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, /PRNewswire/ -- The Midcontinent Independent System Operator (MISO) has selected a consortium of Ameren Transmission Company of Illinois (ATXI), a subsidiary of Ameren Corporation (NYSE: AEE); GridLiance Heartland, LLC, a subsidiary of NextEra Energy Transmission, LLC; Dairyland Power Cooperative; and the Illinois Municipal Electric Agency (IMEA) to develop, build, operate and maintain two major transmission projects. ATXI and GridLiance will lead the development of these projects, while Dairyland and IMEA will own a portion of both projects when they are placed in service.

MISO has selected a consortium of Ameren, GridLiance, Dairyland and IMEA to deliver major grid-bolstering projects in Illinois. The Sub T – Iowa/Illinois State Line – Woodford County (STIW) and Woodford County – Illinois/Indiana State Line (WIIL) projects are the foundation of a new 765-kilovolt (kV) backbone that will deliver safe, reliable and cost-competitive energy to serve Midwest communities for decades to come. 

The STIW project includes the construction of two new 765-kV transmission lines spanning approximately 149 miles. One 765-kV line will run from the Woodford County Substation west to the Iowa/Illinois state line, and the other 765-kV line will continue west from the Iowa/Illinois state line to the Sub T Substation in Iowa. The STIW project has a MISO estimated cost of $940 million.

The WIIL project includes the construction of two new 765-kV transmission lines that span a total of 88 miles and the construction of a new 765/345-kV substation. One 765-kV line will run east from the existing Woodford County Substation in central Illinois to the Illinois/Indiana state line. The other 765-kV line will run northeast from the Woodford County Substation for approximately 1.5 miles toward the existing Collins Substation before interconnecting with a separate 765-kV line segment. The WIIL project has a MISO estimated cost of $718 million.

ATXI, GridLiance, Dairyland and IMEA will have ownership stakes in both projects of 43%, 43%, 11% and 3%, respectively.

"We are committed to delivering infrastructure that strengthens the grid and creates value for customers both now and over the long term," said Shawn Schukar, chairman and president of ATXI. "The collaboration between ATXI, GridLiance, Dairyland and IMEA enables us to work with our local communities, regulators and local contractors to effectively and efficiently build this valuable transmission system expansion while supporting the growth in our region."

"These projects are critical to building a stronger, more resilient transmission backbone for the Midwest," said Matt Valle, president of NextEra Energy Transmission, LLC. "We're proud to work with ATXI, Dairyland and IMEA to deliver needed energy infrastructure to enhance reliability, support growing energy needs and benefit communities for decades to come."

"As a critical services provider, Dairyland is pleased to be part of a consortium that will help ensure the reliability and flexibility of the transmission system in the Upper Midwest for current and future generations," said Ben Porath, Dairyland executive vice president and chief operating officer.

"Increasing transmission capacity on the grid is critical to improving resiliency, integrating new resources and supporting long‑term economic developments," said IMEA CEO and President Doug Brown. "The Illinois Municipal Electric Agency is proud to be a partner on these projects."

Both WIIL and STIW are competitive projects in MISO's Long Range Transmission Planning Tranche 2.1 Portfolio, which was originally approved in December 2024. Both projects have expected in-service dates of 2034, following the regulatory review process and thorough stakeholder and community engagement.

About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution services and natural gas distribution services. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution services. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.

About NextEra Energy Transmission
NextEra Energy Transmission, LLC is North America's leading competitive transmission company. With more than 3,200 miles of transmission lines in operation and development in 19 states and Canada, the company is strengthening and modernizing the electric grid to meet the country's growing energy needs. NextEra Energy Transmission owns, develops, finances, constructs, operates and maintains transmission assets across the continent. The company operates through its regional subsidiaries to integrate diverse energy sources. NextEra Energy Transmission, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. For more information, visit www.NextEraEnergyTransmission.com. 

About Dairyland Power Cooperative
Headquartered in La Crosse, Wis., Dairyland provides the wholesale electrical requirements for 24 distribution cooperatives and 27 municipal utilities. These cooperatives and municipals, in turn, supply the energy needs of over 800,000 people in a four-state service area. Dairyland delivers electricity via 3,708 miles of transmission lines and 400 distribution substations located throughout the system's 44,500 square mile service area. Visit www.DairylandPower.com.

About Illinois Municipal Electric Agency
The Illinois Municipal Electric Agency (IMEA) is a not-for-profit unit of local government created in 1984 that provides wholesale power supply and related services to municipal electric systems across Illinois. IMEA is currently comprised of 32 municipal electric systems, each of which owns and operates its own electric distribution system, with some also operating local power generation plants. Through collective action, IMEA helps its member communities secure affordable, reliable and sustainable energy while preserving local control over rates, services and utility-related solutions. For more information, visit www.imea.org.

SOURCE Ameren Corporation

Former TVA Leader Brings 25 Years of Industry Experience

, /PRNewswire/ -- Ameren Corporation (NYSE: AEE) announced today that Aaron Melda, an executive with more than 25 years of utility leadership experience, will be the next chairman and president of Ameren Missouri, an electric and gas service provider and subsidiary of Ameren Corporation.

Melda has a proven track record of driving operational excellence across various leadership roles. His expertise spans power generation, energy delivery, transmission, nuclear operations, external affairs, commercial operations and enterprise planning.

Aaron Melda is named chairman and president of Ameren Missouri, an electric and gas service provider and subsidiary of Ameren Corporation. "Aaron brings extensive experience and a collaborative, transformational leadership style that we welcome at Ameren, but more than that, he brings a real passion for the customers and communities we serve," said Martin J. Lyons Jr., chairman, president and CEO of Ameren Corporation. "His commitment to driving excellence and efficiency is all about delivering for customers, and that mindset makes him an excellent fit for our team."

Melda most recently served as senior vice president of strategy, commercial operations & external affairs for Tennessee Valley Authority (TVA), where he was responsible for enterprise strategy, economic development, commercial operations, federal affairs, and customer and community relations. Prior to that, he held the position of senior vice president for transmission & power supply. Melda held several positions of increasing responsibility during his time at TVA, including serving as executive director for the Watts Bar Nuclear Unit 2 completion and senior vice president of operations support.

Melda will report to Michael Moehn, group president of Ameren Utilities.

Before joining TVA in 2005, Melda held leadership roles with Siemens Power Generation in Georgia. He began his career there as a field engineer and project manager providing turbine and generator services to utilities across the United States. Melda holds a bachelor's degree in mechanical engineering from Georgia Tech and an MBA from Vanderbilt University.

About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren. 

SOURCE Ameren Corporation

A month has gone by since the last earnings report for Ameren (AEE - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Ameren due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Ameren Corporation before we dive into how investors and analysts have reacted as of late.

Ameren Q1 Earnings Outpace Estimates, Revenues Increase Y/Y

Ameren Corporation reported first-quarter 2026 earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.17 by 9.4%. The bottom line increased 19.6% from the year-ago quarter’s recorded figure.

The quarterly results reflected earnings on infrastructure investments to improve system reliability, resilience, and service quality for its Ameren Missouri and Illinois electric and natural gas customers.

AEE’s RevenuesTotal revenues were $2.18 billion, up 3.8% year over year. The top line missed the Zacks Consensus Estimate of $2.24 billion by 2.9%.

AEE: Highlights of the ReleaseAmeren’s total electricity sales volumes decreased 4.2% to 17,052 million kilowatt-hours (kWh) compared with 17,808 million kWh in the year-ago period. Gas volumes declined 5.4% year over year to 70 million dekatherms.

Total operating expenses were $1.64 billion, down 1.4% year over year.

The company’s interest expenses in the first quarter totaled $204 million compared with the prior-year quarter’s $175 million.

AEE’s Segmental ResultsThe Ameren Missouri segment reported adjusted earnings of $76 million compared with $42 million a year ago. The year-over-year increase was driven by earnings from higher infrastructure investments, including those incorporated into electric and natural gas service rates that became effective on June 1, 2025, and Sept. 1, 2025, respectively.

The Ameren Illinois Electric Distribution segment reported adjusted earnings of $66 million compared with $63 million in the year-ago quarter.

The Ameren Illinois Natural Gas segment reported adjusted earnings of $122 million compared with $108 million in the prior-year quarter.

The Ameren Transmission segment reported adjusted earnings of $98 million compared with $89 million in the year-ago quarter.

AEE’s Financial ConditionAmeren reported cash and cash equivalents of $13 million as of March 31, 2026, which remained unchanged sequentially.

As of March 31, 2026, the long-term debt totaled $19 billion compared with $18.21 billion as of Dec. 31, 2025.

Net cash flows from operating activities in the first three months of 2026 were $421 million compared with $431 million in 2025.

AEE’s GuidanceAmeren has reaffirmed its 2026 earnings guidance. It expects to generate earnings per share (EPS) in the range of $5.25-$5.45. The Zacks Consensus Estimate for 2026 earnings is pegged at $5.32, which is lower that the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.

VGM ScoresAt this time, Ameren has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. 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. Interestingly, Ameren has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerAmeren is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2026 more than a month ago.

PG&E reported revenues of $6.88 billion in the last reported quarter, representing a year-over-year change of +15%. EPS of $0.43 for the same period compares with $0.33 a year ago.

For the current quarter, PG&E is expected to post earnings of $0.37 per share, indicating a change of +19.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for PG&E. Also, the stock has a VGM Score of B.

Bridgefront Capital LLC purchased a new position in Air Lease Corporation (NYSE: AL) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 11,211 shares of the transportation company's stock, valued at approximately $714,000. Several other institutional investors have also

Investors interested in stocks from the Transportation - Equipment and Leasing sector have probably already heard of Air Lease (AL) and Westinghouse Air Brake Technologies (WAB). But which of these two stocks presents investors with the better value opportunity right now?

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Air Lease Founded in 2010, Los Angeles, CA-based Air Lease Corporation is a leading aircraft leasing company. It is primarily involved in purchasing commercial aircraft directly from the manufacturers, leasing the same to its airline customers across the globe. Some noteworthy manufacturers that the company works with are The Boeing Company and Airbus S.A.S.

AL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.87; value investors should take notice.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.35 to $7.30 per share. AL boasts an average earnings surprise of +14.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AL should be on investors' short list.

LOS ANGELES--(BUSINESS WIRE)--Air Lease (NYSE: AL) announced today the receipt of the final regulatory approval that is a condition to closing Air Lease’s previously announced merger with a subsidiary of Sumisho Air Lease Corporation DAC, a holding company based in Dublin, Ireland, whose shares at closing will be held directly or indirectly by Sumitomo Corporation, SMBC Aviation Capital Limited and investment vehicles affiliated with Apollo managed funds and Brookfield.

Air Lease expects to complete the merger on or about April 8, 2026, subject to the satisfaction of the remaining closing conditions set forth in the merger agreement and discussed in detail in the definitive proxy statement filed with the U.S. Securities and Exchange Commission by Air Lease on November 4, 2025. Under the terms of the merger agreement, upon completion of the merger, Air Lease’s Class A common stockholders will be entitled to receive $65.00 in cash, without interest and subject to any applicable withholding taxes, for each share of Class A common stock of Air Lease held immediately prior to the effective time of the merger. Additionally, under the terms of the merger agreement, each share of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, 4.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, and 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of Air Lease issued and outstanding immediately prior to the effective time of the merger will remain outstanding as preferred stock of the surviving corporation. Upon completion of the merger, Air Lease will be renamed Sumisho Air Lease Corporation.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “may,” “will,” “would,” “could,” “should,” “seeks,” “estimates” and variations on these words and similar expressions are intended to identify such forward-looking statements.

