Essential Utilities, Inc.

Essential Utilities, Inc. is furnishing the unaudited consolidated financial statements of American Water as part of its ongoing merger process with American Water and Alpha Merger Sub, Inc. The merger, previously disclosed, is subject to customary closing conditions, including regulatory approvals. The furnished financial statements provide a detailed look at American Water's financial position and performance as of and for the nine months ended September 30, 2026.

Essential Utilities, Inc. and American Water Works Company, Inc. announced that the Public Utilities Commission of Ohio has approved their proposed merger. This marks the second favorable regulatory action, following approval in Kentucky on April 21, 2026, and prior shareholder approvals. The all-stock merger, announced in October 2025, aims to create a combined entity serving over 4.7 million water/wastewater and 740,000 gas customer connections, operating under the American Water name. The transaction is anticipated to close by the end of the first quarter of 2027, pending remaining regulatory clearances.

Essential Utilities, Inc. voluntarily filed an 8-K to furnish the unaudited consolidated financial statements of American Water Works Company, Inc. for the first quarter ended March 31, 2026, and 2025. This disclosure is related to their pending merger, where Essential Utilities will become a wholly-owned subsidiary of American Water, and the information will be incorporated into Essential Utilities' Form S-3 registration statement. American Water reported Q1 2026 operating revenues of $1,207 million and net income of $196 million.

Essential Utilities reported first-quarter 2026 net income of $224.4 million, a decrease from $283.8 million in the prior year, with diluted earnings per share falling to $0.79 from $1.03. Operating revenues increased by 9.97% to $861.8 million. The company continues to progress on its pending merger with American Water, which received shareholder approval, and completed several utility system acquisitions while also issuing $500 million in senior notes.

Essential Utilities, Inc. reported Q1 2026 GAAP earnings of $0.79 per share and adjusted earnings of $0.83 per share, with revenues increasing 10% to $861.8 million. The company affirmed its long-term EPS growth guidance of 5% to 7% and its plan to invest $1.7 billion in infrastructure in 2026. Progress on the merger with American Water continues, with the Kentucky Public Service Commission approving the transaction, and a recent $18 million acquisition of the Greenville Municipal Water Authority was completed.

Essential Utilities, Inc. announced that the Kentucky Public Service Commission has approved its merger with American Water Works Company, Inc. This regulatory approval marks a significant step forward in the completion of the merger between the two utility companies. The announcement was made via a joint press release issued on April 22, 2026.