Chesapeake Utilities 2025 Q3 Earnings Misses Estimates Despite 10.9% Net Income Growth

Chesapeake Utilities (CPK) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with results mixed against expectations. The company’s non-GAAP EPS of $0.82 fell short of the $0.90 consensus estimate, marking an 8.89% earnings surprise. Revenue, however, rose 12.1% to $179.6 million, exceeding forecasts by 4.48%. Management reaffirmed 2025 adjusted EPS guidance of $6.15–$6.35 while raising capital expenditure guidance to $425–$450 million.

Revenue

The total revenue of Chesapeake Utilities increased by 12.1% to $179.60 million in 2025 Q3, up from $160.20 million in 2024 Q3.

Earnings/Net Income

Chesapeake Utilities's EPS rose 5.1% to $0.82 in 2025 Q3 from $0.78 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $19.40 million in 2025 Q3, marking 10.9% growth from $17.50 million in 2024 Q3. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. Despite a 5.1% EPS increase, CPK's earnings missed estimates, signaling mixed performance in Q3.

Price Action

The stock price of Chesapeake Utilities has edged up 2.18% during the latest trading day, has climbed 3.55% during the most recent full trading week, and has dropped 3.61% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, CPK shares experienced volatility, with a 3.61% month-to-date decline as of Nov 7, 2025. Analysts noted the earnings miss contributed to downward pressure, though strong revenue growth offered some support. The Zacks Rank #4 (Sell) rating reflected deteriorating estimate revisions, suggesting potential underperformance against the market. Forward-looking sentiment remains cautious, with the 12-month median price target of $141.00 (5.6% above the closing price) indicating limited upside.

CEO Commentary

Jeff Householder, Chair of the Board, President, and CEO of Chesapeake Utilities Corporation, emphasized the company’s operational excellence in Q3 2025, highlighting double-digit growth in adjusted gross margin and operating income. He attributed performance to natural gas organic growth, transmission expansion projects, and increased CNG/RNG/LNG services. Strategic priorities included capital investments ($123 million in Q3) and regulatory milestones, such as the Delaware rate case settlement. The CEO underscored the ERP implementation as a pivotal step in business transformation, directly linking it to the revised 2025 capital guidance of $425–$450 million. Tone: Optimistic, with a focus on execution and long-term growth.

Guidance

Chesapeake Utilities reaffirmed 2025 Adjusted EPS guidance of $6.15–$6.35, contingent on a successful FCG depreciation study outcome. The company raised 2025 capital expenditure guidance to $425–$450 million, reflecting progress on growth projects and ERP implementation. It also maintained 2028 EPS guidance of $7.75–$8.00 and 2024–2028 capital expenditure guidance of $1.5–$1.8 billion. Forward-looking statements include assumptions about regulatory approvals and project timelines.

Additional News

Chesapeake Utilities announced a quarterly dividend of $0.685 per share on Nov 6, 2025, payable on Jan 5, 2026, to shareholders of record as of Dec 15. This marks the 65th consecutive year of dividend payments. Separately, Zacks Investment Research downgraded CPK to a Rank #4 (Sell) due to declining earnings estimate revisions, despite the company’s strong position in the top 30% of Zacks Utility - Gas Distribution industry. No major M&A activity or C-level changes were reported in the 3-week window post-earnings.