Unitil (NYSE:UTL) executives highlighted higher adjusted earnings, completed Maine gas acquisitions, and an expanded capital plan during the company’s fourth-quarter 2025 earnings conference call. Management also issued 2026 earnings guidance and discussed the status of a New Hampshire electric base rate case.
2025 adjusted results and drivers
Chairman and CEO Tom Meissner said Unitil delivered full-year adjusted earnings of $53.3 million, or $3.16 per share. The company described that as an increase of $0.19 per share, or 6.4% from 2024 adjusted earnings per share, placing results “in the upper half” of its long-term 5%–7% earnings growth guidance range.
The company reported adjusted earnings that exclude transaction costs related to the Maine acquisitions and an “announced water transaction,” which management said were not indicative of ongoing costs and operations.
Maine gas acquisitions and outlook for conversions
Meissner said Unitil completed the acquisitions of Bangor Natural Gas and Maine Natural Gas during 2025, expanding its gas operations in Maine. He said the acquired companies added more than 15,000 customers and will support long-term earnings growth. Unitil also characterized itself as the largest gas utility in Maine and pointed to what it called a constructive regulatory environment and growth opportunities in the state.
Management said the acquired businesses are expected to contribute approximately $29 million in annual distribution revenues and about $18 million of planned capital investment in 2026. Executives also noted that historically the acquired companies have experienced 4%–5% annual customer growth.
On the call, Meissner emphasized the perceived economics of natural gas for home heating in northern New England, stating that natural gas has a “significant price advantage” versus fuel oil and propane and that conversions could help customers lower energy costs. He added that Maine has a large share of homes heated with oil, propane, or kerosene, and that the company believes natural gas can also provide environmental benefits relative to other fuels. Management referenced fuel choice statutes in both Maine and New Hampshire.
Looking ahead, Meissner said Unitil anticipates filing a base rate case for Bangor Natural Gas and Maine Natural Gas in 2027, with final rate decisions expected in 2028.
Margins, expenses, and customer growth
Hurstak detailed year-over-year changes in adjusted gross margin:
- Electric adjusted gross margin was $114.6 million, up $7.3 million from 2024. Management attributed the increase primarily to higher distribution rates in New Hampshire related to the $7.8 million temporary rate award effective July 2025, plus the 2025 inflation adjustment under performance-based rates in Massachusetts. Unitil added about 600 electric customers in 2025.
- Gas adjusted gross margin was $199.1 million, up $32.2 million from 2024. The company said this included $16.6 million from the Bangor Natural Gas and Maine Natural Gas acquisitions. Legacy gas operations adjusted gross margin increased $15.6 million on higher rates, customer growth, and colder winter weather versus 2024.
Hurstak said the company added about 15,900 new gas customers compared to 2024, including about 8,900 from Bangor Natural Gas and about 6,500 from Maine Natural Gas.
Discussing an earnings bridge, Hurstak said combined adjusted gross margin for electric and gas increased by $39.5 million, while operation and maintenance expenses rose $14.9 million. He broke the O&M increase into higher utility operating costs of $6.1 million, higher labor and other costs of $5.5 million, and higher transaction costs of $3.3 million (which are excluded from adjusted net income). O&M in 2025 included $4.2 million of utility operating costs for Bangor Natural Gas and Maine Natural Gas; excluding the acquired companies and transaction costs, O&M increased $7.4 million year over year.
Hurstak also cited higher depreciation and amortization expense (up $12.6 million), higher taxes other than income taxes (up $1.4 million), and higher interest expense (up $7.4 million), which he said primarily reflected higher debt levels related to the Maine acquisitions. Other expense decreased $1.2 million, largely due to lower retirement benefit costs. Income taxes increased $1.3 million, reflecting higher pre-tax earnings.
Regulatory update, capital plan, and dividend increase
On regulation, Hurstak said Unitil filed a base rate case for Unitil Energy Systems, its electric distribution company in New Hampshire, on May 2, 2025. The proposed permanent rate increase is $18.5 million, and the requested temporary increase of $7.8 million took effect July 1, 2025. A final rate award is expected to take effect on May 1, 2026. Meissner added that the electric rate case is on schedule and the company expects permanent rates to take effect in the second quarter of 2026.
Hurstak said the filing includes a two-year rate adjustment plan for accelerated recovery of 2025 and 2026 capital investments, and a pro forma rate base of approximately $289 million, including the company’s Kingston Solar facility placed in service in June 2025. He said Unitil was engaged in “constructive settlement discussions” with other parties.
Unitil updated its five-year capital investment plan through 2030 to about $1.2 billion, an increase of $200 million, or 20%, compared to the previous five-year plan. The updated plan includes about $65 million for Bangor Natural Gas and Maine Natural Gas, and management said the plan does not include any investments related to the announced acquisition of Aquarion Water Company. Rate base as of Dec. 31, 2025, was approximately $1.3 billion, up about $200 million from 2024.
The company also announced a dividend increase. Hurstak said the board approved a $0.025 per share increase to the quarterly dividend, or $0.10 per share annually, resulting in an annualized 2026 dividend of $1.90 per share, up 5.6% from 2025.
2026 earnings guidance
Looking forward, management issued 2026 earnings guidance of $3.20 to $3.36 per share, with a midpoint of $3.28. Meissner said the midpoint implies an increase of 6.1% compared to the midpoint of the company’s 2025 guidance. Hurstak noted the company also provided an expected quarterly EPS distribution reflecting the seasonal nature of earnings.
In closing remarks, Meissner said the company remains focused on investing in regulated assets and reaffirmed long-term guidance for earnings, dividend, and rate base growth.
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.