All statements, other than historical facts, including statements regarding the expected timing of the closing of the merger; the ability of the parties to complete the merger considering the various closing conditions; the expected benefits of the merger; and any assumptions underlying any of the foregoing, are forward-looking statements. Such statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. You should not place undue reliance on such statements. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, that (i) one or more closing conditions to the merger may not be satisfied or waived, on a timely basis or otherwise; (ii) the business of Air Lease may suffer as a result of uncertainty surrounding the merger and there may be challenges with employee retention as a result of the pending merger; (iii) the merger agreement contains restrictions on Air Lease’s ability to incur additional debt, which may negatively impact its liquidity and ability to maintain its investment grade ratings; (iv) the merger may involve unexpected costs, liabilities or delays; (v) legal proceedings have been and may continue to be initiated related to the merger; (vi) changes in economic conditions, political conditions and changes in laws or regulations may occur; (vii) an event, change or other circumstance may occur that could give rise to the termination of the merger agreement (including circumstances requiring a party to pay the other party a termination fee pursuant to the merger agreement); and (viii) other risk factors as detailed from time to time in Air Lease’s reports filed with the Securities and Exchange Commission (the “SEC”), including Air Lease’s Annual Report on Form 10-K for the year ended December 31, 2025, which are available on the SEC’s website (www.sec.gov). There can be no assurance that the merger will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the merger will be realized.

In addition, new risks and uncertainties may emerge from time to time, and it is not possible for Air Lease to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Air Lease expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect actual results or events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About Air Lease (NYSE: AL)

Air Lease is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. Air Lease and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease’s website regularly for important information. The information contained on, or that may be accessed through, Air Lease’s website is not incorporated by reference into, and is not a part of, this press release.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Air Lease Founded in 2010, Los Angeles, CA-based Air Lease Corporation is a leading aircraft leasing company. It is primarily involved in purchasing commercial aircraft directly from the manufacturers, leasing the same to its airline customers across the globe. Some noteworthy manufacturers that the company works with are The Boeing Company and Airbus S.A.S.

AL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Transportation stock. AL has a Momentum Style Score of B, and shares are up 0.1% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.35 to $7.30 per share. AL also boasts an average earnings surprise of +14.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AL should be on investors' short list.

Investors with an interest in Transportation - Equipment and Leasing stocks have likely encountered both Air Lease and Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Air Lease and Westinghouse Air Brake Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AL likely has seen a stronger improvement to its earnings outlook than WAB has recently. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AL currently has a forward P/E ratio of 8.90, while WAB has a forward P/E of 24.84. We also note that AL has a PEG ratio of 0.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WAB currently has a PEG ratio of 1.95.

Another notable valuation metric for AL is its P/B ratio of 0.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WAB has a P/B of 3.91.

These metrics, and several others, help AL earn a Value grade of A, while WAB has been given a Value grade of D.

AL stands above WAB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AL is the superior value option right now.

LOS ANGELES--(BUSINESS WIRE)--Sumisho Air Lease announces financial results for the three months ended March 31, 2026.

First Quarter 2026 Results

The following table summarizes the operating results for Sumisho Air Lease Corporation (the “Company”) for the three months ended March 31, 2026 and 2025 (in millions, except per share amounts and percentages):

Operating Results

Three Months Ended

March 31,

2026

2025

$ change

% change

Revenues

$

739.2

$

738.3

$

0.9

0.1

%

Operating expenses

(589.3

)

(598.6

)

9.3

(1.6

)%

Recoveries of Russian fleet write-off

—

331.9

(331.9

)

—

Income before taxes

149.9

471.7

(321.8

)

(68.2

)%

Net income attributable to common stockholders

$

114.8

$

364.8

$

(250.0

)

(68.5

)%

Diluted earnings per share

$

1.02

$

3.26

$

(2.24

)

(68.7

)%

Adjusted net income before income taxes(1)

$

165.4

$

169.5

$

(4.1

)

(2.4

)%

Adjusted diluted earnings per share before income taxes(1)

$

1.47

$

1.51

$

(0.04

)

(2.6

)%

Key Financial Ratios

Three Months Ended

March 31,

2026

2025

Pre-tax margin

20.3%

63.9%

Adjusted pre-tax margin(1)

22.4%

23.0%

  Highlights

On April 8, 2026, Air Lease Corporation completed the previously announced merger (the “Merger”) of Takeoff Merger Sub Inc., with and into Air Lease Corporation, with Air Lease Corporation surviving the Merger as an indirect subsidiary of Sumisho Air Lease Corporation Designated Activity Company (“Parent”). Parent is a new holding company established in connection with the Merger and is jointly owned, directly or indirectly, by Sumitomo Corporation, SMBC Aviation Capital Limited (“SMBC AC”) and investment vehicles affiliated with Apollo managed funds and Brookfield. Air Lease Corporation changed its name to Sumisho Air Lease Corporation in connection with the Merger. During the first quarter, we took delivery of 12 aircraft from our orderbook, representing $780 million in aircraft investments, ending the period with 496 aircraft in our owned fleet and over $33 billion in total assets. Sold six aircraft during the first quarter for $275 million in sales proceeds. We have $5.6 billion of aircraft in our sales pipeline1, which includes approximately $940 million in flight equipment held for sale as of March 31, 2026 and approximately $4.6 billion of aircraft subject to letters of intent. Financial Overview

First Quarter 2026 vs. First Quarter 2025

Our total rental of flight equipment revenue for the three months ended March 31, 2026 increased by approximately 4%, to $674 million, as compared to the three months ended March 31, 2025. The increase is primarily due to the growth of our flight equipment subject to operating leases since March 31, 2025 and an increase in our portfolio yield.

Our gain on aircraft sales and trading and other income decreased to $65 million for the three months ended March 31, 2026, as compared to $93 million for the three months ended March 31, 2025, which was primarily driven by lower sales activity. During the three months ended March 31, 2026, we recorded $53 million in gains from the sale of six aircraft, compared to $61 million in gains from the sale of 16 aircraft and $8 million from one sales-type lease for the three months ended March 31, 2025. In addition, we had a $8 million decrease in management fee revenue and a $4 million decrease in other income, which includes interest income, foreign currency fluctuations on our sales-type leases and other miscellaneous income from the prior year period.

Our total operating expenses decreased by 2% to $589 million during the three months ended March 31, 2026, as compared to $599 million of total operating expenses, excluding the recovery of our Russian fleet write-off of $332 million, during the three months ended March 31, 2025. Despite the increase in our composite cost of funds, our interest expense decreased by $8 million due to lower average debt balances during the period. In addition, although we incurred $9 million in merger-related costs during the first quarter of 2026, this was largely offset by non-recurring retirement expenses for our former executive chairman recognized during the first quarter of 2025, resulting in our selling, general and administrative expenses to be relatively flat as compared to the prior year period. Depreciation expense for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 increased $11 million due to the growth of our fleet.

Our net income attributable to common stockholders for the three months ended March 31, 2026 decreased to $115 million, or $1.02 per diluted share, from $365 million, or $3.26 per diluted share, for the three months ended March 31, 2025. In the prior year, we benefited from a $332 million settlement of insurance claims with certain insurers related to aircraft detained in Russia, as well as higher gains on sales, resulting in a decrease in our net income attributable to common stockholders in the current period. These were slightly offset by higher total rental of flight equipment revenue in the current period and an overall decrease in our total operating expenses, as discussed above.

For the three months ended March 31, 2026, we recorded adjusted net income before income taxes of $165 million, or $1.47 per adjusted diluted share, as compared to adjusted net income before income taxes of $169 million, or $1.51 per adjusted diluted share, for the three months ended March 31, 2025. Despite the increase in our rental revenues due to the growth of our fleet and higher portfolio lease yield in the current period, our adjusted net income decreased primarily due to lower sales activity and an increase in depreciation expense, partially offset by a decrease in interest expense due to lower average debt balances during the period.

Flight Equipment Portfolio

As of March 31, 2026, the net book value of our flight equipment subject to operating leases was $28.9 billion, compared to $29.1 billion as of December 31, 2025. During the quarter, we reclassified $628.9 million in aircraft value to flight equipment held for sale, resulting in a decrease in the net book value of our fleet. As of March 31, 2026, we owned 496 aircraft in our aircraft portfolio, comprised of 357 narrowbody aircraft and 139 widebody aircraft, and we managed 40 aircraft. The weighted average fleet age and weighted average remaining lease term of flight equipment subject to operating leases as of March 31, 2026 was 5.0 years and 7.2 years, respectively. We had a globally diversified customer base comprised of 103 airlines in 52 countries as of March 31, 2026.

The following table summarizes the key portfolio metrics of our fleet as of March 31, 2026 and December 31, 2025:

March 31, 2026

December 31, 2025

Net book value of flight equipment subject to operating leases

$

28.9 billion

$

29.1 billion

Weighted-average fleet age(1)

5.0 years

4.9 years

Weighted-average remaining lease term(1)

7.2 years

7.2 years

Owned fleet(2)

$

496

$

490

Managed fleet(3)

40

45

Aircraft on order(4)

206

218

Total

742

753

Current fleet contracted rentals

$

19.2 billion

$

19.6 billion

Committed fleet rentals(4)

$

8.6 billion

$

9.3 billion

Total committed rentals

$

27.8 billion

$

28.9 billion

(1)

Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating leases.

(2)

As of March 31, 2026 and December 31, 2025, our owned fleet count included 25 and 12 aircraft classified as flight equipment held for sale, respectively, and 17 and 16 aircraft classified as net investments in sales-type leases, respectively.

(3)

We will continue to manage our managed fleet after the Merger; however, certain services for the aircraft and leases will be subserviced by SMBC AC.

(4)

On April 8, 2026, in connection with the closing of the Merger, SMBC AC acquired the rights to our outstanding orderbook for undelivered aircraft. For further discussion on the Merger see our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

The following table details the regional concentration of our flight equipment subject to operating leases:

March 31, 2026

December 31, 2025

Region

% of Net Book Value

% of Net Book Value

Europe

39.2

%

39.1

%

Asia Pacific

36.9

%

36.5

%

Central America, South America, and Mexico

10.5

%

10.7

%

The Middle East and Africa

7.1

%

7.8

%

U.S. and Canada

6.3

%

5.9

%

Total

100.0

%

100.0

%

The following table details the composition of our owned fleet by aircraft type:

March 31, 2026

December 31, 2025

Aircraft type

Number of

Aircraft

% of Total

Number of

Aircraft

% of Total

Airbus A220-100

9

1.8

%

8

1.6

%

Airbus A220-300

34

6.9

%

33

6.7

%

Airbus A320-200

16

3.2

%

17

3.5

%

Airbus A320-200neo

20

4.0

%

23

4.7

%

Airbus A321-200

17

3.4

%

17

3.5

%

Airbus A321-200neo

112

22.6

%

109

22.2

%

Airbus A330-200(1)

13

2.6

%

13

2.7

%

Airbus A330-300

5

1.0

%

5

1.0

%

Airbus A330-900neo

28

5.6

%

28

5.7

%

Airbus A350-900

17

3.4

%

17

3.5

%

Airbus A350-1000

8

1.6

%

8

1.6

%

Boeing 737-800

37

7.5

%

38

7.8

%

Boeing 737-8 MAX

76

15.3

%

71

14.5

%

Boeing 737-9 MAX

35

7.1

%

35

7.1

%

Boeing 777-200ER

1

0.2

%

1

0.2

%

Boeing 777-300ER

23

4.6

%

23

4.7

%

Boeing 787-9

26

5.2

%

26

5.3

%

Boeing 787-10

18

3.7

%

17

3.5

%

Embraer E190

1

0.3

%

1

0.2

%

Total(2)

496

100.0

%

490

100.0

%

Debt Financing Activities

Our total debt financing, net of discounts and issuance costs, was $20.8 billion, $19.8 billion and $19.7 billion as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively. As of April 30, 2026, March 31, 2026, and December 31, 2025, 78.8%, 67.6% and 76.8% of our total debt financing was at a fixed rate, respectively, and 99.2% and 97.9% and 97.5% was unsecured. Our composite cost of funds was 4.33%, 4.29% and 4.15% as of April 30, 2026, March 31, 2026 and December 31, 2025, respectively. We ended the quarter with total liquidity of $5.4 billion.

