Unitil Corporation Q2 FY2025 earnings call

• Announced adjusted net income of $4.7 million and adjusted earnings of $0.29 per share for Q2 2025; through first 6 months of 2025, adjusted net income was $33.1 million or $2.03 per share. • Ongoing UES rate case and regulatory review of Maine natural gas and Aquarion acquisitions, expected to close by end of 2025. • Maine passed fuel choice legislation preserving consumers' right to choose energy system and fuel type. • Completed utility scale solar project in Kingston, New Hampshire; AMI system replacement progressing, ~60% of meters replaced in Massachusetts service area, expected to complete in Massachusetts by end 2025 and start in New Hampshire in 2026, with ~$40 million capital investment.

For the 6 months ended June 30, 2025, electric adjusted gross margin was $53.3 million, an increase of $1.3 million or 2.5% compared to the same period in 2024. The increase reflects higher distribution rates and customer growth, with approximately 730 electric customers added, including 110 new C&I customers. For gas, gas adjusted gross margin was $108.1 million, an increase of $15.8 million or approximately 17.1% compared to the same period in 2024. This is due to higher rates, customer growth in 2025, and return to normal winter weather. Approximately 9,360 new gas customers were added, including 8,800 from the acquisition of Bangor Natural Gas. Excluding Bangor Natural Gas, gas adjusted gross margin was $102.2 million, an increase of $9.9 million or 10.7% compared to the corresponding period in 2024, driven by successful rate case outcomes for Fitchburg Gas & Electric in Massachusetts and Granite State Gas.

• Reaffirmed 2025 earnings guidance range of $3.01 to $3.17 per share on adjusted earnings basis, midpoint $3.09 per share. • Expect slight net loss in third quarter but full year 2025 results in line with guidance range.

Q: Congratulations with the strong adjusted EPS growth. So my question is about your Slide 15. So I see that in Q3, you expect like slight negative results on EPS and the question is, will it affect in a way your dividend approach for the third quarter and how you go along with this potential negative result in the third quarter 2025?

A: So no, the answer to the question is no. The earnings for the full year are in line with where we thought they would be. And the slight change in the quarterly distribution for the second half of the year will not have an effect on the company's approach to 2025 dividends.