Essential Utilities Q2 Earnings & Revenues Beat Estimates, Up Y/Y
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 01 2025
0mins
Should l Buy AWK?
Source: NASDAQ.COM
Essential Utilities Inc. Performance: Essential Utilities reported a second-quarter 2025 operating EPS of 38 cents, exceeding estimates and reflecting a 35.7% year-over-year increase, driven by higher rates in both water and natural gas segments, with total revenues rising 18.7% to $515 million.
Future Investments and Growth: The company plans to invest $1.4-$1.5 billion in infrastructure for 2025 and aims for long-term annual earnings growth of 5%-7% through 2027, while also expanding its customer base by 2-3% through acquisitions and organic growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AWK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AWK
Wall Street analysts forecast AWK stock price to rise
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 128.370
Low
122.00
Averages
129.00
High
139.00
Current: 128.370
Low
122.00
Averages
129.00
High
139.00
About AWK
American Water Works Company, Inc. is a water and wastewater utility company. The Company's primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other businesses that provide water and wastewater services to the United States government on military installations, as well as municipalities. The Company operates its business through the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states. The Company's utilities operate in states such as Pennsylvania, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maryland, Tennessee, Virginia and West Virginia. The Company also serves commercial customers, fire service customers, industrial customers, public authorities, other utilities and community water and wastewater systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
White House Considers Cost Burden on Data Centers
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Outcome: At today's special shareholder meetings, 99% of American Water (AWK) shareholders approved the share issuance proposal, while nearly 95% of Essential Utilities (WTRG) shareholders supported the merger, indicating strong market confidence and shareholder backing.
- Post-Merger Scale: The combined company is expected to have a water and wastewater rate base of $29.3 billion by the end of 2024, covering 17 states and 18 military installations, significantly enhancing market competitiveness and service capabilities.
- Earnings Growth Expectations: The merged entity anticipates maintaining American Water's (AWK) earnings per share and dividend growth targets in the range of 7%-9%, indicating stability in future profitability and shareholder returns.
- Equity Structure: Post-merger, American Water (AWK) shareholders will own approximately 69% of the combined entity, while Essential Utilities (WTRG) shareholders will hold about 31%, which will influence future corporate governance and strategic decision-making.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Results: At today's special shareholder meetings, approximately 99% of American Water's shareholders approved the share issuance, while nearly 95% of Essential Utilities' shareholders supported the merger, reflecting strong confidence in the transaction and expected synergies in the water utility sector.
- Merger Timeline: The merger is anticipated to close by the end of Q1 2027, subject to customary closing conditions including clearance under the Hart-Scott-Rodino Act and necessary regulatory approvals, which will influence the merger's successful execution.
- Market Impact: The merger will position American Water as the largest regulated water and wastewater utility in the U.S., serving over 14 million people, enhancing market competitiveness while providing improved services to Essential Utilities' 5.5 million customers, thereby enhancing customer experience.
- Strategic Significance: This merger represents not only a consolidation of resources and technologies between the two companies but also promotes sustainable growth and operational excellence, further solidifying their leadership in the water and natural gas service sectors, aligning with future market demand changes.
See More
Shareholders of American Water and Essential Utilities Greenlight Merger-Related Proposals at Special Meetings
- Shareholder Approval: American Water and Essential Utilities shareholders have approved merger-related proposals.
- Special Meetings: The approvals were granted during special shareholder meetings held for the respective companies.
See More
White House Considers Cost Burden on Data Centers
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Outcome: At today's special shareholder meetings, 99% of American Water (AWK) shareholders approved the share issuance proposal, while nearly 95% of Essential Utilities (WTRG) shareholders supported the merger, indicating strong market confidence and shareholder backing.
- Post-Merger Scale: The combined company is expected to have a water and wastewater rate base of $29.3 billion by the end of 2024, covering 17 states and 18 military installations, significantly enhancing market competitiveness and service capabilities.
- Earnings Growth Expectations: The merged entity anticipates maintaining American Water's (AWK) earnings per share and dividend growth targets in the range of 7%-9%, indicating stability in future profitability and shareholder returns.
- Equity Structure: Post-merger, American Water (AWK) shareholders will own approximately 69% of the combined entity, while Essential Utilities (WTRG) shareholders will hold about 31%, which will influence future corporate governance and strategic decision-making.
See More
American Water and Essential Utilities Merger Approved by Shareholders
- Shareholder Voting Results: At today's special shareholder meetings, approximately 99% of American Water's shareholders approved the share issuance, while nearly 95% of Essential Utilities' shareholders supported the merger, reflecting strong confidence in the transaction and expected synergies in the water utility sector.
- Merger Timeline: The merger is anticipated to close by the end of Q1 2027, subject to customary closing conditions including clearance under the Hart-Scott-Rodino Act and necessary regulatory approvals, which will influence the merger's successful execution.
- Market Impact: The merger will position American Water as the largest regulated water and wastewater utility in the U.S., serving over 14 million people, enhancing market competitiveness while providing improved services to Essential Utilities' 5.5 million customers, thereby enhancing customer experience.
- Strategic Significance: This merger represents not only a consolidation of resources and technologies between the two companies but also promotes sustainable growth and operational excellence, further solidifying their leadership in the water and natural gas service sectors, aligning with future market demand changes.
See More
Shareholders of American Water and Essential Utilities Greenlight Merger-Related Proposals at Special Meetings
- Shareholder Approval: American Water and Essential Utilities shareholders have approved merger-related proposals.
- Special Meetings: The approvals were granted during special shareholder meetings held for the respective companies.
See More
