Overview

• Essential Q2 revenue rises 18.5% yr/yr, beating analyst expectations, per LSEG data

• Q2 net income up to $107.8 mln from $75.4 mln in Q2 2024

• Co raises quarterly dividend by 5.25%

Outlook

• Essential expects 2025 EPS above $2.07-$2.11 due to non-recurring benefits

• Co reaffirms long-term targets

• Company plans $1.4-$1.5 bln infrastructure investment in 2025

• Regulated water rate base to grow 6% CAGR through 2029

Result Drivers

• RATE INCREASES - Co attributes revenue growth to increased rates across segments

• PURCHASED GAS COSTS - Higher purchased gas costs contributed to revenue growth

• EXPENSE INCREASES - Operations and maintenance expenses rose due to higher employee-related costs and bad debt expense

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the water & related utilities peer group is "buy"

• Wall Street's median 12-month price target for Essential Utilities Inc is $44.50, about 17.3% above its July 31 closing price of $36.80

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1D52Rda

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)