Water Utilities

Phillip Securities (Thailand) said in an analysis dated 2 October 2026 that it expects WHA Utilities and Power, or WHAUP, to post normalised third-quarter 2026 profit of about 499 million baht, flat from the same period a year earlier and down slightly by 0.5% from the previous quarter. The result is supported by higher revenue from the solar business as commercial operation dates continue to come on stream, a share of profit from the Gheco-one power plant returning to above-normal levels, and coal prices trending higher than a year earlier. These factors are partly offset by the water business, where volumes rose but recognition of capacity charges remained below the high base of the third quarter of 2025, while the SPP power plant business still faces pressure from higher natural gas costs, with no adjustment to the Ft tariff for industrial power sales during the period. For the water business outlook in the second half of 2026, capacity charges are expected to be lower than in the first half, but data centres will gradually begin operations from the fourth quarter of 2026 through 2027, which should drive a significant acceleration in water usage. The research team also expects normalised profit for the first nine months of 2026 to be about 1.202 billion baht, up 25.3% from the same period a year earlier, on the back of a still-strong power and utilities business. Phillip therefore maintains its Buy rating on WHAUP with a 2027 target price of 9.45 baht per share.

Essential Utilities subsidiary Aqua Pennsylvania has acquired the water system assets of the Ulster Municipal Authority in Bradford County for $0.5 million, adding 180 customers to its existing water customer base. Aqua Pennsylvania plans to invest $2 million over the next five years to upgrade the acquired assets, modernizing facilities and replacing aging lines to provide safe, high-quality water for Ulster residents. Essential Utilities has added more than 138,000 customers or equivalent dwelling units and about $570 million of rate base through acquisitions since 2015, and its proposed merger with American Water Works remains targeted for the first quarter of 2027. Signed purchase agreements represent more than 200,000 customers and about $282 million in purchase price, while the active municipal acquisition pipeline is about 400,000 customers. Separately, California Water Service Group has agreed to acquire Nexus Water Group's Nevada and Oregon water and wastewater systems for $218 million, and Select Water Solutions has agreed to acquire Pilot Water Solutions for $700 million plus up to $15 million in contingent consideration.

American Water Works added roughly 52,700 customers through regulated acquisitions in the first six months of 2026, including about 47,000 from its Nexus Water Group acquisition completed in June, plus nearly 9,000 customers added organically across existing systems. As of June 30, 2026, the company had 19 pending acquisition agreements representing around 56,600 potential customers, alongside its proposed merger with Essential Utilities. American Water Works plans to invest approximately $3.7 billion in 2026 and $19-$20 billion through 2030, supporting 8-9% rate-base growth through infrastructure investments, regulated acquisitions and organic expansion, and it reaffirmed its 2026 adjusted EPS guidance of $6.02-$6.12. The Zacks Consensus Estimate points to 2026 and 2027 earnings per share increases of 7.98% and 8.27%, respectively, year over year, while the stock trades at a forward 12-month price-to-earnings ratio of 20.03X versus the industry average of 16.02X and carries a Zacks Rank #4 (Sell).

Tsukishima Holdings and Mitsubishi Kakoki, both engaged in water treatment and industrial machinery plants, announced on the 30th that they will integrate their management on April 1, 2027. They will establish a joint holding company, Mitsubishi Tsukishima Kakoki Holdings. Through a share exchange, Mitsubishi Kakoki will acquire all shares of Tsukishima HD, and Tsukishima Holdings is scheduled to be delisted on March 30, 2027. The share exchange ratio is 1 to 0.88, with 0.88 Mitsubishi Kakoki shares allotted for each Tsukishima Holdings share. Tsukishima HD also announced that it will carry out a buyback of up to 1 million shares, equivalent to 2.5% of its issued shares, for up to 3 billion yen. The acquisition period runs from October 5 to March 19, 2027, and the acquired shares will be cancelled immediately before Mitsubishi Kakoki acquires the Tsukishima HD shares.

