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Essential Utilities Inc Financials

WTRG
Source SEC Filings (10-K/10-Q) Data as of Mar 31, 2026 Currency USD FYE December

This page shows Essential Utilities Inc (WTRG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI WTRG FY2025

Reported earnings keep rising, but the dominant mechanic is a capital-hungry network buildout that outruns internal cash generation.

In FY2025, capital spending of $3.13B exceeded operating cash flow of $2.06B, so expansion still consumed cash. Because free cash flow stayed negative while net income reached $1.11B and operating margin held near 37.0%, the shortfall looks driven more by reinvestment intensity than by weakening profitability.

Profitability is steady, not rapidly improving: operating margin was 36.9% in FY2025 and return on assets was only 3.1%. That combination fits an asset-heavy model where adding more infrastructure expands earnings dollars without dramatically lifting returns on the asset base.

Near-term liquidity is thin on paper, with cash of $98M and a current ratio of 0.5x in FY2025. Yet debt-to-equity stayed around 0.7x, suggesting the buildout is being funded through a managed mix of borrowing, retained earnings, and recurring operating inflows.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 66 / 100
Financial Health Score 66/100
Scored as: Utilities peer group

Scored against utilities for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Essential Utilities Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
91
Growth
83
Leverage
76
Liquidity
53
Cash Flow
21
Returns
72
Altman Z-Score Distress
1.28

Essential Utilities Inc scores 1.28, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
6/7

Essential Utilities Inc passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed
1.85x

For every $1 of reported earnings, Essential Utilities Inc generates $1.85 in operating cash flow ($2.1B OCF vs $1.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe
5.7x

Essential Utilities Inc earns $5.7 in operating income for every $1 of interest expense ($1.9B vs $329.1M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$5.1B
YoY+10.1%
5Y CAGR+28.5%
10Y CAGR+20.2%

Essential Utilities Inc generated $5.1B in revenue in fiscal year 2025. This represents an increase of 10.1% from the prior year.

EBITDA
$2.8B
YoY+10.7%
5Y CAGR+32.0%
10Y CAGR+19.9%

Essential Utilities Inc's EBITDA was $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 10.7% from the prior year.

Net Income
$1.1B
YoY+5.7%
5Y CAGR+31.3%
10Y CAGR+18.6%

Essential Utilities Inc reported $1.1B in net income in fiscal year 2025. This represents an increase of 5.7% from the prior year.

EPS (Diluted)
$5.69
YoY+5.6%
5Y CAGR+38.4%
10Y CAGR+17.4%

Essential Utilities Inc earned $5.69 per diluted share (EPS) in fiscal year 2025. This represents an increase of 5.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow
-$1.1B
YoY-31.6%

Essential Utilities Inc generated -$1.1B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 31.6% from the prior year.

Cash & Debt
$34.8M
YoY-63.8%
5Y CAGR+48.4%
10Y CAGR+26.8%

Essential Utilities Inc held $34.8M in cash against $8.1B in long-term debt as of fiscal year 2025.

Dividends Per Share
$3.31
YoY+8.2%
5Y CAGR+27.8%
10Y CAGR+17.0%

Essential Utilities Inc paid $3.31 per share in dividends in fiscal year 2025. This represents an increase of 8.2% from the prior year.

Shares Outstanding
N/A

Margins & Returns

Gross Margin
N/A
Operating Margin
36.7%
YoY-0.2pp
5Y CAGR+7.0pp
10Y CAGR-2.7pp

Essential Utilities Inc's operating margin was 36.7% in fiscal year 2025, reflecting core business profitability. This is down 0.2 percentage points from the prior year.

Net Margin
21.7%
YoY-0.9pp
5Y CAGR+2.2pp
10Y CAGR-3.1pp

Essential Utilities Inc's net profit margin was 21.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.

Return on Equity
16.2%
YoY-0.8pp
5Y CAGR+10.1pp
10Y CAGR+4.5pp

Essential Utilities Inc's ROE was 16.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.8 percentage points from the prior year.

Capital Allocation

R&D Spending
N/A
Share Buybacks
$2.3M
YoY-43.6%
5Y CAGR-12.1%
10Y CAGR-21.4%

Essential Utilities Inc spent $2.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 43.6% from the prior year.

