Top Utilities Stocks by Operating Margin
Top utilities companies ranked by operating margin, latest annual filings.
What Operating Margin Means for Utilities Companies
Operating margin in utilities sits in an unusually narrow band because most operators are regulated, with allowed revenue set by state commissions against an approved rate base and authorized return on equity. The ratio tends to be reasonably stable year to year, with fuel-cost pass-through mechanisms shielding margin from volatile input prices. Unregulated merchant generators and independent power producers show wider swings, and water utilities and pipeline-style distribution businesses typically post the steadiest operating margin in the sector.
Why It Matters in Utilities
Because the regulated rate base largely sets revenue, a sustained operating margin that outperforms peers often signals operating discipline within the allowed band: better heat rates, lower outage cost, or efficient transmission and distribution. Still, regulatory rate cases can reset margin abruptly if commissions tighten allowed returns, disallow capex, or change cost recovery mechanisms, which is why a multi-year average is a more informative read than any single year in the sector.
What to Read Alongside
Pair operating margin with Revenue to see whether rate-base growth is translating into a larger earnings pool, CapEx to size the grid and generation spend driving future rate base, and Net Margin to see how heavy interest expense affects the after-tax result.
| # | Symbol | Company | Sector | ||
|---|---|---|---|---|---|
| 1 | BIPC | Brookfield Infrastructure Corporation | Utilities | 61.45% | $4.88B |
| 2 | WTRG | Essential Utilities, Inc. | Utilities | 37.22% | $13.02B |
| 3 | EIX | Edison International | Utilities | 36.72% | $22.84B |
| 4 | AWK | American Water Works Company, Inc. | Utilities | 36.56% | $29.92B |
| 5 | ATO | Atmos Energy Corporation | Utilities | 33.17% | $29.27B |
| 6 | NGG | National Grid plc | Utilities | 30.71% | $83.60B |
| 7 | NEE | NextEra Energy, Inc. | Utilities | 30.21% | $182.36B |
| 8 | FTS | Fortis Inc. | Utilities | 28.69% | $31.00B |
| 9 | NI | NiSource Inc. | Utilities | 28.14% | $21.18B |
| 10 | DUK | Duke Energy Corporation | Utilities | 26.76% | $99.63B |
| 11 | D | Dominion Energy, Inc. | Utilities | 26.74% | $60.34B |
| 12 | EVRG | Evergy, Inc. | Utilities | 25.71% | $20.53B |
| 13 | BIP | Brookfield Infrastructure Partners L.P. | Utilities | 25.10% | $18.15B |
| 14 | NJR | New Jersey Resources Corporation | Utilities | 24.99% | $5.51B |
| 15 | ETR | Entergy Corporation | Utilities | 24.73% | $52.82B |
| 16 | SO | The Southern Company | Utilities | 24.65% | $107.51B |
| 17 | OGE | OGE Energy Corp. | Utilities | 24.52% | $10.47B |
| 18 | PEG | Public Service Enterprise Group Incorporated | Utilities | 24.49% | $36.20B |
| 19 | SWX | Southwest Gas Holdings, Inc. | Utilities | 24.42% | $6.62B |
| 20 | AEP | American Electric Power Company, Inc. | Utilities | 24.31% | $68.90B |
| 21 | PPL | PPL Corporation | Utilities | 23.55% | $26.94B |
| 22 | LNT | Alliant Energy Corporation | Utilities | 23.50% | $18.85B |
| 23 | BKH | Black Hills Corporation | Utilities | 23.27% | $6.49B |
| 24 | AEE | Ameren Corporation | Utilities | 23.03% | $31.24B |
| 25 | WEC | WEC Energy Group, Inc. | Utilities | 22.91% | $38.12B |
| 26 | CNP | CenterPoint Energy, Inc. | Utilities | 22.55% | $26.95B |
| 27 | EMA | Emera Incorporated | Utilities | 22.50% | $15.62B |
| 28 | ENIC | Enel Chile S.A. | Utilities | 22.43% | $6.00B |
| 29 | ES | Eversource Energy | Utilities | 22.06% | $26.31B |
| 30 | NWN | Northwest Natural Holding Company | Utilities | 21.79% | $2.18B |
| 31 | EXC | Exelon Corporation | Utilities | 21.22% | $47.21B |
| 32 | SR | Spire Inc. | Utilities | 21.16% | $5.25B |
| 33 | AQN | Algonquin Power & Utilities Corp. | Utilities | 20.74% | $4.25B |
| 34 | TXNM | TXNM Energy, Inc. | Utilities | 20.37% | $6.41B |
| 35 | NWE | NorthWestern Energy Group, Inc. | Utilities | 20.23% | $5.09B |
