Essential Utilities, Inc. · NYSE:WTRG
Essential Utilities — Q3 2025 Earnings Presentation
29 slides from Essential Utilities's earnings presentation, Nov 5, 2025
Slide 1: Third Quarter 2025
NYSE LISTED Third Quarter 2025 WTRG November 5th, 2025 February 2024
Slide 2: Brian Dingerdissen, Vice President Treasury, FP&A and Investor Relations
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, Chairman and Chief Executive Officer
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: Delivering Top Quartile Total Shareholder Return
Delivering Top Quartile Total Shareholder Return Pro Forma EPS and Dividend Outlook Highly Durable, Low Risk Capital Investment Plan • Transaction EPS accretive in first year after transaction close • Decades of pipe replacement needed in aging water systems o March 2025 ASCE Infrastructure Report C
Slide 7: Company Highlights
Company Highlights 2025 EPS and Long-term Q3 2025 EPS of Capex Guidance Targets $0.33 Reaffirmed Reaffirmed $26M Data 2024 Center Sustainability Intelis Meter Investment in Report Installation Western PA Published Update 7
Slide 8: Investment in Major Data Center in Western PA
Investment in Major Data Center in Western PA Project will bring our water and gas expertise together to support economic development in Pennsylvania Essential’s initial investment is $26M Expected revenues to commence FY 2029 Conversations ongoing for future regulated and non-regulated data center
Slide 9: Consistently Delivering Growth
Consistently Delivering Growth Diluted Income per Common Share Dividends Paid per Share $2.09 (2) $1.336 $1.97 (1) $1.265 $1.86 $1.188 80th Consecutive $1.77 $1.67 $1.110 Year of Dividend $1.038 Payments Dividend Payout Ratio of 60-65% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025E Capital Expen
Slide 10: Daniel Schuller, EVP, Chief Financial Officer
Daniel Schuller EVP, Chief Financial Officer 10
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights As of September 30th, 2025 ($ in millions, except per share data) Q3 2024 Q3 2025 Change Operating Revenues $435.3 $477.0 9.6% Increase Purchased Gas $19.1 $22.5 17.8% Increase Operations and Maintenance Expense $144.4 $153.1 6.0% Increase Operating Income $155.1 $169.8 9.5%
Slide 12: Operating Revenues
Operating Revenues Q3 2025 vs. Q3 2024 Change in Operating Revenues (millions) $2.8 $1.4 $0.3 $477.0 $34.2 $3.4 $(0.4) $435.3 Q3 2024 Rates & Surcharges Purchased Gas Other Growth - Water Volume - Water Volume - Gas Q3 2025 Figures may not total precisely due to rounding 12
Slide 13: Operations & Maintenance Expenses
Operations & Maintenance Expenses Q3 2025 vs. Q3 2024 Change in Operations & Maintenance Expense (millions) $2.4 $0.6 $0.4 $4.2 $153.1 $7.2 ($6.2) $144.4 Q3 2024 Employee related costs Bad debt Production Costs - Water USP (rider) Offset Growth - Water Other Q3 2025 Figures may not total precisely d
Slide 14: Earnings per Common Share
Earnings per Common Share Q3 2025 vs. Q3 2024 Change in Earnings Per Share $0.088 $0.003 $0.001 ($0.001) $0.33 ($0.001) ($0.016) $0.25 Q3 2024 Rates & Surcharges Growth Volume - Water Volume - Gas Other Expenses Q3 2025 Figures may not total precisely due to rounding 14
Slide 15: Approximate Earnings Per Share by Quarter / Roadmap to Annual Guidance
Roadmap to Annual Guidance 1Q 2025 1Q 40% 50% GAAP EPS: $1.03 2Q 2025 2Q 10% 20% GAAP EPS: Approximate $0.38 Earnings Per 3Q 10% 20% 3Q 2025 GAAP EPS: Share by $0.33 Quarter 4Q 20% 30% Yearly Guidance $2.07-$2.11 For 2025, expect to achieve GAAP earnings per share above the guidance range of $2.07-$
