UTL earnings analysis
What we found in UTL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Unitil delivered a modest Q2 earnings improvement, with revenue up 14.0% to $117.0 million and GAAP EPS up to $0.26 from $0.25; revenue and adjusted EPS of $0.29 also exceeded the supplied consensus figures of $111.38 million and $0.26. Electric rate/customer growth and Maine Natural contributions lifted segment margins, although higher O&M, depreciation, taxes and interest constrained bottom-line leverage. The June 30 water acquisition expands the regulated asset base, but it also introduces a new disclosed risk category and adds to near-term financing and integration demands.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 14% year over year
- Q2 operating revenue rose $14.4 million, or 14.0%, to $117.0 million from $102.6 million. Electric revenue increased $10.7 million (21.0%) and gas revenue increased $3.7 million (7.2%).
- Operating profit and gross margin expanded
- GAAP operating income increased $2.1 million to $15.4 million, lifting operating margin to 13.2% from 13.0%. GAAP gross margin increased to $48.0 million from $41.2 million.
- EPS increased despite share dilution
- GAAP EPS increased $0.01 to $0.26, while adjusted EPS was $0.29. Six-month GAAP EPS rose to $2.11 from $1.94, despite the weighted-average share count rising to 17.9 million from 16.2 million.
- Cash generation improved despite investment
- Six-month operating cash flow increased $11.5 million to $105.8 million. Less $76.0 million of property additions, calculated free cash flow was $29.8 million, versus $21.5 million a year earlier; capex equaled 71.8% of operating cash flow.
- Water acquisition adds regulated growth platform
- The June 30 acquisition of AWC-NH and Abenaki added approximately 10,700 water customers, $62.0 million of net utility plant and $1.2 million of goodwill; purchase consideration was $42.6 million.
- Approved and pending rate actions support growth
- Rate-regulatory actions support future earnings: Unitil Energy received a $13.0 million permanent distribution-rate increase effective May 1, 2026, and filed for a further $3.2 million step adjustment effective September 1, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- New water-business risk factor added
- Item 1A newly adds water-sector exposure following the AWC-NH and Abenaki acquisition: the business serves approximately 10,700 customers and could face losses from water-supply limitations, contamination, network failures, and environmental or health-and-safety requirements.
- Higher debt and refinancing exposure
- Financing needs remain elevated: short-term debt was $234.8 million at June 30, up from $171.4 million a year earlier, and interest expense, net increased $1.1 million (11.8%) to $10.4 million in Q2. The company also has $86.0 million of Tranche A borrowings maturing October 31, 2026.
- Operating-cost and plant-growth pressure
- Cost inflation tempered gross-margin conversion: Q2 O&M expense rose $2.5 million (11.7%), depreciation and amortization rose $2.4 million (11.0%), and taxes other than income taxes increased $2.2 million (33.3%).
- Electric C&I volumes declined
- Electric volume remains a headwind in commercial and industrial markets: Q2 C&I kWh sales declined 1.5%, and six-month C&I sales declined 4.8%, reflecting loss of a large Fitchburg industrial customer in 2025.
- Cash balance declined amid acquisitions
- Working-capital liquidity is constrained by acquisition and investment spending: cash ended at $9.2 million, down from $15.6 million at December 31, while six-month investing cash outflow totaled $118.6 million, including $42.6 million for acquisitions.
- Environmental remediation obligations
- Regulatory and environmental execution remains material: Northern Utilities accrued $5.9 million for Rochester remediation expected to commence in 2027, while Fitchburg's Sawyer Passway remediation range has a high-end estimate of $3.7 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.26
- Gross margin
- 41.0%
- Operating margin
- 13.2%
- Segment
- Electric revenue: $61.7 million, up $10.7 million (21.0%) year over year; adjusted gross margin: $31.6 million, up $5.8 million (22.5%).
- Segment
- Gas revenue: $55.3 million, up $3.7 million (7.2%) year over year; adjusted gross margin: $40.6 million, up $3.4 million (9.1%).
- Segment
- Water operations: acquired June 30, 2026; no water-distribution revenue was recognized in the quarter.
What they said about what is next.
The 10-Q provides no explicit company-wide numeric earnings or revenue outlook. Management cites pending rate actions, including Northern Utilities' requested $10.4 million Maine rate increase and $9.8 million New Hampshire rate increase, but neither has been approved as permanent rates.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- Unitil Corporation's Q1 2026 results reflect a strong performance, with actual revenue of $216.9 million significantly exceeding estimates of $178.49 million. The earnings per share (EPS) of $1.88 also surpassed the…
- 10-K · February 9, 2026
- Unitil reported revenue of $536.0M and GAAP EPS of $2.97 for 2025, recovering from a 2024 revenue trough of $494.8M. The company completed two acquisitions (Bangor and Maine Natural) in 2025, expanded its customer base…
- 10-Q · August 4, 2025
- Unitil reported Q2 2025 total operating revenue of $102.6 million and GAAP net income of $4.0 million (GAAP EPS $0.25). Gas segment strength drove margin expansion (Gas Adjusted Gross Margin rose to $37.2 million from…
- 10-Q · May 6, 2025
- Unitil reported total operating revenue of $170.8 million and GAAP net income of $27.5 million (GAAP EPS $1.69) for the quarter ended March 31, 2025. Gas performance drove the quarter: Gas Adjusted Gross Margin rose to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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