As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions, except percentages):

April 30, 2026

March 31, 2026

December 31, 2025

Unsecured

Senior unsecured securities

$

16,417

$

12,390

$

13,861

Term financings

4,244

3,607

3,847

Commercial paper

—

1,046

1,361

Revolving credit facility

—

2,470

—

Other revolving credit facilities

—

—

300

Total unsecured debt financing

20,661

19,513

19,369

Secured

Term financings

—

255

318

Export credit financing

169

171

175

Total secured debt financing

169

426

493

Total debt financing

20,830

19,939

19,862

Less: Debt discounts and issuance costs

(49

)

(120

)

(132

)

Debt financing, net of discounts and issuance costs

$

20,781

$

19,819

$

19,730

Selected interest rates and ratios:

Composite interest rate(1)

4.33

%

4.29

%

4.15

%

Composite interest rate on fixed-rate debt(1)

4.18

%

4.02

%

3.91

%

Percentage of total debt at a fixed-rate

78.81

%

67.57

%

76.85

%

Conference Call

In connection with this earnings release, Sumisho Air Lease will host a conference call on May 7, 2026 at 4:30 PM Eastern Time to discuss the Company's financial results for the first quarter of 2026.

Investors can participate in the conference call by dialing 1 (800) 715-9871 domestic or 1 (646) 307-1963 international. The passcode for the call is 5685809.

The conference call will also be broadcast live through a link on the Investors page of the Sumisho Air Lease website at www.sumisho.aero. Materials presented during the conference call will also be posted on the Sumisho Air Lease website. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A transcript of the conference call will be available on the Investors page of the Sumisho Air Lease website for a period of 12 months following the conference call.

About Sumisho Air Lease

Sumisho Air Lease Corporation is a leading global aircraft leasing company acquired by Sumitomo Corporation, SMBC Aviation Capital, and investment vehicles affiliated with Apollo and Brookfield in April 2026. The company is principally engaged in leasing liquid and new technology aircraft to airlines throughout the world. Sumisho Air Lease routinely posts information that may be important to investors in the “Investors” section of its website at www.sumisho.aero. Investors and potential investors are encouraged to consult Sumisho Air Lease’s website regularly for important information. The information contained on, or that may be accessed through, Sumisho Air Lease’s website is not incorporated by reference into, and is not a part of, this press release.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this press release and include statements regarding, among other matters, the state of the airline industry, our ability to access the capital and debt markets, our aircraft sales pipeline and expectations, changes in inflation and interest rates and other macroeconomic conditions and other factors affecting our financial condition or results of operations. Words such as “can,” “could,” “may,” “predicts,” “potential,” “will,” “projects,” “continuing,” “ongoing,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and “should,” and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others:

our inability to obtain additional capital on favorable terms, or at all, to service our debt obligations and refinance maturing debt obligations; increases in our cost of borrowing, decreases in our credit ratings or changes in interest rates; our inability to generate sufficient returns on our aircraft investments through strategic aircraft acquisitions and profitable leasing; obsolescence of, or changes in overall demand for, our aircraft; changes in the value of, and lease rates for, our aircraft, including as a result of aircraft oversupply, manufacturer production levels, our lessees’ failure to maintain our aircraft, inflation, and other factors outside of our control; impaired financial condition and liquidity of our lessees, including due to lessee defaults and reorganizations, bankruptcies or similar proceedings; potential conflicts of interest with SMBC AC, as servicer of the majority of our aircraft; increased competition from other aircraft lessors; the failure by our lessees to adequately insure our aircraft or fulfill their contractual indemnity obligations to us, or the failure of such insurers to fulfill their contractual obligations; increased tariffs and other restrictions on trade; changes in the regulatory environment, including changes in tax laws and environmental regulations; other events affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, such as the threat or realization of epidemic diseases, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and any additional factors discussed under “Part II — Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other Securities and Exchange Commission (“SEC”) filings, including future SEC filings. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not intend and undertake no obligation to update any forward-looking information to reflect actual results or events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

Sumisho Air Lease Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

  March 31, 2026

December 31, 2025

(in thousands, except share and par value amounts)

Assets

Cash and cash equivalents

$

554,062

$

466,410

Restricted cash

502

3,540

Flight equipment subject to operating leases

35,732,476

35,880,458

Less accumulated depreciation

(6,857,633

)

(6,826,828

)

28,874,843

29,053,630

Net investment in sales-type leases

462,797

460,806

Deposits on flight equipment purchases

1,081,857

1,052,141

Flight equipment held for sale

940,330

529,016

Other assets

1,253,889

1,318,150

Total assets

$

33,168,280

$

32,883,693

Liabilities and Stockholders’ Equity

Accrued interest and other payables

$

1,063,515

$

1,012,345

Debt financing, net of discounts and issuance costs

19,819,195

19,730,129

Security deposits on flight equipment leases

618,667

622,556

Maintenance reserves on flight equipment leases

1,542,339

1,477,046

Rentals received in advance

127,109

143,631

Deferred tax liability

1,448,357

1,425,230

Total liabilities

$

24,619,182

$

24,410,937

Stockholders’ Equity

Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 900,000 (aggregate liquidation preference of $900,000) shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

9

9

Class A common stock, $0.01 par value; 500,000,000 shares authorized; 112,415,671 and 112,035,408 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

1,124

1,120

Class B Non-Voting common stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding

—

—

Paid-in capital

3,372,554

3,383,414

Retained earnings

5,183,013

5,092,929

Accumulated other comprehensive (loss)

(7,602

)

(4,716

)

Total stockholders’ equity

$

8,549,098

$

8,472,756

Total liabilities and stockholders’ equity

$

33,168,280

$

32,883,693

  Sumisho Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

  Three Months Ended

March 31,

2026

2025

(unaudited)

Revenues and other income

Rental of flight equipment revenue

Lease rentals

$

666,675

$

637,233

Maintenance rentals and other receipts

7,241

8,137

Total rental of flight equipment revenue

673,916

645,370

Gain on aircraft sales and trading and other income

65,307

92,912

Total revenues and other income

739,223

738,282

Expenses

Interest

201,844

208,574

Amortization of debt discounts and issuance costs

12,408

13,995

Interest expense

214,252

222,569

Depreciation of flight equipment

309,783

299,019

Recoveries of Russian fleet write-off

—

(331,938

)

Selling, general and administrative

60,191

59,348

Stock-based compensation expense

5,096

17,616

Total expenses

589,322

266,614

Income before taxes

149,901

471,668

Income tax expense

(24,005

)

(95,836

)

Net income

$

125,896

$

375,832

Preferred stock dividends

(11,081

)

(11,081

)

Net income attributable to common stockholders

$

114,815

$

364,751

Earnings per share of common stock:

Basic

$

1.03

$

3.27

Diluted

$

1.02

$

3.26

Weighted-average shares of common stock outstanding

Basic

111,936,166

111,549,903

Diluted

112,484,656

112,030,382

Other financial data

Pre-tax margin

20.3

%

63.9

%

Adjusted net income before income taxes(1)

$

165,412

$

169,490

Adjusted diluted earnings per share before income taxes(1)

$

1.47

$

1.51

Adjusted pre-tax margin(1)

22.4

%

23.0

%

The following table shows the reconciliation of the numerator for adjusted pre-tax margin (in thousands, except percentages):

Three Months Ended

March 31,

2026

2025

(unaudited)

Reconciliation of the numerator for adjusted pre-tax margin (net income attributable to common stockholders to adjusted net income before income taxes):

Net income attributable to common stockholders

$

114,815

$

364,751

Amortization of debt discounts and issuance costs

12,408

13,995

Recoveries of Russian fleet write-off

—

(331,938

)

Stock-based compensation expense

5,096

17,616

Retirement compensation expense

—

9,230

Merger related costs

9,088

—

Income tax expense

24,005

95,836

Adjusted net income before income taxes

$

165,412

$

169,490

Denominator for adjusted pre-tax margin:

Total revenues

$

739,223

$

738,282

Adjusted pre-tax margin(a)

22.4

%

23.0

%

The following table shows the reconciliation of the numerator for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):

  Three Months Ended

March 31,

2026

2025

  (unaudited)

Reconciliation of the numerator for adjusted diluted earnings per share (net income attributable to common stockholders to adjusted net income before income taxes):

  Net income attributable to common stockholders

  $

114,815

$

364,751

Amortization of debt discounts and issuance costs

  12,408

13,995

Recoveries of Russian fleet write-off

  —

(331,938

)

Stock-based compensation expense

  5,096

17,616

Retirement compensation expense

  —

9,230

Merger related costs

  9,088

—

Income tax expense

  24,005

95,836

Adjusted net income before income taxes

  $

165,412

$

169,490

  Denominator for adjusted diluted earnings per share:

  Weighted-average diluted common shares outstanding

  112,484,656

112,030,382

Adjusted diluted earnings per share before income taxes(b)

  $

1.47

$

1.51

  Sumisho Air Lease Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

  Three Months Ended

March 31,

2026

2025

(unaudited)

Operating Activities

Net income

$

125,896

$

375,832

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of flight equipment

309,783

299,019

Recoveries of Russian fleet write-off

—

(331,938

)

Stock-based compensation expense

5,096

17,616

Deferred taxes

23,912

95,322

Amortization of prepaid lease costs

21,049

22,704

Amortization of discounts and debt issuance costs

12,408

13,995

Foreign currency remeasurement (gain)/loss on sales-type leases

3,058

(5,764

)

Gain on aircraft sales, trading and other activity

(53,780

)

(68,838

)

Changes in operating assets and liabilities:

Other assets

38,434

13,581

Accrued interest and other payables

34,003

(34,234

)

Rentals received in advance

(16,522

)

(8,949

)

Net cash provided by operating activities

503,337

388,346

Investing Activities

Acquisition of flight equipment

(572,689

)

(585,725

)

Payments for deposits on flight equipment purchases

(189,766

)

(179,774

)

Proceeds from aircraft sales, trading and other activity

248,586

407,624

Proceeds from settlement of insurance claims

—

328,546

Acquisition of aircraft furnishings, equipment and other assets

(58,314

)

(72,871

)

Net cash used in investing activities

(572,183

)

(102,200

)

Financing Activities

Cash dividends paid on Class A common stock

(24,588

)

(24,503

)

Cash dividends paid on preferred stock

(11,081

)

(11,081

)

Tax withholdings on stock-based compensation

(15,952

)

(12,271

)

Net change in unsecured revolving facilities

2,170,000

30,000

Net change in commercial paper balance

(315,100

)

888,500

Proceeds from debt financings

100,000

199,950

Payments in reduction of debt financings

(1,857,406

)

(1,477,864

)

Debt issuance costs

(47

)

(1,385

)

Security deposits and maintenance reserve receipts

120,734

114,436

Security deposits and maintenance reserve disbursements

(13,100

)

(7,419

)

Net cash provided/(used in) by financing activities

153,460

(301,637

)

Net increase/(decrease) in cash

84,614

(15,491

)

Cash, cash equivalents and restricted cash at beginning of period

469,950

476,104

Cash, cash equivalents and restricted cash at end of period

$

554,564

$

460,613

Supplemental Disclosure of Cash Flow Information

Cash paid during the period for interest, including capitalized interest of $11,277 and $7,860 at March 31, 2026 and 2025, respectively

$

217,861

$

237,890

Cash paid for income taxes

$

2,143

$

38

Supplemental Disclosure of Noncash Activities

Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment and other assets

$

197,492

$

214,047

Flight equipment subject to operating leases reclassified to flight equipment held for sale

$

628,925

$

60,572

Transfer of flight equipment to investment in sales-type lease

$

21,674

$

33,778

Cash dividends declared on Class A common stock, not yet paid

$

24,731

$

24,587

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Dover, Chesapeake Utilities (CPK - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 4.54%. The energy and utility company is currently shelling out a dividend of $0.69 per share, with a dividend yield of 2.1%. This compares to the Utility - Gas Distribution industry's yield of 2.74% and the S&P 500's yield of 1.47%.

