Unitil Corporation Reports Q1 2025 Financial Results with $27.5 Million Net Income

Unitil Corporation reported its financial results for the first quarter of 2025, revealing a net income of $27.5 million, or $1.69 per share, which reflects a slight increase from $27.2 million, or $1.69 per share, in the same period of 2024. Adjusted net income, which excludes transaction costs related to recent acquisitions, was $28.4 million, or $1.74 per share, up from $27.2 million, or $1.69 per share, year-over-year. The company’s total operating revenue for the quarter was $170.8 million, a decrease from $178.7 million in the prior year, primarily due to lower electric operating revenues.

The company experienced significant changes in its operational metrics compared to the previous fiscal period. Electric operating revenues fell to $60.2 million from $73.6 million, a decline of 18.2%, attributed to lower costs of electric sales and a decrease in customer usage. In contrast, gas operating revenues increased to $110.6 million from $105.1 million, driven by higher rates and customer growth, as well as favorable weather conditions. The total number of electric customers rose by approximately 970, while gas customers increased by about 9,230, largely due to the acquisition of Bangor Natural Gas Company, which added 8,500 customers.

Strategically, Unitil completed the acquisition of Bangor Natural Gas Company for $71.2 million on January 31, 2025, expanding its service territory in central Maine. The acquisition is expected to enhance the company’s gas distribution capabilities and customer base. Additionally, Unitil has entered into a stock purchase agreement to acquire Maine Natural Gas Company for $86 million, pending regulatory approval. The company is also pursuing the acquisition of Aquarion Water Companies, which would further diversify its utility portfolio.

Operationally, Unitil's electric and gas adjusted gross margins showed mixed results. Electric adjusted gross margin increased slightly to $27.5 million, while gas adjusted gross margin rose significantly to $70.9 million, reflecting a $9.9 million increase compared to the previous year. The company’s operation and maintenance expenses rose by $4.4 million, driven by higher utility operating costs and labor expenses. The total employee headcount as of March 31, 2025, was 565, with a good relationship maintained with employees, as indicated by the absence of major labor disruptions.

Looking ahead, Unitil remains focused on integrating its recent acquisitions and expanding its service offerings. The company anticipates continued growth in customer numbers and revenue, supported by its strategic investments in infrastructure and regulatory compliance. However, it acknowledges potential risks, including regulatory changes and market conditions, that could impact its financial performance. The company plans to maintain its commitment to providing reliable utility services while navigating the evolving energy landscape.