Unitil reported adjusted earnings of $0.62 per share for the third quarter of 2026, beating analysts’ forecast of a $0.06-per-share loss. Revenue was $88.5 million, below the $117.49 million forecast, leaving the utility with mixed quarterly results. Its shares were last down 2.81% at $54.86, compared with a previous close of $56.44.
For the first nine months of 2026, adjusted net income rose by $4.8 million from the same period a year earlier to $38.3 million, or $2.12 per share. The company attributed the increase to improved electric and gas margins and growth from recently acquired businesses.
Electric adjusted gross margin increased 11.1% to $96 million, while gas adjusted gross margin rose 12.8% to $151.9 million. Unitil said the gas margin improvement reflected rate increases, customer growth and colder weather. The company added about 6,500 gas customers during the first nine months, mostly through its Maine Natural Gas acquisition, and nearly 11,000 water customers through its New Hampshire acquisitions.
Unitil said its rate base grew 14.9% year over year, supported by the Maine Natural Gas and Aquarion New Hampshire transactions. The company has also been investing in grid modernization and gas infrastructure. Operating and maintenance expenses increased by $8.2 million, including higher utility operating costs and labor.
Chief Executive Officer Tom Meissner said the New Hampshire water-company acquisitions had transitioned smoothly, while the integration of Maine Natural Gas was completed the week before the call. Chief Financial Officer Dan Hurstak said the term loans used to finance the acquisitions had been repaid and permanent financing was in place.
Management reaffirmed its full-year 2026 adjusted earnings guidance of $3.20 to $3.36 per share, with a midpoint of $3.28, and its long-term earnings growth target of 5% to 7%. Unitil’s five-year investment plan through 2030 totals about $1.2 billion, 24% higher than its previous plan.
The company said its Northern Utilities gas rate cases are progressing in Maine and New Hampshire. It is seeking a permanent $9.8 million increase in New Hampshire, where temporary rates of $5.5 million took effect on June 1, and has filed for a $10.4 million increase in Maine.
Unitil also has a non-binding letter of intent with Eversource Energy to purchase Aquarion Water Company of Massachusetts. The proposed transaction depends on the outcome of a Massachusetts base-rate case expected to be filed around or after mid-November 2026.
No analyst questions were taken during the call.
Sources: Investing.com News.