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1. Company Snapshot

1.a. Company Description

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas.It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Non-Regulated.The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as the greater Fitchburg area of north central Massachusetts.


It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire.In addition, the company provides energy brokering and advisory services to commercial and industrial customers; and real estate management services.It serves approximately 107,700 electric customers and 86,600 natural gas customers.


Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.

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1.b. Last Insights on UTL

The recent performance of Unitil Corporation was negatively impacted by a decrease in net income, despite beating earnings estimates. The company's second-quarter net income decreased by $0.3 million, or $0.02 in EPS, compared to the same period last year. Additionally, the company's adjusted net income, which excludes transaction-related costs, showed a modest increase of $0.4 million, or $0.02 in EPS, compared to the second quarter of 2024.

1.c. Company Highlights

2. Unitil Corporation's Q3 2025 Earnings: A Strong Performance

Unitil Corporation reported adjusted earnings of $0.03 per share for the third quarter of 2025, representing an increase of $0.01 per share compared to the third quarter of 2024. The company's adjusted net income, excluding transaction-related costs of $0.4 million, was a positive note. Adjusted gross margin for the first 9 months of 2025 increased by $23.8 million, primarily driven by higher distribution rates, customer growth, and colder winter weather. Bangor Natural Gas accounted for $7.4 million of total gas adjusted gross margin for the first 9 months of 2025. The actual EPS of $0.03 beat estimates of -$0.03, indicating a strong operational performance.

Publication Date: Nov -18

📋 Highlights
  • Adjusted Earnings Increase:: Adjusted net income rose to $0.03 per share for Q3 2025, up $0.01 from Q3 2024, excluding $0.4M transaction costs.
  • Gross Margin Growth:: 9M 2025 adjusted gross margin increased by $23.8M, driven by higher distribution rates, customer growth, and colder weather; Bangor Natural Gas contributed $7.4M.
  • Balance Sheet Strengthening:: $72M equity offering in August 2025 enhanced balance sheet strength and funded Bangor and Maine Natural Gas acquisitions.
  • Capital Plan Expansion:: 5-year capital plan totals $1.1B, 19% higher than prior plan, with majority funded by operating cash flows less dividends.
  • Earnings Guidance Reaffirmed:: 2025 adjusted earnings guidance set at $3.01–$3.17/share ($3.09 midpoint), with acquisitions expected to drive growth toward upper end of 5–7% range.

Operational Excellence and Integration

The company has successfully integrated Bangor Natural Gas and completed the purchase of Maine Natural Gas, maintaining its operational excellence. As stated by Tom Meissner, "We've successfully integrated Bangor Natural Gas, completed the purchase of Maine Natural Gas, and maintained operational excellence." The focus on sustainable growth and confidence in execution and ability to provide strong shareholder returns for many years is evident. The current 5-year capital plan totals approximately $1.1 billion and is 19% higher than the prior 5-year plan, indicating a significant investment in growth.

Financial Position and Guidance

The equity offering completed in August with net proceeds of approximately $72 million enhances the strength of Unitil's balance sheet and fulfills the equity need for the Bangor Natural Gas and Maine Natural Gas transactions. The company is reaffirming its 2025 earnings guidance range of $3.01 to $3.17 per share with a midpoint of $3.09 per share on an adjusted earnings basis. Analysts estimate next year's revenue growth at 7.8%, indicating a positive outlook. With a P/E Ratio of 16.51 and an ROE of 9.05%, the company's valuation appears reasonable.

Valuation Metrics

Considering the P/E Ratio of 16.51, P/B Ratio of 1.46, and Dividend Yield of 3.75%, Unitil's valuation appears to be in line with expectations. The EV/EBITDA ratio of 8.75 suggests that the company's enterprise value is reasonable relative to its earnings before interest, taxes, depreciation, and amortization. The Net Debt / EBITDA ratio of 4.45 indicates a manageable debt burden. Overall, the company's financial performance, operational excellence, and valuation metrics suggest a stable investment opportunity.

3. NewsRoom

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Unitil Corporation (UTL) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Unitil Releases Corporate Sustainability and Responsibility Report

Nov -03

Source: globenewswire.com

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Unitil Reports Third Quarter Earnings

Nov -03

Source: globenewswire.com

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State of New Jersey Common Pension Fund D Has $1.85 Million Position in Unitil Corporation $UTL

Nov -02

Source: defenseworld.net

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Unitil Completes Purchase of Maine Natural Gas Company

Oct -31

Source: globenewswire.com

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Unitil Declares Common Stock Dividend

Oct -29

Source: globenewswire.com

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Unitil Schedules Third Quarter 2025 Earnings Release and Conference Call

Oct -21

Source: globenewswire.com

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Unitil Closes Common Stock Offering and Full Exercise of Underwriters' Over-Allotment Option

Aug -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.95%)

6. Segments

Electric

Expected Growth: 4.5%

Unitil Corporation's 4.5% growth in Electric segment is driven by increasing demand for clean energy, favorable regulatory environment, and strategic investments in grid modernization and infrastructure upgrades. Additionally, growing commercial and industrial activities in the region, coupled with rising electricity prices, contribute to the segment's growth.

Gas

Expected Growth: 5.5%

Unitil Corporation's 5.5% gas segment growth is driven by increasing demand from commercial and industrial customers, expansion into new territories, and strategic acquisitions. Additionally, investments in infrastructure upgrades and energy efficiency programs contribute to the growth. Furthermore, favorable weather patterns and rising natural gas prices also support the segment's growth.

7. Detailed Products

Electricity

Unitil Corporation provides electricity to residential, commercial, and industrial customers in New Hampshire, Massachusetts, and Maine.

Natural Gas

Unitil Corporation distributes natural gas to customers in New Hampshire and Massachusetts, providing a clean and efficient energy source.

Energy Efficiency Solutions

Unitil Corporation offers energy efficiency solutions to help customers reduce energy consumption and lower their energy bills.

Renewable Energy Solutions

Unitil Corporation provides renewable energy solutions, including solar and wind power, to customers in New Hampshire, Massachusetts, and Maine.

8. Unitil Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Unitil Corporation's threat of substitutes is moderate due to the availability of alternative energy sources and the increasing adoption of renewable energy.

Bargaining Power Of Customers

Unitil Corporation's customers have limited bargaining power due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

Unitil Corporation's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for fuel and equipment.

Threat Of New Entrants

The threat of new entrants in the energy industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the energy industry is high due to the presence of several established players and the ongoing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.21%
Debt Cost 6.62%
Equity Weight 41.79%
Equity Cost 6.80%
WACC 6.69%
Leverage 139.30%

11. Quality Control: Unitil Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Otter Tail

A-Score: 6.6/10

Value: 5.3

Growth: 7.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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ALLETE

A-Score: 6.4/10

Value: 5.9

Growth: 4.0

Quality: 4.3

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Suburban Propane

A-Score: 6.2/10

Value: 6.4

Growth: 2.4

Quality: 5.1

Yield: 10.0

Momentum: 4.5

Volatility: 8.7

1-Year Total Return ->

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Sempra

A-Score: 5.8/10

Value: 4.8

Growth: 4.4

Quality: 4.5

Yield: 6.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Unitil

A-Score: 5.3/10

Value: 6.6

Growth: 3.8

Quality: 4.4

Yield: 6.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Montauk Renewables

A-Score: 2.7/10

Value: 5.7

Growth: 5.2

Quality: 4.3

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.87$

Current Price

47.87$

Potential

-0.00%

Expected Cash-Flows