WTRG · Essential Utilities, Inc.

Essential Utilities, in connection with its previously announced merger agreement dated October 26, 2025, wherein it will become a wholly owned subsidiary of American Water, has furnished American Water's unaudited Q1 2026 consolidated financial statements. These statements show American Water's operating revenues increased to $1,207 million from $1,142 million year-over-year, driven by higher volumes or rates, though net income declined to $196 million ($1.00 EPS) from $205 million ($1.05 EPS), primarily due to elevated interest expense of $163 million versus $144 million. Operating income rose to $391 million from $371 million, reflecting improved operations and maintenance efficiency despite higher depreciation. Balance sheet remains strong with total assets at $35.3 billion, including $31.1 billion in net property, plant and equipment, supporting infrastructure investments evidenced by $659 million in Q1 capital expenditures. Total capitalization stands at $23.8 billion, with long-term debt steady at $12.8 billion. The merger remains subject to regulatory approvals and other conditions, with no updates on timing provided here. This disclosure aids Essential Utilities investors in assessing the financial health of their prospective parent ahead of closing.