WHA Utilities and Power Public Company Limited, or WHAUP, reported net profit of 531.8 million baht for the second quarter, up 275.8% from 141.5 million baht in the same period a year earlier. That brought first-half net profit to 834.9 million baht, up 128.6% from 365.3 million baht a year earlier. Its parent company, WHA Corporation Public Company Limited, or WHA, posted second-quarter net profit of just 659.2 million baht, down 32.7% from 980.1 million baht a year earlier, while first-half net profit came to 2.1675 billion baht, down 29.1% from 3.0555 billion baht a year earlier. In its latest development, WHAUP is building a new growth engine by preparing to invest in small nuclear power plants, or Small Modular Reactors, as well as Carbon Capture and Storage technology, in line with the PDP 2026 plan, which emphasises raising the share of renewable and clean energy to more than 65%. Meanwhile, Krungsri Securities has raised its profit forecasts for WHAUP for 2026 to 2028 by 6%, 3% and 8% respectively, and Kasikorn Securities expects WHAUP's profit to grow at a compound annual rate of 19% over 2026 to 2030, far above the sector average.

Illinois American Water has completed its acquisition of the City of Venice wastewater collection system for $770,000. The deal, approved by the Illinois Commerce Commission on June 24, 2026, adds approximately 500 wastewater collection service customers and expands the company's wastewater operations in the Metro East area near St. Louis. Illinois American Water plans to make $2.6 million in capital investments and improvements in the Venice wastewater collection system over the next five years, covering rehabilitation or replacement of wastewater mains and manholes, lift station improvements, and control and security enhancements at pump and lift stations. Venice Mayor Phillip White Jr. said the sale places the collection system into the professional hands of Illinois American Water, while company President Rebecca Losli said the team looks forward to leveraging its operational experience and long-term commitment to infrastructure investment. Prior to the acquisition, Venice customers received transportation and wastewater treatment services from Illinois American Water; they will now receive wastewater collection, transportation and treatment services.

California Water Service Group reported second-quarter 2026 operating revenues of $308.6 million, up 16.5% year over year, with net income rising to $56.5 million from $42.2 million. Increased customer consumption contributed $4.1 million to quarterly revenues. On Sept. 14, the company announced the start of a water-supply reliability and fire-protection project in Willows, CA, and on Sept. 10 its subsidiary Washington Water received regulatory approval for a settlement allowing an annual revenue increase of $4.1 million. California Water Service Group is also pursuing the acquisition of Nexus Water Group's Nevada and Oregon systems, expected to add approximately 36,000 customer-equivalent residential units and about $109 million of rate base, and plans to invest $627 million in 2026 to support infrastructure upgrades and rate-base growth.

The York Water Company reported second-quarter operating revenue of $23.52 million, up $4.32 million from a year earlier, and net income of $7.62 million, up $2.56 million, with earnings per share climbing to $0.49 from $0.35, driven mainly by a rate increase that took effect March 1. For the first half of 2026, revenue reached $43.59 million, up $5.93 million from $37.66 million, while net income rose to $12.43 million from $8.69 million and six-month earnings per share came in at $0.82, up $0.22. President JT Hand credited the rate increase and customer base growth, though the gains were partly offset by a reset of the Distribution System Improvement Charge to zero and higher operation and maintenance expenses, depreciation, and income taxes. The company invested $21.1 million in the first six months on main extensions, wastewater treatment plant construction, and an enterprise software upgrade, and spent $0.47 million acquiring two wastewater systems, CMV Sewage Co. in York County and the Pine Run Retirement Community in Adams County. York Water expects to invest another $26.8 million in 2026 excluding acquisitions, and its quarterly dividend rose to $0.2280 per share from $0.2192.

California Water Service Group's Washington Water unit received approval from the Washington Utilities and Transportation Commission for new water rates expected to take effect in October 2026. The new rates are expected to increase Washington Water's annual revenues by $4.1 million, enabling the unit to recover costs tied to investments in safe and reliable water service. Washington Water invested $26.5 million in its East Pierce and Legacy systems during 2023-2024, funding new water mains, treatment facilities, booster pump upgrades, remote monitoring systems and PFAS testing and treatment. The approval adds to parent CWT's broader infrastructure and cost-recovery push: the company invested $276.4 million in utility plant in the first half of 2026 and expects full-year capital expenditures of $580-$640 million. CWT's second-quarter revenues rose 16.5% to $308.6 million from $265 million a year earlier, with rate changes and the Modified Water Revenue Adjustment Mechanism contributing about $15 million and Interim Rates Memorandum Account revenues adding another $15.3 million.

