Essential Utilities Inc. WTRG reported first-quarter 2026 operating earnings per share (EPS) of 83 cents, which lagged the Zacks Consensus Estimate of $1.01 by 17.82%. The bottom line decreased 19.41% from $1.03 in the year-ago quarter.
WTRG’s first-quarter GAAP earnings were 79 cents compared with $1.03 reported in the year-ago quarter. The difference between GAAP and operating earnings was due to the impact of merger-related expenses incurred in the quarter.
Revenues of WTRG
Operating revenues of $862 million surpassed the Zacks Consensus Estimate of $768 million by 12.17%. The top line rose nearly 10% from the prior-year quarter’s $783.6 million. The improvement in total revenues was due to additional revenues from regulatory recoveries and purchased gas costs.
Essential Utilities Inc. Price, Consensus and EPS Surprise
Essential Utilities Inc. price-consensus-eps-surprise-chart | Essential Utilities Inc. Quote
WTRG’s Segment Details
Essential Utilities’ water segment reported revenues for the quarter of $323 million, an increase of 7.4% compared to $300.8 million in the first quarter of 2025. The year-over-year improvement was due to regulatory recoveries and increased volume.
WTRG’s regulated natural gas segment reported quarterly revenues of $529.4 million, up from $470.8 million in the first quarter of 2025, primarily driven by higher purchased gas costs, increased regulatory recoveries and the impact of weather normalization adjustments.
Highlights of WTRG’s Q1 Release
Total operating expenses amounted to $551.1 million, up 23.9% from the year-ago figure of $444.7 million due to increases in purchased gas costs, and higher operation and maintenance expenses than the previous year period.
Operating income totaled $310.6 million, down 8.4% year over year. The year-over-year decline was due to an increase in operating expenses.
Interest expenses increased 6.33% to $87.3 million from $79.3 million in the prior-year quarter.
The company continues to expand its operations through acquisitions and organic initiatives. The pending acquisition, if closed, can add more than 200,000 customers to Essential Utilities’ customer base.
So far in 2026, the company’s regulated water segment has secured rate awards and infrastructure surcharges expected to increase annual revenues by $5.7 million across Illinois, Indiana, Pennsylvania and Ohio. Its regulated natural gas segment also received rate awards and infrastructure surcharges in Kentucky and Pennsylvania, projected to add $9.4 million in annual revenues.
WTRG’s Financial Highlights
Current assets amounted to $622.6 million as of March 1, 2026, compared with $610.4 million as of Dec. 31, 2025.
Long-term debt was $8.36 billion as of March 31, 2026, up from $8.11 billion as of Dec. 31, 2025.
Essential Utilities invested nearly $269 million during the first three months of 2026 to strengthen its regulated water and natural gas infrastructure systems and improve customer service across its operations.
Essential Utilities is on track to invest $1.7 billion in infrastructure in 2026.
Latest Update on the Merger With American Water Works
Essential Utilities is moving forward with its previously announced merger deal with American Water Works by securing the necessary regulatory consents and approvals. During 2025, the company submitted applications for regulatory clearance in the applicable states.
On Feb. 10, 2026, shareholders of both companies overwhelmingly approved the merger-related proposals. Essential Utilities has also secured key regulatory approvals, including clearance from the Kentucky Public Utility Commission on April 20, 2026. The merger remains on schedule to close in the first quarter of 2027.
WTRG’s Zacks Rank
Essential Utilities currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
American Water Works Company AWK reported first-quarter 2026 adjusted earnings per share (EPS) of $1.01, which missed the Zacks Consensus Estimate of $1.10 by 8.18%. The bottom line declined 0.98% from the year-ago quarter's level of $1.02 per share.
AWK’s total quarterly revenues of $1.21 billion surpassed the Zacks Consensus Estimate of $1.12 billion by 8.25%. The top line also increased 5.69% from the year-ago figure of $1.14 billion.
American States Water Company AWR reported first-quarter 2026 operating earnings per share of 76 cents, up 8.6% from the year-ago quarter’s level of 70 cents. The metric missed the Zacks Consensus Estimate by a penny in the reported quarter.
Operating revenues totaled $169.2 million, up 14.3% from the year-ago quarter’s level of $148.01 million. The year-over-year increase in total revenues was due to strong contributions from all three segments.
California Water Service Group CWT posted first-quarter 2026 earnings of 7 cents per share, down 68.2% from 22 cents a year ago. The figure missed the Zacks Consensus Estimate of 25 cents by 72.0%. The earnings shortfall reflected cost pressure across the income statement. Total operating expenses rose 8.1% year over year to $196.4 million, outpacing the growth in operating revenues.
Quarterly revenues were $215 million, up 5.2% from the year-ago period. The top line came in below the consensus mark of $218 million by 1.38%.
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American Water Works Company, Inc. (AWK): Free Stock Analysis Report
California Water Service Group (CWT): Free Stock Analysis Report
American States Water Company (AWR): Free Stock Analysis Report
Essential Utilities Inc. (WTRG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).