Essential Utilities Inc (NYSE:WTRG) stock fell 2.95% (As on May 13, 11:22:16 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings that surpassed analyst expectations. Essential Utilities invested $270.5 million in infrastructure improvements during the first quarter and remains on track to invest between $1.4 billion and $1.5 billion in 2025. The company plans to invest approximately $7.8 billion from 2025 through 2029 to upgrade water, wastewater and natural gas systems. Essential reported net income of $283.8 million for the first quarter of 2025, compared to net income of $265.8 million for the same period in 2024.

Moreover, Essential’s regulated water segment reported revenues for the quarter of $300.8 million, an increase of 7.5% compared to $279.9 million in the first quarter of 2024. Rates and surcharges were the largest contributor to the increase in revenues for the period. Essential’s regulated natural gas segment reported revenues for the quarter of $470.8 million, compared to $324.3 million in the first quarter of 2024, driven primarily by an increase in purchased gas costs and the impact of higher volumes delivered due to colder weather conditions during the first quarter of 2025 as compared to 2024.

Furthermore, as of May 9, 2025, the company’s regulated water segment received rate awards or infrastructure surcharges in Pennsylvania, North Carolina and Ohio, of $89.6 million, and its regulated natural gas segment received rate awards or infrastructure surcharges in Kentucky of $0.5 million. The company currently has a base rate case pending in Kentucky for its regulated natural gas segment for an estimated $10.9 million in incremental annual revenues. In addition, the company has a base rate case pending in North Carolina for its regulated water and wastewater segment for an estimated $45 million in incremental annual revenues.

WTRG in the first quarter of FY25 has reported the adjusted earnings per share of $1.03, beating the analysts’ estimates for the adjusted earnings per share of 80 cents, according to the Zacks Consensus Estimate. Comparing this quarter’s earnings to those of first quarter of 2024, increased revenues from regulatory recoveries, higher regulated natural gas segment volumes, and lower expenses, and a higher tax benefit were partially offset by a prior year gain on the sale of the combined-heat-and-power business valued at 24 cents per share. The company had reported the adjusted revenue growth of 28 percent to $784 million in the first quarter of FY25, beating the analysts’ estimates for revenue of $691 million.