2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

The following table presents information about the Company’s reportable segments and reconciliations to consolidated amounts. Asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information is not presented:

Total Reportable Segments

Regulated Water

Regulated Natural Gas

Other and Eliminations Consolidated

2025

Revenues from external customers

$

1,326,629 $ 1,114,531 $ 2,441,160 $

33,455 $ 2,474,615

Intersegment revenues Total operating revenues

-

3,344

3,344

(3,344)

-

$ $ $ $ $ $

1,326,629 $ 1,117,875 $ 2,444,504 $ 405,017 $ 227,656 $ 632,673 $

30,111 $ 2,474,615

Operations and maintenance expense

6,931 $

639,604 403,817 417,471 92,772 327,378

Purchased gas

- $ 384,811 $ 384,811 $ 19,006 $

Depreciation and amortization Taxes other than income taxes

257,305 $ 158,348 $ 415,653 $

1,818 $ 3,736 $ 69,542 $

69,058 $ 19,978 $

89,036 $

Interest expense, net

150,763 $ 107,073 $ 257,836 $ (20,805) $ (5,448) $ (26,253) $

Allowance for funds used during construction $

-$ (26,253) -$ (1,325)

Gain on sale of assets (a) Other segment items (b)

$ $ $ $ $

(1,325) $

- $

(1,325) $

1,038 $

(618) $

420 $

917 $

1,337 3,445

Provision for income taxes (benefit)

54,658 $ (41,300) $ 410,920$ 267,375$

13,358 $ 678,295 $

(9,913) $ (61,926) $

Net income (loss) Capital expenditures

616,369

779,543$ 650,437$ 1,429,980$

-$ 1,429,980

Total Reportable Segments

Regulated Water

Regulated Natural Gas

Other and Eliminations Consolidated

2024

Revenues from external customers

$ 1,221,880 $ 840,453 $ 2,062,333 $ 23,780 $ 2,086,113

Intersegment revenues Total operating revenues

-

2,538

2,538

(2,538)

-

$ 1,221,880 $ 842,991 $ 2,064,871 $ 21,242 $ 2,086,113

Operations and maintenance expense

$ $ $ $ $

381,088 $ 207,176 $ 588,264 $ (1,014) $

587,250 277,009 369,552 94,634 299,149

Purchased gas

- $ 267,226 $ 267,226 $

9,783 $ 1,400 $ 3,643 $

Depreciation and amortization Taxes other than income taxes

232,338 $ 135,814 $ 368,152 $

68,006 $ 22,985 $

90,991 $

Interest expense, net

140,086 $ 92,988 $ 233,074 $ 66,075 $

Allowance for funds used during construction $

(16,713) $ (4,597) $ (636) $ (91,581) $

(21,310) $ (92,217) $

-$ (21,310) (7)$ (92,224) 664 $ (1,425)

Gain on sale of assets (a) Other segment items (b)

$ $ $ $ $

(1,445) $ (644) $ (2,089) $

Provision for income taxes (benefit)

68,851 $ (79,993) $

(11,142) $ (10,694) $

(21,836) 595,314

Net income (loss) Capital expenditures

350,305 $ 293,617 $ 643,922 $ (48,608) $

726,698 $ 603,049 $ 1,329,747 $

-$ 1,329,747

82

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