At a glance
Essential Utilities Inc is worth $12.00B, about 19 times its fiscal 2025 earnings. Revenue grew 18.6% to $2.47B in fiscal 2025, with 24.9% kept as profit; over 5 years it has grown 11.1% a year. It pays a 3.26% dividend yield, and returned $1.60B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +8.0% over the past year with dividends reinvested and +0.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.1% in the 2020 crash (S&P 500: 33.7%) and 24.7% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Essential Utilities owns regulated utilities that provide water, wastewater (sewer) and natural gas service. Under the Aqua and Peoples brands, it serves an estimated 5.5 million people in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia and Kentucky. State utility commissions set its prices to cover costs plus an approved return on money invested in pipes and plants.
Revenue was about $2.47 billion in fiscal 2025: 53.6% from the Regulated Water segment (including wastewater) and 45.2% from Regulated Natural Gas. Residential water brought in 29.6% of revenue and residential gas 28.6%. Pennsylvania dominates. Aqua Pennsylvania, serving suburbs north and west of Philadelphia and 28 other counties, produced about 57% of water segment revenue. About 95% of the roughly 747,000 Peoples gas customers are in western Pennsylvania. Gas costs are generally passed through to customers, so gas price swings move revenue dollar for dollar.
Over the five years through 2025, revenue grew mainly through higher water and wastewater rates, higher gas costs and new customers, many from acquired water and wastewater systems. A small non-regulated arm offers households protection plans for the pipes linking their homes to the street. On October 26, 2025, Essential agreed to be acquired by American Water Works for stock; shareholders of both companies approved the deal on February 10, 2026.
Price history
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WTRG +8.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Natural Gas | $1.12B | 45.2% |
| Water | $1.09B | 44.2% |
| Wastewater | $223.1M | 9% |
| Other | $41.0M | 1.7% |
By business segment
| Water | $1.33B | 53.6% |
| Natural Gas | $1.11B | 45% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $530.9M, up 3.1% from a year earlier, and net income was $105.7M (-1.9%).
- For fiscal 2025, revenue was $2.47B (+18.6% year over year; +11.1% a year from FY2020 to FY2025) with a 24.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +11.1% good |
|---|---|
| Operating margin | 37.2% good |
| Return on equity (FY2025) | 9% watch |
| Return on assets (FY2025) | 3.2% watch |
| Net cash (cash minus debt) | $-8.45B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.46B | $284.8M | — |
| FY2021 | $1.88B | $431.6M | — |
| FY2022 | $2.29B | $465.2M | — |
| FY2023 | $2.05B | $498.2M | — |
| FY2024 | $2.09B | $595.3M | — |
| FY2025 | $2.47B | $616.4M | — |
Valuation snapshot
| Market value | $12.00B |
|---|---|
| P/E ratio | 19.2 |
| Dividend yield | 3.26% |
Rank among 1514 US companies
Market value at each year end
Essential Utilities’s market value went from $5.33B at the end of 2016 to $12.00B on Oct 28, 2026, about 2.3 times as much; since the end of 2025 it is up 11%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $12.00B | +10.5% |
| 2025 | $10.85B | +8.8% |
| 2024 | $9.97B | -2.2% |
| 2023 | $10.20B | -18.5% |
| 2022 | $12.52B | -7.7% |
| 2021 | $13.57B | +17.0% |
| 2020 | $11.60B | +14.5% |
| 2019 | $10.13B | +66.5% |
| 2018 | $6.08B | -12.7% |
| 2017 | $6.97B | +30.8% |
| 2016 | $5.33B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| WTRG price data to Oct 28, 2026 | +13.2% | +8.0% | +12.2% | +0.8% | +6.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +13.2% |
| 2025 | +9.4% |
| 2024 | +0.6% |
| 2023 | -19.4% |
| 2022 | -8.9% |
| 2021 | +16.0% |
| 2020 | +2.9% |
| 2019 | +40.4% |
| 2018 | -10.7% |
| 2017 | +33.7% |
| 2016 | +3.2% |
| 2015 | +14.6% |
| 2014 | +16.1% |
| 2013 | +18.8% |
| 2012 | +18.7% |
| 2011 | +0.9% |
| 2010 | +32.6% |
| 2009 | -12.1% |
| 2008 | -0.1% |
| 2007 | -4.9% |
| 2006 | -15.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 21.8% over that stretch · deepest drop along the way 36.7%, back to its old high 27.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39.1% over that stretch · deepest drop along the way 39.1%, back to its old high 21 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.5% over that stretch · deepest drop along the way 24.7%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 1 sales ($113K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 7, 2026 | Colleen Arnold President - Aqua | sell | $113K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.9% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.83% | Mar 31, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
ETFs with the most weight in WTRG
| AQWA Global X Clean Water ETF | 5.1% |
| CGW Invesco S&P Global Water Index ETF | 4.93% |
| EFRA iShares Environmental Infrastructure and Industrials ETF | 4.01% |
| FIW First Trust Water ETF | 3.75% |
| TBLU Tortoise Global Water ESG Fund | 3.35% |
| FXU First Trust Utilities AlphaDEX Fund | 3.33% |
| BILD Macquarie Global Listed Infrastructure ETF | 3.09% |
| BOUT Innovator IBD Breakout Opportunities ETF | 2.92% |
What could go wrong
- Pending American Water merger carries deal risk. Each share is set to become 0.305 American Water shares, so the deal's value moves with that stock. Closing, targeted by the end of first-quarter 2027, needs antitrust and utility commission approvals.