Looking at dividend growth, the company's current annualized dividend of $2.74 is up 1.7% from last year. Over the last 5 years, Chesapeake Utilities has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.90%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Chesapeake Utilities's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, CPK expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.51 per share, with earnings expected to increase 8.32% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

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, /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) today announced two leadership appointments that reinforce the Company's commitment to operational excellence and long-term growth. Effective April 1, senior vice president and chief accounting officer Michael Galtman will assume the role of chief transformation officer to oversee the Company's enterprise resource plan (ERP) implementation in addition to managing financial planning, corporate development, tax and treasury operations.

Michael Galtman, Chesapeake Utilities Corporation Chief Transformation Officer (PRNewsfoto/Chesapeake Utilities Corporation)

Melissa Barnes, Chesapeake Utilities Chief Accounting Officer (PRNewsfoto/Chesapeake Utilities Corporation) In conjunction with this transition, Melissa Barnes, who joined the Company on March 30, 2026, has been appointed vice president and chief accounting officer, and will be responsible for the Company's accounting and financial reporting functions.

"These appointments reflect our focus on transformative growth and our long-term succession planning efforts. Mike's deep understanding of our business and strategic financial expertise will be key to the implementation of technology systems that will support efficient and affordable operations, while Melissa's experience will ensure continued strength in financial controls, risk management and reporting," said Jeff Sylvester, senior vice president and incoming chief financial officer. "I look forward to working closely with both leaders as I step into my new role and execute on our long-term growth strategy."

Galtman brings more than two decades of financial leadership across multiple publicly traded, regulated environments within the energy industry. Since joining Chesapeake Utilities in 2019, he has guided the Company through complex accounting, regulatory and governance matters, including multiple corporate transactions such as the Florida City Gas acquisition in late 2023. Prior to Chesapeake Utilities, Galtman served as chief accounting officer and vice president at Sunoco Logistics and MBNA, where he integrated nearly $3 billion in acquisitions, led an SAP implementation and managed financial reporting. Galtman began his career in public accounting; he holds a Bachelor of Science in Accounting from Rutgers University and is a Certified Public Accountant.

Barnes is an accomplished accounting and finance leader with more than 20 years of experience in technical accounting, external reporting, largescale finance transformations‑ and internal controls. She most recently served as assistant controller at a global, publicly traded company, where she led accounting operations, including financial reporting, and provided oversight of Audit Committee communications. In prior roles, Barnes gained deep expertise in partnering with the business to execute complex transactions. Barnes holds a Bachelor of Science in Accounting from West Chester University of Pennsylvania and has completed executive education at the Yale School of Management. Barnes is a certified public accountant and a member of the American Institute of Certified Public Accountants.

Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange (NYSE:CPK). Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions and other businesses. For more information, visit www.chpk.com.

For more information, contact:

Media
Alexander Nye
Director, Strategic Communications
727.754.0136
[email protected]

Investors
Lucia M. Dempsey
Head of Investor Relations
347.804.9067
[email protected]  

SOURCE Chesapeake Utilities Corporation

Posted by Defense World Staff on Apr 6th, 2026

Phocas Financial Corp. purchased a new stake in Chesapeake Utilities Corporation (NYSE:CPK – Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 26,559 shares of the utilities provider’s stock, valued at approximately $3,314,000. Phocas Financial Corp. owned 0.11% of Chesapeake Utilities as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently bought and sold shares of CPK. EverSource Wealth Advisors LLC increased its holdings in Chesapeake Utilities by 94.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 222 shares of the utilities provider’s stock worth $27,000 after purchasing an additional 108 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Chesapeake Utilities by 292.9% in the 1st quarter. Geneos Wealth Management Inc. now owns 220 shares of the utilities provider’s stock worth $28,000 after buying an additional 164 shares during the period. CIBC Private Wealth Group LLC grew its position in shares of Chesapeake Utilities by 66.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 274 shares of the utilities provider’s stock worth $37,000 after buying an additional 109 shares in the last quarter. Hantz Financial Services Inc. grew its position in shares of Chesapeake Utilities by 77.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 298 shares of the utilities provider’s stock worth $40,000 after buying an additional 130 shares in the last quarter. Finally, Johnson Financial Group Inc. purchased a new position in shares of Chesapeake Utilities during the third quarter valued at $62,000. Institutional investors own 83.11% of the company’s stock.

Analyst Upgrades and Downgrades Several analysts recently weighed in on CPK shares. Weiss Ratings restated a “hold (c+)” rating on shares of Chesapeake Utilities in a report on Friday, March 27th. Wall Street Zen raised shares of Chesapeake Utilities from a “sell” rating to a “hold” rating in a research report on Saturday, March 14th. Finally, Barclays restated a “reduce” rating and issued a $140.00 price target (down from $141.00) on shares of Chesapeake Utilities in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $140.00.

Read Our Latest Research Report on CPK

Chesapeake Utilities Stock Performance Shares of CPK opened at $129.34 on Monday. The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 0.83. The firm has a market cap of $3.10 billion, a PE ratio of 21.63 and a beta of 0.77. Chesapeake Utilities Corporation has a 12 month low of $115.24 and a 12 month high of $140.59. The stock has a fifty day moving average price of $130.32 and a 200-day moving average price of $130.46.

Chesapeake Utilities (NYSE:CPK – Get Free Report) last announced its earnings results on Wednesday, February 25th. The utilities provider reported $1.94 earnings per share for the quarter, missing the consensus estimate of $2.16 by ($0.22). Chesapeake Utilities had a return on equity of 9.31% and a net margin of 15.09%.The business had revenue of $258.90 million for the quarter, compared to analysts’ expectations of $208.59 million. During the same quarter last year, the firm earned $1.63 earnings per share. The firm’s quarterly revenue was up 20.4% compared to the same quarter last year. Chesapeake Utilities has set its FY 2028 guidance at 7.750-8.000 EPS. Equities research analysts predict that Chesapeake Utilities Corporation will post 5.39 earnings per share for the current fiscal year.

Chesapeake Utilities Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 6th. Stockholders of record on Monday, March 16th will be issued a dividend of $0.685 per share. The ex-dividend date is Monday, March 16th. This represents a $2.74 annualized dividend and a dividend yield of 2.1%. Chesapeake Utilities’s dividend payout ratio is 45.82%.

About Chesapeake Utilities (Free Report)

Chesapeake Utilities Corporation (NYSE: CPK) is a diversified energy services holding company headquartered in Dover, Delaware. Through its operating subsidiaries, the company engages in natural gas distribution, transmission and storage; propane distribution; wholesale propane supply; and contract compression and natural gas liquids processing. Its core mission is to provide safe, reliable and cost-effective energy solutions to residential, commercial and industrial customers across multiple U.S.

Featured Stories Five stocks we like better than Chesapeake Utilities Want to see what other hedge funds are holding CPK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Chesapeake Utilities Corporation (NYSE:CPK – Free Report).

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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Chesapeake Utilities (CPK - Free Report) is headquartered in Dover, and is in the Utilities sector. The stock has seen a price change of 1.42% since the start of the year. The energy and utility company is currently shelling out a dividend of $0.69 per share, with a dividend yield of 2.17%. This compares to the Utility - Gas Distribution industry's yield of 2.78% and the S&P 500's yield of 1.39%.

Looking at dividend growth, the company's current annualized dividend of $2.74 is up 1.7% from last year. Over the last 5 years, Chesapeake Utilities has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.90%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Chesapeake Utilities's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for CPK for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.51 per share, which represents a year-over-year growth rate of 8.32%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CPK is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

, /PRNewswire/ -- At their meeting held today, the Board of Directors of Chesapeake Utilities Corporation (NYSE: CPK) voted to increase the quarterly cash dividend on the Company's common stock from $0.685 per share to $0.735 per share. The Board's action raises the 2026 annualized dividend by $0.20 from $2.74 to $2.94 per share, a 7.3 percent increase. The $0.735 per share quarterly dividend will be payable July 6, 2026 to all shareholders of record at the close of business on June 15, 2026.

"The Board's decision to increase the annualized dividend rate reflects our disciplined approach to capital allocation: balancing continued reinvestment of equity back into the business with dividend growth that aligns with sustainable earnings growth. We continue to execute upon our long-term strategic growth plan - prudently deploying capital, proactively managing our regulatory strategy and continuing to transform our operations. Our balanced approach is focused on delivering durable, long-term value for our shareholders," commented Jeff Householder, chair, president and chief executive officer.

Chesapeake Utilities has paid dividends to its shareholders without interruption for 65 years and has increased its annualized dividend every year since 2004.

About Chesapeake Utilities Corporation:
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange (NYSE:CPK). Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses. For more information, visit www.chpk.com.

For more information, contact:
Lucia Dempsey
Head of Investor Relations
[email protected]
347-804-9067

SOURCE Chesapeake Utilities Corporation

Net income and earnings per share ("EPS")* were $59.3 million and $2.47, respectively, representing an EPS growth rate of 11.8 percent compared to the prior year Adjusted gross margin** growth of $23.8 million during the first quarter of 2026 driven primarily by regulatory initiatives and infrastructure programs, natural gas organic growth and transmission expansion projects, and increased customer consumption Capital investment of $121.9 million during the first quarter of 2026 Florida City Gas ("FCG") filed a petition in April 2026 seeking a general rate base increase, subject to review and approval by the Florida Public Service Commission ("PSC") The Company continues to re-affirm its 2026 and 2024-2028 capital expenditure guidance ranges, as well as its 2028 EPS guidance range , /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities" or the "Company") today announced financial results for the three months ended March 31, 2026.

Net income for the first quarter of 2026 was $59.3 million ($2.47 per share) compared to $50.9 million ($2.21 per share) in the first quarter of 2025. Adjusted net income for the first quarter of 2026 was $59.3 million ($2.47 per share) compared with $51.1 million ($2.22 per share) in the prior-year period.

