The quarter came in slightly below the published earnings bar. Adjusted diluted EPS was $1.05 versus a published consensus of approximately $1.08, a narrow miss despite adjusted net income rising 4.5% year over year.
| Metric | Q2 2026 | Q2 2025 | Change | Expectation |
|---|---|---|---|---|
| Operating revenue | $201.9M | $192.8M | +4.7% | — |
| Adjusted gross margin | $150.2M | $142.8M | +5.2% | — |
| Adjusted net income | $25.4M | $24.3M | +4.5% | — |
| Adjusted diluted EPS | $1.05 | $1.04 | +1.0% | ~$1.08 |
| Diluted shares outstanding | 24.174M | 23.402M | +3.3% | — |
Underlying operating growth was solid but not especially powerful on a per-share basis. Adjusted gross margin increased $7.4 million, led by transmission expansions, regulated infrastructure programs and natural-gas growth; however, higher operating costs, interest expense and equity dilution absorbed most of that benefit, leaving EPS up only one cent. (Adjusted Gross Margin bridge) (Adjusted EPS reconciliation)
The regulated engine remained the clear strength. Regulated Energy revenue rose to $164.3 million from $151.8 million, while regulated adjusted gross margin increased to $124.7 million from $117.7 million. Unregulated adjusted gross margin rose only $0.4 million to $25.4 million, with lower unregulated revenue and weaker CNG/RNG/LNG services limiting the broader improvement. (Segment results — Regulated Energy and Unregulated Energy)
Management raised near-term investment materially and introduced a potentially large new growth project. 2026 capital-spending guidance increased by $100 million to $550–$600 million, while the newly announced $1.2 billion Florida Energy Pathway pipeline targets approximately 250,000 Dts/d of committed capacity and a 2030 in-service date. The filing also points to more than $2.2 billion of investment through 2028, well above the earlier $1.5–$1.8 billion framework. (Capital guidance and Florida Energy Pathway announcement)
The long-term picture improved, but the near-term read is mixed rather than clearly positive. The company reaffirmed 2028 EPS guidance of $7.75–$8.00, so the strategic expansion does not yet translate into higher earnings guidance; against that, the quarter narrowly missed consensus. The result is dependable regulated growth and a larger investment runway, offset by dilution, elevated spending and no increase to the existing long-term EPS target. (Long-term guidance)
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