Essential Utilities Reports Q3 2026 Results and Progress on American Water Merger

Summary of Operating Results & Corporate Developments

Essential Utilities, Inc. (NYSE: WTRG) filed a Form 8-K furnishing its third-quarter 2026 financial results under Item 2.02.

Key Financial Highlights:

• Revenues: Consolidated operating revenues reached $508.3 million for Q3 2026, up 6.6% from $477.0 million in Q3 2025, driven by regulatory recoveries and higher purchased gas costs.
  • Regulated Water Segment: Revenues rose 4.5% to $380.6 million.
  • Regulated Natural Gas Segment: Revenues grew to $122.6 million compared to $108.5 million in the prior year period.
• Net Income & EPS:
  • GAAP Net Income was $103.8 million ($0.36 per diluted share) compared to $92.1 million ($0.33 per diluted share) in Q3 2025.
  • Adjusted (non-GAAP) EPS was $0.38 per share, which excludes $4.93 million ($3.61 million after-tax) in transaction expenses related to the pending merger with American Water.
• Capital Expenditures: Invested approximately $1.1 billion across infrastructure systems in the first nine months of 2026, remaining on target for $1.7 billion for the full year.

Merger & Regulatory Update:

• American Water Merger: Continued regulatory progression towards closing in Q1 2027. Merger approvals have been granted by regulatory commissions in Kentucky, Ohio, and Virginia, with settlements reached subject to final commission approvals in Pennsylvania, North Carolina, and Texas.
• Dividend: A quarterly dividend of $0.3606 per share was declared on October 21, 2026, payable December 1, 2026, to shareholders of record on November 10, 2026.