Essential Utilities, Inc. (NYSE: WTRG) reported its first-quarter 2025 financial results, achieving net income of $283.8 million, or $1.03 per share, compared to $265.8 million, or $0.97 per share, in the same quarter last year, reflecting a 6% increase in earnings per share. Revenues rose 28% to $783.6 million from $612.1 million, driven primarily by higher regulatory recoveries, increased natural gas segment volumes, and higher purchased gas costs.

Operating expenses for the quarter were $137.8 million, slightly higher than the $136.9 million recorded in Q1 2024. This increase was attributed mainly to a rise in customer assistance surcharge costs, which have a corresponding offset in revenues, and increases in employee-related costs and production expenses. However, this was mitigated by a decrease in bad debt expense and other operating costs.

Essential Utilities affirmed its earnings guidance for 2025 with an expected earnings per share between $2.07 and $2.11, compared to $1.97 in 2024 on a non-GAAP basis. The company is also on track to invest between $1.4 billion and $1.5 billion in infrastructure improvements throughout 2025. So far in 2025, approximately $270.5 million has been invested in relevant infrastructure developments.

The regulated water segment generated $300.8 million in revenues, an increase of 7.5% from $279.9 million in Q1 2024, while operations and maintenance (O&M) expenses decreased to $89.4 million from $90.7 million. On the other hand, the regulated natural gas segment reported revenues of $470.8 million versus $324.3 million a year prior, driven by increased volumes and colder weather conditions in the current quarter compared to the previous year. O&M expenses for natural gas rose to $55.7 million from $45.9 million, primarily due to higher customer assistance surcharges and labor costs.

Essential Utilities has continued to pursue growth through acquisitions, having recently acquired the Village of Midvale’s water system for approximately $3 million, alongside the Greenville wastewater assets for $18 million. The company has signed agreements covering additional acquisitions that are expected to serve over 210,000 customers with a total purchase price of around $340 million.

To meet its capital needs, Essential stated it raised approximately $210 million through its ATM program in 2025, with a total equity need of approximately $315 million for the year. The company’s debt profile included a weighted average cost of fixed-rate long-term debt at 4.02%, with $728 million available on credit lines as of March 31.

Essential’s regulatory advancements include rate awards totaling $89.6 million for the water segment and $0.5 million for the natural gas segment as of May 9, 2025, with base rate cases pending which may yield additional incremental revenues in the near future.