ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) (In thousands of dollars, except per share amounts) segments, because they would not be recoverable as a cost of utility service, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense.
Regulated Water Segment
The following tables present the selected operating results and customers served for our Regulated Water segment, for the year ended December 31: 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Sendout (a) (in millions of gallons) Pennsylvania 42,778 43,794 42,525 (1,016) 1,269 Ohio 14,342 13,979 13,560 363 419 Illinois 8,996 8,774 8,421 222 353 Texas 8,237 8,038 8,703 199 (665) North Carolina 5,727 5,809 5,824 (82) (15) Other states 6,124 6,705 6,526 (581) 179 Subtotal 86,204 87,099 85,559 (895) 1,540 Elimination (100) (94) (122) (6) 28 Total sendout by state 86,104 87,005 85,437 (901) 1,568
Utility customers: Residential water Commercial water Industrial water
869,630 44,050
865,028 43,969
859,331 43,853
4,602
5,697
81 (3)
116
1,272
1,275
1,283
(8)
Other water Wastewater
20,382 201,269
19,774 193,821
19,123 190,119
608
651
7,448
3,702
Total water and wastewater utility customers
1,136,603
1,123,867
1,113,709
12,736
10,158
Operating revenues: Residential water Commercial water
$
731,818 $ 662,909 $ 641,351 $
68,909 $
21,558
208,617 41,619 110,535 223,103 10,937
186,534 34,831 123,373 199,157 15,076
180,731 33,949 92,784 187,462 17,099
22,083
5,803
Industrial water
6,788
882
Other water Wastewater Other utility
(12,838) 23,946 (4,139)
30,589 11,695 (2,023) 68,504
Total operating revenues
$
1,326,629 $ 1,221,880 $ 1,153,376 $
104,749 $
Operating expenses: Operations and maintenance expense
$ $ $ $ $ $
405,017 $ 381,088 $ 368,843 $ 257,305 $ 232,338 $ 217,593 $ 69,058 $ 68,006 $ 62,759 $ 129,671 $ 121,292 $ 105,674 $ 54,658 $ 68,851 $ 57,546 $ 410,920 $ 350,305 $ 340,961 $
23,929 $ 24,967 $ 1,052 $ 8,379 $ (14,193) $ 60,615 $
12,245 14,745
Depreciation and amortization Taxes other than income taxes
5,247
Other expense, net
15,618 11,305
Provision for income taxes
Segment net income
9,344
(a) Sendout represents the quantity of treated water delivered to our distribution systems. We use sendout as an indicator of customer demand.
Operating revenues - The growth in our Regulated Water segment’s revenues over the past three years is primarily a result of increases in our water and wastewater rates and our customer base. Water and wastewater rate increases, including infrastructure rehabilitation surcharges, implemented during the past three years have provided additional operating revenues of $108,193 in 2025, $50,639 in 2024, and $57,924 in 2023. The number of customers increased at an annual compound rate of 1.2% over the past three years due to acquisitions and organic growth, adjusted to exclude customers associated with utility system dispositions. Acquisitions in our Regulated Water segment have provided additional water and wastewater revenues of $2,757 in 2025, $4,182 in 2024, and $9,646 in 2023. In 2025, we experienced a decrease in water and wastewater revenues of $8,642 primarily due to a decline in volume consumption due to wetter weather conditions as compared to the prior year.
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