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SEC filingRevenue grew 10% on higher gas costs and rate increases, but net income fell 21% due to merger-related expenses and higher operating costs.
While segment-level net income figures were removed during the audit, the business context indicates that the Regulated Water segment faced pressure from higher bad debt, contractor services, and depreciation, partially offset by rate increases. The Regulated Natural Gas segment benefited from higher purchased gas costs flowing through to revenue, offset by lower usage.
Management continues to enhance regulatory practices to address regulatory lag and recover capital project costs and operating cost increases efficiently. The pending merger with American Water remains on track, with pre-merger costs incurred in the quarter. The final approval of a class action settlement is expected in 2026, and pending acquisitions are expected to close during the second quarter of 2026.