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Essential Utilities (WTRG) FY2025 results: revenue $2.5 billion, up 18.6% on the year

Essential Utilities, Inc. (WTRG) reported revenue of $2.5 billion for fiscal 2025, the year ended 31 December 2025, up 18.6% on the year before. Net income was $1.1 billion, up 5.7%, and diluted earnings per share $5.69. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2026.

Revenue
$2.5 billion
+18.6% on the year
FY2018FY2025
Operating margin
75.9%
82.4% a year earlier
FY2018FY2025
Net income
$1.1 billion
+5.7% on the year
FY2018FY2025
Diluted EPS
$5.69
+5.6% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 new, 1 kept.

  • Full-year EPS rose to $2.20: Full-year 2025 net income was $616.4 million, or $2.20 per diluted share, against $595.3 million and $2.17 in 2024, when results included a gain on sale and weather effects.
  • Q4 EPS lower on taxes and costs: Fourth-quarter net income was $132.7 million, or $0.47 per share, against $184.8 million and $0.67 a year earlier. Higher taxes and operations and maintenance expense were the primary drivers, partly offset by rates and gas volume.
  • Pending cases total $101.9 million: Water base rate cases and surcharges are pending in five states for $101.9 million in incremental annual revenue, up from $96.5 million in the prior release.
  • 2026 investment plan of $1.7 billion: Management said regulated infrastructure investment is expected at $1.7 billion in 2026 and that the company is committed to elevated levels of infrastructure investment.
  • Shareholders approved the merger: Shareholders of both companies approved the merger-related proposals on February 10, 2026, and the release describes the vote as overwhelming.
Read the Q4 FY2025 earnings call summary

From this 10-K

Essential Utilities is a Pennsylvania holding company for regulated utilities that provide water, wastewater or natural gas services to an estimated 5.5 million people in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia and Kentucky, under the Aqua and Peoples brands. It reports two segments, Regulated Water and Regulated Natural Gas, and through non-regulated subsidiaries it also provides utility service line protection and repair services to households and runs gas marketing and production activities.

Essential Utilities, Inc., the 10-K for 2025

Essential Utilities is a Pennsylvania holding company for regulated utilities that provide water, wastewater or natural gas services to an estimated 5.5 million people in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia and Kentucky, under the Aqua and Peoples brands. It reports two segments, Regulated Water and Regulated Natural Gas, and through non-regulated subsidiaries it also provides utility service line protection and repair services to households and runs gas marketing and production activities.

Pending merger with American Water

On October 26, 2025 it agreed to merge with American Water Works Company, under which it would become a wholly owned subsidiary of American Water and its shareholders would receive American Water common stock. Both companies' shareholders approved the merger on February 10, 2026, and at the time of the filing the company expected it to close by the end of the first quarter of 2027, subject to remaining conditions including Hart-Scott-Rodino clearance and approvals from public utility commissions.

Water and wastewater

Its subsidiary Aqua Pennsylvania served approximately one-half of the company's water and wastewater customers at December 31, 2025, in the suburban counties north and west of Philadelphia and in 28 other Pennsylvania counties. Its other water and wastewater subsidiaries provide similar services in seven more states. Substantially all of its water customers are metered, and consumption peaks in late spring, summer and early fall. Its water comes from surface water sources, underground aquifers and purchases from other suppliers, and is mainly self-supplied and treated at twenty-four surface water treatment plants in five states and numerous well stations. The filing states that it pursues acquisitions of government-owned and regulated water and wastewater systems near its existing service territories or in new areas.

Natural gas

Its Peoples subsidiaries provide natural gas service to approximately 747,000 customers in western Pennsylvania and Kentucky, approximately 95% of them in western Pennsylvania.

Customers

Its utility customer count rose from 1,798,803 at January 1, 2021 to 1,884,013 at December 31, 2025, including customers from systems it bought and sold, and increased by 14,707 in 2025, mainly from acquired water and wastewater systems and organic growth.

People

At December 31, 2025 it had 3,303 full-time employees, and its subsidiaries were parties to 23 labor agreements with unions covering 1,709 employees, expiring at various times up to 2029.

From Essential Utilities' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 26 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue2,4752,0862,054+18.6%
Operating income1,8791,7181,504+9.4%
Operating margin75.9%82.4%73.2%
Interest expense329302283+8.8%
Pre-tax income1,4221,3591,196+4.6%
Income tax311308252+1.0%
Effective tax rate21.9%22.7%21.1%
Net income1,1111,051944+5.7%
Net margin44.9%50.4%46.0%
Diluted EPS$5.69$5.39$4.90+5.6%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow2,0592,0451,874+0.7%
Capital expenditure3,1262,8562,575+9.5%
Free cash flow-1,067-811-701
Free cash flow margin-43.1%-38.9%-34.1%
Cash from investing-3,309-3,379-2,815
Cash from financing1,2491,1101,188+12.5%
Depreciation and amortisation894788704+13.5%
Share-based compensation12.99.811.3+31.4%
Buybacks2.34.04.0-43.6%
Dividends paid633585532+8.2%
Dividend per share$3.31$0.33$0.31+916.9%
Diluted shares, weighted195m195m193m0.0%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity10,83710,3329,797+4.9%
Short-term borrowings1,588879n/a+80.7%
Debt8,1327,5116,894+8.3%
Operating lease liabilities74.076.034.4-2.6%
Other liabilities14,81114,03213,573+5.6%
Total liabilities and equity35,44232,83030,298+8.0%
Fixed assets14,26413,14312,097+8.5%
Goodwill1,1561,1441,143+1.0%
Intangible assets3.03.33.6-9.7%
Securities held for sale or to maturity20.0n/an/a
Cash and equivalents98.096.04.6+2.1%
Receivables395416144-5.0%
Other assets19,50618,02716,905+8.2%
Total assets35,44232,83030,298+8.0%

10-K for the year ended 31 December 2025, filed 26 February 2026: the filing.