UTL

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 9:00 a.m. ET Vice President of Finance and Regulatory - Christopher Goulding. Chairman and Chief Executive Officer - Tom Meissner. Senior Vice President, Chief Financial Officer and Treasurer - Daniel Hustak. President and Chief Administrative Officer - Bob Hevert. Chief Accounting Officer and Controller - Todd Diggins. Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day and thank you for standing by. Welcome to the Q2 2026 Unitil Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Chris Goulding, Vice President of Finance and Regulatory. Please go ahead. Christopher Goulding: Good afternoon, and thank you for joining us to discuss Unitil Corporation's second quarter 2026 financial results. Speaking on the call today will be Tom Meissner, Chairman and Chief Executive Officer, and Dan Hustak, Senior Vice President, Chief Financial Officer and Treasurer. Also with us today are Bob Hevert, President and Chief Administrative Officer; and Todd Diggins, Chief Accounting Officer and Controller. We will discuss financial and other information on this call. As we mentioned in the press release announcing today's call, we have posted information, including a presentation, to the Investor section of our website at unitil.com. We will refer to that information during this call. Moving to Slide 2, some of the statements made during this call may be forward-looking. These statements are based on management's current expectation and are subject to risk and uncertainty, which may cause the actual results to differ materially from forecasts and projections. We undertake no obligation to update or revise any of these statements. Additional information about the various factors that may cause actual results to differ and our explanation of non-GAAP measures and how they reconcile to GAAP measures is contained within our news release, the slides we posted for this call, and in our most recent Form 10-Q and 10-K. I will now turn the call over to Chairman and CEO, Tom Meissner. Tom Meissner: Great. Thanks, Chris. Good afternoon, everyone, and thanks for joining us today. Beginning on Slide 3, I'm pleased to report outstanding performance through the first half of the year, both operationally and financially. Yesterday, we announced another strong quarter with adjusted net income of $5.2 million, or $0.29 per share. For the first half of the year, adjusted net income was $39 million, or $2.17 per share, an increase of $0.14, or nearly 7% compared to the first 6 months of 2025. We are fully earning our authorized returns on a trailing 12-month basis with a GAAP return on equity of 9.6%. Given the strong results for the first half of the year, we are reaffirming our 2026 earnings guidance of $3.20 to $3.36 per share, with a midpoint of $3.28. We are also reaffirming our long-term earnings guidance of 5% to 7%. We have several positive business updates to share this quarter. As I'll cover in more detail on the following slide, the acquisition of the Aquarion Water Company of New Hampshire and Abenaki Water Company successfully closed on June 30. We're excited to add these 2 companies to our portfolio of regulated distribution utilities. Our regulatory agenda remains active, and I'm pleased to report that the 2 Northern Utilities rate cases in Maine and New Hampshire are progressing as expected. Dan will provide additional details about these rate cases later during the call. We pride ourselves on consistently delivering high-quality, reliable service to our customers, and recent customer survey results show that our customers continue to be highly satisfied with our service. Overall customer satisfaction remains high at 90%, which is slightly better than last year. Our overall customer satisfaction is the best among Northeast utilities and within the top quartile nationally. I'd also like to provide an update on our Advanced Metering Infrastructure, or AMI, project that will replace all of our electric meters. This new metering system incorporates state-of-the-art smart meters that can provide near real-time information to customers and enable improved decision-making in grid optimization. The rollout in Massachusetts was completed last year with 31,000 meters replaced at a total cost of approximately $10 million, which is currently being recovered in rates. In New Hampshire, we have already replaced 21,000 meters and expect to complete the remaining 59,000 meters by the end of 2027. Total cost for this project in New Hampshire is expected to be approximately $30 million, with a portion of that amount included in the company's next step adjustment. We believe this project will help us deliver the advanced functionality and level of service that our customers expect. Turning now to Slide 4, the acquisition of the 2 Aquarion New Hampshire water utilities closed on June 30 for a total purchase price of $55.8 million. This includes the assumption of $13.7 million of long-term debt. We purchased these companies at an attractive valuation, and this acquisition will strengthen our regulated utility portfolio. We entered into a 5-year operating and transition services agreement with the Aquarion Water Authority to ensure a seamless transition and integration. Similar to the purchase of the 2 gas companies in Maine last year, we initially financed this transaction with a holding company term loan. We anticipate the transaction will be earnings neutral in 2026 and accretive once new distribution rates take effect. We have also entered into a non-binding letter of intent with Eversource Energy to purchase the Massachusetts Aquarion Company, pending satisfaction of certain conditions, including the successful resolution of a base rate case proceeding. We're excited to welcome Aquarion's experienced, locally managed teams to Unitil, and we remain committed to delivering the same high-quality service that all of our customers expect. Moving now to Slide 5, natural gas continues to enjoy a significant price advantage relative to competing