Company Reports

Essential Utilities and American Water announced they reached a regulatory settlement in Pennsylvania that is critical to close their $63 billion merger on management's initial timeline in early 2027.

The proposed $63 billion combination of American Water Works and Essential Utilities, including debt, will create the largest investor-owned water utility in the US by a large margin. The regulatory approval process has gone smoothly so far and the deal is on track to close in the first quarter of 2027.

Essential Utilities reported earning $0.38 per share during the second quarter, excluding costs associated with its pending merger with American Water Works. The $63 billion merger announced in October 2025 remains on track to close in early 2027.

Essential Utilities reported earning $0.83 per share during the first quarter, excluding costs associated with its pending merger with American Water Works. The $63 billion merger announced in October 2025 remains on track to close in early 2027.

American Water Works' proposed $63 billion merger with Essential Utilities, including debt, will create the largest investor-owned water utility in the US by a large margin.

Essential Utilities reported earning $2.20 per share for full-year 2025, slightly higher than our and management's outlook. Its $63 billion merger with American Water, announced in October, remains on track to close in early 2027.

Essential Utilities announced it has entered into an agreement with American Water Works to merge in an all-stock transaction worth $63 billion, including debt. The transaction is set to close in the first quarter of 2027.

American Water Works' proposed $63 billion merger with Essential Utilities including debt will create the largest investor-owned water utility in the US by a large margin. Essential shareholders will own about 31% of the combined entity if it receives all state and regulatory approvals, likely in early 2027.

For more than 50 years, Essential Utilities—formerly Aqua America—was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Natural Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix.

Essential Utilities reported earning $0.38 per share in the second quarter, up from $0.28 in the second quarter of 2024. Essential is on track to reach our full-year estimates and management's $2.07-$2.11 earnings per share guidance.

Essential Utilities reported earning $1.03 per share in the first quarter, up 6% from $0.97 in the first quarter of 2024. Essential is on track to reach our full-year estimates and management's $2.07-$2.11 EPS guidance.

For more than 50 years, Essential Utilities—formerly Aqua America—was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Natural Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix.

Utilities have limited direct exposure to tariffs announced by the Donald Trump administration, but falling energy demand or regulatory pushback to utilities' investment plans could slow earnings growth if economic conditions deteriorate.

Essential Utilities reported $1.97 in earnings per share for 2024 after removing a $0.25 gain on sale and adding back $0.05 of net unfavorable weather impacts during the year. This is in line with our estimate and management's $1.96-$2.00 EPS guidance.

For more than 50 years, Essential Utilities—formerly Aqua America—was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Natural Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix.

After a weather-related slowdown in earnings during the first half of the year, Essential Utilities is back on track to finish 2024 in line with our estimate and management's $1.96-$2.00 earnings per share guidance for the full year after reporting $0.25 in EPS for the third quarter.

We are reaffirming our $43 fair value estimate for Essential Utilities after it reported $0.28 earnings per share in the second quarter, down from $0.34 in the second quarter of 2023. We are reaffirming our narrow moat rating. Essential's stock trades at an 8% discount to our fair value estimate as of Aug. 13, making it one of the five cheapest US utilities in our coverage.

For more than 50 years, Essential Utilities—formerly Aqua America—was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Natural Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix.

For more than 50 years, Essential Utilities—formerly Aqua America—was one of the few pure-play water utilities in the United States. But its $4.3 billion acquisition of Peoples Natural Gas in March 2020 made the company nearly 50% larger and diversified its earnings mix.

We are raising our fair value estimate for Essential Utilities to $43 per share from $42 after incorporating updates since the beginning of the year and earnings that are on track to meet our full-year outlook. We are reaffirming our narrow moat rating.