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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $514.91 $467.20

Revenue mln mln (2

Analysts

)

Q2 EPS $0.38

Q2 Net $107.83

Income mln

Q2 $185.27

Operatin mln

g income

Q2 $112.40

Pretax mln

Profit

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 ( WTRG ) 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:

(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.)