fuels like oil and propane. Fuel oil prices have remained substantially higher than natural gas for an extended period of time. As I mentioned before, Maine has the highest percentage of homes heated with fuel oil in the nation. Roughly 2/3 of Maine homes are heated with oil, propane, or kerosene, fuels that are much more expensive than natural gas. We believe natural gas conversions offer a compelling opportunity for customers to lower their energy costs while also helping states achieve their climate goals. Over the first half of the year, we've seen a 50% increase in customers calling to inquire about natural gas service compared to the same period last year. We currently have about 1,500 new customers under contract or in construction. In addition, we continue to see growth in adjusted margin across all of our natural gas companies compared to 2025. As a reminder, both Maine and New Hampshire have fuel choice statutes to preserve customers' rights to select their preferred energy source, including natural gas. With that, I'll now pass it over to Dan, who will provide greater detail on our financial results. Daniel Hurstak: Thank you, Tom, and good afternoon, everyone. I'll begin on Slide 6. As Tom mentioned, we announced second quarter 2026 adjusted net income of $5.2 million and adjusted earnings per share of $0.29. Through the first 6 months of the year, adjusted net income was approximately $39 million, or $2.17 per share, representing an increase of $5.9 million in adjusted net income, or $0.14 per share, compared to the same period in 2025. We are reporting adjusted earnings that exclude transaction costs related to our gas and water acquisitions, which we do not view as indicative of the company's ongoing costs and operations. The results for the first half of the year were supported by the earnings contribution from Bangor Natural Gas and Maine Natural Gas, in addition to higher distribution rates and customer growth, partially offset by higher operating expenses. Turning to Slide 7, I will discuss our electric and gas adjusted gross margins. I will begin with our electric operations. For the 6 months ended June 30, 2026, electric adjusted gross margin was $61.2 million, an increase of $7.9 million, or 14.8% as compared to the same period in 2025. The increase in electric adjusted gross margin was driven by higher rates and customer growth. Higher rates were supported by the permanent rate award for our New Hampshire electric subsidiary of $13 million, which took effect May 1, 2026. Electric margin was also supported by performance-based rate adjustments in Fitchburg. As noted during prior calls, all our electric customers are under decoupled rates, which eliminates the dependency of distribution revenue on the volume of electricity sales. Moving to gas operations, for the 6 months ended June 30, 2026, gas adjusted gross margin was $122.7 million, an increase of $14.6 million, or approximately 13.5% compared to the same period in 2025. The increase in gas adjusted gross margin reflects the contribution from Maine Natural Gas of $8.7 million, higher rates and customer growth of $4.5 million, and colder winter weather of $1.4 million. The company added approximately 6,600 new gas customers compared to the same period in 2025, with the majority of these new customers being attributable to the acquisition of Maine Natural Gas. As of June 30, 2026, approximately 52% of the company's gas customers were under decoupled rates, with Maine representing our only non-decoupled service area. Moving to Slide 8, we provide an earnings bridge comparing the results for the first 6 months of 2026 to the same period in 2025. As I just discussed, the combined adjusted gross margin for our electric and gas divisions increased $22.5 million and reflects the contribution of Maine Natural Gas, higher rates, colder winter weather, and customer growth. Operation and maintenance expenses increased $3.3 million due to higher utility operating costs of $2.6 million and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. The increase includes $2.7 million of utility operating costs for Maine Natural Gas. Excluding Maine Natural Gas, operation and maintenance expenses increased $0.6 million, or just above 1%, compared to the first half of 2025, which is well below the increase in inflation over the same period. The increases in depreciation and amortization expense and taxes other than income taxes primarily reflect higher levels of utility plant in service as well as the inclusion of expenses associated with Maine Natural Gas in 2026. Moving to Slide 9, as Tom noted earlier during the call, our Northern Utilities rate cases are progressing as expected in both New Hampshire and Maine. Starting with New Hampshire, on April 1, we filed for a permanent rate increase of $9.8 million, and on June 1, temporary rates of $5.5 million took effect. We have proposed a multi-year rate plan with 2 step adjustments to recover all 2026 and 2027 system investments. The rate proposal also includes the continuation of revenue decoupling, but similar to our New Hampshire electric company, we have proposed a decoupling methodology change from a revenue per customer model to a total authorized revenue target. We are currently participating in technical sessions, and intervenor testimony is due in November. Settlement conferences are currently scheduled for early 2027, with permanent rates expected to go into effect on April 1, 2027. Turning to the Northern Utilities Maine division. We filed our rate case on June 1 for a proposed revenue increase of $10.4 million. The Maine revenue requirement is based on a historical test year with adjustments to forecast rate-based revenues and expenses through the rate-effective year. This approach is designed to reduce earnings attrition and is consistent with the revenue requirement approved in the company's previous Maine rate case. We are currently participating in technical conferences and intervenor testimony is expected by the end of this month. We look