Essential Utilities Reports 18.5% Revenue Growth to $514.9 Million in Q2 2025

Essential Utilities, Inc. reported significant financial growth in its latest quarterly results, with operating revenues reaching $514.9 million for the three months ended June 30, 2025, a notable increase of 18.5% compared to $434.4 million in the same period last year. For the first half of 2025, total revenues amounted to $1.3 billion, up 24.1% from $1.05 billion in the first half of 2024. The company’s net income also saw a substantial rise, totaling $107.8 million for the second quarter, compared to $75.4 million in the prior year, and $391.6 million for the first six months, up from $341.2 million.

The company attributed its revenue growth to increased rates and a larger customer base, driven by recent acquisitions. Essential Utilities completed several strategic acquisitions, including the wastewater utility system of the City of Beaver Falls, Pennsylvania, for $37.8 million, which serves approximately 3,200 customers. Additionally, the company acquired the Village of Midvale’s water system in Ohio for $2.95 million, serving about 1,000 customers. These acquisitions are part of a broader strategy to expand its footprint in the regulated water and wastewater sectors.

Operationally, Essential Utilities reported an increase in customer counts, with the total number of customers served rising to approximately 5.5 million across its service areas in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky. The company also noted a significant increase in capital expenditures, totaling $612.6 million for the first half of 2025, aimed at enhancing its infrastructure and service capabilities. This investment is part of a planned $7.8 billion capital investment over the next five years to improve water and natural gas systems.

The company’s financial position remains strong, with total assets reported at $18.6 billion as of June 30, 2025, compared to $18.0 billion at the end of 2024. Stockholders' equity increased to $6.7 billion, up from $6.2 billion, reflecting the company's ongoing growth and profitability. Essential Utilities also reported a cash balance of $25.1 million, significantly higher than $9.2 million at the end of 2024, providing a solid liquidity position to support future growth initiatives.

Looking ahead, Essential Utilities remains optimistic about its growth trajectory, with plans to continue pursuing acquisitions in the regulated utility sector. The company is also focused on enhancing its regulatory practices to facilitate timely recovery of increased costs and to mitigate the impacts of inflation and supply chain pressures. The management anticipates that these strategies will support sustained revenue growth and profitability in the coming quarters.