Slide 1: Full Year 2025 Earnings Call
NYSE Full Year 2025 LISTED WTRG Earnings Call February 26th, 2026 February 2024
Slide 2: Brian Dingerdissen
Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations 2
Slide 3: Forward Looking Statement
Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that
Slide 4: Christopher Franklin
Christopher Franklin Chairman and Chief Executive Officer 4
Slide 5: Essential Utilities and American Water Merger
Essential Utilities and American Water Merger Merger Unlocks Compelling Growth and Value Potential for Both Companies Results in a Leading U.S. Presents Inorganic & Organic Water & Wastewater Utility Growth Opportunities Solidifies position as a premier public water & Retains American Water’s 7% - 9
Slide 6: Regulatory Approval Process
Regulatory Approval Process Q2 2026 - Q4 2025 Q1 2026 Q1 2027 Q1 2027 Filed All State Shareholder Obtain Approvals Regulatory Approvals Received PA: Docket A-2025-3058927 Transaction Close Applications NC: Docket W-218 Sub 643 AWK and WTRG TX: Docket 59020 Transaction expected to Required approvals
Slide 7: 2025: A Banner Year for Essential Utilities
2025: A Banner Year for Essential Utilities Financial Operational Sustainability Merger Continued Executing on $450M FY25 EPS of $2.20 Named to Newsweek’s 2026 Two Industry Leaders to Unite PFAS Capital Plan America’s Most Responsible Companies Above guidance range of Deployed 50+ advanced Shared mi
Slide 8: Daniel Schuller
Daniel Schuller EVP, Chief Financial Officer 8
Slide 9: Full Year Financial Highlights
Full Year Financial Highlights As of December 31st, 2025 ($ in millions, except per share data) FY 2024 FY 2025 Change Operating Revenues $2,086.1 $2,474.6 18.6% Increase Purchased Gas $277.0 $403.8 45.8% Increase Operations and Maintenance Expense $587.3 $639.6 8.9% Increase Operating Income $757.7
Slide 10: Operating Revenues
Operating Revenues FY 2025 vs. FY 2024 Change in Operating Revenues (millions) $57.2 $30.0 $5.6 $2,474.6 $126.8 $(8.6) $177.6 $2,086.1 FY 2024 Regulatory Recoveries Purchased Gas Volume - Gas Other Growth - Water Volume - Water FY 2025 Figures may not total precisely due to rounding 10
Slide 11: Operations & Maintenance Expenses
Operations & Maintenance Expenses FY 2025 vs. FY 2024 Change in Operations & Maintenance Expense (millions) $8.5 $1.7 $0.4 $639.6 $17.5 $26.9 ($2.6) $587.3 FY 2024 Employee-related costs USP (rider) Offset Production Costs - Water Growth - Water Bad Debt Other FY 2025 Figures may not total precisely
Slide 12: Earnings per Common Share
Earnings per Common Share FY 2025 vs. FY 2024 Change in Earnings Per Share $0.15 $0.01 $0.46 ($0.02) ($0.09) GAAP GAAP $2.17 $2.20 ($0.48) Non-GAAP (1) $1.97 FY 2024 (GAAP) Regulatory Recoveries Volume Growth Volume Expenses Other FY 2025 (Gas) (Water) (Water) (1) Non-GAAP adjustment includes a gain
Slide 13: Regulatory Activity
Regulatory Activity As of February 25th, 2025 2025 COMPLETED 2026 COMPLETED PENDING REGULATORY REGULATORY RECOVERIES REGULATORY RECOVERIES RECOVERIES Water segment base rate cases or Water segment base rate cases or Water segment base rate cases or surcharges in NC, NJ, OH, and PA with surcharges in
Slide 14: Christopher Franklin
Christopher Franklin Chairman and Chief Executive Officer 14
Slide 15: Continued Water and Wastewater Acquisition Success
Continued Water and Wastewater Acquisition Success Transactions Closed in 2025 Pending Transactions Cumulative Additions of Customers Through Acquisitions Since 2015 PA PA PA BEAVER FALLS DELCORA GREENVILLE • Wastewater • Wastewater • Water • 7,000 customers(1) • 198,000 customers(1) • 3,000 custome
Slide 16: Guidance Outlook
Guidance Outlook Anticipated growth in long-term earnings per share at a compounded annual growth rate of 5 to Earnings Per Share 7% from the adjusted 2024 earnings per share of $1.97 (non-GAAP) for the three-year period through 2027. Dividend Payout Ratio Debt to Capital Ratio FFO to Net Debt Ratio
Slide 17: For More Information Contact:
For More Information Contact: Brian Dingerdissen Ed Vallejo Vice President, Director, Investor Relations, FP&A and Treasury Investor Relations (610) 645-1191 (267) 370-9717 BJDingerdissen@Essential.co EdVallejo@Essential.co 17
Slide 18: Appendix
4 Essential 18
Slide 19: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights As of December 31st, 2025 ($ in millions, except per share data) Q4 2024 Q4 2025 Change Operating Revenues $604.4 $699.1 15.7% Increase Purchased Gas $94.5 $139.9 48.1% Increase Operations and Maintenance Expense $163.5 $200.2 22.5% Increase Operating Income $226.