forward to working with all stakeholders in these rate proceedings, and we'll provide additional updates on future calls. Turning to Slide 10, our current 5-year capital investment plan through 2030 totals approximately $1.2 billion, which is an increase of 24% over the previous 5-year plan. This plan includes approximately $65 million in total for Bangor Natural Gas and Maine Natural Gas and approximately $33 million for the New Hampshire Water companies. Rate base has increased by $200 million, or 14.9%, compared to the same period in 2025, partly due to the additions of Maine Natural Gas and the New Hampshire water companies. Over the past 5 years, rate base growth has averaged 9.5%, which is above our long-term rate base growth rate range of 6.5% to 8.5%. Moving to Slide 11, we continue to prudently manage our balance sheet by maintaining a balanced mix of common equity and long-term debt to support our investment-grade credit ratings. The primary source of funding for our 5-year investment plan is cash flow from operations supplemented by long-term debt and equity. Our financial profile remains strong and balance sheet strength continues to be a top priority. Our most recent FFO-to-debt metric, as adjusted by S&P, was 17.2%, squarely in the middle of our long-term target and well above our downgrade thresholds. During the second quarter, we issued approximately $11 million of equity under our ATM program. At the end of the second quarter, we had approximately $37.5 million of available capacity under that program. In June, we priced $60 million of holding company senior notes and expect that transaction to close in September. Proceeds from this issuance will be used to repay existing holding company debt and for general corporate purposes. After this debt issuance, holding company debt compared to total debt will continue to be in line with rating agency expectations. I will now turn the call back over to Tom. Tom Meissner: Thank you, Dan. Ending on Slide 13. The company's strong results through the first 6 months of the year reflects disciplined execution of our operating and strategic priorities and our longstanding commitment to delivering safe, reliable, and affordable service to our customers. The addition of the New Hampshire Water Companies marks another important milestone, expanding our regulated utility portfolio while remaining firmly focused on our existing states and jurisdictions. As we continue to grow, we remain committed to strategic execution of our plan and the delivery of exceptional value to our customers and stakeholders. With that, I'll pass the call back to Chris. Christopher Goulding: Thanks, Tom. That wraps up the prepared material for this call. Thank you for attending. I will now turn the call over to the operator who will coordinate questions. Operator: [Operator Instructions] And I show our first question comes from the line of Andrew Weisel from Scotiabank. Please go ahead. Andrew Weisel: So my first question on Aquarion, you've talked about it being neutral to EPS, at least in the near term pending help from rate cases. I believe that comment was mostly on the assumption that you get both New Hampshire and Massachusetts, but so far only New Hampshire is closed. Does that affect the earnings accretion outlook? Obviously, it's smaller, but does that help or hurt? And am I right that the increased CapEx outlook is to reflect spending at Aquarion in New Hampshire? Any thoughts on the outlook for that business? Daniel Hurstak: Andrew, you're correct. The amount of incremental CapEx that we referenced in the slides only relates to the New Hampshire Aquarion Companies. And just based on the New Hampshire Aquarion Companies results for the rest of the year, we would expect the earnings contribution from those companies to be neutral to consolidated EPS. That would be after we consider the effects of financing the transaction. Andrew Weisel: Okay, great. And then how are things looking in Massachusetts? Any thought on -- any updates on where we stand, next steps, and maybe thoughts on your level of confidence? Daniel Hurstak: Yes. I think the next steps are for -- we understand that Eversource Energy will file a rate case to address the 2 conditions in the previous approval order from the department that were unacceptable to the parties, one being a stay-out, which would obviously be addressed by the filing of a rate case. And the second would be dealing with the gain on the sale of the Hingham assets as part of that proceeding. Andrew Weisel: Okay, and then looking forward, this has been a pretty drawn-out regulatory process. Does this change at all your risk appetite for additional acquisitions? Tom Meissner: This is Tom. I would say no. We're still interested in further expansion of our footprint to the extent that it fits within our existing business model. Andrew Weisel: Okay, very good. One more if I could, switching gears to natural gas conversions. Obviously, as you show in the slides there, oil prices have been staying at these higher levels probably longer than I might have expected and maybe some others. You mentioned a big increase in customer inbounds. How is that changing the conversations maybe with regulators? Obviously, you've had the political support like you mentioned. Are you maybe at a point where you might just start to think of this as more of a structural change and maybe more sustainable higher levels of earnings and growth that you might build into your budgets? Tom Meissner: Well, I guess I'll start by saying I think the price advantage we have relative to other fuels I think that's going to stay. It's going to be sustained over the long term, even if it narrows somewhat. And therefore, we do think that natural gas provides a tremendous opportunity to address affordability, especially in Maine, where there's the greatest opportunity due to penetration of alternative fuels. I think that's already generally recognized with our regulators. And from our standpoint, we see this as an opportunity to continue to expand growth, especially in Maine. Operator: [Operator Instructions] I'm showing no further questions in the queue at this time. This concludes our Q&A session and today's conference call. Thank you all for attending. You may all disconnect at this time. Before you buy stock in Unitil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Unitil wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Unitil (UTL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Unitil Corporation? Here are five stocks we like better. 