Unitil 2025 Q1 Earnings Stable Performance with Net Income Up 1.1%
Daily EarningsWednesday, May 7, 2025 5:06 am ET
54min readUnitil reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company saw a minor bump in net income, achieving $27.50 million, up 1.1% from the $27.20 million reported in the same quarter of 2024. The earnings per share (EPS) remained stable at $1.69, neither exceeding nor falling short of expectations. Additionally, Unitil's 2025 guidance for adjusted earnings per share remains in-line, projected between $3.01 and $3.17. This consistency reflects steady performance and ongoing efforts in strategic planning and operational improvements.
Revenue
Unitil's total revenue for the first quarter of 2025 dropped by 4.4% to $170.80 million, down from $178.70 million in the same period last year. This decline was observed in several segments. Specifically, the electric segment contributed $60.20 million, while the gas segment brought in $110.60 million. These results outline a comprehensive view of Unitil’s financial standings in its operational segments.
Earnings/Net Income
Unitil maintained stable earnings per share (EPS) at $1.69 for the first quarter of 2025, matching the EPS from the same period in 2024. Despite the unchanged EPS, Unitil's net income increased slightly by 1.1% to $27.50 million, indicating a positive trend. The consistent EPS underscores a steady financial performance amidst fluctuating revenues.
Price Action
The stock price of has edged up 0.72% during the latest trading day, has edged up 1.37% during the most recent full trading week, and has edged up 2.36% month-to-date.
Post-Earnings Price Action Review
The investment strategy of purchasing Unitil shares after a quarter showing revenue growth and holding them for 30 days has not proven successful over the past five years. This approach resulted in a return of -3.63%, significantly lagging behind the benchmark return of 83.12%. The strategy’s excess return was -86.75%, with a compound annual growth rate (CAGR) of -0.74%. Furthermore, it was characterized by a Sharpe ratio of -0.12, a maximum drawdown of -10.52%, and a volatility level of 6.34%. These metrics highlight that the strategy involved substantial risk and failed to deliver any positive returns, making it unsuitable for investors seeking a reliable investment approach.
CEO Commentary
“We are pleased with our strong operational and financial performance in the first quarter, which reflects the strength in our core utility businesses and our focus on advancing our strategic initiatives,” said Thomas P. Meissner, Jr., Chairman and Chief Executive Officer of Unitil. He highlighted that the company continues to create long-term sustainable value through recent acquisitions, steady progress on regulatory initiatives, exceptional customer service, and providing safe, reliable, and affordable energy to customers. This optimistic tone underscores their commitment to operational excellence and strategic growth despite challenges in the market.
Guidance
Unitil projects 2025 adjusted earnings guidance in the range of $3.01 to $3.17 per share, assuming normal weather and consistent customer growth. The company expects to maintain steady revenue contributions primarily driven by customer growth, with a focus on regulatory initiatives and operational improvements to sustain profitability in the evolving energy landscape.
Additional News
Unitil Corporation recently announced its third cash dividend plan for 2025, with a distribution of $0.45 per share, reflecting a dividend yield of 0.76%. The record date for this dividend is set for May 15th, 2025, with the payment date scheduled for May 30th, 2025. Furthermore, Unitil continues to expand its operations through strategic acquisitions, including Bangor Natural Gas Company and Maine Natural Gas Company, which are expected to bolster its customer base and enhance service delivery. These acquisitions represent Unitil's commitment to growth and adaptability in the competitive energy market. The company is also maintaining its longstanding tradition of quarterly dividend payments, demonstrating its dedication to delivering shareholder value amidst evolving industry dynamics.
Revenue
Unitil's total revenue for the first quarter of 2025 dropped by 4.4% to $170.80 million, down from $178.70 million in the same period last year. This decline was observed in several segments. Specifically, the electric segment contributed $60.20 million, while the gas segment brought in $110.60 million. These results outline a comprehensive view of Unitil’s financial standings in its operational segments.
Earnings/Net Income
Unitil maintained stable earnings per share (EPS) at $1.69 for the first quarter of 2025, matching the EPS from the same period in 2024. Despite the unchanged EPS, Unitil's net income increased slightly by 1.1% to $27.50 million, indicating a positive trend. The consistent EPS underscores a steady financial performance amidst fluctuating revenues.
Price Action
The stock price of has edged up 0.72% during the latest trading day, has edged up 1.37% during the most recent full trading week, and has edged up 2.36% month-to-date.
Post-Earnings Price Action Review
The investment strategy of purchasing Unitil shares after a quarter showing revenue growth and holding them for 30 days has not proven successful over the past five years. This approach resulted in a return of -3.63%, significantly lagging behind the benchmark return of 83.12%. The strategy’s excess return was -86.75%, with a compound annual growth rate (CAGR) of -0.74%. Furthermore, it was characterized by a Sharpe ratio of -0.12, a maximum drawdown of -10.52%, and a volatility level of 6.34%. These metrics highlight that the strategy involved substantial risk and failed to deliver any positive returns, making it unsuitable for investors seeking a reliable investment approach.
CEO Commentary
“We are pleased with our strong operational and financial performance in the first quarter, which reflects the strength in our core utility businesses and our focus on advancing our strategic initiatives,” said Thomas P. Meissner, Jr., Chairman and Chief Executive Officer of Unitil. He highlighted that the company continues to create long-term sustainable value through recent acquisitions, steady progress on regulatory initiatives, exceptional customer service, and providing safe, reliable, and affordable energy to customers. This optimistic tone underscores their commitment to operational excellence and strategic growth despite challenges in the market.
Guidance
Unitil projects 2025 adjusted earnings guidance in the range of $3.01 to $3.17 per share, assuming normal weather and consistent customer growth. The company expects to maintain steady revenue contributions primarily driven by customer growth, with a focus on regulatory initiatives and operational improvements to sustain profitability in the evolving energy landscape.
Additional News
Unitil Corporation recently announced its third cash dividend plan for 2025, with a distribution of $0.45 per share, reflecting a dividend yield of 0.76%. The record date for this dividend is set for May 15th, 2025, with the payment date scheduled for May 30th, 2025. Furthermore, Unitil continues to expand its operations through strategic acquisitions, including Bangor Natural Gas Company and Maine Natural Gas Company, which are expected to bolster its customer base and enhance service delivery. These acquisitions represent Unitil's commitment to growth and adaptability in the competitive energy market. The company is also maintaining its longstanding tradition of quarterly dividend payments, demonstrating its dedication to delivering shareholder value amidst evolving industry dynamics.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
Comments
No comments yet