Unitil Q2 Earnings Call Highlights

Unitil Q2 Earnings Call Highlights

Unitil reaffirmed its 2026 adjusted EPS guidance of $3.20–$3.36 after reporting $5.2 million, or $0.29 per share, in second-quarter adjusted net income. First-half adjusted earnings rose $5.9 million year over year to approximately $39 million, supported by acquisitions, rate increases, customer growth and colder weather. The company completed its $55.8 million acquisition of two New Hampshire water utilities, which management expects to be earnings-neutral in 2026 but accretive after new rates take effect. Unitil is also considering the purchase of Aquarion’s Massachusetts operations from Eversource, subject to regulatory conditions. Unitil expanded its five-year capital plan through 2030 to approximately $1.2 billion , a 24% increase from the prior plan, while pursuing rate increases in New Hampshire and Maine. Growth opportunities include rising natural-gas conversion demand, with customer inquiries up 50% year over year in the first half.

Unitil NYSE: UTL reported second-quarter 2026 adjusted net income of $5.2 million, or $0.29 per share, while reaffirming its full-year adjusted earnings guidance of $3.20 to $3.36 per share. The regulated utility operator also said first-half results benefited from acquired gas operations, higher distribution rates, customer growth and colder winter weather. For the first six months of 2026, Unitil recorded adjusted net income of approximately $39 million, or $2.17 per share, up $5.9 million, or $0.14 per share, from the same period a year earlier.

Chairman and Chief Executive Officer Tom Meissner said the company was earning its authorized returns on a trailing 12-month basis, reporting a GAAP return on equity of 9.6%.

Margins Rise on Rates, Acquisitions and Customer Growth Electric adjusted gross margin rose 14.8% year over year to $61.2 million for the six months ended June 30. Senior Vice President, Chief Financial Officer and Treasurer Dan Hurstak said the increase reflected higher rates and customer growth, including a $13 million permanent rate award for Unitil’s New Hampshire electric subsidiary that took effect May 1. Performance-based rate adjustments in Fitchburg also supported electric margin. Gas adjusted gross margin increased 13.5% to $122.7 million in the first half. The increase included an $8.7 million contribution from Maine Natural Gas, $4.5 million from higher rates and customer growth, and $1.4 million from colder winter weather, Hurstak said. Unitil added approximately 6,600 gas customers compared with the first half of 2025, with most of those additions tied to the Maine Natural Gas acquisition. As of June 30, about 52% of the company’s gas customers were under decoupled rates, with Maine remaining its only non-decoupled gas service territory.

Operation and maintenance expenses increased $3.3 million in the first half, driven primarily by higher utility operating costs and labor and other expenses. The company said Maine Natural Gas accounted for $2.7 million of the utility operating-cost increase. Excluding the acquired business, operation and maintenance expenses rose $0.6 million, or slightly more than 1%, from the prior-year period.

New Hampshire Water Acquisition Closes Unitil completed its acquisition of Aquarion Water Company of New Hampshire and Abenaki Water Company on June 30 for a total purchase price of $55.8 million, including the assumption of $13.7 million in long-term debt. Meissner said the company entered into a five-year operating and transition services agreement with Aquarion Water Aut...