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%. → No Hangover: Revisiting Microsoft One Week After Earnings The company said its adjusted results exclude transaction costs associated with its gas and water acquisitions, which it does not consider representative of ongoing operations. 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. → MarketBeat Week in Review – 08/03 - 08/07 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. → Why the Landlord of the AI Boom Could Outlast the Chipmakers 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. 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 Authority to support the integration. Management expects the New Hampshire water acquisition to be neutral to consolidated earnings per share in 2026 after considering transaction financing, Hurstak said in response to an analyst question. Unitil expects the acquisition to become accretive after new distribution rates take effect. The company has also entered into a non-binding letter of intent with Eversource Energy to purchase Aquarion’s Massachusetts operations, subject to certain conditions, including resolution of a base rate case. Hurstak said Eversource is expected to file a rate case addressing conditions in an earlier regulatory approval order, including a stay-out provision and treatment of gains from the sale of Hingham assets. Meissner said the lengthy Massachusetts regulatory process had not changed Unitil’s interest in potential additional acquisitions that fit its existing business model. Unitil said rate cases for its Northern Utilities gas operations in New Hampshire and Maine are progressing as expected. In New Hampshire, the company filed in April for a permanent $9.8 million rate increase, while temporary rates providing a $5.5 million increase took effect June 1. Unitil has proposed a multiyear plan with two step adjustments intended to recover 2026 and 2027 system investments. Permanent New Hampshire rates are expected to take effect April 1, 2027, following technical sessions, intervener testimony and settlement discussions, according to the company. In Maine, Northern Utilities filed on June 1 for a proposed $10.4 million revenue increase. Unitil said the filing uses a historical test year with adjustments for forecast rate base, revenue and expenses through the rate-effective year, an approach intended to reduce earnings attrition. The company’s five-year capital investment plan through 2030 totals approximately $1.2 billion, up 24% from its prior five-year plan. The plan includes about $65 million for Bangor Natural Gas and Maine Natural Gas, along with approximately $33 million for the New Hampshire water companies. Unitil said rate base increased $200 million, or 14.9%, from the same period in 2025, partly reflecting the Maine Natural Gas and New Hampshire water acquisitions. Over the past five years, rate base growth averaged 9.5%, above the company’s long-term target range of 6.5% to 8.5%. Meissner said natural gas continues to hold a price advantage over fuel oil and propane, particularly in Maine, where roughly two-thirds of homes use oil, propane or kerosene for heating. Unitil reported a 50% increase in customer inquiries about natural gas service during the first half compared with the prior-year period. The company has approximately 1,500 prospective new customers under contract or in construction. Meissner said management believes the cost advantage of natural gas relative to competing fuels is likely to persist over the long term, even if the pricing gap narrows, supporting an opportunity for continued growth in Maine. To fund its investment program, Unitil said it plans to rely primarily on cash flow from operations, supplemented by long-term debt and equity. The company issued approximately $11 million of equity through its at-the-market program during the second quarter and had about $37.5 million of remaining capacity as of quarter-end. It also priced $60 million of holding-company senior notes in June, with closing expected in September. Unitil Corporation (NYSE: UTL) is a publicly traded energy delivery company that provides regulated electric and natural gas distribution services. The company delivers energy to residential, commercial and industrial customers through a network of distribution systems, offering safe and reliable service across its service areas. Unitil's operations include system maintenance, emergency response, meter reading and customer support functions, all governed by state regulatory commissions. Headquartered in Hampton, New Hampshire, Unitil serves communities in New Hampshire, Massachusetts and Maine. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Unitil Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Adjusted Net Income (Q2 2026): $5.2 million, or $0.29 per share. Adjusted Net Income (H1 2026): Approximately $39 million, or $2.17 per share, an increase of $5.9 million, or $0.14 per share, compared to H1 2025. GAAP Return on Equity: 9.6% on a trailing 12-month basis. 