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%.
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.
Margins Rise on Rates, Acquisitions and Customer Growth
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.
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.
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.
New Hampshire Water Acquisition Closes
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.
Rate Cases and Investment Plan Remain Active
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%.
Natural Gas Conversion Interest Increases
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.
About Unitil (NYSE:UTL)
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.
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