First quarter 2026 highlights include:

Organic customer growth across all service areas drove $2.0 million of incremental adjusted gross margin or $0.06 per share Transmission system expansions to support increased distribution demand generated an incremental $6.9 million of adjusted gross margin or $0.21 per share Infrastructure programs to enhance reliability provided an incremental $5.5 million of adjusted gross margin or $0.17 per share Colder weather within the first quarter produced an incremental $4.5 million of adjusted gross margin or $0.14 per share Improved rates from three rate cases completed in 2025 provided an incremental $4.1 million of adjusted gross margin or $0.13 per share "Our performance in the first quarter reflects a strong start to 2026, as we remain focused on our growth strategy: prudently deploying capital, proactively managing our regulatory agenda and transforming operations across the business," said Jeff Householder, the Company's Chair of the Board, President and Chief Executive Officer. "Our theme for the year is 'Transforming for Growth, Powered by People'. Achieving meaningful growth and delivering reliable and affordable service to customers depends on our dedicated teammates working together. I'm especially grateful for the exemplary performance of our team and the resilience of our system during the winter storms earlier this year."

"We are also recognizing the significant contributions of Beth Cooper, who announced her retirement in March following 36 years of service at the Company. In the last 18 years as our Chief Financial Officer, Beth's strategic and financial leadership has led to incomparable growth, including a $3 billion increase in our market capitalization, 10x growth in total assets and net income, as well as a 366 percent increase in earnings per share. Most importantly, Beth embodies the best of Chesapeake Utilities, including an authentic passion for delivering results and an impressive ability to build connections and relationships internally and externally," continued Householder. "While Beth is not easily replaced, I am confident in the abilities of Jeff Sylvester, our current Chief Operating Officer, who will assume the Chief Financial Officer role on July 1, 2026. Under his leadership, we are well-positioned to continue our long-standing track record."

Earnings and Capital Investment Guidance

The Company continues to re-affirm its 2026 full year capital guidance range of $450 million to $500 million. The Company also continues to re-affirm its five-year (2024-2028) capital guidance range of $1.5 billion to $1.8 billion and 2028 EPS guidance range of $7.75 to $8.00 per share.

*Unless otherwise noted, EPS and Adjusted EPS information are presented on a diluted basis.

Non-GAAP Financial Measures

**This press release including the tables herein, include references to both Generally Accepted Accounting Principles ("GAAP") and non-GAAP financial measures, including Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. The Company's management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.

The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions, and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit and Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.

The following tables reconcile Gross Margin, Net Income, and EPS, all as defined under GAAP, to the Company's non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS for each of the periods presented.

Adjusted Gross Margin

For the Three Months Ended March 31, 2026

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$                249.3

$                113.7

$                  (9.9)

$                353.1

Cost of Sales:

Natural gas, propane and
electric costs

(101.6)

(55.1)

9.8

(146.9)

Depreciation & amortization

(16.1)

(5.4)

—

(21.5)

Operations & maintenance
expenses (1)

(16.7)

(10.9)

0.1

(27.5)

Gross Margin (GAAP)

114.9

42.3

—

157.2

Operations & maintenance
expenses (1)

16.7

10.9

(0.1)

27.5

Depreciation & amortization

16.1

5.4

—

21.5

Adjusted Gross Margin (Non-
GAAP)

$                147.7

$                  58.6

$                  (0.1)

$                206.2

For the Three Months Ended March 31, 2025

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$                199.6

$                106.7

$                  (7.6)

$                298.7

Cost of Sales:

Natural gas, propane and
electric costs

(71.5)

(52.2)

7.4

(116.3)

Depreciation & amortization

(17.6)

(4.9)

—

(22.5)

Operations & maintenance
expenses (1)

(13.3)

(9.7)

0.3

(22.7)

Gross Margin (GAAP)

97.2

39.9

0.1

137.2

Operations & maintenance
expenses (1)

13.3

9.7

(0.3)

22.7

Depreciation & amortization

17.6

4.9

—

22.5

Adjusted Gross Margin (Non-
GAAP)

$                128.1

$                  54.5

$                  (0.2)

$                182.4

(1) Operations & maintenance expenses within the condensed consolidated statements of income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under GAAP.

Adjusted Net Income and Adjusted EPS

Three Months Ended

March 31,

(dollars in millions, shares in thousands (except per share data))

2026

2025

Net Income (GAAP)

$         59.3

$         50.9

FCG transaction and transition-related expenses, net (1)

—

0.2

Adjusted Net Income (Non-GAAP)

$         59.3

$         51.1

Weighted average common shares outstanding - diluted

24,053

23,041

Earnings Per Share - Diluted (GAAP)

$         2.47

$         2.21

FCG transaction and transition-related expenses, net (1)

—

0.01

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$         2.47

$         2.22

(1) Transaction and transition-related expenses represent non-recurring costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding, and legal fees.

Operating Results for the Quarters Ended March 31, 2026 and 2025

Consolidated Results

Three Months Ended

March 31,

(in millions)

2026

2025

Change

Percent
Change

Adjusted gross margin**

$       206.2

$       182.4

$         23.8

13.0 %

Depreciation, amortization and property taxes

30.9

31.3

0.4

1.3 %

Other operating expenses

75.9

64.0

(11.9)

(18.6) %

FCG transaction and transition-related expenses

—

0.3

0.3

NMF

Operating income

$         99.4

$         86.8

$         12.6

14.5 %

Operating income for the first quarter of 2026 was $99.4 million, an increase of $12.6 million compared to the same period in 2025. Excluding transaction and transition-related expenses associated with the acquisition and integration of FCG, operating income increased $12.3 million or 14.1 percent compared to the prior-year period. The increase in adjusted gross margin for the first quarter of 2026 was primarily driven by incremental margin from regulatory initiatives and infrastructure programs, pipeline expansion projects and natural gas organic growth, increased customer consumption resulting from year-over-year colder temperatures largely in the Company's Delmarva service areas, and improved performance at Aspire Energy. Higher operating expenses were driven largely by increased payroll, benefits and other employee-related expenses and higher facilities, maintenance costs and outside services compared to the prior-year period. Depreciation and amortization expense for the current period includes decreases related to certain regulatory items including the absence of recovered costs associated with Hurricane Michael and the impact of the FCG depreciation study. These amounts were largely offset by additional depreciation, amortization and property taxes associated with growth.   

Regulated Energy Segment

Three Months Ended

March 31,

(in millions)

2026

2025

Change

Percent
Change

Adjusted gross margin (1) **

$       147.7

$       128.1

$         19.6

15.3 %

Depreciation, amortization and property taxes (1)

25.0

25.9

0.9

3.5 %

Other operating expenses

51.6

41.4

(10.2)

(24.6) %

FCG transaction and transition-related expenses

—

0.3

0.3

NMF

Operating income

$         71.1

$         60.5

$         10.6

17.5 %

(1) The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael. See Key variances table below for additional information.

The key components of the increase in adjusted gross margin** are shown below:

(in millions)

Natural gas transmission service expansions, including interim services

$                    6.9

Contributions from regulated infrastructure programs

5.5

Rate changes associated with recent rate case activities (1)

4.1

Natural gas growth including conversions (excluding service expansions)

2.0

Changes in customer consumption

1.7

Change in off-system natural gas capacity sales

1.1

Absence of recovered costs associated with Hurricane Michael (2)

(2.0)

Other variances

0.3

Quarter-over-quarter increase in adjusted gross margin**

$                  19.6

(1) Includes adjusted gross margin contributions from permanent base rates. Refer to Major Projects and Initiatives discussion for additional information.

(2) The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

The major components of the increase in other operating expenses are as follows:

(in millions)

Payroll, benefits and other employee-related expenses

$                   (5.0)

Facilities expenses, maintenance costs and outside services

(2.7)

Credit, collections and customer service costs

(1.4)

Other variances

(1.1)

Quarter-over-quarter increase in other operating expenses

$                 (10.2)

Unregulated Energy Segment

Three Months Ended

March 31,

(in millions)

2026

2025

Change

Percent
Change

Adjusted gross margin**

$         58.6

$         54.5

$          4.1

7.5 %

Depreciation, amortization and property taxes

5.8

5.5

(0.3)

(5.5) %

Other operating expenses

24.5

22.7

(1.8)

(7.9) %

Operating income

$         28.3

$         26.3

$          2.0

7.6 %

The major components of the increase in adjusted gross margin** are shown below:

(in millions)

Propane Operations

Increased propane customer consumption

$               2.4

Aspire Energy

Increased performance from Aspire Energy - rate changes and gathering fees

1.4

Increased customer consumption

0.4

Other variances

(0.1)

Quarter-over-quarter increase in adjusted gross margin**

$               4.1

The major components of the increase in other operating expenses are as follows:

(in millions)

Payroll, benefits and other employee-related expenses

$              (1.6)

Facilities expenses, maintenance costs and outside services

(0.4)

Other variances

0.2

Quarter-over-quarter increase in other operating expenses

$              (1.8)

Forward-Looking Statements

Matters included in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2026 for further information on the risks and uncertainties related to the Company's forward-looking statements.

Conference Call

Chesapeake Utilities (NYSE: CPK) will host a conference call on Thursday, May 7, 2026, at 8:30 a.m. Eastern Time to discuss the Company's financial results for the three months ended March 31, 2026. To listen to the Company's conference call via live webcast, please visit the Events & Presentations section of the Investors page on www.chpk.com For investors and analysts that wish to participate by phone for the question and answer portion of the call, please use the following dial-in information:

Toll-free: 800.245.3047
International: 203.518.9765
Conference ID: CPKQ126

A replay of the presentation will be made available on the previously noted website following the conclusion of the call.

About Chesapeake Utilities Corporation

Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange. Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses.

For more information, contact:

Beth W. Cooper
Executive Vice President and Chief Financial Officer
302.363.2467

Lucia M. Dempsey
Head of Investor Relations
347.804.9067

Financial Summary Highlights

Key variances between the three months ended March 31, 2025 and March 31, 2026 included:

(in millions, except per share data)

Pre-tax

Income

Net

Income

Earnings

Per Share

Three Months Ended March 31, 2025 Adjusted Results (1)

$       69.7

$       51.1

$       2.22

Change in Adjusted Gross Margins:

Natural gas transmission service expansions, including interim services (2)

6.9

5.1

0.21

Contributions from regulated infrastructure programs (2)

5.5

4.0

0.17

Changes in customer consumption

4.5

3.3

0.14

Rate changes associated with recent rate case activities (2)

4.1

3.0

0.13

Natural gas growth including conversions (excluding service expansions)

2.0

1.5

0.06

Increased Aspire Energy performance - rate changes and gathering fees

1.4

1.0

0.04

Change in off-system natural gas capacity sales

1.1

0.8

0.03

Absence of recovered costs associated with Hurricane Michael (3)

(2.0)

(1.5)

(0.06)

23.5

17.2

0.72

Increased Operating Expenses (Excluding Natural Gas, Propane, and
Electric Costs):

Payroll, benefits and other employee-related expenses

(6.6)

(4.9)

(0.20)

Facilities expenses, maintenance costs and outside services

(3.1)

(2.2)

(0.09)

Depreciation, amortization and property taxes

(1.5)

(1.1)

(0.05)

Credit, collections and customer service costs

(1.4)

(1.1)

(0.04)

Absence of amortization of costs associated with Hurricane Michael recovery (3)

2.0

1.5

0.06

(10.6)

(7.8)

(0.32)

Interest charges

(0.6)

(0.4)

(0.02)

Increase in shares outstanding due to 2025 and 2026 equity offerings (4)

—

—

(0.09)

Net other changes

(1.3)

(0.8)

(0.04)

(1.9)

(1.2)

(0.15)

Three Months Ended March 31, 2026 Adjusted Results (1)

$       80.7

$       59.3

$       2.47

(1) Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from Company's non-GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures.

(2)  Refer to Major Projects and Initiatives table for additional information.