2026 Earnings Guidance: Reaffirmed at $3.20 to $3.36 per share, with a midpoint of $3.28. Electric Adjusted Gross Margin (H1 2026): $61.2 million, an increase of $7.9 million, or 14.8%, compared to H1 2025. Gas Adjusted Gross Margin (H1 2026): $122.7 million, an increase of $14.6 million, or approximately 13.5%, compared to H1 2025. Operation and Maintenance Expenses: Increased $3.3 million in H1 2026, driven by higher utility operating costs and labor, partially offset by lower acquisition costs. Rate Base Growth: Increased by $200 million, or 14.9%, compared to the same period in 2025. FFO-to-Debt Metric: Adjusted by S&P at 17.2%. Equity Issuance: Approximately $11 million issued under ATM program in Q2 2026. Customer Growth: Added approximately 6,600 new gas customers compared to the same period in 2025. Warning! GuruFocus has detected 6 Warning Signs with UTL. Is UTL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EPS for the first half of 2026 increased by 7% to $2.17 per share, driven by strong operational and financial performance. The acquisition of Aquarion Water Company of New Hampshire and Abenaki Water Company closed on June 30, expanding the regulated utility portfolio at an attractive valuation. Natural gas conversions are surging, with a 50% increase in customer inquiries and 1,500 new customers under contract, supported by a significant price advantage over oil and propane. Electric and gas adjusted gross margins grew by 14.8% and 13.5%, respectively, in the first half of 2026, reflecting higher rates, customer growth, and colder winter weather. The company reaffirmed its 2026 earnings guidance of $3.20-$3.36 per share and long-term growth of 5%-7%, with a strong balance sheet and FFO-to-debt ratio of 17.2%. The Massachusetts Aquarion acquisition remains pending, subject to regulatory conditions, including a base rate case, which could delay or jeopardize the deal. Operation and maintenance expenses increased by $3.3 million in the first half of 2026, driven by higher utility operating costs and labor expenses, partially offset by lower acquisition costs. The company faces ongoing regulatory uncertainty with rate cases in New Hampshire and Maine, with permanent rates not expected until 2027, potentially impacting near-term earnings. The New Hampshire water acquisition is expected to be earnings neutral in 2026, providing no immediate EPS contribution until new rates are implemented. Higher depreciation and amortization expenses, along with increased taxes, reflect higher utility plant in service, which could pressure margins if rate recovery lags. Q: Regarding the Aquarion acquisition, you previously indicated it would be neutral to EPS pending rate cases, assuming both New Hampshire and Massachusetts deals closed. Since only New Hampshire has closed, does this affect the earnings accretion outlook, and does the increased CapEx outlook reflect spending at Aquarion in New Hampshire?A: Daniel Hurstak, CFO, confirmed that the incremental CapEx referenced in the slides relates only to the New Hampshire Aquarion Companies. Based on their results for the rest of the year, the earnings contribution from these companies is expected to be neutral to consolidated EPS, after considering the effects of financing the transaction. Q: What are the next steps and your level of confidence regarding the Massachusetts Aquarion acquisition?A: Daniel Hurstak, CFO, explained that Eversource Energy will file a rate case to address the two conditions in the previous approval order that were unacceptable to the parties. This includes a stay-out provision, which would be addressed by the rate case filing, and dealing with the gain on the sale of the Hingham assets as part of that proceeding. Q: Given the drawn-out regulatory process for the Massachusetts acquisition, does this change your risk appetite for additional acquisitions?A: Thomas Meissner, Chairman and CEO, stated that the company remains interested in further expansion of its footprint to the extent that it fits within its existing business model, indicating no change in risk appetite. Q: With oil prices staying at higher levels, you mentioned a significant increase in customer inquiries about natural gas conversions. How is this changing the conversation with regulators, and could this lead to more sustainable higher levels of earnings and growth built into your budgets?A: Thomas Meissner, Chairman and CEO, stated that the price advantage of natural gas relative to other fuels is expected to be sustained over the long term, even if it narrows. He noted that this provides a tremendous opportunity to address affordability, especially in Maine, and that this is already generally recognized by regulators. The company sees this as an opportunity to continue expanding growth, particularly in Maine. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance growth was primarily driven by the integration of Maine Natural Gas and Bangor Natural Gas, alongside higher distribution rates and steady customer expansion. The acquisition of Aquarion Water Company of New Hampshire and Abenaki Water Company closed on June 30, marking a strategic entry into the regulated water utility sector. Management attributes a 50% increase in natural gas service inquiries to the sustained price advantage of gas over fuel oil and propane, particularly in Maine where oil heating remains prevalent. Operational efficiency remains a focus, with O&M expenses excluding new acquisitions rising just above 1%, significantly trailing the rate of inflation. The Advanced Metering Infrastructure (AMI) rollout is progressing as a key grid optimization driver, with Massachusetts completed and New Hampshire expected to finish by 2027. Customer satisfaction reached 90%, which management views as a critical indicator of service quality and a top-quartile performance metric nationally. Management reaffirmed 2026 EPS guidance of $3.20 to $3.36, assuming the New Hampshire water acquisition remains earnings neutral until new distribution rates take effect. The 5-year capital investment plan was increased by 24% to $1.2 billion, reflecting incremental spending requirements for newly acquired gas and water assets. Regulatory proceedings for Northern Utilities in Maine and New Hampshire are utilizing historical test years and step adjustments to mitigate earnings attrition from system investments. A non-binding letter of intent for the Massachusetts Aquarion assets remains active, contingent on the resolution of a base rate case and specific regulatory