Essential Utilities, Inc.: Can It Improve Operational Efficiency Through Lean Practices to Maintain Competitive Position?

Essential Utilities delivered its financial results for the fourth quarter and full year of 2024, highlighting several positive developments alongside challenges that need attention for future growth potential.
On a financial level, the company reported a GAAP earnings per share of $2.17, which included a gain from the sale of non-core Pittsburgh Energy projects. Adjusting for non-recurring items, Essential Utilities achieved nonGAAP earnings of $1.97 per share, aligning within its guided range of $1.96 to $2. This performance demonstrates relative stability and a controlled operating environment, largely attributed to disciplined cost management, as evidenced by a limited 2% growth in operating expenses.