cents, missing the $1.01 estimate; GAAP EPS was 79 cents.WTRG's revenues rose nearly 10% to $862M, driven by regulatory recoveries and purchased gas costs.WTRG' American Water Works merger won the Feb. 10 shareholder vote and the April 20 Kentucky PUC approval. Essential Utilities Inc. (WTRG - Free Report) reported first-quarter 2026 operating earnings per share (EPS) of 83 cents, which lagged the Zacks Consensus Estimate of $1.01 by 17.82%. The bottom line decreased 19.41% from $1.03 in the year-ago quarter.

WTRG’s first-quarter GAAP earnings were 79 cents compared with $1.03 reported in the year-ago quarter. The difference between GAAP and operating earnings was due to the impact of merger-related expenses incurred in the quarter.

Revenues of WTRGOperating revenues of $862 million surpassed the Zacks Consensus Estimate of $768 million by 12.17%. The top line rose nearly 10% from the prior-year quarter’s $783.6 million. The improvement in total revenues was due to additional revenues from regulatory recoveries and purchased gas costs.

WTRG’s Segment DetailsEssential Utilities’ water segment reported revenues for the quarter of $323 million, an increase of 7.4% compared to $300.8 million in the first quarter of 2025. The year-over-year improvement was due to regulatory recoveries and increased volume.

WTRG’s regulated natural gas segment reported quarterly revenues of $529.4 million, up from $470.8 million in the first quarter of 2025, primarily driven by higher purchased gas costs, increased regulatory recoveries and the impact of weather normalization adjustments.

Highlights of WTRG’s Q1 ReleaseTotal operating expenses amounted to $551.1 million, up 23.9% from the year-ago figure of $444.7 million due to increases in purchased gas costs, and higher operation and maintenance expenses than the previous year period.

Operating income totaled $310.6 million, down 8.4% year over year. The year-over-year decline was due to an increase in operating expenses.

   Interest expenses increased 6.33% to $87.3 million from $79.3 million in the prior-year quarter.

 The company continues to expand its operations through acquisitions and organic initiatives. The pending acquisition, if closed, can add more than 200,000 customers to Essential Utilities’ customer base.

So far in 2026, the company’s regulated water segment has secured rate awards and infrastructure surcharges expected to increase annual revenues by $5.7 million across Illinois, Indiana, Pennsylvania and Ohio. Its regulated natural gas segment also received rate awards and infrastructure surcharges in Kentucky and Pennsylvania, projected to add $9.4 million in annual revenues.

WTRG’s Financial HighlightsCurrent assets amounted to $622.6 million as of March 1, 2026, compared with $610.4 million as of Dec. 31, 2025.

Long-term debt was $8.36 billion as of March 31, 2026, up from $8.11 billion as of Dec. 31, 2025.

Essential Utilities invested nearly $269 million during the first three months of 2026 to strengthen its regulated water and natural gas infrastructure systems and improve customer service across its operations.

Essential Utilities is on track to invest $1.7 billion in infrastructure in 2026.

Latest Update on the Merger With American Water WorksEssential Utilities is moving forward with its previously announced merger deal with American Water Works by securing the necessary regulatory consents and approvals. During 2025, the company submitted applications for regulatory clearance in the applicable states.

On Feb. 10, 2026, shareholders of both companies overwhelmingly approved the merger-related proposals. Essential Utilities has also secured key regulatory approvals, including clearance from the Kentucky Public Utility Commission on April 20, 2026. The merger remains on schedule to close in the first quarter of 2027.

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

Recent ReleasesAmerican Water Works Company (AWK - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.01, which missed the Zacks Consensus Estimate of $1.10 by 8.18%. The bottom line declined 0.98% from the year-ago quarter's level of $1.02 per share.

AWK’s total quarterly revenues of $1.21 billion surpassed the Zacks Consensus Estimate of $1.12 billion by 8.25%. The top line also increased 5.69% from the year-ago figure of $1.14 billion.

American States Water Company (AWR - Free Report) reported first-quarter 2026 operating earnings per share of 76 cents, up 8.6% from the year-ago quarter’s level of 70 cents. The metric missed the Zacks Consensus Estimate by a penny in the reported quarter.

Operating revenues totaled $169.2 million, up 14.3% from the year-ago quarter’s level of $148.01 million. The year-over-year increase in total revenues was due to strong contributions from all three segments.

California Water Service Group (CWT - Free Report) posted first-quarter 2026 earnings of 7 cents per share, down 68.2% from 22 cents a year ago. The figure missed the Zacks Consensus Estimate of 25 cents by 72.0%. The earnings shortfall reflected cost pressure across the income statement. Total operating expenses rose 8.1% year over year to $196.4 million, outpacing the growth in operating revenues.

Quarterly revenues were $215 million, up 5.2% from the year-ago period. The top line came in below the consensus mark of $218 million by 1.38%.

, /PRNewswire/ -- American Water Works Company, Inc. (NYSE: AWK) ("American Water") and Essential Utilities, Inc. (NYSE: WTRG) ("Essential Utilities") today announced that the Public Utilities Commission of Ohio (PUCO) issued an order approving the companies' proposed merger, marking the second favorable regulatory action in less than a month toward completing the combination of the two companies.

The companies received approval of the merger in the Commonwealth of Kentucky on April 21, 2026. Earlier in the year, shareholders of both companies approved the transaction with overwhelming margins.

The all-stock merger, announced October 27, 2025, will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections. The combined company will operate under the American Water name and be headquartered in Camden, New Jersey.