conditions. Long-term earnings growth guidance of 5% to 7% is supported by a projected rate base growth range of 6.5% to 8.5% through 2030. The company issued $11 million in equity via its ATM program to maintain a balanced capital structure and support investment-grade credit ratings. A 5-year operating and transition services agreement was established with Aquarion Water Authority to mitigate integration risks during the ownership transfer. Management highlighted fuel choice statutes in Maine and New Hampshire as critical regulatory protections for the company's natural gas growth strategy. Adjusted earnings figures explicitly exclude transaction costs from gas and water acquisitions to provide a clearer view of ongoing operational costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the New Hampshire water acquisition is expected to be earnings neutral for the remainder of 2026 after accounting for financing costs. The updated capital expenditure forecast specifically includes $33 million for the New Hampshire water companies. The transaction is pending a new rate case filing by Eversource to address regulatory concerns regarding a stay-out provision and the treatment of asset sale gains. Management indicated that the prolonged regulatory process has not diminished their appetite for further strategic acquisitions within their existing footprint. Management believes the price advantage of natural gas over alternative fuels is a long-term structural trend that will continue to drive growth, particularly in Maine. The company views natural gas as a key tool for addressing energy affordability while simultaneously helping states meet climate goals through fuel switching.

Successfully completed the purchase of Aquarion Water Company of New Hampshire, Inc. and Abenaki Water Co., Inc. HAMPTON, N.H., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Unitil Corporation (NYSE: UTL) (unitil.com) (Unitil or the Company) today announced Net Income of $4.7 million, or $0.26 in Earnings Per Share (EPS) for the second quarter of 2026, an increase of $0.7 million in Net Income, or $0.01 in EPS, compared to the second quarter of 2025. For the six months ended June 30, 2026, the Company reported Net Income of $37.9 million, or $2.11 in EPS, an increase of $6.4 million in Net Income, or $0.17 in EPS, when compared to the first six months of 2025. The Company's Adjusted Net Income (a non-GAAP financial measure1), which excluded transaction-related costs in connection with the acquisition of Bangor Natural Gas Company (Bangor), Maine Natural Gas Company (Maine Natural), Aquarion Water Company of New Hampshire, Inc., and Abenaki Water Co., Inc. (the Aquarion Companies), was $5.2 million, or $0.29 in EPS. Adjusted Net Income increased $0.5 million and was unchanged in EPS when compared to the second quarter of 2025. For the six months ended June 30, 2026, the Company's Adjusted Net Income, which excluded transaction-related costs in connection with the acquisition of Bangor, Maine Natural and the Aquarion Companies, was $39.0 million, or $2.17 in EPS, an increase of $5.9 million, or $0.14 in EPS compared to the first six months of 2025. “The Company’s solid results through the first six months of 2026 reflect the disciplined execution of our operating and strategic priorities, and our longstanding commitment to delivering safe, reliable, and affordable service to our customers,” said Thomas P. Meissner, Jr., Unitil’s Chairman and Chief Executive Officer. “The addition of the Aquarion New Hampshire water companies marks another important milestone, strengthening our regulated utility portfolio and expanding our ability to serve customers across the region. As we continue to grow, we remain focused on strategic execution and delivering exceptional value to our customers.” Electric GAAP Gross Margin was $23.0 million in the three months ended June 30, 2026, an increase of $5.0 million compared to the same period in 2025. Electric GAAP Gross Margin was $44.3 million in the six months ended June 30, 2026, an increase of $6.7 million compared to the same period in 2025. The three-month period increase was driven by higher rates and customer growth of $5.8 million, partially offset by higher depreciation and amortization expense of $0.8 million. The six-month period increase was driven by higher rates of $8.6 million, partially offset by higher depreciation and amortization expense of $1.2 million and a one-time reduction of FERC transmission revenue of $0.7 million. ________________________ 1 The accompanying Supplemental Information more fully describes the non-GAAP financial measures used in this press release and includes a reconciliation of the non-GAAP financial measures to the financial measures that the Company’s management believes are the most comparable GAAP financial measures. The Supplemental Information also includes a discussion of the changes in the most comparable GAAP financial measures for the periods presented.________________________ Electric Adjusted Gross Margin (a non-GAAP financial measure1) was $31.6 million and $61.2 million in the three and six months ended June 30, 2026, respectively, increases of $5.8 million and $7.9 million, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher rates and customer growth of $5.8 million. The increase in the six-month period reflects higher rates of $8.6 million, partially offset by a one-time reduction of FERC transmission revenue of $0.7 million. Gas GAAP Gross Margin was $25.0 million in the three months ended June 30, 2026, an increase of $1.8 million compared to the same period in 2025. Gas GAAP Gross Margin was $92.1 million in the six months ended June 30, 2026, an increase of $11.8 million compared to the same period in 2025. The increase in the three-month period was driven by higher rates and customer growth of $3.4 million, partially offset by higher depreciation and amortization of $1.6 million. The increase in the six-month period was driven by higher rates and customer growth of $13.2 million, the favorable effects of colder winter weather in 2026 of $1.4 million, partially offset by higher depreciation and amortization of $2.8 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended June 30, 2026 was $4.2 million, $1.5 million and $0.8 million, respectively, related to Maine Natural. