Unitil NYSE: UTL reported adjusted net income of $38.3 million, or $2.12 per share, for the first nine months of 2026, up $4.8 million, or $0.09 per share, from the same period a year earlier. The company said the increase reflected contributions from recently acquired utilities, higher distribution rates, customer growth and colder winter weather, partly offset by higher operating expenses.
Chairman and Chief Executive Officer Tom Meissner said Unitil remains on track to meet its 2026 adjusted earnings guidance of $3.20 to $3.36 per share, with a midpoint of $3.28. The company also reaffirmed its long-term earnings growth target of 5% to 7%.
Acquisitions Expand Water and Gas Operations
Unitil closed its acquisitions of Aquarion Water Company of New Hampshire and Abenaki Water Company on June 30, adding nearly 11,000 customers. Meissner said the water acquisitions were completed at an approximately 1.2-times rate-base multiple and are expected to be earnings-neutral in 2026.
The company entered a five-year operating and transition services agreement with the Aquarion Water Authority and expects to assume responsibility for most operating and corporate services before that agreement expires. The acquired Aquarion New Hampshire companies contributed $3.1 million in operating revenue during the first nine months of 2026.
Unitil also completed the integration of Maine Natural Gas during October and ended remaining transition services. Maine Natural Gas contributed $10.5 million in gas adjusted gross margin during the first nine months of the year.
Separately, Unitil has a non-binding letter of intent with Eversource Energy to acquire Aquarion Water Company of Massachusetts. Meissner said that transaction could move forward after a Massachusetts base-rate case is concluded. The case is expected to be filed around or after mid-November, potentially leading to a final order in the second half of 2027.
Margins Rise on Rates, Acquisitions and Customer Growth
Electric adjusted gross margin increased 11.1% to $96 million for the first nine months of 2026. Senior Vice President, Chief Financial Officer and Treasurer Dan Hurstak said higher rates added $10.3 million, partially offset by a $0.7 million non-recurring reduction in FERC transmission revenue.
The higher electric rates included the impact of a $13 million permanent rate award for Unitil Energy Systems that took effect May 1, as well as a Fitchburg performance-based rate adjustment and higher capital tracker revenue. Unitil said all of its electric customers are under decoupled rates, removing the dependence of distribution revenue on electricity sales volumes.
Gas adjusted gross margin rose 12.8% to $151.9 million. The increase included $15.8 million from higher rates and customer growth, plus $1.4 million from colder winter weather. The company added approximately 6,500 gas customers from the prior-year period, primarily due to the Maine Natural Gas acquisition. About 52% of Unitil’s gas customers were under decoupled rates as of Sept. 30.
Combined electric and gas adjusted gross margin and water revenue increased $29.9 million year over year. Meanwhile, operations and maintenance expense rose $8.2 million, driven by $5.1 million in higher utility operating costs and $3.8 million in higher labor and other costs, partly offset by $0.7 million in lower acquisition costs. The increase included $3.9 million related to Maine Natural Gas and $1.2 million from the Aquarion New Hampshire companies.
Rate Cases and Capital Program Advance
Unitil said its Northern Utilities gas rate cases in New Hampshire and Maine are proceeding as expected. In New Hampshire, the company filed in April for a permanent $9.8 million rate increase, while temporary rates providing $5.5 million took effect June 1. Unitil has proposed a multiyear plan with two rate adjustments to recover 2026 and 2027 system investments. Intervenor testimony is due Nov. 19, with settlement conferences scheduled for early 2027 and permanent rates expected to take effect April 1, 2027.
In Maine, Northern Utilities filed for a proposed $10.4 million rate increase on June 1. Unitil submitted rebuttal testimony on Oct. 27.
The company’s current five-year capital investment plan through 2030 totals approximately $1.2 billion, a 24% increase from its prior five-year plan. The plan includes about $65 million for Bangor Natural Gas and Maine Natural Gas combined, along with approximately $33 million for the Aquarion New Hampshire companies.
Rate base increased by $0.2 billion, or 14.9%, from the prior-year period, supported by the acquisitions. Unitil said its five-year average rate-base growth has been 9.5%, above its long-term guidance range of 6.5% to 8.5%.
Financing and Emissions Efforts
Hurstak said Unitil completed its 2026 financing plan, including $200 million of long-term private-placement debt carrying a weighted average interest rate of 5.76%. The company also issued $27.3 million of equity through its at-the-market program.
In October, Unitil fully repaid the term loans used to finance the Maine Natural Gas and Aquarion New Hampshire acquisitions, primarily using equity issuance proceeds and long-term debt. The company said it now considers those acquired operating companies permanently financed.
On environmental targets, Unitil said it remains on course to reduce direct greenhouse-gas emissions 50% by 2030 and reach net-zero emissions by 2050. Through 2025, the company said it had reduced Scope 1 emissions by about 19%. Direct measurement using mobile leak-detection technology found pipeline emissions were 91% lower than prior estimates based on EPA emission factors. More than 98% of Unitil’s gas system is now constructed of plastic or cathodically protected steel pipe, and the company expects to replace all remaining leak-prone pipe by 2035.
About Unitil (NYSE:UTL)
Unitil Corporation is a regulated public utility holding company that delivers electricity and natural gas to residential, commercial and industrial customers in New Hampshire and Massachusetts. Its operations focus primarily on the distribution of energy through local utility networks rather than the production of electricity or natural gas.
Through its operating subsidiaries, Unitil provides electric distribution service in portions of New Hampshire and Massachusetts and natural gas distribution service in parts of southern New Hampshire and central Massachusetts.
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