Essential Utilities Stock Earnings Reports

Key points for investors: Q1 GAAP EPS was $0.79, which includes about $0.04 of merger-related costs; adjusted non-GAAP EPS excluding those merger costs was $0.83. Management reaffirmed its multiyear EPS growth target of 5%–7% annually through 2027 using the adjusted 2024 base of $1.97. Capital investment remains a priority: $269 million was invested in Q1 across water, wastewater and natural gas, and the company is on track to invest $1.7 billion for the year to address regulatory needs (PFAS, lead), reliability and safety. Merger progress: the Kentucky Public Service Commission approved the merger request (the first regulatory approval milestone), shareholders previously approved the transaction (95% vote), and the merger with American Water remains on track to close by the end of 2027. Operationally, winter extreme weather pressured results (higher O&M, slower capitalization), but operating metrics remain largely in good standing with continued PFAS project completions (5 completed, 45 under construction; target of 106 completions this year) and continued Intellis gas meter deployments (71k installed last year; target of at least 80k this year). M&A: Greenville Water acquisition closed in March; signed purchase agreements add ~201k customers (~$285M purchase price) and a larger pipeline of ~400k customers remains. Regulatory docket: completed $15.1M of annualized regulatory recoveries YTD; pending water/wastewater cases ~ $102M annualized and a Pennsylvania gas base-rate filing for $163.2M is pending. Expense drivers: O&M rose ~ $38M in Q1 (including ~$16.3M merger-related expense and weather-driven costs); a favorable tax reserve adjustment in Q1 2025 partially explains year-over-year differences. Financing: a $500M debt offering was completed; equity may be issued opportunistically via the ATM program; management is focused on preserving balance-sheet strength and maintaining a dividend payout ratio of 60%–65%.