Capital Expenditures
$3.1B
YoY+9.5%
10Y CAGR+24.0%

Essential Utilities Inc invested $3.1B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 9.5% from the prior year.

WTRG Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $861.8M-74.2% $3.3B+601.4% $477.0M-7.4% $514.9M-34.3% $783.6M-75.3% $3.2B+628.6% $435.3M+0.2% $434.4M
Cost of Revenue N/A N/A N/A N/A N/A N/A N/A N/A
Gross Profit N/A N/A N/A N/A N/A N/A N/A N/A
R&D Expenses N/A N/A N/A N/A N/A N/A N/A N/A
SG&A Expenses N/A N/A N/A N/A N/A N/A N/A N/A
Operating Income $310.6M-73.8% $1.2B+598.0% $169.8M-8.4% $185.3M-45.3% $338.9M-71.4% $1.2B+665.3% $155.1M+6.7% $145.3M
Interest Expense $87.3M+2.8% $84.9M+3.2% $82.3M+3.1% $79.8M-2.7% $82.1M+3.5% $79.3M+3.2% $76.8M+5.2% $73.0M
Income Tax $6.4M-98.0% $322.7M+7407.0% $4.3M-6.0% $4.6M+122.2% -$20.6M-106.8% $300.9M+1799.9% $15.8M+749.8% $1.9M
Net Income $224.4M-64.2% $627.3M+581.3% $92.1M-14.6% $107.8M-62.0% $283.8M-55.7% $640.4M+822.8% $69.4M-7.9% $75.4M
EPS (Diluted) $0.79 N/A $0.33-13.2% $0.38-63.1% $1.03 N/A $0.25-10.7% $0.28

WTRG Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $19.8B+1.6% $19.5B+3.0% $18.9B+1.8% $18.6B+1.2% $18.3B-44.2% $32.8B+86.9% $17.6B+1.8% $17.3B
Current Assets $622.6M+2.0% $610.4M+40.8% $433.6M-1.3% $439.4M-11.1% $494.5M-59.3% $1.2B+224.9% $373.9M+3.1% $362.7M
Cash & Equivalents $75.9M+118.3% $34.8M+443.7% $6.4M-74.5% $25.1M+20.6% $20.8M-78.3% $96.0M+1038.0% $8.4M-55.2% $18.8M
Inventory N/A N/A N/A N/A N/A N/A N/A N/A
Accounts Receivable $287.3M+32.3% $217.2M+40.4% $154.7M-22.1% $198.5M-18.8% $244.4M-41.2% $416.0M+233.4% $124.8M-10.7% $139.8M
Goodwill $2.3B0.0% $2.3B0.0% $2.3B+0.3% $2.3B0.0% $2.3B+104.6% $1.1B-51.1% $2.3B0.0% $2.3B
Total Liabilities $12.9B+2.2% $12.6B+4.4% $12.1B+2.1% $11.8B-0.3% $11.9B-55.4% $26.6B+133.9% $11.4B+2.7% $11.1B
Current Liabilities $654.4M-14.4% $764.5M+5.0% $728.1M+21.6% $598.8M-20.9% $756.6M-76.0% $3.1B+361.1% $683.1M+8.6% $629.1M
Long-Term Debt $8.4B+3.1% $8.1B+5.4% $7.7B+0.9% $7.6B+1.3% $7.5B+2.1% $7.4B+1.9% $7.2B+3.1% $7.0B
Total Equity $6.9B+0.5% $6.9B+0.6% $6.8B+1.4% $6.7B+4.0% $6.5B+4.2% $6.2B+0.3% $6.2B+0.3% $6.2B
Retained Earnings $2.3B+1.3% $2.3B+1.6% $2.2B-0.2% $2.2B+5.0% $2.1B+1.5% $2.1B+8.6% $1.9B-1.0% $2.0B

