Monitor the earnings call on August 5 for any updates on the American Water merger timeline and regulatory approvals in remaining states. The in-line quarter with affirmed guidance suggests limited near-term catalyst; the 5.25% dividend increase provides a modest yield support.
Price Chart
Executive Summary
Essential Utilities reported Q2 2026 GAAP EPS of $0.37 and adjusted (non-GAAP) EPS of $0.38, slightly below the $0.39 consensus. Revenue of $530.9M grew 3% YoY but missed the $551.3M estimate. The company affirmed its 5-7% long-term EPS CAGR guidance and increased its quarterly dividend by 5.25%, while the pending merger with American Water continues to progress through regulatory approvals. The results are in-line with expectations for a regulated utility, with no material surprise to drive significant stock movement.
Key Financial Metrics
Key Facts
- GAAP EPS of $0.37 vs $0.38 a year ago; adjusted non-GAAP EPS of $0.38 vs consensus $0.39
- Revenue of $530.9M, up 3% YoY, but below the $551.3M consensus estimate
- Quarterly dividend increased 5.25% to $0.3606 per share
- Affirmed long-term EPS growth guidance of 5-7% CAGR through 2027
- Received merger approval from Ohio and Virginia utility commissions; merger with American Water on track for Q1 2027 close
- Invested $662.2M in infrastructure in H1 2026; on track for $1.7B full-year target
Financial Impact
Q2 2026 revenue $530.9M (+3% YoY); GAAP net income $105.7M ($0.37/share); adjusted EPS $0.38 (non-GAAP)
Risk Factors
- Pending merger with American Water faces regulatory risk in remaining states
- Natural gas segment revenue declined 4.5% YoY due to warm weather
- O&M expenses increased 3.5% YoY, outpacing revenue growth
- Higher interest expense ($89.1M vs $79.8M) compressing margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001552781-26-000404 |
| Document: e26327_wtrg-8k.htm | 0001552781-26-000404 |
| Document: 0001552781-26-000404-index-headers.html | 0001552781-26-000404 |
| Document: 0001552781-26-000404-index.html | 0001552781-26-000404 |
| Document: 0001552781-26-000404.txt | 0001552781-26-000404 |
| 8-K Data (Synthetic) | 0001552781-26-000404 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 22d ago | 425 | $41.80 $41.62 | ▼ −0.43% | ▲ +0.07% | $39.24 (−6.12%) |
Aug 5, 2026 8w ago | 8-K | $39.59 $39.75 | ▲ +0.41% | ▲ +0.06% | $39.24 (−0.88%) |
Jun 23, 2026 14w ago | 425 | $37.78 $38.03 | ▲ +0.66% | ▼ −1.05% | $39.24 (+3.86%) |
May 29, 2026 17w ago | 425 | $36.07 $37.36 | ▲ +3.56% | ▲ +6.32% | $39.24 (+8.78%) |
May 29, 2026 17w ago | 425 | $36.07 $37.36 | ▲ +3.56% | ▲ +6.32% | $39.24 (+8.78%) |
May 15, 2026 19w ago | 425 | $37.08 $37.12 | ▲ +0.11% | ▼ −1.51% | $39.24 (+5.81%) |
May 8, 2026 20w ago | S-3ASR | $37.43 $37.08 | ▼ −0.94% | ▼ −0.85% | $39.24 (+4.82%) |
May 7, 2026 21w ago | 8-K | $37.65 $37.90 | ▼ −0.65% | ▲ +0.85% | $39.24 (−4.21%) |
Apr 24, 2026 22w ago | 425 | $39.31 $37.93 | ▼ −3.51% | ▼ −3.91% | $39.24 (−0.19%) |
Apr 10, 2026 24w ago | 425 | $39.45 $39.68 | ▲ +0.58% | ▼ −2.71% | $39.24 (−0.54%) |
US Market Status
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