(3) The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

(4)  Reflects the impact of approximately 0.8 million common shares issued under the Company's dividend reinvestment and direct stock purchase plan and at the market program.

Recently Completed and Ongoing Major Projects and Initiatives

The Company continuously pursues and develops additional projects and regulatory initiatives to serve existing and new customers, further grow its businesses and earnings, and increase shareholder value. The following table includes all major projects and initiatives that are currently underway or recently completed. The Company's practice is to add incremental margin associated with new projects and regulatory initiatives to this table once negotiations or details are substantially final and/or the associated earnings can be estimated. Major projects and initiatives that have generated consistent year-over-year adjusted gross margin contributions are removed from the table at the beginning of the next calendar year.

The related descriptions of projects and initiatives that accompany the table include only new items and/or items where there have been significant developments, as compared to the Company's prior quarterly filings. A comprehensive discussion of all projects and initiatives reflected in the table below can be found in the Company's first quarter 2026 Quarterly Report on Form 10-Q.

Adjusted Gross Margin

Three Months Ended

Year Ended

Estimate for

March 31,

December 31,

Fiscal

(in millions)

2026

2025

2025

2026

2027

Pipeline Expansions:

St. Cloud / Twin Lakes Expansion

$       1.0

$      0.1

$           2.9

$       3.8

$        3.8

Wildlight

1.1

0.5

2.6

4.3

4.3

Worcester Resiliency Upgrade

0.4

—

0.3

1.5

17.1

Boynton Beach

0.9

0.5

3.0

3.4

3.4

New Smyrna Beach

0.6

—

1.6

2.6

2.6

Central Florida Reinforcement

1.1

0.3

2.6

4.3

4.3

Renewable Natural Gas Supply Projects

1.3

—

2.5

5.4

6.4

Miami Inner Loop

1.9

—

2.8

7.6

7.6

Duncan Plains

—

—

—

—

1.1

Total Pipeline Expansions

8.3

1.4

18.3

32.9

50.6

Regulatory Initiatives:

Florida GUARD program

2.4

1.5

7.1

10.1

13.0

FCG SAFE Program

2.8

1.7

8.4

12.7

16.4

Capital Cost Surcharge Programs

2.3

1.5

5.7

9.0

10.1

Electric Storm Protection Plan

3.3

1.1

6.4

10.7

11.0

Florida Mandatory Relocates

0.5

—

—

1.5

1.5

Maryland Rate Case (1)

1.3

—

1.5

3.5

3.5

Delaware Rate Case (1)

2.1

0.8

4.7

6.1

6.1

Electric Rate Case (1)

2.2

0.7

7.3

8.6

9.1

FCG Rate Case

—

—

—

TBD

TBD

Total Regulatory Initiatives

16.9

7.3

41.1

62.2

70.7

Total

$     25.2

$      8.7

$         59.4

$     95.1

$    121.3

(1) Includes adjusted gross margin attributable to interim and permanent rates. See additional information provided below.

Detailed Discussion of Major Projects and Initiatives

Pipeline Expansions

Worcester Resiliency Upgrade
In August 2023, Eastern Shore filed an application with the Federal Energy Regulatory Commission ("FERC") requesting authorization to construct the Worcester Resiliency Upgrade, which consists of a mixture of storage and transmission facilities in Sussex County, Delaware and Wicomico, Worcester, and Somerset Counties in Maryland. The project will provide long-term incremental supply necessary to support the growing demand of the participating shippers. In January 2025, the FERC approved the project.

In June 2025, Eastern Shore filed a limited amended application with the FERC requesting revised initial transportation rates for the project. The revised rates reflected increased capital costs associated with unanticipated changes in global markets and supply chains, including the availability of skilled laborers with the requisite certifications to work on this project. Eastern Shore requested expedited action by the FERC in relation to this matter and an approved order was issued in July 2025. Construction commenced shortly after approval and is well underway. The weather during the first quarter resulted in several brief slowdowns which had a cumulative impact on the overall timeline. Project construction and commissioning are expected to be complete in the latter part of the year with the FERC approval process to immediately follow. The Company expects to receive full approval for in-service of the facility by the beginning of 2027.

East Coast Reinforcement Projects (Boynton Beach and New Smyrna Beach)
In December 2023, Peninsula Pipeline filed a petition with the Florida Public Service Commission ("PSC") for approval of its Transportation Service Agreements with Florida Public Utilities Company ("FPU") for projects that will provide additional supply to coastal communities on the East Coast of Florida, which are experiencing significant population growth. Peninsula Pipeline proposed several pipeline extensions to support FPU's distribution system in the areas of Boynton Beach and New Smyrna Beach with an additional 15,000 Dts/day and 3,400 Dts/day, respectively. The Florida PSC approved the projects in March 2024. New Smyrna Beach was placed into service during May 2025, and construction is projected to be complete for Boynton Beach in the second quarter of 2026.

Renewable Natural Gas Supply Projects
In February 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of Transportation Service Agreements with FCG for projects that will support the transportation of additional renewable energy supply to FCG. The projects, located in Florida's Brevard, Indian River and Miami-Dade counties, will bring renewable natural gas produced from local landfills into FCG's natural gas distribution system. Peninsula Pipeline will construct several pipeline extensions which will support FCG's distribution system in Brevard County, Indian River County, and Miami-Dade County. Benefits of these projects include increased gas supply to serve expected FCG growth, strengthened system reliability and additional system flexibility. The Florida PSC approved the petition at its July 2024 meeting. In October 2025, the Florida PSC approved amendments to the Transportation Service Agreements that were filed to include Peninsula Pipeline as a party to the related interconnection agreements. The projects are underway and are estimated to be completed in the second half of 2026.

Miami Inner Loop Pipeline Projects
In September 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of the Transportation Service Agreement with FCG for a series of projects that will enhance gas infrastructure in Miami-Dade County. The proposed expansion consists of the development of several pipeline projects to support growth and FCG's distribution system, as well as enhance FCG's access to obtain gas from various points in the Miami-Dade County area. The expansion was approved in February 2025 and interim services began in August 2025 with permanent facilities expected to be in service by the second quarter of 2026.

Duncan Plains Pipeline Project
In July 2025, Aspire Energy Express entered into an agreement with American Electric Power to construct and operate an intrastate natural gas pipeline in central Ohio to serve a new fuel-cell facility, which will provide on-site electric power to a data center. This new transmission infrastructure is expected to be in service in the first half of 2027.

Regulatory Initiatives

Maryland Natural Gas Rate Case
In January 2024, the Company's natural gas distribution businesses in Maryland, CUC-Maryland Division, Sandpiper Energy, Inc., and Elkton Gas Company (collectively, the "Maryland natural gas distribution businesses") filed a joint application for a natural gas rate case with the Maryland PSC. In connection with the application, the Company sought approval of the following: (i) permanent rate relief of approximately $6.9 million with a return on equity ("ROE") of 11.5 percent; (ii) authorization to make certain changes to tariffs to include a unified rate structure and to consolidate the Maryland natural gas distribution businesses; and (iii) authorization to establish a rider for recovery of the costs associated with the Company's new technology systems. In September 2024, the Maryland Public Utility Judge approved a $2.6 million increase in annual base rates, which was followed by the Company submitting a Phase II filing in November 2024 to determine rate design across the Maryland natural gas distribution businesses, consolidation of the applicable tariffs and recovery of technology costs. In March 2025 the Phase II was approved, including an additional $0.9 million in revenue requirement, for a total cumulative increase of $3.5 million. A final order was issued in April 2025 and included approval of the consolidation of the operations and the assets of CUC-Maryland Division, Sandpiper Energy, and Elkton Gas into one entity which was renamed and will operate as Chesapeake Utilities of Maryland, Inc.

Delaware Natural Gas Rate Case
In August 2024, the Company's Delaware natural gas division filed an application for a natural gas rate case with the Delaware PSC seeking approval of the following: (i) permanent rate relief of approximately $12.1 million with a ROE of 11.5 percent; (ii) proposed changes to depreciation rates which were part of a depreciation study also submitted with the filing; and (iii) authorization to make certain changes to tariffs. Annualized interim rates were approved by the Delaware PSC in the amount of $2.5 million and became effective in October 2024. A settlement among all interested parties was reached and approved by the Delaware PSC in June 2025 providing an annual revenue increase of $6.1 million, as well as dividing the rate case into two phases. Rates set to recover the approved components of the increase were effective in March 2025 and approved tariff-related changes including rate design were effective as of October 15, 2025.

FPU Electric Rate Case
In August 2024, the Company's Florida Electric division filed a petition with the Florida PSC seeking a general base rate increase of $12.6 million with a ROE of 11.3 percent based on a 2025 projected test year. Annualized interim rates of approximately $1.8 million were approved with an effective date of November 1, 2024. In March 2025, the Florida PSC approved the permanent rate increase, but the order was subsequently protested. In May 2025, the Company reached a settlement agreement with the interested parties. This settlement which was approved by the Florida PSC in July 2025, provided for a total base rate increase of approximately $8.6 million on an annual basis, with $1.0 million of the increase deferred from the first year's base rate increase and recovered over three years. A step-up rate increase was also approved for up to $0.7 million, upon completion of the purchase and refurbishment of certain substations, which is expected to be completed in December 2026.

Florida Mandatory Relocates
In October 2025, FPU and FCG filed a joint petition for approval to establish a recovery surcharge for actual, estimated and projected relocation costs pursuant to the Florida Administrative Code which enables companies to recover the costs associated with relocating or reconstructing facilities that have been required by governmental entities. The projected revenue requirement for 2026 is $0.5 million for FPU and $1.0 million for FCG. The Florida PSC approved the petition in February 2026, with the surcharge effective in March 2026.

FCG Rate Case
In April 2026, FCG filed a petition with the Florida PSC. In connection with the application, we are seeking approval of the following: (i) interim rate relief of approximately $16.2 million, subject to refund, pending the outcome of the rate case proceeding; (ii) general base rate increase of $46.9 million with a ROE of 11.25 percent based on a 2027 projected test year; (iii) reclassification of approximately $16.4 million in the existing Safety, Access, and Facility Enhancement ("SAFE") program revenues from surcharge recovery to base rates; (iv) authorization to retain the unamortized portion of the previously approved acquisition adjustment; and (v) further implementation of the advanced metering infrastructure ("AMI"). The outcome of the application will be subject to review and approval by the Florida PSC.

FCG Depreciation Study
In February 2025, FCG filed a depreciation study with the Florida PSC. The application is requesting approval of revised annual depreciation rates, as well as a reduction related to a reserve imbalance that would be amortized over a two-year period. In February 2026, the Florida PSC approved a $6.8 million reserve imbalance to be amortized over the remaining life of the assets.

Other Major Factors Influencing Adjusted Gross Margin

Weather and Consumption
For the three months ended March 31, 2026, increased customer consumption, which includes the effects of colder weather conditions, largely in the Company's Delmarva service areas, compared to the prior-year period resulted in a $4.5 million increase in adjusted gross margin.

The following table summarizes heating degree-day (HDD) and cooling degree-day (CDD) variances from the 10-year average HDD/CDD ("Normal") for the three months ended March 31, 2026 and 2025.

