Essential Utilities, Inc. operates regulated water, wastewater, and natural gas utilities in the United States through its subsidiaries. It reports through Regulated Water and Regulated Natural Gas segments, and also offers utility service line protection and repair services, gas marketing and production activities, and natural gas distribution. Under the Aqua and Peoples brands, it serves approximately 5.5 million residential, commercial, industrial, fire protection, wastewater, and other water and utility customers across Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky. Formerly known as Aqua America, Inc., it changed its name to Essential Utilities, Inc. in February 2020; it was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.
Aqua Pennsylvania Buys Ulster Municipal Water Systems for $0.5 Million
Essential Utilities subsidiary Aqua Pennsylvania has acquired the water system assets of the Ulster Municipal Authority in Bradford County for $0.5 million, adding 180 customers to its existing water customer base. Aqua Pennsylvania plans to invest $2 million over the next five years to upgrade the acquired assets, modernizing facilities and replacing aging lines to provide safe, high-quality water for Ulster residents. Essential Utilities has added more than 138,000 customers or equivalent dwelling units and about $570 million of rate base through acquisitions since 2015, and its proposed merger with American Water Works remains targeted for the first quarter of 2027. Signed purchase agreements represent more than 200,000 customers and about $282 million in purchase price, while the active municipal acquisition pipeline is about 400,000 customers. Separately, California Water Service Group has agreed to acquire Nexus Water Group's Nevada and Oregon water and wastewater systems for $218 million, and Select Water Solutions has agreed to acquire Pilot Water Solutions for $700 million plus up to $15 million in contingent consideration.
WTRG · Capital · Positive Subsidiary Aqua Pennsylvania acquired Ulster Municipal Authority water assets for $0.5 million, adding 180 customers and $2 million planned upgrades.
CWT · Capital · Positive Agreed to acquire Nexus Water Group's Nevada and Oregon water and wastewater systems for $218 million.
Nexus Water Group · Capital · Positive Agreed to sell its Nevada and Oregon water and wastewater systems to California Water Service Group for $218 million.
WTTR · Capital · Positive Agreed to acquire Pilot Water Solutions for $700 million plus up to $15 million in contingent consideration.
AWK · Capital · Neutral Mentioned only as Essential Utilities' proposed merger partner, targeted for Q1 2027; no new development.
American Water Works Adds 52,700 Customers, Reaffirms 2026 EPS Guidance
American Water Works added roughly 52,700 customers through regulated acquisitions in the first six months of 2026, including about 47,000 from its Nexus Water Group acquisition completed in June, plus nearly 9,000 customers added organically across existing systems. As of June 30, 2026, the company had 19 pending acquisition agreements representing around 56,600 potential customers, alongside its proposed merger with Essential Utilities. American Water Works plans to invest approximately $3.7 billion in 2026 and $19-$20 billion through 2030, supporting 8-9% rate-base growth through infrastructure investments, regulated acquisitions and organic expansion, and it reaffirmed its 2026 adjusted EPS guidance of $6.02-$6.12. The Zacks Consensus Estimate points to 2026 and 2027 earnings per share increases of 7.98% and 8.27%, respectively, year over year, while the stock trades at a forward 12-month price-to-earnings ratio of 20.03X versus the industry average of 16.02X and carries a Zacks Rank #4 (Sell).
Essential Utilities Grows Revenue While Profits Slide
Essential Utilities reported second-quarter results showing revenue growth and a dividend increase, but earnings per share dipped from a year earlier. The regulated water segment posted revenue of $357.5 million, up 7.6% from $332.3 million, while first-half revenue climbed 7.2% to nearly $1.4 billion. However, net income fell to $105.7 million from $107.8 million, pulling GAAP EPS down to $0.37 from $0.38. The company raised its dividend 5.25% to $0.3606 per share, marking the 36th increase in 35 years. Essential also progressed on its merger with American Water, which cleared Virginia and Ohio regulators, and continues to expand through acquisitions, including a $276.5 million purchase of DELCORA. Despite rising costs and a shrinking gas segment, guidance calls for 5% to 7% annual earnings growth through 2027.
WTRG · Capital · Positive Q2 revenue grew 7.6% in water segment and dividend raised 5.25%, though EPS dipped to $0.37 from $0.38.
WTRG · Regulation · Positive Merger with American Water cleared Virginia and Ohio regulators, advancing the deal.
AWK · Regulation · Neutral Merger with Essential Utilities cleared Virginia and Ohio regulators, a regulatory milestone but not a standalone driver for American Water.
Missouri American Water Acquires Neosho Systems for $34.5M
American Water Works' unit, Missouri American Water, has acquired the City of Neosho Water and Wastewater Systems for $34.5 million, adding 5,400 water and 5,400 wastewater customers. The company plans to invest $35 million over five years to modernize facilities, replace aging mains, install smart leak detection, and eliminate lead service lines. This acquisition is part of American Water Works' broader expansion, which has added about 52,000 customer connections through June 30, 2026, including roughly 47,000 from the Nexus systems acquired on June 1. The proposed merger with Essential Utilities remains targeted for the first quarter of 2027, with WTRG shareholders owning about 31% of the combined company. In a related industry move, California Water Service Group agreed to acquire Nexus Water Group's Nevada and Oregon systems for $218 million, expected to close by end of 2026.
Missouri American Water · Capital · Positive Missouri American Water acquired Neosho systems for $34.5M, adding 5,400 water and wastewater customers.
AWK · Capital · Positive Missouri American Water, a unit of American Water Works, acquired Neosho systems for $34.5M, expanding its customer base.