The merger is expected to close by the end of the first quarter of 2027, but remains subject to customary closing conditions, including, among others, obtaining clearance under the Hart-Scott-Rodino Act and required regulatory approvals, including approval from all applicable public utility commissions.

For additional details regarding the transaction, please visit americanwateressentialutilitiesmerger.com.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Essential Utilities
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.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this communication are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "forecast," "outlook," "future," "likely," "pending," "goal," "objective," "potential," "continue," "seek to," "may," "can," "will," "should" and "could," or the negative of such terms or other variations or similar expressions. Forward-looking statements may relate to, among other things: statements about the benefits of the proposed merger, including future financial and operating results; the parties' respective plans, objectives, expectations and intentions; the expected timing and likelihood of completion of the merger and related transactions; the results of any strategic review; expected synergies of the proposed merger; the timing and result of various regulatory proceedings related to the proposed merger, and other general rate cases, filings for infrastructure surcharges and other governmental agency authorizations and proceedings, and filings to address regulatory lag; the combined company's ability to execute its current and long-term business, operational, capital expenditures and growth plans and strategies; the amount, allocation and timing of projected capital expenditures and related funding requirements; the future impacts of increased or increasing transaction and financing costs associated with the proposed merger or otherwise, as well as inflation and interest rates; each party's ability to finance current and projected operations, capital expenditure needs and growth initiatives by accessing the debt and equity capital markets and sources of short-term liquidity; impacts of the proposed merger on the future settlement or settlements of a party's forward sale agreements, including potential adjustments to the forward sale price or other economic terms thereunder, and the amount of and the intended use of net proceeds from any such future settlement or settlements; the outcome and impact on other governmental and regulatory investigations; the filing of class action lawsuits and other litigation and legal proceedings related to the proposed merger; the ability to complete, and the timing and efficacy of, the design, development, implementation and improvement of technology and other strategic initiatives; each party's ability to comply with new and changing environmental regulations; regulatory, legislative, tax policy or legal developments; and impacts that future significant tax legislation may have on each such party and on its business, results of operations, cash flows and liquidity.

These forward-looking statements are predictions based on currently available information, the parties' current respective expectations and assumptions regarding future events that American Water Works Company, Inc. ("American Water") and Essential Utilities, Inc. ("Essential Utilities") believe to be reasonable. They are not, however, guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. You should not regard any forward-looking statement as a representation or warranty by American Water, Essential Utilities or any other person that the expectation, plan or objective expressed in such forward-looking statement will be successfully achieved in any specified time frame, or at all. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this communication as a result of the factors discussed in American Water's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "SEC") on February 18, 2026 (available at: ir.amwater.com), Essential Utilities' Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 26, 2026 (available at: essential.co), and each party's other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the parties' ability to consummate the proposed merger pursuant to the terms of the definitive merger agreement or at all; (2) each party's requirement to obtain required governmental and regulatory approvals required for the proposed merger (and/or that such approvals may result in the imposition of burdensome or commercially undesirable conditions, including required dispositions, that could adversely affect the combined company or the expected benefits of the proposed merger); (3) an event, change or other circumstance that could give rise to the termination of the merger agreement; (4) the failure to satisfy or waive a condition to closing of the proposed merger on a timely basis or at all; (5) a delay in the timing to consummate the proposed merger; (6) the failure to integrate the parties' businesses successfully; (7) the failure to fully realize benefits, efficiencies and cost savings from the proposed merger or that such benefits, efficiencies and cost savings may take longer to realize or be more costly to achieve than expected; (8) negative or adverse impacts of the announcement of the proposed merger on the market price of American Water's or Essential Utilities' common stock; (9) the risk of litigation, legal proceedings or other challenges related to the proposed merger; (10) disruption from the proposed merger making it more difficult to maintain relationships with customers, employees, contractors, suppliers, regulators, vendors, elected officials, governmental agencies, or other stakeholders; (11) the diversion of each party's management's time and attention from ongoing business operations and opportunities of such party on merger-related matters; (12) the challenging macroeconomic environment, including disruptions in the water and wastewater utility industries; (13) the ability of each party to manage its respective existing operations and financing arrangements on favorable terms or at all, including with respect to future capital expenditures and investments, operations, and maintenance costs; (14) changes in environmental laws and regulations regarding each party's respective operations that may adversely impact such party's businesses or increase the cost of operations; (15) changes in each party's key management and personnel; (16) changes in tax laws that could adversely affect beneficial tax treatment of the proposed merger; (17) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the parties' respective utility subsidiaries; and (18) other economic, business and other factors, including inflation, interest rate fluctuations or tariffs. The foregoing factors should not be construed as exhaustive.

These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in American Water's and Essential Utilities' respective annual and quarterly reports as filed with the SEC and in the definitive joint proxy statement/prospectus, as filed with the SEC on December 31, 2025 (available at: https://www.sec.gov/Archives/edgar/data/1410636/000119312525337598/d15683d424b3.htm), and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date this communication is first used or given. Neither American Water nor Essential Utilities has any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for American Water or Essential Utilities to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on American Water's or Essential Utilities' businesses, viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

Proposed Merger
For additional information regarding the proposed merger, please see American Water's registration statement on Form S-4 (Registration No. 333-292182), which was declared effective by the SEC on December 30, 2025, and the other documents that American Water or Essential Utilities has filed or may file with the SEC.

No Offer or Solicitation
This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

AWK-IR

SOURCE American Water