Three Months Ended

March 31,

2026

2025

Variance

Delmarva Peninsula

Actual HDD

2,348

2,210

138

10-Year Average HDD ("Normal")

2,085

2,146

(61)

Variance from Normal

263

64

Florida

Actual HDD

594

580

14

10-Year Average HDD ("Normal")

471

483

(12)

Variance from Normal

123

97

FCG

Actual HDD

357

300

57

10-Year Average HDD ("Normal")

229

221

8

Variance from Normal

128

79

Ohio

Actual HDD

3,022

3,087

(65)

10-Year Average HDD ("Normal")

2,751

2,801

(50)

Variance from Normal

271

286

Florida

Actual CDD

226

189

37

10-Year Average CDD ("Normal")

220

217

3

Variance from Normal

6

(28)

Natural Gas Distribution Growth
The average number of residential customers served on the Delmarva Peninsula, by FPU and by FCG increased by approximately 3.3 percent, 2.2 percent, and 2.0 percent, respectively, for the three months ended March 31, 2026.

The details of the adjusted gross margin increase are provided in the following table:

Three Months Ended

March 31, 2026

(in millions)

Delmarva
Peninsula

Florida

Customer Growth:

Residential

$             0.5

$             0.8

Commercial and industrial

—

0.7

Total Customer Growth

$             0.5

$             1.5

Capital Investment Growth and Capital Structure Updates

The Company's capital expenditures were $121.9 million for the three months ended March 31, 2026. The following table shows a range of the forecasted 2026 capital expenditures by type:

2026

(in millions)

Low

High

Regulated distribution

$       110.0

$       120.0

Regulated transmission

135.0

145.0

Regulated infrastructure

90.0

100.0

Unregulated business

25.0

35.0

Technology

90.0

100.0

Total 2026 Forecasted Capital Expenditures

$       450.0

$       500.0

The capital expenditure projection is subject to continuous review and modification. Actual capital requirements may vary from the above estimates due to a number of factors, including changing political and economic conditions, supply chain disruptions, capital delays that are greater than currently anticipated, customer growth in existing areas, regulation, new growth or acquisition opportunities and availability of capital.

The Company's target ratio of equity to total capitalization, including short-term borrowings, is between 50 and 60 percent. The Company's equity to total capitalization ratio, including short-term borrowings, was approximately 50 percent as of March 31, 2026. 

Chesapeake Utilities Corporation and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended

March 31,

2026

2025

(in millions, except shares (thousands) and per share data)

Operating Revenues

   Regulated Energy

$     249.3

$     199.6

Unregulated Energy

113.7

106.7

Other Businesses and Eliminations

(9.9)

(7.6)

Total Operating Revenues

353.1

298.7

Operating Expenses

  Regulated natural gas and electricity costs

101.6

71.5

  Unregulated propane and natural gas costs

45.3

44.8

  Operations

67.3

58.0

  Maintenance

8.0

5.4

  Depreciation and amortization

21.5

22.5

  Other taxes

10.0

9.4

  FCG transaction and transition-related expenses

—

0.3

Total Operating Expenses

253.7

211.9

Operating Income

99.4

86.8

Other income, net

—

0.6

Interest charges

18.7

18.1

Income Before Income Taxes

80.7

69.3

Income taxes

21.4

18.4

Net Income

$       59.3

$       50.9

Weighted Average Common Shares Outstanding:

Basic

23,937

22,957

Diluted

24,053

23,041

Earnings Per Share of Common Stock:

Basic

$       2.48

$       2.22

Diluted

$       2.47

$       2.21

Adjusted Net Income and Adjusted Earnings Per Share

Net Income (GAAP)

$       59.3

$       50.9

FCG transaction and transition-related expenses, net (1)

—

0.2

Adjusted Net Income (Non-GAAP)**

$       59.3

$       51.1

Earnings Per Share - Diluted (GAAP)

$       2.47

$       2.21

FCG transaction and transition-related expenses, net (1)

—

0.01

Adjusted Earnings Per Share - Diluted (Non-GAAP)**

$       2.47

$       2.22

(1) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees.

Chesapeake Utilities Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

Assets

March 31,
2026

December 31,
2025

(in millions, except shares and per share data)

Property, Plant and Equipment

Regulated Energy

$          3,009.0

$          2,941.6

Unregulated Energy

507.2

492.4

Other Businesses and Eliminations

39.3

38.3

Total property, plant and equipment

3,555.5

3,472.3

Less: Accumulated depreciation and amortization

(652.1)

(637.6)

Plus: Construction work in progress

320.5

283.7

Net property, plant and equipment

3,223.9

3,118.4

Current Assets

Cash and cash equivalents

4.7

1.8

Trade and other receivables

120.7

106.9

Less: Allowance for credit losses

(6.8)

(5.4)

Trade and other receivables, net

113.9

101.5

Accrued revenue

49.0

50.1

Propane inventory, at average cost

8.2

8.8

Other inventory, at average cost

17.1

17.9

Regulatory assets

24.5

29.7

Storage gas prepayments

0.7

4.5

Income taxes receivable

—

—

Prepaid expenses

17.0

19.7

Derivative assets, at fair value

0.8

—

Other current assets

3.2

3.0

Total current assets

239.1

237.0

Deferred Charges and Other Assets

Goodwill

507.5

507.5

Other intangible assets, net

12.9

13.2

Investments, at fair value

16.4

17.2

Derivative assets, at fair value

0.1

—

Operating lease right-of-use assets

9.4

9.9

Regulatory assets

73.7

74.3

Receivables and other deferred charges

12.9

17.3

Total deferred charges and other assets

632.9

639.4

Total Assets

$          4,095.9

$          3,994.8

Chesapeake Utilities Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

Capitalization and Liabilities

March 31,
2026

December 31,
2025

(in millions, except shares and per share data)

Capitalization

Stockholders' equity

Preferred stock, par value $0.01 per share (authorized 2,000,000 shares),
no shares issued and outstanding

$                  —

$                  —

Common stock, par value $0.4867 per share (authorized 75,000,000
shares)

11.7

11.6

Additional paid-in capital

972.2

962.8

Retained earnings

669.3

626.8

Accumulated other comprehensive loss

(1.5)

(2.7)

Deferred compensation obligation

17.4

12.6

Treasury stock

(17.4)

(12.6)

Total stockholders' equity

1,651.7

1,598.5

Long-term debt, net of current maturities

1,325.3

1,327.1

Total capitalization

2,977.0

2,925.6

Current Liabilities

Current portion of long-term debt

134.6

134.6

Short-term borrowing

199.6

158.0

Accounts payable

101.1

115.2

Customer deposits and refunds

41.8

45.1

Accrued interest

17.6

8.7

Dividends payable

16.4

16.4

Accrued compensation

10.5

21.6

Regulatory liabilities

11.6

14.5

Derivative liabilities, at fair value

0.2

0.8

Other accrued liabilities

20.3

15.0

Total current liabilities

553.7

529.9

Deferred Credits and Other Liabilities

Deferred income taxes

333.7

313.3

Regulatory liabilities

188.8

188.1

Environmental liabilities

3.0

2.9

Other pension and benefit costs

13.1

14.0

Derivative liabilities, at fair value

0.5

0.6

Operating lease - liabilities

7.5

7.9

Deferred investment tax credits and other liabilities

18.6

12.5

Total deferred credits and other liabilities

565.2

539.3

Environmental and other commitments and contingencies (1)

Total Capitalization and Liabilities

$          4,095.9

$          3,994.8

(1) Refer to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for further information.

Chesapeake Utilities Corporation and Subsidiaries

Distribution Utility Statistical Data (Unaudited)

For the Three Months Ended March 31, 2026

For the Three Months Ended March 31, 2025

Delmarva NG
Distribution

Florida
Natural Gas
Distribution

FPU Electric
Distribution

Delmarva NG
Distribution

Florida
Natural Gas
Distribution

FPU Electric
Distribution

Operating Revenues
(in millions)

  Residential

$       58.4

$        40.9

$       12.8

$       46.8

$       33.4

$       12.2

  Commercial and Industrial

28.2

60.7

11.6

22.2

51.1

9.5

  Other (1)

(4.1)

22.9

3.2

(1.4)

10.4

1.5

Total Operating Revenues

$       82.5

$      124.5

$       27.6

$       67.6

$       94.9

$       23.2

Volumes (in Dts for natural gas and MWHs for electric)

  Residential

3,200,165

1,477,523

77,259

3,099,784

1,493,452

81,003

  Commercial and Industrial

4,709,222

13,016,899

89,717

3,956,308

12,646,603

84,284

  Other

93,677

333,084

—

90,088

1,712,708

—

Total

8,003,064

14,827,506

166,976

7,146,180

15,852,763

165,287

Average Customers

  Residential

108,025

214,040

26,040

104,602

209,640

25,966

  Commercial and Industrial

8,584

17,411

7,478

8,521

17,283

7,457

  Other

27

137

—

27

127

—

Total

116,636

231,588

33,518

113,150

227,050

33,423

(1) Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties and adjustments for pass-through taxes.

SOURCE Chesapeake Utilities Corporation

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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Dover, Chesapeake Utilities (CPK - Free Report) is a Utilities stock that has seen a price change of 1.81% so far this year. Currently paying a dividend of $0.69 per share, the company has a dividend yield of 2.16%. In comparison, the Utility - Gas Distribution industry's yield is 3.15%, while the S&P 500's yield is 1.42%.

Looking at dividend growth, the company's current annualized dividend of $2.74 is up 1.7% from last year. Over the last 5 years, Chesapeake Utilities has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.90%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Chesapeake Utilities's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for CPK for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.51 per share, which represents a year-over-year growth rate of 8.32%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CPK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Entergy (ETR - Free Report) came out with quarterly earnings of $0.86 per share, missing the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -3.22%. A quarter ago, it was expected that this power company would post earnings of $0.51 per share when it actually produced earnings of $0.51, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Entergy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $3.19 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.08%. This compares to year-ago revenues of $2.85 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Entergy shares have added about 22.4% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Entergy?While Entergy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Entergy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $3.53 billion in revenues for the coming quarter and $4.40 on $13.83 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Southern Co. (SO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.

This power company is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of -1.6%. The consensus EPS estimate for the quarter has been revised 3.2% lower over the last 30 days to the current level.

Southern Co.'s revenues are expected to be $8.12 billion, up 4.4% from the year-ago quarter.

Entergy Corporation (ETR) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today the pricing of a registered underwritten offering of 19,247,788 shares of its common stock at a price to the public of $113.00 per share. Subject to certain conditions, all shares are expected to be borrowed by the forward counterparties (as defined below) (or their respective affiliates) from third parties and sold to the underwriters and offered in connection with the forward sale agreements described below. Wells Fargo Securities, Citigroup, Barclays and Scotiabank are acting as joint book-running managers and representatives for this offering. BNP Paribas, BofA Securities, J.P. Morgan, Mizuho, Morgan Stanley  and MUFG are also acting as joint book-running managers for this offering. Closing of this offering is expected to occur on or about May 7, 2026.

In connection with the offering, Entergy entered into forward sale agreements with each of Wells Fargo Bank, National Association, Citibank, N.A., Barclays Bank PLC and The Bank of Nova Scotia (the "forward counterparties") under which Entergy agreed to issue and sell to the forward counterparties an aggregate of 19,247,788 shares of its common stock. In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 2,887,168 shares of Entergy's common stock upon the same terms. If the underwriters exercise their option to purchase additional shares of Common Stock, Entergy expects to enter into additional forward sale agreements with the forward counterparties with respect to the additional shares.

Settlement of the forward sale agreements is expected to occur on or prior to April 30, 2028. Entergy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.

If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility or other debt.

