Essential Utilities Delivers Strong Q1 2025 Results, Reiterates Earnings Guidance, and Makes Progress on Key Initiatives
Essential Utilities recently reported its first quarter (Q1) 2025 earnings, showcasing a strong performance with $3 GAAP earnings per share, a 6% increase over the same period last year. The company's water and gas businesses both demonstrated expected results.
During the conference call, Chris Franklin, Chairman and CEO of Essential Utilities, highlighted several key achievements. First, the company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to non-GAAP earnings of $1.97 per share in 2024.
Franklin also emphasized the company's infrastructure investment plans, stating that Essential Utilities has already invested $270.5 million through March 31, with a total commitment of between $1.4 billion and $1.5 billion for the year. The company is leveraging its ATM program to raise equity, having issued approximately $210 million so far in 2025.
Operational achievements were also highlighted during the call. Essential Utilities' water quality compliance results have remained industry-leading at a 99.8% rate over the past 12 months, meeting state and federal regulations. The company's PFOS (perfluorooctane sulfonate) remediation work is progressing on schedule and within budget, aiming to meet the $450 million capital spend target by 2028.
The settlements with polluters are expected to yield approximately $100 million in proceeds for Essential Utilities. Additionally, Aqua Pennsylvania has received around $10 million in low-interest loans and grants from the government, with further applications pending to secure an additional $59 million in grants or loans.
Mike Huwar, President of the company's Gas business, will provide an update on the gas sector in due course. However, environmental stewardship is a core element of Essential Utilities' work, and the company has been recognized as a climate leader for the third consecutive year by USA TODAY.
The call also touched on key legislative developments affecting the industry. In Texas, the House of Representatives passed the future test year bill last week, with consideration now in the Senate. This positive development comes after rate cases in Ohio have experienced delays, but new legislation has been passed to set deadlines for these proceedings. In Virginia, legislation was introduced to expand the water and wastewater infrastructure surcharge.
