Essential Utilities Inc. WTRG delivered fourth-quarter 2024 operating earnings per share (EPS) of 67 cents, which beat the Zacks Consensus Estimate of 66 cents by 1.5%.

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EPS improved 34% from the year-ago quarter’s figure of 50 cents. The year-over-year improvement was due to an increase in revenues from regulatory recoveries and the rise in water and natural gas volume. This was offset by higher depreciation and interest expenses.

2024 adjusted EPS was $1.97 compared with $1.86 in 2023. The full-year earnings were near the low end of the bottom-line guidance of $1.96-$2 per share.

Total Revenues of WTRG

Operating revenues of $604 million surpassed the Zacks Consensus Estimate of $534 million by 13.2%. Total revenues were up 2.6% year over year.

Highlights of WTRG’s Q4 Release

Operation and maintenance expenses amounted to $163.5 million, up 4.2% from the year-ago figure of $147 million.

Operating income totaled $226.6 million, up 30.3% year over year. Interest expenses increased 8.8% to $79.3 million from $72.9 million in the prior-year quarter.

The company continues to expand its operation through strategic acquisitions and organic initiatives.  Since 2015, through closed acquisition, the company added nearly 129,000 wastewater customers. Essential Utilities signed seven purchase agreements to acquire additional wastewater systems, which should add 213,000 retail customers or equivalent dwelling units. On Jan. 31, 2025, the company closed on the acquisition of the Greenville wastewater system for $18 million.

In 2024, WTRG's regulated water segment received rate awards or infrastructure surcharges, designed to increase annual revenues in Illinois, New Jersey, Ohio, North Carolina, Virginia and Pennsylvania by $53.9 million. Its regulated natural gas segment received rate awards or infrastructure surcharges to increase annual revenues in Kentucky and Pennsylvania by $93.9 million.

WTRG’s Financial Highlights

Current assets amounted to $485.9 million as of Dec. 31, 2024, compared with $492 million as of Dec. 31, 2023.

Long-term debt was $7.36 billion as of Dec. 31, 2024, up from $6.82 billion as of Dec. 31, 2023.

The company invested $1.3 billion in 2024 to improve its regulated water and natural gas infrastructure systems and enhance operations and customer service.

Guidance of WTRG

Essential Utilities reaffirmed its 2025 EPS guidance of $2.05-$2.11. The Zacks Consensus Estimate for EPS is pegged at $2.13, exceeding the top end of the projected range.

Management anticipates its customer base in the water segment to expand 2-3% through acquisitions and organic customer growth.

The company plans to invest $1.4-$1.5 billion in its infrastructure in 2025. Essential Utilities also plans to invest $7.88 billion during 2025-2029 to improve the water and natural gas systems and better serve its customers using improved information technology.

WTRG’s Zacks Rank

Essential Utilities currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

American Water Works Company AWK posted fourth-quarter 2024 operating EPS of $1.22, which beat the Zacks Consensus Estimate of $1.13 by 7.9%.

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates year-over-year growth of 5.9% and 7.4%, respectively.

American States Water Company AWR reported fourth-quarter 2024 operating EPS of 69 cents, which beat the Zacks Consensus Estimate of 60 cents by 15%.

The Zacks Consensus Estimate for 2025 and 2026 EPS implies year-over-year growth of 5.36% and 5.79%, respectively.

 

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