WTRG earnings analysis
What we found in WTRG'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
Essential Utilities, Inc. reported strong revenue growth in Q1 2026, with revenues rising 10.0% to $861.8 million, significantly outperforming estimates. However, EPS fell short of expectations, coming in at $0.79 versus $0.90, reflecting increased operational costs including significant pre-merger expenses and higher gas purchase costs. The company reaffirmed its long-term EPS growth target of 5-7%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased 10.0% year-over-year to $861.8 million, beating estimates of $780 million.
- EPS Misses Estimates
- Reported EPS was $0.79, missing the estimate of $0.90 by 12.22%.
- Pre-Merger Expenses Impacting Profitability
- Pre-merger expenses totaled $16.3 million, contributing to increased operational costs.
- Increase in Operating Cash Flow
- Net cash flows from operating activities were $265.4 million, despite a decrease from $299.5 million in Q1 2025.
- Liquidity Improvements
- Cash and equivalents increased to $75.9 million from $34.8 million as of December 31, 2025.
- Successful Infrastructure Investments
- Spent $269.2 million on capital improvements, demonstrating ongoing commitment to infrastructure development.
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.
- Increased Operational Costs
- Operations and maintenance expenses rose by 27.6% to $175.8 million, affecting overall profitability.
- Market Risk From Gas Prices
- Purchased gas increased by 29.2% year-over-year, impacting cost structure and profitability.
- Regulatory and Legal Risks from Merger
- Ongoing merger with American Water may face regulatory hurdles that could delay or impact financial outcomes.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.79
- Segment
- Regulated Water: $322.975M
- Segment
- Regulated Natural Gas: $529.412M
What they said about what is next.
Long-term EPS growth reaffirmed at 5-7%.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 26, 2026
- Essential Utilities reported consolidated operating revenues of $2,474,615,000 and net income of $616,369,000 (diluted EPS $2.20) for 2025, driven by Regulated Water revenues of $1,326,629,000 (53.6%) and Regulated…
- 10-Q · November 5, 2025
- Essential Utilities reported operating revenues of $476,971,000 and net income of $92,077,000 for the three months ended September 30, 2025, up versus the year‑ago quarter (revenues $435,255,000; net income…
- 10-Q · May 12, 2025
- Essential Utilities reported Q1 2025 operating revenues of $783,626,000 and diluted EPS of $1.03, up vs. the year‑ago quarter (revenues $612,069,000; EPS $0.97). Operating income rose to $338,905,000 (operating margin…
- 10-K · February 27, 2025
- Essential Utilities (WTRG) reported fiscal 2024 operating revenues of $2,086,113,000 and net income of $595,314,000 (diluted EPS $2.17), driven by its Regulated Water ($1,221,880,000; 58.6%) and Regulated Natural Gas…
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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