Essential Utilities Reports 9.6% Revenue Growth to $476.97 Million in Latest Quarter

Essential Utilities, Inc. reported significant financial growth in its latest quarterly results, with operating revenues reaching $476.97 million for the three months ended September 30, 2025, a 9.6% increase from $435.26 million in the same period last year. For the nine-month period, revenues surged to $1.78 billion, up 19.8% from $1.48 billion in 2024. The company’s net income also saw a notable rise, totaling $92.08 million for the third quarter, compared to $69.40 million in the prior year, and $483.69 million for the nine months, up from $410.56 million.

The company attributed its revenue growth to increased rates and a larger customer base, bolstered by recent acquisitions. Notably, Essential Utilities completed several acquisitions, including the wastewater utility system of the City of Beaver Falls, Pennsylvania, which serves approximately 3,200 customers, and the Village of Midvale’s water system in Ohio, serving about 1,000 customers. These strategic moves are part of the company’s ongoing efforts 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 now estimated at 5.5 million across multiple states, including Pennsylvania, Ohio, and Texas. The company also noted a rise in capital expenditures, amounting to $983.09 million for the first nine months of 2025, reflecting investments in infrastructure improvements and expansions. The company’s employee headcount has also grown, aligning with its expansion strategy.

In terms of financial health, Essential Utilities maintained a strong balance sheet, with total assets of $18.89 billion as of September 30, 2025, compared to $18.03 billion at the end of 2024. The company’s long-term debt increased to $7.74 billion, up from $7.42 billion, reflecting its ongoing investments and acquisitions. The company’s effective tax rate for the third quarter was reported at 4.5%, a decrease from 18.6% in the previous year, primarily due to tax benefits associated with infrastructure investments.

Looking ahead, Essential Utilities is preparing for a proposed merger with American Water Works Company, Inc., which is expected to close by the end of the first quarter of 2027, pending regulatory approvals. The merger is anticipated to enhance operational efficiencies and expand growth opportunities. The company remains focused on its strategic initiatives, including further acquisitions and infrastructure investments, to drive future growth and shareholder value.