BRYN MAWR, PA — Essential Utilities Inc. (NYSE: WTRG) reported strong financial results for 2024, marked by a 17% increase in full-year earnings per share (EPS) to $2.17. The company’s net income for the year rose to $595.3 million, driven by regulatory achievements, strategic acquisitions, and substantial infrastructure investments.
CEO Chris Franklin described 2024 as a year of “near-perfect execution,” highlighting Essential’s ability to meet key goals while addressing critical challenges like PFAS mitigation and aging infrastructure. “This was a year of near-perfect execution,” Franklin said. “We filed at the Pennsylvania Public Utility Commission (PUC) to recover approximately $3 billion in capital investments, improved safety and reliability, and achieved strong outcomes in rate cases.”
2024 Financial Highlights
- Full-year revenues of $2.09 billion, up 1.6% from 2023.
- Water segment revenues grew 5.9% to $1.22 billion.
- Net income of $184.8 million for Q4 2024, reflecting a 34% year-over-year increase.
- Operations and maintenance expenses increased by 2%, reflecting cost containment despite infrastructure investments.
The company invested $1.3 billion in 2024 to advance water and natural gas infrastructure across its service areas. This included targeted PFAS contamination mitigation projects at 13 sites and the deployment of 30,000 advanced solid-state meters in its gas segment.
Regulatory Progress and Growth through Acquisitions
Essential made significant strides in regulatory approvals, securing key rate awards in multiple states, including Pennsylvania, Illinois, and North Carolina. The Pennsylvania PUC approved a $73 million rate increase for Aqua Pennsylvania, set to take effect in February 2025.
The company closed the $18 million acquisition of Greenville’s wastewater system in January 2025, the first fair market value acquisition in Pennsylvania under the state’s updated guidelines. Essential is currently pursuing six additional acquisitions, representing over 210,000 customers and $344 million in purchase price.
Since 2015, Essential has acquired more than $518 million in rate base and added 131,000 customers, underscoring its commitment to growth via acquisitions.
2025 Outlook and Long-Term Growth Plans
For 2025, Essential provided the following guidance:
- EPS projected between $2.07 and $2.11.
- Infrastructure investments of $1.4 billion to $1.5 billion.
- Compound annual growth rate of 5-7% in EPS through 2027.
- Significant investments in replacing natural gas and water infrastructure, including $450 million allocated to PFAS management by 2029.
“Given the board’s continued confidence in our business model, we’ve reinstated long-term earnings guidance with a compounded annual EPS growth rate of 5-7% through 2027,” Franklin added.
Commitment to Sustainability
Essential reaffirmed its goal to reduce Scope 1 and 2 greenhouse gas emissions by 60% by 2035 and comply with EPA standards for PFAS contamination. For the fourth consecutive year, Newsweek named Essential Utilities among America’s Most Responsible Companies.
With a proven track record in infrastructure modernization, regulatory excellence, and acquisitions, Essential Utilities remains poised for continued growth and stakeholder value creation in 2025 and beyond.
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