Essential Utilities Inc Financials
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).
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 near37.0% , the shortfall looks driven more by reinvestment intensity than by weakening profitability.
Profitability is steady, not rapidly improving: operating margin was
Near-term liquidity is thin on paper, with cash of
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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.
Essential Utilities Inc has an operating margin of 36.7%, meaning the company retains $37 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is down from 36.9% the prior year.
Essential Utilities Inc's revenue grew 10.1% year-over-year to $5.1B, a solid pace of expansion. This earns a growth score of 50/100.
Essential Utilities Inc carries a low D/E ratio of 1.18, meaning only $1.18 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 78/100, indicating a strong balance sheet with room for future borrowing.
Essential Utilities Inc's current ratio of 0.80 is below the typical benchmark, resulting in a score of 11/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Essential Utilities Inc generated $2.1B in operating cash flow, capex of $3.1B consumed most of it, leaving -$1.1B in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Essential Utilities Inc's ROE of 16.2% shows moderate profitability relative to equity, earning a score of 45/100. This is down from 17.0% the prior year.
Essential Utilities Inc scores 1.24, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Essential Utilities Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
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.
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
Earnings & Revenue
Essential Utilities Inc generated $5.1B in revenue in fiscal year 2025. This represents an increase of 10.1% from the prior year.
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.
Essential Utilities Inc reported $1.1B in net income in fiscal year 2025. This represents an increase of 5.7% from the prior year.
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
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.
Essential Utilities Inc held $34.8M in cash against $8.1B in long-term debt as of fiscal year 2025.
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.
Margins & Returns
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.
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.
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
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.
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
What is Essential Utilities Inc's annual revenue?
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.
How fast is Essential Utilities Inc's revenue growing?
Essential Utilities Inc (WTRG) revenue grew by 10.1% year-over-year, from $4.7B to $5.1B in fiscal year 2025.
Is Essential Utilities Inc profitable?
Yes, Essential Utilities Inc (WTRG) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 21.7%.
What is Essential Utilities Inc's EBITDA?
Essential Utilities Inc (WTRG) had EBITDA of $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Essential Utilities Inc have?
As of fiscal year 2025, Essential Utilities Inc (WTRG) had $34.8M in cash and equivalents against $8.1B in long-term debt.
What is Essential Utilities Inc's operating margin?
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.
What is Essential Utilities Inc's net profit margin?
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.
Does Essential Utilities Inc pay dividends?
Yes, Essential Utilities Inc (WTRG) paid $3.31 per share in dividends during fiscal year 2025.
What is Essential Utilities Inc's return on equity (ROE)?
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.
What is Essential Utilities Inc's free cash flow?
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.
What is Essential Utilities Inc's operating cash flow?
Essential Utilities Inc (WTRG) generated $2.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Essential Utilities Inc's total assets?
Essential Utilities Inc (WTRG) had $19.5B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Essential Utilities Inc's capital expenditures?
Essential Utilities Inc (WTRG) invested $3.1B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Essential Utilities Inc's current ratio?
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.
What is Essential Utilities Inc's debt-to-equity ratio?
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.
What is Essential Utilities Inc's return on assets (ROA)?
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.
What is Essential Utilities Inc's Altman Z-Score?
Essential Utilities Inc (WTRG) has an Altman Z-Score of 1.24, 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.
What is Essential Utilities Inc's Piotroski F-Score?
Essential Utilities Inc (WTRG) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. 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.
Are Essential Utilities Inc's earnings high quality?
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.
Can Essential Utilities Inc cover its interest payments?
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.
How financially healthy is Essential Utilities Inc?
Essential Utilities Inc (WTRG) scores 47 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.