Essential Utilities, Inc. (WTRG)

Over the past six months, Essential Utilities, Inc. stock has been impacted by several events. In October 2025, an all-stock merger agreement with American Water Works, valued at approximately $63 billion, was announced and is anticipated to close in early 2027. The company reported strong financial results, with Q3 2025 and Q2 2025 earnings surpassing estimates. An ex-dividend reminder was issued in November 2025. The stock saw a rise over the past six months, but experienced a decline over the past 30 days and year as of late November 2025.

Demand for Essential Utilities' products and services exhibits seasonality. Water usage typically decreases during the winter months due to colder weather and reduced outdoor consumption. Conversely, demand for water services tends to increase during the summer, driven by higher temperatures and increased outdoor activities.

Essential Utilities, Inc. is a regulated utility holding company providing water, wastewater, and natural gas services. The company operates in the Utilities sector, focusing on water distribution, wastewater collection and treatment, and natural gas distribution. It also offers utility service line protection and repair services under the Aqua and Peoples brands.

Essential Utilities serves approximately 5.5 million people across nine states: Illinois, Indiana, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania, Texas, and Virginia. Its largest water service territory is in Pennsylvania, particularly in suburban Philadelphia, while its Peoples subsidiary provides natural gas services primarily in Pennsylvania and Kentucky.

Essential Utilities has maintained a positive brand reputation, being recognized by Newsweek as one of "America's Most Responsible Companies" for the fourth consecutive year in January 2025. The company improved its ranking significantly, reflecting its commitment to sustainable and ethical business practices. Key initiatives include a reduction in greenhouse gas emissions, consistent outperformance of U.S. water quality standards, and the modernization of gas pipelines. The company also demonstrated its community commitment by donating $5 million in 2024 to support various initiatives.

The ownership structure of Essential Utilities, Inc. is predominantly institutional, with these investors holding approximately 80-81% of the company's shares. Major institutional shareholders include BlackRock, Inc. and The Vanguard Group, Inc. Individual investors and the general public collectively own a smaller portion, around 19-20% of the stock. Insiders hold less than 1% of the company's shares.