BRYN MAWR, PA — Essential Utilities Inc. (NYSE: WTRG) has announced robust financial results for the first quarter of 2025, reporting a net income of $283.8 million or $1.03 per share, up from $265.8 million or $0.97 per share in the same quarter of 2024. Bolstered by increased revenues, strategic infrastructure investments, and effective expense management, the company remains on track to deliver on its 2025 guidance and long-term growth plans.
“We’re off to a great start to the year,” said Christopher Franklin, Chairman and CEO of Essential Utilities. “Our investments in infrastructure have set the stage for achieving our expected growth in 2025 and beyond. We are excited to also announce that, for the third consecutive year, we have been named to USA Today’s annual list of Climate Leaders. We are proud that our commitment to protecting and providing essential resources for life continues to be recognized.”
Financial Highlights
Essential’s revenues for Q1 2025 reached $783.6 million, a 28% increase compared to the $612.1 million reported in the same period last year. This growth was driven by regulatory recoveries, colder weather conditions boosting natural gas volumes, and higher purchased gas costs.
Operations and maintenance expenses rose slightly to $137.8 million, up from $136.9 million in Q1 2024. Increased labor costs and customer assistance surcharges were partially offset by declines in bad debt expense and other efficiencies.
Key segment performance included:
- Regulated Water Segment: Revenues rose to $300.8 million, a 7.5% increase from Q1 2024, with rate adjustments and surcharges as primary contributors.
- Regulated Natural Gas Segment: Revenues jumped to $470.8 million, up from $324.3 million in Q1 2024, primarily due to colder weather and adjustments for purchased gas costs.
Additionally, the company reaffirmed its full-year 2025 earnings guidance of $2.07 to $2.11 per share, supported by continued strong operational performance and infrastructure investments.
Infrastructure Investments
Essential Utilities is on track to invest between $1.4 billion and $1.5 billion in capital projects this year, funding critical improvements across its regulated water and natural gas systems. During the first quarter alone, the company invested $271 million in upgrading aging infrastructure and enhancing customer service. Over the next five years, the company plans to invest approximately $7.8 billion to address system needs, with significant allocations directed at upgrading natural gas pipelines and addressing PFAS (per- and polyfluoroalkyl substances) contamination in water systems.
Franklin highlighted the company’s infrastructure leadership, saying, “Our focus on replacing miles of aging infrastructure not only ensures reliability and safety for our customers but also positions us as an industry leader in reducing emissions and addressing future challenges like PFAS compliance.”
Acquisitions and Growth
Essential Utilities continues to expand its footprint through strategic acquisitions. During the quarter, the company acquired the Village of Midvale’s water system in Ohio for $3 million, adding 1,000 new customers. Earlier this year, it completed the $18 million acquisition of Greenville Sanitary Authority’s wastewater assets, serving 2,300 customers in Pennsylvania.
The company also has five signed purchase agreements for additional wastewater systems in Pennsylvania and Texas, representing over 210,000 customers with a combined purchase price of approximately $340 million. Among these is the high-profile $276.5 million acquisition of the Delaware County Regional Water Quality Control Authority, which serves nearly 198,000 customers in suburban Philadelphia.
Since 2015, Essential Utilities has added more than 129,000 customers to its regulated footprint, reinforcing its strategy of growth through acquisitions.
Long-Term Plans and Sustainability
The company reaffirmed its commitment to sustainability and operational excellence, with plans to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035, compared to 2019 levels. Additionally, Essential remains focused on meeting stringent EPA standards for PFAS levels, allocating $450 million for related capital projects through 2029.
Looking ahead, Essential projects its regulated water and natural gas rate base to grow at compound annual rates of 6% and 11%, respectively, through 2029. It also targets long-term earnings growth of 5-7% annually through 2027.
Outlook
With targeted investments, disciplined financial management, and a strong acquisition pipeline, Essential Utilities is well-positioned to sustain its momentum. Franklin concluded, “Our actions today will drive performance tomorrow, ensuring that we continue to deliver essential resources to our communities with reliability, safety, and sustainability at the forefront.”
Essential’s focus on infrastructure improvements and sustainable growth spotlights its effort to support public health, environmental goals, and economic progress for the communities it serves.
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