EASTW reported a strong recovery in its second-quarter 2026 results, with net profit of 67 million baht, up 807% year-on-year. Revenue from sales and services reached 968 million baht, an increase of 7.6%, driven by growth across all business segments, including raw water, tap water, and industrial water. The company also benefited from improved energy cost management and more efficient water pumping systems, which lifted gross profit margin to 32.0% from 25.2%. Financial costs declined 13.0% due to gradual debt repayment. The surge in Data Center investment in the EEC area is considered a key new S-Curve for the company, as these facilities require high-quality water for cooling systems. In the first half of the year, revenue from the industrial water business rose 24.1% to 167 million baht, with gross profit up 84.4% to 41 million baht. The company leverages its 553-kilometer water pipeline network covering the EEC and plans to increase raw water capacity from 417 million cubic meters to 500 million cubic meters to meet long-term demand. It is also partnering with STECON to develop water systems for industrial and Data Center customers. The outlook for the third quarter of 2026 points to a return to profitability, following a loss of around 15 million baht in the same period last year. The recovery is expected to continue through the fourth quarter of 2026 and into the first quarter of 2027, supported by the super El Niño phenomenon and customer water demand from the Data Center trend. The company maintains a market share of approximately 60% in the eastern region and has new projects, including U-Tapao, Khlong Luang–Chonburi pipeline, and new customers in Amata City Rayong 2, WHA Chonburi, Vichit Valley, Thai Oil, and Rojana, which will help expand its revenue base in the coming period.

New Jersey American Water customers will see new water and wastewater rates effective September 15, 2026, following approval by the New Jersey Board of Public Utilities, which also authorized a $9.88 monthly PFAS settlement credit for eligible water customers for 12 months. The $68 million annual revenue increase supports more than $1.4 billion in system upgrades, including replacing or rehabilitating nearly 120 miles of aging main and continuing lead service line replacement. The average residential water customer using about 5,700 gallons per month will see a monthly increase of approximately $4, but the credit will more than offset that, resulting in a net reduction of nearly $6 per month for a year. Residential wastewater customers face an average increase of about $4 per month, and those receiving both services will see an average increase of nearly $8, offset by the credit to a net reduction of nearly $2 per month. The company will return more than $79 million in PFAS litigation proceeds and interest through the credit, which will appear as "PLUS" on bills.

Krungsri Securities maintains a "Buy" recommendation on WHAUP, estimating normal profit for Q3/2026 at approximately 500 million baht, remaining at a high level both year-on-year and quarter-on-quarter, despite a high base last year. This is supported by a 9-10% increase in water sales volume and higher capacity charges. Meanwhile, the Duong River case, in which the Vietnamese appellate court upheld the first-instance ruling, is considered neutral, as there is still the right to appeal within one year and no provision is required. As for the Data Center, there are signals of new investment openings within 1-2 months, supporting long-term growth. The target price for 2027 is 9.70 baht.

Essential Utilities reported second-quarter results showing revenue growth and a dividend increase, but earnings per share dipped from a year earlier. The regulated water segment posted revenue of $357.5 million, up 7.6% from $332.3 million, while first-half revenue climbed 7.2% to nearly $1.4 billion. However, net income fell to $105.7 million from $107.8 million, pulling GAAP EPS down to $0.37 from $0.38. The company raised its dividend 5.25% to $0.3606 per share, marking the 36th increase in 35 years. Essential also progressed on its merger with American Water, which cleared Virginia and Ohio regulators, and continues to expand through acquisitions, including a $276.5 million purchase of DELCORA. Despite rising costs and a shrinking gas segment, guidance calls for 5% to 7% annual earnings growth through 2027.

WHA Utilities and Power (WHAUP) announced its Q2/2026 operating results with strong growth, reporting total revenue and normal profit share of 1,258 million baht, up 36% year-on-year. Normal profit stood at 532 million baht, up 276% from the previous year, driven by higher water sales in both Thailand and Vietnam, as well as the recovery of the Gheco-One power plant after returning to full operation following maintenance shutdown in the previous quarter. Meanwhile, WHAUP is accelerating investment expansion to support future industries, creating a New S-Curve for long-term business growth. The water business will cater to increasing demand through water reuse solutions and water management efficiency technologies, while the power business is preparing infrastructure for direct clean energy power purchase agreements (Direct PPA) to be ready for implementation once the government lifts policy restrictions. Additionally, the company is studying future energy innovations such as Small Modular Reactors (SMR) and carbon capture technologies to create new business opportunities and drive sustainable growth.