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the six months ended June 30, 2026 was $22.5 million, $13.8 million and $1.5 million, respectively related to Maine Natural. Gas Adjusted Gross Margin (a non-GAAP financial measure1) was $40.6 million and $122.7 million in the three and six months ended June 30, 2026, respectively, increases of $3.4 million and $14.6 million, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher rates and customer growth of $3.4 million. The increase in the six-month period was driven by higher rates and customer growth of $13.2 million and the favorable effects of colder winter weather in 2026 of $1.4 million. Included in the Gas Adjusted Gross Margin for the three and six months ended June 30, 2026 was $2.7 million and $8.7 million, respectively, related to Maine Natural. Operation and Maintenance expenses increased $2.5 million and $3.3 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher utility operating costs of $1.6 million, and higher labor and other costs of $1.4 million, partially offset by lower acquisition costs of $0.5 million. The increase in the six-month period reflects higher utility operating costs of $2.6 million, and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. Included in O&M expenses for the three and six months ended June 30, 2026 were $1.4 million and $2.7 million, respectively, related to Maine Natural. Excluding O&M expenses for Maine Natural and transaction costs, O&M expenses for legacy operations would have increased by $1.6 million and $1.4 million for the three and six months ended June 30, 2026, respectively. Depreciation and Amortization expense increased $2.4 million and $4.0 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the six-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and six months ended June 30, 2026 was $0.8 million and $1.5 million, respectively, related to Maine Natural. Taxes Other Than Income Taxes increased $2.2 million and $3.4 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. These increases reflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and six months ended June 30, 2026 were $0.4 million and $0.8 million, respectively, related to Maine Natural. Other Expense (Income), Net decreased $0.1 million and $0.2 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily from lower retirement benefit costs. Interest Expense, Net increased $1.1 million and $2.8 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense on regulatory liabilities. Provision for Income Taxes increased $0.4 million and $2.8 million in the three and six months ended June 30, 2026, respectively, compared with the same periods in 2025, reflecting higher pre-tax earnings in 2026. At its January 2026, April 2026 and July 2026 meetings, the Unitil Corporation Board of Directors declared quarterly dividends on the Company’s common stock of $0.475 per share. These quarterly dividends result in a current effective annualized dividend rate of $1.90 per share, representing an unbroken record of quarterly dividend payments since trading began in Unitil’s common stock. The Company’s earnings are seasonal and are typically higher in the first and fourth quarters when customers use natural gas for heating purposes. The Company will hold a quarterly conference call to discuss second quarter 2026 results on Tuesday, August 4, 2026, at 2:00 p.m. Eastern Time. This call is being webcast. This call, financial and other statistical information contained in the Company’s presentation on this call, and information required by Regulation G regarding non-GAAP financial measures can be accessed in the Investor Relations section of Unitil’s website, unitil.com. About Unitil Corporation Unitil Corporation provides energy for life by safely and reliably delivering electricity, natural gas, and water in New England. We are committed to the communities we serve and to developing people, business practices, and technologies that lead to the dependable, efficient delivery of energy and water. Unitil Corporation is a public utility holding company with operations in New Hampshire, Maine, and Massachusetts. Unitil’s operating utilities serve approximately 110,100 electric customers, 105,000 natural gas customers, and 10,700 water customers. For more information about our people, technologies, and community involvement, please visit unitil.com. Forward-Looking Statements This press release may contain forward-looking statements. All statements, other than statements of historical fact, included in this press release are forward-looking statements. Forward-looking statements include declarations regarding Unitil’s beliefs and current expectations. These forward-looking statements are subject to the inherent risks and uncertainties in predicting future results and conditions that could cause the actual results to differ materially from those projected in these forward-looking statements. Some, but not all, of the risks and uncertainties include the following: hazards and operating risks relating to the Company’s electric, natural gas and water distribution activities; fluctuations in the supply of, the demand for, and the prices of, energy commodities and transmission and transportation capacity and Unitil’s ability to recover energy commodity costs in its rates; catastrophic events; cyber-attacks, acts of terrorism, acts of war, severe weather, a solar event, an electromagnetic event, a natural disaster, the age and condition of information technology assets, human error, or other factors could disrupt the Company’s operations; outsourcing of services to third parties could expose the Company to substandard quality of service delivery or substandard deliverables; unforeseen or changing circumstances, which could adversely