| 36 | CMS | CMS Energy Corporation | Utilities | 20.22% | $21.70B |
| 37 | PNW | Pinnacle West Capital Corporation | Utilities | 19.99% | $12.63B |
| 38 | IDA | IDACORP, Inc. | Utilities | 19.52% | $8.63B |
| 39 | PCG | PG&E Corporation | Utilities | 19.05% | $28.57B |
| 40 | AVA | Avista Corporation | Utilities | 18.02% | $3.37B |
| 41 | XEL | Xcel Energy Inc. | Utilities | 17.61% | $51.14B |
| 42 | ED | Consolidated Edison, Inc. | Utilities | 17.35% | $44.00B |
| 43 | POR | Portland General Electric Company | Utilities | 15.52% | $5.47B |
| 44 | MDU | MDU Resources Group, Inc. | Utilities | 15.49% | $3.92B |
| 45 | UGI | UGI Corporation | Utilities | 15.19% | $7.94B |
| 46 | DTE | DTE Energy Company | Utilities | 15.01% | $28.12B |
| 47 | FE | FirstEnergy Corp. | Utilities | 14.62% | $26.88B |
| 48 | KEP | Korea Electric Power Corporation | Utilities | 14.51% | $14.38B |
| 49 | SPH | Suburban Propane Partners, L.P. | Utilities | 14.40% | $1.15B |
| 50 | CEG | Constellation Energy Corporation | Utilities | 12.09% | $88.56B |
| 51 | CWEN | Clearway Energy, Inc. | Utilities | 11.20% | $7.00B |
| 52 | VST | Vistra Corp. | Utilities | 10.75% | $42.51B |
| 53 | RNW | ReNew Energy Global Plc | Utilities | 10.59% | $2.53B |
| 54 | HE | Hawaiian Electric Industries, Inc. | Utilities | 7.62% | $1.46B |
| 55 | NRG | NRG Energy, Inc. | Utilities | 6.01% | $18.56B |
| 56 | TAC | TransAlta Corporation | Utilities | 5.82% | $4.12B |
| 57 | EDN | Empresa Distribuidora y Comercializadora Norte Sociedad Anónima | Utilities | 4.79% | $616.48M |
| 58 | CTRI | Centuri Holdings, Inc. | Utilities | 3.11% | $2.06B |
No companies match this search.
How this ranking is built
Companies are ranked by operating margin as reported in their most recent annual filing with the SEC. Figures shown are in US dollars (or percent, as noted), rounded to two decimals.
- Source: annual 10-K / 20-F filings from companies trading on US exchanges (NYSE, Nasdaq, AMEX).
- Fiscal year: whichever annual period the company has most recently filed. Fiscal years don't always align with the calendar year, so the "as of FY" stamp above reflects the most common year across the table.
- Filtered out: warrants, preferred shares, and duplicate listings that share a parent company's financials.
- Size floor: A company qualifies at $1 billion in annual revenue or above, so a small filer with a freak ratio cannot top the list.
- Value range: Only figures above 0% and up to 100% qualify.
- Market cap: stated at each company's latest close, which is newer than the annual figure ranked here.
- Update cadence: refreshed as companies file new annual reports (typically within 60–90 days of fiscal year end).
Not financial advice. This is a research tool, not a recommendation.
Frequently asked questions
Why is utility operating margin so much steadier than most other sectors?
Regulated utilities earn revenue according to a rate formula negotiated with a state commission, which typically allows the operator to recover prudent operating costs, depreciation, and a defined return on the rate base. Fuel-cost pass-through riders further insulate margin from commodity volatility. The structure is intentionally designed to produce stable operating profit in exchange for the utility providing reliable service under regulated prices. The combination dampens margin volatility to a level unmatched by any other sector of comparable size.
What does an above-average operating margin signal for a regulated utility?
Because the regulated rate structure sets a ceiling on how much revenue can be collected, a utility that earns an above-average operating margin is typically running an unusually efficient operation: controlling non-fuel operating and maintenance spend, capturing productivity gains on grid investment, and minimizing outage-related cost. The flip side is that regulators track sustained outperformance and may use the next rate case to tighten the allowed return, redirecting some of that operational outperformance to ratepayers rather than shareholders.