WTRG Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $265.4M-78.8% $1.3B+439.6% $232.5M-14.6% $272.3M-9.1% $299.5M-78.9% $1.4B+625.4% $196.1M+5.6% $185.7M
Capital Expenditures N/A N/A N/A N/A N/A N/A N/A N/A
Free Cash Flow N/A N/A N/A N/A N/A N/A N/A N/A
Investing Cash Flow -$267.5M+88.1% -$2.2B-423.7% -$429.1M-24.4% -$344.9M-19.8% -$287.9M+89.0% -$2.6B-580.6% -$383.9M-29.9% -$295.6M
Financing Cash Flow $43.2M-95.7% $994.2M+458.8% $177.9M+131.3% $76.9M+854755.6% -$9K-100.0% $962.6M+442.4% $177.5M+89.7% $93.5M
Dividends Paid $97.0M-72.8% $356.1M+270.4% $96.2M+5.4% $91.3M+2.0% $89.5M-72.7% $328.0M+268.2% $89.1M+6.0% $84.0M
Share Buybacks $2.9M+32400.0% $9K-76.3% $38K+1166.7% $3K-99.9% $2.2M+23.2% $1.8M+90600.0% $2K+100.0% $1K

WTRG Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin N/A N/A N/A N/A N/A N/A N/A N/A
Operating Margin 36.0%+0.6pp 35.4%-0.2pp 35.6%-0.4pp 36.0%-7.3pp 43.3%+5.8pp 37.4%+1.8pp 35.6%+2.2pp 33.4%
Net Margin 26.0%+7.3pp 18.8%-0.6pp 19.3%-1.6pp 20.9%-15.3pp 36.2%+16.0pp 20.2%+4.3pp 16.0%-1.4pp 17.3%
Return on Equity 3.3%-5.9pp 9.2%+7.8pp 1.4%-0.3pp 1.6%-2.8pp 4.4%-5.9pp 10.3%+9.2pp 1.1%-0.1pp 1.2%
Return on Assets 1.1%-2.1pp 3.2%+2.7pp 0.5%-0.1pp 0.6%-1.0pp 1.6%-0.4pp 1.9%+1.6pp 0.4%-0.0pp 0.4%
Current Ratio 0.95+0.2 0.80+0.2 0.60-0.1 0.73+0.1 0.65+0.3 0.39-0.2 0.55-0.0 0.58
Debt-to-Equity 1.21+0.0 1.18+0.1 1.130.0 1.13-0.0 1.16-0.0 1.19+0.0 1.17+0.0 1.14
FCF Margin N/A N/A N/A N/A N/A N/A N/A N/A

Note: The current ratio is below 1.0 (0.80), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

Essential Utilities Inc (WTRG) reported $5.1B in total revenue for fiscal year 2025. This represents a 10.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Essential Utilities Inc (WTRG) revenue grew by 10.1% year-over-year, from $4.7B to $5.1B in fiscal year 2025.

Yes, Essential Utilities Inc (WTRG) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 21.7%.

Essential Utilities Inc (WTRG) reported diluted earnings per share of $5.69 for fiscal year 2025. This represents a 5.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Essential Utilities Inc (WTRG) had EBITDA of $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Essential Utilities Inc (WTRG) had $34.8M in cash and equivalents against $8.1B in long-term debt.

Essential Utilities Inc (WTRG) had an operating margin of 36.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Essential Utilities Inc (WTRG) had a net profit margin of 21.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Essential Utilities Inc (WTRG) paid $3.31 per share in dividends during fiscal year 2025.

Essential Utilities Inc (WTRG) has a return on equity of 16.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Essential Utilities Inc (WTRG) generated -$1.1B in free cash flow during fiscal year 2025. This represents a -31.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Essential Utilities Inc (WTRG) generated $2.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Essential Utilities Inc (WTRG) had $19.5B in total assets as of fiscal year 2025, including both current and long-term assets.

Essential Utilities Inc (WTRG) invested $3.1B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Yes, Essential Utilities Inc (WTRG) spent $2.3M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Essential Utilities Inc (WTRG) had a current ratio of 0.80 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

Essential Utilities Inc (WTRG) had a debt-to-equity ratio of 1.18 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Essential Utilities Inc (WTRG) had a return on assets of 5.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Essential Utilities Inc (WTRG) has an Altman Z-Score of 1.28, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Essential Utilities Inc (WTRG) has a Piotroski F-Score of 6 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Essential Utilities Inc (WTRG) has an earnings quality ratio of 1.85x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Essential Utilities Inc (WTRG) has an interest coverage ratio of 5.7x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Essential Utilities Inc (WTRG) scores 66 out of 100 on our Financial Health Score, indicating strong standing within its utilities peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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