Essential Utilities, Inc. Q3 2026 Earnings Recap

Essential reported higher year-over-year EPS, supported by regulatory recoveries, but the stock’s 2.5% gain was within the ±3% range, indicating a broadly neutral reaction. The call highlighted ongoing infrastructure investment and merger progress alongside higher depreciation and interest costs.

Key Takeaways

• Q3 GAAP EPS was $0.36, up 9% year over year; adjusted non-GAAP EPS was $0.38 after excluding about $0.02 of merger-related expenses.
• Regulatory recoveries and surcharges added $0.06 per share, and higher water volumes added $0.01; increased depreciation and amortization and higher interest and lower AFUDC each reduced EPS by $0.02.
• O&M expense declined about 0.6%, or $900,000, primarily due to insurance recoveries and lower gas-segment bad debt expense, partly offset by merger costs.
• Year-to-date capital investment was about $1.1 billion, with the company on track for a record $1.7 billion in 2026.
• Management still expects the American Water merger to close by the end of Q1 2027. In Pennsylvania, an ALJ recommended a roughly $105 million revenue increase versus the company’s $163.2 million request; a final order is expected in December.