WHAUP, Thailand's leading utility and energy business, announced strong Q2/2026 results, with total revenue and normal profit share of 1,258 million baht, up 36% year-on-year, and normal net profit of 532 million baht, up 276%, supported by growing water sales both in Thailand and Vietnam, as well as the recovery of the Gheco-One power plant, which returned to full operation after maintenance shutdown in the previous quarter. Meanwhile, the company is preparing to accelerate investment expansion to support future industries, aiming to create a long-term New S-Curve. The water business will focus on water recycling solutions and efficient water management technology, supporting the Water Positive goal. The power business is preparing infrastructure to support clean energy trading through Direct PPA as soon as the government unlocks the policy, while also studying SMR and Carbon Capture to create new business opportunities alongside sustainability.

TQR Quality Organization received the Outstanding Corporate Non-Life Insurance Broker Award for 2025 from the Office of the Insurance Commission (OIC), reflecting its leadership as a comprehensive reinsurance broker operating professionally, while leveraging technology and AI to develop products and services to drive the industry sustainably. Meanwhile, WHAUP reported net profit of 532 million baht for Q2/2026, up 276%, driven by growth in water sales in Thailand and Vietnam and the recovery of the Gheco-One power plant, which has returned to full operation. GUNKUL is jointly developing the Laguna Lake Floating Solar project, the largest floating solar project in ASEAN, located in the Philippines, expanding its renewable energy base from Japan, Vietnam, and Malaysia into the high-potential Philippine market.

WHAUP, Thailand's leading utility and energy company, announced strong second-quarter 2026 results, with total revenue and normal profit share of 1,258 million baht, up 36% year-on-year, and normal net profit of 532 million baht, up 276%, driven by growth in water sales both in Thailand and Vietnam, as well as the recovery of the Gheco-One power plant, which returned to full operation after maintenance. The company is set to accelerate investment expansion to support future industries. In the water business, it will focus on water reclamation solutions to support the Water Positive goal, while the power business is preparing infrastructure to support electricity trading through Direct PPA as soon as the government unlocks the policy. It is also studying future energy technologies such as SMR and Carbon Capture to create a New S-Curve and long-term sustainability.

WHAUP reported strong Q2/2026 results, with total revenue and normal profit share of 1,258 million baht, up 31% from the same period last year. Net profit stood at 532 million baht, up 276% year-on-year, driven by increased water demand across all product segments and expansion of new industrial customers. The electricity business saw a significant increase in profit share from the Gheco-One power plant. The company continues to expand investments in water and clean energy utilities to meet industrial demand, focusing on opportunities under the national Power Development Plan (PDP 2026) and the direct power purchase agreement (Direct PPA) market, which are expected to be key drivers for long-term clean energy portfolio growth.

WHAUP reported net profit of 532 million baht for the second quarter of 2026, up 276% year-on-year. Revenue and normal profit share stood at 1,258 million baht, up 31%, driven by growth in the water business across all product segments and expansion of new industrial customer base, as well as a notable increase in profit share from the power business, particularly from the Gheco-One power plant. The company continues to invest and expand its water and clean energy services to support the PDP 2026 power development plan and Direct PPA electricity trading.

Essential Utilities reported second-quarter 2026 adjusted earnings of 38 cents per share, in line with estimates, while revenues of $530.9 million beat the consensus by 5.76%. The regulated water segment drove growth with revenues rising to $357.5 million, though natural gas revenues fell to $169.3 million. The company reaffirmed its 5% to 7% annual adjusted earnings growth outlook through 2027 and expects its merger with American Water to close in the first quarter of 2027. Essential also raised its quarterly dividend by 5.25% to 36.06 cents per share, payable September 1, 2026.