Slide 16: Regulatory Activity
Regulatory Activity As of November 4, 2025 2025 COMPLETED PENDING REGULATORY REGULATORY RECOVERIES RECOVERIES Water segment base rate cases and/or Water segment base rate cases and/or surcharges in NC, NJ, OH, and PA with surcharges in NC, OH, TX, and VA with annualized revenue increase of $92.6 mil
Slide 17: Christopher Franklin, Chairman and Chief Executive Officer
Christopher Franklin Chairman and Chief Executive Officer 17
Slide 18: 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 19: Guidance Outlook
Guidance Outlook1 2025 normalized Through 2027, Regulated utility $1.4 to $1.5B 2025-2029 In 2025, we Corporate net income per diluted common EPS will grow at rate base growth infrastructure Infrastructure expect to a CAGR of of 8% investment investments of raise ~$350M Growth Targets share target o
Slide 20: For More Information Contact:
For More Information Contact: Brian Dingerdissen Ed Vallejo Vice President, Director, Investor Relations, FP&A and Treasury Investor Relations (610) 645-1191 (267) 370-9717 BJDingerdissen@Essential.co EdVallejo@Essential.co 20
Slide 21: Appendix
4 Essential 21
Slide 22: YTD Financial Highlights
YTD Financial Highlights As of September 30th, 2025 ($ in millions, except per share data) YTD 2024 YTD 2025 Change Operating Revenues $1,481.7 $1,775.5 19.8% Increase Purchased Gas $182.5 $263.9 44.6% Increase Operations and Maintenance Expense $423.8 $439.4 3.7% Increase Operating Income $531.0 $6
Slide 23: Operating Revenues
Operating Revenues YTD 2025 vs. YTD 2024 As of September 30th, 2025 Change in Operating Revenues (millions) $33.2 $4.9 $1,775.5 $34.0 $81.4 $(5.3) $145.6 $1,481.7 YTD 2024 Rates & Surcharges Purchased Gas Volume - Gas Other Growth - Water Volume - Water YTD 2025 Figures may not total precisely due t
Slide 24: Operations & Maintenance Expenses
Operations & Maintenance Expenses YTD 2025 vs. YTD 2024 As of September 30th, 2025 Change in Operations & Maintenance Expense (millions) $9.8 $5.5 $1.0 $18.2 $439.4 $423.8 ($17.9) ($1.0) YTD 2024 Employee related costs USP (rider) Offset Production Costs - Water Growth - Water Other Bad Debt YTD 202
Slide 25: Earnings per Common Share
Earnings per Common Share YTD 2025 vs. YTD 2024 As of September 30th, 2025 Change in Earnings Per Share $0.09 $0.01 $0.38 $1.73 ($0.22) ($0.02) ($0.01) $1.50 YTD 2024 Rates & Surcharges Volume - Gas Growth - Water Other Volume - Water Expenses YTD 2025 Figures may not total precisely due to rounding
Slide 26: Regulatory Activity Completed
Annualized Docket Revenue State Segment Type Number Increase ($ 000's) N/A Wastewater Rate Case 550 2025 Ohio N/A N/A Water Water Rate Case Rate Case 889 801 Regulatory 24-910-WW-SIC 24-911-ST-SIC Water Wastewater Surcharge Surcharge 3,237 45 New Jersey WR24010057 Water Surcharge 2,468 Activity W-21
Slide 27: Regulatory Activity Pending
Regulatory Requested Annualized Activity State Docket Number Segment Type Revenue Increase ($ 000's) Pending Texas Ohio 58124 25-0594-WW-AIR Water Water Rate Case Rate Case 29,148 14,653 North Carolina W-218, Sub 629 Water Rate Case * 44,763 As of November 4, 2025 Virginia CASE NO. PUR-2025-00071 Wa
Slide 28: 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 $4,746 459.4 68.0 527.4 $4,295 701.2 State by State IL $594 69.9 24.9 94.8 Comparison OH T
Slide 29: 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