Slide 20: Operating Revenues
Operating Revenues Q4 2025 vs. Q4 2024 Change in Operating Revenues (millions) $23.4 $0.6 $699.1 $31.7 $(3.2) $(3.3) $45.4 $604.4 Q4 2024 Purchased Gas Regulatory Recoveries Volume - Gas Growth - Water Other Volume - Water Q4 2025 Figures may not total precisely due to rounding 20
Slide 21: Operations & Maintenance Expenses
Operations & Maintenance Expenses Q4 2025 vs. Q4 2024 Change in Operations & Maintenance Expense (millions) $3.0 $1.4 $0.7 $200.2 $7.6 $8.7 $15.4 $163.5 Q4 2024 Other Employee-related Costs USP (Rider) Offset Production Costs - Water Bad Debt Growth - Other Q4 2025 Figures may not total precisely du
Slide 22: Earnings per Common Share
Earnings per Common Share Q4 2025 vs. Q4 2024 Change in Earnings Per Share $0.06 $0.08 ($0.01) $0.67 ($0.08) $0.47 ($0.25) Q4 2024 Regulatory Recoveries Volume - Gas Volume - Water Expenses Other Q4 2025 Figures may not total precisely due to rounding 22
Slide 23: Regulatory Activity Completed 2025
Annualized Docket Revenue State Effective Date Segment Type Number Increase ($ 000's) 2025 Ohio 7/1/2025 1/1/2025 1/1/2025 N/A N/A N/A Wastewater Water Water Rate Case Rate Case Rate Case 550 889 801 Regulatory 3/5/2025 3/5/2025 24-910-WW-SIC 24-911-ST-SIC Water Wastewater Surcharge Surcharge 3,237
Slide 24: Regulatory Activity Completed 2026
2026 State Effective Date Docket Number Segment Type Annualized Revenue Regulatory Increase ($ 000's) Activity Ohio 1/1/2026 1/1/2026 N/A N/A Water Water Rate Case Rate Case 889 945 Completed 1/1/2026 Wrm #25-033 Water Surcharge 1,872 Illinois 1/1/2026 SRM #25-030 Wastewater Surcharge 787 Indiana 1/
Slide 25: Regulatory Activity Pending
Requested Regulatory State Docket Number Segment Type Annualized Revenue Increase Activity Texas 58124 Water Rate Case ($ 000's) 29,148 Pending Ohio New Jersey 25-0594-WW-AIR WR26010017 WR26010017 Water Water Wastewater Rate Case Rate Case Rate Case 14,653 6,015 1,871 North Carolina W-218, Sub 629 W
Slide 26: State by State Comparison of Services
Water and Wastewater Gas Distribution Water Wastewater Total Total Rate Base Rate Base State Connections Connections Customers Customers (millions) (millions) (thousands) (thousands) (thousands) (thousands) PA $4,850 460.0 68.0 528.0 $4,454 706.3 State by State IL $609 69.9 24.9 94.8 Comparison OH T
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Year Ended December 31, 2024 (in millions, except per share data) FY 2024 Net income (GAAP financial measure) $595.3 Adjustments: Gain on sales of assets and related transaction activities (94.0) Adjustments for estimated effects of unfavorable weather 18.7 Income tax