KGI Securities (Thailand) stated that WHAUP will benefit from the new Power Development Plan (PDP 2569), which aims for cleaner energy. The plan is about 80% complete and focuses on increasing the share of renewable energy to over 65%, including the implementation of Direct Power Purchase Agreements (Direct PPA), which starts with a pilot project of 2,000 megawatts and plans to expand to 4,000 megawatts. WHAUP has signed Memorandums of Understanding (MOUs) for DPPA with data center customers totaling 120 megawatts, and has a pipeline of over 100 megawatts. As the sole utility and electricity provider in WHA's industrial estates, the company is advantageously positioned to develop renewable power plants near its customers. As of the end of Q2 2026, its operational solar projects have a capacity of about 205 megawatts, up 32% year-on-year, from secured PPAs totaling 542 megawatts, with about 314 megawatts under development. For the water business, WHAUP used about 80 million cubic meters of water in 2025, with East Water (52.5%) and Wongsiam (25.4%) as main raw water suppliers. Raw water volume is expected to increase from 352 million cubic meters in 2025 to 500 million cubic meters in 2030, driven by demand from data centers, which use 12-16 times more water than typical factories. The company expects core profit to grow 34% in 2026 and 21% in 2027, supported by double-digit revenue growth, improved gross margins, and share of profit from associates such as Gulf Dev and Global Power Synergy, totaling about 1 billion baht per year. KGI maintains a "Buy" recommendation with a SOTP target price of 9.30 baht.

Guangdong Shunkong Development Co., Ltd. announced the completion of the first tranche of its 2026 medium-term notes, with an issuance amount of 600 million yuan, a term of 3 plus 2 years, and a coupon rate of 1.72 percent. The notes are abbreviated as 26 Shunkong Development MTN001 (M&A), with code 102683444, issued at 100 yuan per 100 yuan face value, with an interest accrual date of August 31, 2026, and a redemption date of August 31, 2031.

Chongqing Water released its 2026 interim report, with total operating revenue of 3.631 billion yuan, up 1.54% year-on-year, and net profit attributable to the parent company of 495 million yuan, up 4.61% year-on-year. Net cash inflow from operating activities was 972 million yuan, up 7.24% year-on-year. The company's asset-liability ratio was 50.25%, gross margin was 32.51%, ROE was 2.89%, and diluted earnings per share was 0.10 yuan. The number of shareholders was 42,300, and the top ten shareholders held 89.57% of the total share capital.

Chongqing Water Group released its 2026 interim report. In the first half, operating revenue reached 3.631 billion yuan, up 1.54 percent year on year. Net profit attributable to the parent company was 495 million yuan, up 4.61 percent. Recurring net profit was 418 million yuan, up 2.32 percent. Net cash flow from operating activities was 972 million yuan, up 7.24 percent. Sewage treatment revenue came to 2.346 billion yuan, up 8.98 percent, with gross margin up 2.65 percentage points. Tap water supply revenue was 848 million yuan, down slightly by 2.94 percent. The company is actively advancing integration of water supply assets, and its ABCP issuance has been accepted for registration by the National Association of Financial Market Institutional Investors. It also completed rotation of 347,000 water meters, renovated 27.6 kilometres of ageing pipelines, and put intelligent aeration control systems into operation. The board elected Wang Xiaojun as chairman of the sixth board of directors. He previously served as general manager of Taiji Group, chairman of Tongjunge, and general manager of Sanfeng Environment, and was transferred to Chongqing Water Group in August this year.

Zhongshan Public Utilities released its first-half 2026 report. Total operating revenue was 2.173 billion yuan, up 2.45% year on year. Net profit attributable to the parent company was 1.468 billion yuan, up 104.01% year on year, marking a second consecutive year of growth. Net cash inflow from operating activities was 248 million yuan, an increase of 618 million yuan year on year. The company's asset-liability ratio was 48.30%, down 0.92 percentage points year on year. Gross margin was 29.18%, up 7.00 percentage points year on year. Return on equity was 7.58%, up 3.48 percentage points year on year. Diluted earnings per share were 1.00 yuan, up 104.08% year on year.

TTW Public Company Limited (TTW) has announced through the Stock Exchange of Thailand that its board of directors has approved the payment of an interim cash dividend at a rate of 0.30 baht per share, paid from the operating results of the first half of 2026, covering the period from January 1 to June 30, 2026. The shares have a par value of 1 baht each. The company has set the ex-dividend (XD) date for September 9, 2026, and the record date for shareholders entitled to receive the dividend on September 10, 2026, before paying the dividend to shareholders on September 25, 2026.

The board of directors of Thonburi Waterworks Public Company Limited (TTW) has approved the payment of an interim dividend from the operating results of the first six months of this year, at a rate of 0.30 baht per share. The ex-dividend date (XD) will be September 9, 2026, with the record date set for September 10, and the dividend payment will be made on September 25, 2026. TTW shares closed today at 10.40 baht, unchanged, with a trading value of 33.90 million baht.