WTRG holds steady growth path as merger advances toward 2027
Q2 profit slips but revenue beats Second-quarter profit fell to $105.7 million ($0.37/share) from $107.8 million a year earlier, yet revenue rose 3.1% to $530.9 million and beat expectations. Slightly lower profit pressures the stock, but solid revenue growth and steady adjusted earnings support it.
The quarter's earnings are the core financial result driving near-term sentiment.
Growth guidance and dividend reaffirmed Management kept its 5-7% annual earnings growth target through 2027 and raised the quarterly dividend 5.25% to $0.3606, extending an 80-year payout streak. A record $1.7 billion infrastructure plan supports future rate base and earnings.
Reaffirmed growth and a higher dividend are the main reasons investors hold the stock.
Merger with American Water stays on track The all-stock merger with American Water remains targeted for the first quarter of 2027, with Kentucky, Ohio and Virginia approvals secured and Illinois expected by November 2026. Leadership appointments signal the deal is progressing, though remaining state approvals are still needed.
The merger is the biggest structural event for WTRG and its timeline drives investor confidence.
Small water acquisitions keep adding customers Aqua Pennsylvania bought Ulster Municipal's water system for $0.5 million, adding 180 customers and $2 million of planned upgrades. Since 2015 WTRG has added over 138,000 customer equivalents, and its pipeline covers roughly 400,000 more, steadily growing rate base.
Ongoing bolt-on acquisitions show a durable growth engine beyond the merger.