- Heavy reliance on Pennsylvania. Pennsylvania supplied 30.3% of fiscal 2025 revenue through water and 42.4% through gas, and about 95% of gas customers are in western Pennsylvania. One state's regulators, economy or weather matter greatly.
- Profits depend on regulators approving rate increases. State utility commissions set the prices Essential charges. If rate increases are denied, delayed or too small to cover spending and earn a return on new pipes and plants, profits suffer.
- Natural gas brings safety and price risks. Moving and storing gas can lead to explosions and other accidents, and pipeline safety programs are costly. When gas prices spike, Essential must borrow more to purchase gas inventory.
- Large debt and constant need for capital. Total debt was about $8.5 billion against $7.0 billion of shareholder equity as of June 30, 2026. Higher borrowing costs or disrupted markets could strain funding for upgrades and dividends.
- Weather, drought and conservation can cut usage. Wet summers, drought restrictions and efficient appliances reduce water use. The company estimates a 0.5% drop in residential water use would cut annual residential water revenue by about $3.7 million, partly offset by lower costs.
Recent events
- Other company announcement
- Investor presentation or announcement
- Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement
- Quarterly results released
- Shareholder vote results
- Investor presentation or announcement
- Investor presentation or announcement
- Major agreement signed; Other company announcement
For income and retirement investors
The dividend yield was 3.26% as of October 28, 2026. Total dividends paid rose every year from fiscal 2020 to 2025, from about $233 million to $374 million, though the share count grew 12.3% between October 2021 and July 2026. Dividends used 60.6% of fiscal 2025 earnings. Buybacks are minor: about $15 million over fiscal 2021–2025, versus $1.58 billion in dividends. If the American Water merger closes, each share becomes 0.305 American Water shares, so future income would depend on American Water's dividend.
The shares have fallen hard in market downturns. They dropped 36.7% from October 2007 to July 2008, then took about 28 months from the low to recover. In the 2020 COVID crash they fell 39.1% between February 19 and March 23, needing 21 months to recover. In 2022 they fell 24.7% from an August peak to October and had not regained that peak as of October 28, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Essential Utilities make money?
Essential Utilities earns money by providing regulated water, wastewater and natural gas service. In fiscal 2025, revenue was about $2.47 billion: 53.6% from its Regulated Water segment and 45.2% from Regulated Natural Gas. State utility commissions approve its rates, which aim to cover costs and earn a return on money invested in pipes and plants. Pennsylvania is its largest market by far, and a small non-regulated unit offers service line protection and repair plans.
Is Essential Utilities merging with American Water?
Yes. On October 26, 2025, Essential agreed to be acquired by American Water Works. Essential shareholders would receive 0.305 American Water shares for each share they own. Shareholders of both companies approved the deal on February 10, 2026. In its annual report filed February 26, 2026, Essential expected closing by the end of the first quarter of 2027, subject to antitrust clearance and state utility commission approvals. That 0.305 ratio is fixed, so the deal's value moves with American Water's share price.
Does Essential Utilities pay a dividend?
Yes. The dividend yield was 3.26% as of October 28, 2026, and dividends paid equaled 60.6% of fiscal 2025 earnings. Total cash paid as dividends rose every year from fiscal 2020 to 2025, reaching about $374 million, though a growing share count explains part of that rise. If the American Water merger closes, Essential shareholders would hold American Water stock instead, and their income would depend on that company's dividend.
How much debt does Essential Utilities have?
About $8.46 billion of total debt as of June 30, 2026, compared with about $7.02 billion of shareholder equity and just $8.6 million of cash and investments. Utilities typically borrow heavily to build and replace pipes and treatment plants, then recover those costs through regulated rates over many years. Essential's annual report warns that higher borrowing costs or disrupted capital markets could hurt its finances and its ability to pay dividends, and that the merger may make raising capital harder.
How has Essential Utilities stock performed?
Unevenly. Based on price returns as of October 28, 2026, the stock gained 6.4% a year over 10 years, 0.8% a year over five years and 8% over one year. Full calendar years from 2006 to 2025 ranged from a 40.4% gain in 2019 to a 19.4% loss in 2023. It fell 39.1% in the 2020 COVID crash and 24.7% between August and October 2022, and had not regained that 2022 peak as of the same date.