affect the reduction of company-wide direct greenhouse gas emissions; Unitil’s regulatory environment (including regulations relating to climate change, water quality, greenhouse gas emissions, environmental matters, and infrastructure requirements); general economic conditions; the Company’s ability to obtain debt or equity financing on acceptable terms; increases in interest rates; the Company's payment of dividends in the future; declines in capital market valuations; the Company's ability to consummate acquisitions or other strategic transactions; ability to integrate the Aquarion Companies and achieve expected synergies and cost savings; impairment of the Company's assets; restrictive covenants contained in the terms of the Company’s and its subsidiaries’ indebtedness; customers’ preferred energy sources; severe storms and Unitil’s ability to recover storm costs in its rates; variations in weather; long-term global climate change; water quality and contamination risks, including liability for contaminants such as PFAS and compliance with water quality standards; the availability and cost of water supply, including risks related to drought, aquifer conditions, and water rights; the age and condition of water infrastructure and the cost of necessary repairs, replacements, and capital improvements; customer rate sensitivity and regulatory limitations on rate recovery; macroeconomic events, including the imposition of tariffs; employee workforce factors, including the ability to attract and retain key personnel; Unitil’s ability to retain its existing customers and attract new customers; increased competition; and other presently unknown or unforeseen factors. Other risks are detailed in Unitil's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date they are made. Unitil undertakes no obligation, and does not intend, to update these forward-looking statements except as required by law. For more information please contact: Supplemental Information; Non-GAAP Financial Measures The Company's earnings discussion includes Adjusted Net Income, a non-GAAP financial measure referencing the Company’s 2026 and 2025 GAAP Net Income adjusted for certain transaction costs related to the Company's acquisitions of Bangor, Maine Natural and the Aquarion Companies. The Company's management believes that the transaction costs related to the acquisitions of Bangor, Maine Natural and the Aquarion Companies, which are included in Operation and Maintenance expense on the Consolidated Statements of Earnings, are not indicative of the Company's ongoing costs and not directly related to the ongoing operations of the business and therefore are not an indicator of baseline operating performance. In the following tables the Company has reconciled Adjusted Net Income to GAAP Net Income, which we believe to be the most comparable GAAP financial measure. The Company analyzes operating results using Electric and Gas Adjusted Gross Margins, which are non-GAAP financial measures. Electric Adjusted Gross Margin is calculated as Total Electric Operating Revenue less Cost of Electric Sales. Gas Adjusted Gross Margin is calculated as Total Gas Operating Revenues less Cost of Gas Sales. The Company’s management believes Electric and Gas Adjusted Gross Margins provide useful information to investors regarding profitability. Also, the Company’s management believes Electric and Gas Adjusted Gross Margins are important financial measures to analyze revenue from the Company’s ongoing operations because the approved cost of electric and gas sales are tracked, reconciled and passed through directly to customers in electric and gas tariff rates, resulting in an equal and offsetting amount reflected in Total Electric and Gas Operating Revenue. In the following tables the Company has reconciled Electric and Gas Adjusted Gross Margin to GAAP Gross Margin, which we believe to be the most comparable GAAP financial measure. GAAP Gross Margin is calculated as Revenue less Cost of Sales and Depreciation and Amortization. The Company calculates Electric and Gas Adjusted Gross Margin as Revenue less Cost of Sales. The Company believes excluding Depreciation and Amortization, which are period costs and not related to volumetric sales, is a meaningful measure to inform investors of the Company’s profitability from electric and gas sales in the period. Selected financial data for 2026 and 2025 is presented in the following table:

The recent earnings posted by Unitil Corporation (NYSE:UTL) were solid, but the stock didn't move as much as we expected. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. Unitil expanded the number of shares on issue by 11% over the last year. That means its earnings are split among a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out Unitil's historical EPS growth by clicking on this link. Unitil has improved its profit over the last three years, with an annualized gain of 26% in that time. And over the last 12 months, the company grew its profit by 18%. On the other hand, earnings per share are only up 10% in that time. So you can see that the dilution has had a bit of an impact on shareholders. In the long term, earnings per share growth should beget share price growth. So it will certainly be a positive for shareholders if Unitil can grow EPS persistently. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unitil shareholders should keep in mind how many new shares it is issuing, because, dilution clearly has the power to severely impact shareholder returns. Because of this, we think that it may be that Unitil's statutory profits are better than its underlying earnings power. Nonetheless, it's still worth noting that its earnings per share have grown at 17% over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Unitil, you'd also look into what risks it is currently facing. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Unitil. This note has only looked at a single factor that sheds light on the nature of Unitil's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.