CWT · Capital · Positive California Water Service Group agreed to acquire Nexus Water Group's Nevada and Oregon systems for $218M.
WTRG · Capital · Neutral Proposed merger with Essential Utilities remains targeted for Q1 2027, with WTRG shareholders owning 31% of combined company.
Nexus Water Group · Capital · Neutral Nexus Water Group is selling Nevada and Oregon systems to California Water Service Group for $218M, but impact on Nexus itself is not detailed.
Essential Utilities, Inc. affirmed its long-term financial guidance while navigating regulatory approvals for its pending merger with American Water. The company reported second-quarter 2026 GAAP earnings of $0.37 per share, which included $0.01 in merger-related costs, resulting in non-GAAP earnings of $0.38 per share. Operating revenues rose 3% year over year to $530.9 million, driven by higher regulatory recoveries and purchased gas costs. Essential Utilities remains on track to invest a record $1.7 billion in infrastructure in 2026, with $662.2 million invested through the first six months. The board approved a 5.25% increase in the quarterly dividend to $0.3606 per share, extending an 80-year streak of consecutive payouts. Regulatory approvals for the merger have been secured in Kentucky, Ohio, and Virginia, with the Illinois process expected to conclude by November 2026, and the company continues to target a first-quarter 2027 closing.
Essential Utilities reported second-quarter 2026 GAAP earnings of $0.37 per share, down from $0.38 a year earlier, while adjusted non-GAAP earnings were $0.38 per share excluding merger-related costs. Chairman and CEO Chris Franklin said the company remains confident in achieving 5% to 7% annual earnings-per-share growth from a 2024 adjusted baseline of $1.97. CFO Dan Schuller detailed that earnings benefited from a $0.06-per-share increase in regulatory recoveries and surcharges, a $0.02 gain from higher water volumes, and a $0.01 boost from water customer growth, partly offset by $0.02 in higher operating expenses, a $0.02 impact from lower gas volumes, and $0.06 of other costs including increased depreciation and interest. The company has received regulatory approvals for its planned merger with American Water in Kentucky, Ohio and Virginia and continues to expect a first-quarter 2027 close, with proceedings ongoing in other states. Essential invested $662 million in regulated infrastructure in the first half and remains on track for a record $1.7 billion in full-year spending, while its board approved a 5.25% dividend increase payable September 1, 2026.
American Water Works Reports 8% EPS Growth and Affirms 2026 Guidance
American Water Works reported adjusted earnings per share of $1.61 for the second quarter of 2026, up from $1.49 a year earlier, and affirmed its full-year adjusted EPS guidance of $6.02 to $6.12. The company cited higher revenues from authorized rate increases and flat operations and maintenance costs as key drivers. Capital investments reached $1.8 billion year-to-date, and the company closed the Nexus Water Group acquisition ahead of schedule, adding 47,000 customer connections. A Pennsylvania rate case resulted in a $75 million annualized revenue increase, while new rate filings in Kentucky and Missouri seek additional annual revenues of $18 million and $179 million, respectively. The pending merger with Essential Utilities remains on track to close by the end of the first quarter of 2027, with state approvals already secured in Kentucky, Ohio, and Virginia.
American Water Fair Value Estimate Rises to $138.73 as Analysts Weigh Rate Cases and Merger
The fair value estimate for American Water Works Company has increased from US$135.55 to US$138.73 per share, reflecting adjustments to revenue growth, net profit margin, and future P/E multiple assumptions. Analysts are weighing mixed regulatory outcomes and expectations around the Essential Utilities merger approvals, with Huntington initiating coverage at Outperform with a US$148 price target and UBS raising its target to US$150, while Truist cut its target to US$130 and BofA reduced its target to US$134. The company outlined an approximately US$48 billion wastewater and water infrastructure capital plan over the next decade, and Missouri American Water filed a rate request seeking about US$179 million in additional annual revenue to support roughly US$1.6 billion in planned investments. American Water also completed the US$6.4 million acquisition of Hopewell Borough's water system, serving around 930 customers, and plans about US$7 million of investments over five years targeting PFAS, lead line replacement, and regulatory compliance.
Virginia approves American Water and Essential Utilities merger
The Virginia State Corporation Commission has approved the proposed merger of American Water Works Company and Essential Utilities, marking the third favorable regulatory action toward completing the combination. The companies previously received merger approval from the Kentucky Public Service Commission on April 21, 2026, and from the Public Utilities Commission of Ohio on May 13, 2026. The all-stock merger, announced October 27, 2025, will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections, operating under the American Water name and headquartered in Camden, New Jersey. The merger is expected to close by the end of the first quarter of 2027, pending remaining regulatory approvals and clearance under the Hart-Scott-Rodino Act.
American Water Works Gains from Rate Hikes and Acquisitions Amid Regulatory Risks
American Water Works is benefiting from new rate implementations and a strategic acquisition plan that are driving revenue and earnings growth. The company finalized 18 acquisitions in 2025, adding nearly 20,900 customers, and completed its purchase of the Nitro wastewater system in West Virginia for $20 million in March 2026. AWK and Essential Utilities have entered into an all-stock merger creating a publicly traded water utility valued at approximately $40 billion, with the merged entity operating under the American Water name across 17 states and 18 military installations, expected to close in the first quarter of 2027 pending regulatory approvals. Revised rates implemented on January 1, 2026, will contribute an additional $89 million to 2026 annual revenues, and the company targets long-term earnings and dividend-per-share growth of 7-9%. AWK plans to invest $3.7 billion in 2026 and $19-$20 billion through 2030, though these figures may change after the Essential Utilities merger, while regulatory risks and aging infrastructure remain headwinds.
United States