Essential Utilities, Inc. has announced its financial results for the third quarter of 2026, showcasing robust performance across its water and natural gas divisions. The company reported a net income of $103.8 million, translating to earnings per share of $0.36, an increase from $92.1 million and $0.33 per share during the same period last year. This positive financial outcome comes as Essential Utilities progresses with its proposed merger with American Water, expected to close in the first quarter of 2027.

Christopher Franklin, Chairman and CEO of Essential Utilities, expressed confidence in the company's direction, stating, "Our strong performance this quarter highlights the consistent earnings growth generated by both our water and natural gas divisions. These results demonstrate our team’s dedication to operational excellence and strategic infrastructure investment." Franklin emphasized the anticipated benefits of the merger, which aims to enhance service delivery and operational efficiencies.

For the third quarter of 2026, Essential Utilities reported revenues of $508.3 million, a 6.6% increase compared to $477.0 million in Q3 2025. This growth was driven by regulatory recoveries and increased customer usage. The company's regulated water segment alone generated revenues of $380.6 million, up 4.5% from $364.1 million a year earlier. Meanwhile, its natural gas segment saw revenues rise to $122.6 million, compared to $108.5 million in the previous year.

Essential's operating and maintenance expenses for the quarter were $152.2 million, slightly down from $153.1 million in Q3 2025. The decrease was attributed to insurance recoveries and a reduction in bad debt expenses. Notably, the company incurred $22.5 million in merger-related expenses over the first nine months of 2026, impacting its overall financial performance.

For the first nine months of 2026, Essential Utilities reported total revenues of $1.9 billion, a 7.1% increase from $1.775 billion during the same period in 2025. However, net income for this period was $434 million, or $1.53 per share, down from $483.7 million, or $1.73 per share, in 2025. The diluted non-GAAP EPS for the first nine months was $1.58, excluding the impact of merger-related expenses.

In addition to its financial results, the company declared a quarterly dividend of $0.3606 per share on October 21, 2026, which will be payable on December 1, 2026. This marks over 80 years of consecutive quarterly cash dividends for Essential Utilities, reflecting its commitment to returning value to shareholders.

As of September 30, 2026, Essential Utilities had a weighted average cost of fixed-rate long-term debt of 4.14% and $759 million available on its credit lines. The company is on track to invest $1.7 billion in infrastructure for 2026, with $1.1 billion already invested in the first nine months.

Looking ahead, Essential Utilities is focused on completing its merger with American Water, which is expected to provide significant operational synergies and enhance its competitive position in the water supply industry. The company’s strong financial results and ongoing investments in infrastructure position it well for future growth as it navigates the complexities of the merger process.