| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 530.85 | 38.4% | 3.1% |
| Total Income | 530.85 | 38.4% | 3.1% |
| Expenditure | 337.58 | 38.8% | 2.4% |
| PBT | 109.12 | 52.7% | 2.9% |
| Net Profit | 105.73 | 52.9% | 1.9% |
| OPM | 36.41% | 0.36pp | 0.43pp |
| NPM | 19.92% | 6.12pp | 1.02pp |
| EPS | 0.37 | 53.2% | 2.6% |
Essential Utilities Reports Q2 2026 Results and Affirms Guidance
05 Aug 2026 · 5 Aug, 8:26 pm
Summary
Essential Utilities reported Q2 2026 revenues of $530.9 million, a 3% increase year-over-year, driven by regulatory recoveries and purchased gas costs. GAAP net income was $105.7 million, with earnings per share at $0.37. The company affirmed its financial and growth guidance, expecting a 5% to 7% compound annual growth rate in earnings per share and maintaining its infrastructure investment target of $1.7 billion for 2026. Management expressed confidence in driving strong performance and highlighted the ongoing progress of the merger with American Water.
Key Highlights
- 1
Essential Utilities reported GAAP net income of $105.7 million and earnings per share of $0.37 for the second quarter of 2026.
- 2
Revenues for the second quarter of 2026 were $530.9 million, an increase of 3% compared to $514.9 million in the second quarter of 2025.
- 3
The regulated water segment reported revenues of $357.5 million for Q2 2026, an increase of 7.6% compared to the prior year.
- 4
Essential invested $662.2 million in infrastructure in the first six months of 2026 and is on track to invest $1.7 billion in 2026.
- 5
The company increased its quarterly dividend by 5.25% to $0.3606 per share.
- 6
Essential affirmed its anticipated growth in earnings per share at a compound annual growth rate of 5% to 7%.
Management Comments
Christopher Franklin
Our commitment to operational efficiency, proactive cost optimization, and value driven customer experience investments underpins our confidence in driving strong performance for 2026. While our organization transitions towards the targeted Q1 2027 merger with American Water, we remain steadfast in our commitment to driving peak operational performance. We are confident that the combination with American Water will bring exciting new opportunities, and we believe that, together, we will deliver significant benefits to our combined customers and shareholders. Crucially, both companies share a dedicated focus on smart capital deployment targeting measurable reliability and quality service. This will allow us to uphold our strong safety and reliability metrics while continuing to deliver affordable, cost-effective utility solutions. The regulatory approval processes for our merger with American Water continue to progress. On June 22nd, we received approval of the merger from the Virginia State Corporation Commission, and on May 14th we received approval from the Public Utilities Commission of Ohio. Previously, we received regulatory approval for the merger from the Kentucky Public Service Commission. As a reminder, we filed in all pertinent states before the end of 2025. In February, at the special shareholder meeting to approve the merger, approximately 95% of the voted shares were cast in favor of the transaction. This overwhelming mandate supports what we have believed from the start: that this combination creates a premier, multi-state utility with a high growth profile.
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