Revenue: As of FY2026 Q1, the actual value is USD 861.76 M.EPS: As of FY2026 Q1, the actual value is USD 0.79, missing the estimate of USD 0.865.EBIT: As of FY2026 Q1, the actual value is USD 396.34 M.<h3>Consolidated Financial Metrics (Three Months Ended March 31)</h3>Essential Utilities, Inc. reported consolidated operating revenues of $861,759 for the three months ended March 31, 2026, marking a 10.0% increase from $783,626 in the same period of 2025. Consolidated net income decreased by -20.9% to $224,392 in 2026 from $283,789 in 2025. Operating income was $310,640 in 2026, down from $338,905 in 2025.<h3>Regulated Water Segment (Three Months Ended March 31)</h3><ul><li>Operating Revenues: Increased by $22,127 (7.4%) to $322,975 in 2026 from $300,848 in 2025, primarily due to increased water and wastewater rates, higher volume, and utility acquisitions.</li><li>Operations and Maintenance (O&amp;M) Expense: Increased by $13,704 (15.3%) to $103,122 in 2026 from $89,418 in 2025, driven by employee-related costs, bad debt expense, contractor services, production costs, and acquisition operating costs.</li><li>Depreciation and Amortization: Increased by $9,062 (14.9%) to $69,691 in 2026 from $60,629 in 2025.</li><li>Taxes Other than Income Taxes: Increased by $2,694 (17.3%) to $18,286 in 2026 from $15,592 in 2025.</li><li>Interest Expense, Net: Increased by $3,318 (9.1%) to $39,881 in 2026 from $36,563 in 2025.</li><li>Net Income: Decreased by - $26,604 (-24.7%) to $81,318 in 2026 from $107,922 in 2025.</li><li>Capital Expenditures: Totaled $178,182 in 2026 compared to $155,688 in 2025.</li><li>Effective Tax Rate: Was a 15.3% expense in 2026 compared to a -4.4% benefit in 2025, mainly due to the non-recurrence of a 2025 income tax reserve regulatory liability release.</li></ul><h3>Regulated Natural Gas Segment (Three Months Ended March 31)</h3><ul><li>Operating Revenues: Increased by $58,615 (12.5%) to $529,412 in 2026 from $470,797 in 2025, primarily due to higher purchased gas costs and increased rates/surcharges.</li><li>Operations and Maintenance (O&amp;M) Expense: Increased by $558 (1.0%) to $56,233 in 2026 from $55,675 in 2025, mainly due to increased labor and employee benefits, partially offset by reduced bad debt expense and customer assistance surcharge costs.</li><li>Purchased Gas: Increased by $56,343 (31.8%) to $233,302 in 2026 from $176,959 in 2025, largely due to a higher average cost of gas.</li><li>Depreciation and Amortization: Increased by $2,241 (5.8%) to $40,580 in 2026 from $38,339 in 2025.</li><li>Interest Expense, Net: Increased by $1,605 (6.1%) to $27,745 in 2026 from $26,140 in 2025.</li><li>Net Income: Increased by $2,725 (1.4%) to $192,230 in 2026 from $189,505 in 2025.</li><li>Capital Expenditures: Totaled $91,067 in 2026 compared to $114,851 in 2025.</li><li>Effective Tax Rate: Was a 15.3% benefit in 2026 compared to a 12.0% benefit in 2025, attributed to increased tax benefits from the repairs tax deduction.</li></ul><h3>Other Segment and Eliminations (Three Months Ended March 31)</h3><ul><li>Operating Revenues: Were $10,326 in 2026 compared to $13,327 in 2025.</li><li>Net Income (Loss): Was - $49,156 in 2026 compared to - $13,638 in 2025.</li></ul><h3>Cash Flow (Three Months Ended March 31)</h3><ul><li>Net Cash Flows from Operating Activities: Decreased by - $34,112 to $265,405 for the first three months of 2026, compared to $299,517 in the same period of 2025, primarily due to timing of vendor payments and increased operations and maintenance expense.</li><li>Net Cash Flows Used in Investing Activities: Decreased by - $20,419, mainly due to a $20,000 return of a portion of the Company’s convertible note investment in January 2026.</li><li>Net Cash Inflows from Financing Activities: Increased by $43,213, primarily due to lower debt repayments during the first three months of 2026 compared to the same period in 2025.</li></ul><h3>Capital and Debt</h3><ul><li>Long-term debt, excluding current portion, net: Stood at $8,361,623 as of March 31, 2026, up from $8,110,167 as of December 31, 2025.</li><li>Commercial Paper Program (CP Program): Outstanding borrowings were $314,463 (net of unamortized discount) as of March 31, 2026, with a weighted average interest rate of 4.16%.</li><li>At-the-Market (ATM) Offering: The company issued 44,300 shares of common stock for net proceeds of approximately $1,800 during the first three months of 2026.</li><li>Revolving Credit Facility: As of March 31, 2026, $670,632 was available for borrowing under the $1,000,000 unsecured revolving credit facility.</li></ul><h3>Acquisitions and Capital Investment</h3>In March 2026, Essential Utilities, Inc. acquired Greenville Municipal Water Authority’s water utility system for $18,000, serving approximately 3,000 customers. The company has four signed purchase agreements for additional water and wastewater systems, totaling approximately $286,000, including the acquisition of DELCORA for $276,500. Essential Utilities, Inc. invested $269,249 in capital expenditures during the three months ended March 31, 2026, to improve regulated water and natural gas infrastructure.<h3>Outlook and Strategy</h3>Essential Utilities, Inc. plans to invest approximately $8,700,000 from 2026 through 2030 to enhance water and natural gas systems and improve customer service. The proposed merger with American Water Works Company, Inc. is anticipated to close by the end of the first quarter of 2027, pending customary conditions and governmental approvals. The company continues to seek timely and adequate rate relief and regulatory practice enhancements to recover increased costs and infrastructure investments.

Essential Utilities | 10-Q: FY2026 Q1 Revenue: USD 861.76 M