Description

Essential Utilities: The American Water Deal—A Transformational Utility Merger Taking Shape? 

Essential Utilities delivered full year earnings per share of $2.20 in 2025, exceeding the company’s guidance range of $2.07 to $2.11 and reflecting continued operational stability across its regulated water, wastewater, and natural gas businesses. The company reported revenue growth of approximately 18.6 percent year over year, with total revenues rising from roughly $2.1 billion to nearly $2.5 billion. A large portion of this increase was driven by regulatory recoveries totaling $177.6 million, while higher natural gas commodity prices and usage contributed $126.8 million. Increased gas volumes added $57.2 million to revenue and customer growth provided a modest $5.6 million contribution. These favorable factors were partially offset by lower water volumes due to wetter weather and weather normalization credits in the natural gas segment. Earnings expansion was also supported by $0.46 per share from regulatory recoveries and $0.