Water Infrastructure: Why This Boring Sector Could Get Exciting Essential Utilities (NYSE:WTRG) reported second-quarter 2026 GAAP earnings of $0.37 per share, compared with $0.38 per share in the prior-year quarter, as higher regulatory recoveries and water volumes were offset…
lower gas volumes, increased operating expenses, depreciation and interest costs. Excluding approximately $0.01 per share of merger-related expenses, the company reported adjusted non-GAAP earnings of $0.38 per share
Chairman and CEO Chris Franklin said Essential remains confident it can achieve its target of 5% to 7% annual earnings-per-share growth, using 2024 adjusted earnings of $1.97 per share as the baseline. Quarterly Earnings Drivers – Overlooked Analyst-Approved Dividend Plays You Can Count On Chief Financial Officer Dan Schuller said earnings benefited from a $0.06-per-share increase in regulatory recoveries and surcharges, a $0.02 increase from higher water volumes, and a $0.01 benefit from water customer growth. The customer growth reflected both acquisitions and organic expansion, he said.
Those gains were partly offset by $0.02 per share of higher operating expenses, a $0.02 impact from lower gas volumes, and $0.06 of other costs. The latter category included $0.03 from increased depreciation and $0.03 from higher interest expense and lower allowance for funds used during construction, or AFUDC. – Top 3 Stocks to Outperform the S&P 500 in a Downturn Operating and maintenance expenses rose about $5.1 million, or 3.5%, from a year earlier. Schuller attributed the increase primarily to higher employee-related costs, including merit increases and medical claims, along with greater water and wastewater production costs and expenses associated with newly acquired customers.