The offering is being made pursuant to Entergy's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The prospectus supplement and the accompanying base prospectus related to the offering will be available on the SEC's website at www.sec.gov. Copies of the prospectus supplement and the accompanying base prospectus relating to the offering may be obtained from the joint-book running managers for the offering as follows:

Wells Fargo Securities, LLC
90 South 7th Street, 5th Floor
Minneapolis, Minnesota 55402
Email: [email protected]
Tel: 800-645-3751 (option #5)

Citigroup
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Tel: 800-831-9146

Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Email: [email protected]
Tel: 888-603-5847

Scotia Capital (USA) Inc.
250 Vesey Street, 24th Floor
New York, New York 10281
Attention: US ECM
Email: [email protected]

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About Entergy

Entergy Corporation is an integrated energy company engaged in electric power production, transmission and energy delivery to retail customers. Entergy owns and operates power plants with approximately 25,000 megawatts of electric generating capacity. Entergy delivers electricity to approximately 3.1 million utility customers through its operating companies in Arkansas, Louisiana, Mississippi and Texas.

Entergy is traded on the New York Stock Exchange under the symbol ETR.

Forward-looking statements

This press release contains forward-looking statements regarding our planned offer and sale of common stock and the use of the net proceeds from any such sale. We cannot be sure that we will complete the offering or, if we do, on what terms we will complete it. Forward-looking statements are based on current beliefs and expectations and are subject to inherent risks and uncertainties. In addition, Entergy management retains broad discretion with respect to the allocation of net proceeds of the offering. The forward-looking statements speak only as of the date of release, and Entergy is under no obligation to, 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, except as may be required by law.

-30-

Investor inquiries:
Liz Hunter
504-576-3294
[email protected]

Media inquiries:
Neal Kirby
504-576-4238
[email protected]

SOURCE Entergy Corporation

ETR leans on its nuclear portfolio and a $57 billion grid plan to drive demand and reliability, but regulatory risks and efficiency trends persist.

AUSTIN, Texas--(BUSINESS WIRE)--Futurum Group, a leading technology advisory, research, and intelligence firm, today announced the signing of a definitive agreement to acquire Aptiviti, Inc., the parent company of Enterprise Technology Research (ETR). Upon closing, the strategic acquisition will merge ETR’s highly coveted, predictive quantitative data engine—long considered a gold standard by institutional investors—with Futurum Group’s deep market expertise, media properties, and global intelligence platform.

The world’s top institutional investors have relied on ETR’s data to predict market-moving shifts in technology spending before they show up in earnings. We now bridge the gap between Silicon Valley and Wall Street and vice versa.

Share For over a decade, ETR has been the silent engine behind some of Wall Street’s most successful technology investors. Through its proprietary Technology Spending Intentions Survey (TSIS), ETR captures forward-looking capital allocation data from a vetted community of nearly 10,000 enterprise technology leaders representing over $2 trillion in spending power.

Following the robust adoption of the Futurum Intelligence Platform™ in 2025, users and decision makers find unmatched real time data capabilities covering 11 tech practice areas. Customers who’ve been consuming dynamic intelligence based on over 6M existing data points will now gain a leading and powerful set of indicators to forecast vendor performance across their ecosystem, track sales preference signals across verticals, and ultimately enable them to generate alpha in a volatile tech market.

"ETR was founded on the belief that data, not opinion, should drive the most consequential technology decisions. I joined this company as one of its first employees in 2012, and returning as CEO in 2024 gave me a front-row seat to just how far that conviction had taken us. The result is a community of nearly 10,000 technology leaders, more than 15 years of proprietary data, and a methodology that the world's top investors and technology companies rely on to stay ahead of the market,” said Brad LaScolea, CEO of ETR. “Combining that foundation with Futurum Group’s analyst depth, reach, and intelligence platform creates something genuinely differentiated and long overdue for the market."

"For years, the world’s top institutional investors have relied on ETR’s raw data to predict market-moving shifts in technology spending before they show up in earnings," said Daniel Newman, CEO of Futurum Group. "Through this acquisition, we are bridging the gap between Silicon Valley and Wall Street and vice versa. We are proud to offer the financial markets an ultimate edge while further enhancing the power of intelligence that enterprises are accustomed to having with Futurum Group: predictive, quantitative alpha generated by ETR with the strategic, qualitative context of our global analyst team. I’m personally proud to have Futurum Group innovate and spearhead the reimagined mandate firms have in the AI era, leading at the forefront to offer this level of unified market intelligence."

Futurum Intelligence’s latest proprietary AI offerings unveiled this year are eye opening to customers, allowing them to prompt AI to answer questions grounded in Futurum Group’s research and buyer data such as vendor comparisons, brief your board, and pressure-test strategy — in minutes, not weeks.

The combined platform includes the following benefits and capabilities:

Institutional-Grade Predictive Power: ETR’s standardized, longitudinal TSIS survey captures spending intentions across hundreds of publicly traded and private technology vendors. Decision makers use this proprietary data as an unparalleled, forward-looking lens into which companies are gaining or losing market share, compared to those benefiting from or impacted by secular and/or macro-level spending headwinds. Deep Penetration in Financial Services: ETR's established clientele includes a who's-who of tier-one hedge funds, mutual funds, family offices, private equity, and venture capital firms. This acquisition formally solidifies Futurum’s footprint on Wall Street, expanding its ecosystem far beyond traditional technology vendors and enterprise C-suites to directly serve the financial markets. The Ultimate Due Diligence Engine: By integrating ETR's data with Futurum Group’s existing platform, decision makers now have a comprehensive tool for robust market positioning, buying and adoption trajectories, M&A due diligence, competitive benchmarking, idea generation, and investment thesis validation. Contextualizing the Quant: While users have historically used ETR to answer what is happening with technology budgets, Futurum Group’s 11 practice areas and expert analysts provide the critical why. Clients now receive the quantitative signal and the qualitative context in a single, frictionless engagement. To learn more and request your access, visit Futurum Group and Futurum Intelligence

About Futurum Intelligence

Futurum Intelligence, the research arm of Futurum Group company, analysts, researchers, and advisors helps business leaders worldwide anticipate tectonic shifts in their industries and leverage disruptive innovation.

Unlike traditional analysts, Futurum Group works not only in analysis and research but also takes that insight and knowledge even further, engaging all the way through the go-to-market process. Futurum Group provides in-depth research and insights on global technology markets using advisory services, custom research reports, strategic consulting engagements, digital events, go-to-market planning, and message testing. It also creates, distributes, and amplifies rich media content that all stakeholders read, watch, and listen to.

About ETR, an Aptiviti Inc company

Enterprise Technology Research (ETR) is an enterprise technology market research firm that delivers actionable, transparent, and unbiased insights to technology companies, institutional investors, and a trusted community of technology leaders, empowering them to make smarter, faster decisions. ETR’s proprietary approach is grounded in their vision to reinvent technology market research so that business leaders can strategically position their organizations to outperform the competition. In fact, no other firm harnesses the same scale and makeup of their vetted community to quickly deliver the unbiased data and analysis that financial and enterprise organizations need to achieve better outcomes. Bottom line: ETR ensures companies can access the data and gain the edge.

On June 01, 2026, Entergy Corp ETR shares fell 3.7% today, closing at $104.97. This decline is part of a broader trend, with the stock experiencing a 6.6% drop over the past week and a 9.8% decline over the past month. Over the last year, however, ETR shares have gained 29.3%, and they are up 14.9% year-to-date. The stock has fluctuated between a 52-week high of $118.45 and a low of $80.11.

GF Value™ verdict: Current price of $104.97 compared to GF Value™ of $78.99 indicates a 32.9% overvaluation.GF Score™: 76/100 (Above Average), suggesting solid fundamentals.Most notable signal: No insider transactions in the last 3 months, indicating a lack of confidence from insiders. Is ETR Overvalued or Undervalued? With a current price of $104.97 and a GF Value™ estimate of $78.99, Entergy Corp appears significantly overvalued, with a 32.9% margin of safety. The GF Valuation label indicates that the stock is "Significantly Overvalued," posing potential risks for investors who may be considering entering or holding onto the stock. The overvaluation suggests that the market may have priced in optimistic growth expectations or a premium for the company's stable utility business, which might not be justified by its underlying financials.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should exercise caution as the stock's current price reflects a significant premium over its estimated intrinsic value, increasing the risk of potential price corrections if the company's performance does not meet high expectations.

How Does ETR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 26.8x 18.7x Forward P/E 23.9x N/A Entergy Corp's current P/E ratio of 26.8x is significantly above its 5-year median P/E of 18.7x, indicating that the stock is trading at a premium compared to its historical valuation metrics. The forward P/E of 23.9x also suggests that expectations for earnings growth are high. This P/E analysis aligns with the GF Value™ verdict of being overvalued, reinforcing concerns that the stock may not deliver the growth necessary to justify its current price levels.

What Does ETR's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 4/10 Profitability 7/10 Growth 6/10 Valuation 5/10 Momentum 6/10 The GF Score™ of 76/100 indicates that Entergy Corp is positioned above average in terms of overall stock quality. The strongest area lies in profitability, with a score of 7/10, reflecting the company's ability to generate consistent earnings. However, financial strength is a concern, earning only a 4/10 rating, which may indicate vulnerabilities in the company's capital structure or liquidity. The scores in growth, valuation, and momentum are moderate, suggesting that while there are positive aspects to the company's performance, there is room for improvement in several key areas.

What Are Insiders Doing with ETR Stock? There have been no insider transactions reported in the last three months for Entergy Corp, which may suggest a lack of confidence among company executives or board members regarding the stock's current valuation. Insider activity can often serve as a barometer for investor sentiment, and the absence of recent trades might indicate that insiders are either holding their positions or do not see an attractive entry point at current price levels.

What This Means for Investors Based on the analysis of the GF Value™, Entergy Corp ETR is currently overvalued. With a significant premium over its estimated intrinsic value and a concerning P/E ratio compared to historical averages, the stock may pose risks for potential investors. Caution is advised, given the lack of recent insider activity and the company's mixed financial metrics.

For the complete analysis, visit the Entergy Corp ETR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ETR's GF Score™?

ETR's GF Score™ is 76/100, indicating that the stock is positioned above average in terms of overall quality and is expected to generate higher long-term returns based on historical performance.

Is ETR overvalued or undervalued?

ETR is currently overvalued, with a GF Value™ of $78.99 compared to its current price of $104.97, suggesting a significant margin of safety of 32.9%.

What is ETR's P/E ratio?

ETR's P/E ratio is 26.8x, which is 43% above its 5-year median P/E of 18.7x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Entergy CEO Drew Marsh said the rapid buildout of data centers doesn't have to be a burden for residential communities.

"Data centers really want to be good neighbors," Marsh said on CNBC's "Mad Money" on Tuesday. "They have reputations that they want to protect, and they want to be part of the community."

The surge in AI-related power demand has sparked concerns among policymakers and homeowners that residential customers could end up footing the bill for data centers. Marsh said Entergy's approach is designed to avoid that outcome by requiring data center operators to cover the costs of serving their facilities while also contributing to expenses that would otherwise be shared across the utility's customer base.

The electric utility company — which serves customers across Louisiana, Arkansas, Mississippi and Texas — has adopted what it calls a "Fair Share Plus" framework for large data center customers.

"The Fair Share part says that they are going to pay all of the incremental infrastructure costs during the life of their contract as needed to support them," Marsh said.

Marsh added that the framework goes beyond requiring data centers operators to simply pay for the infrastructure they use.

"The plus part is that they are also covering some of the fixed costs," Marsh said. "That means overhead costs and storm costs that our existing customers would have already been paying."

At Entergy's investor day Tuesday, Marsh said those provisions are expected to generate roughly $7 billion in savings for existing customers over the 15 to 20-year life of the contracts.

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