Adjusted EPS**, which excludes transaction and transition-related expenses attributable to the acquisition of Florida City Gas ("FCG") in late 2023, was $6.01 for the full year 2025 and $1.94 for the fourth quarter of 2025, representing annual growth of 11.5 percent compared to the prior year
Adjusted gross margin** increased by $71.1 million during the year driven primarily by regulatory initiatives and infrastructure programs, natural gas organic growth, transmission expansion projects, and increased demand for Marlin's services
Record capital spending for 2025 of $470.4 million which included more than $100 million that will contribute to earnings beginning in 2026 and beyond
Equity to total capitalization ratio approximated 50 percent at December 31, 2025; returning to the Company's target capital structure ahead of its projections at the time of the FCG acquisition and despite increased capital spending
The Company is initiating 2026 capital expenditure guidance of $450-$500 million and continues to affirm its 2024-2028 capital expenditure guidance of $1.5 - $1.8 billion and 2028 EPS guidance of $7.75 - $8.00
DOVER, Del., Feb. 25, 2026 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE:CPK) ("Chesapeake Utilities" or the "Company") today announced financial results for the year and the fourth quarter ended December 31, 2025.
Net income was $140.3 million ($5.97 per share) in 2025 compared to $118.6 million ($5.26 per share) in 2024. Excluding transaction and transition-related expenses related to the acquisition of FCG, adjusted net income** was $141.1 million ($6.01 per share) compared with $121.5 million ($5.39 per share) in 2024.
In the fourth quarter of 2025, the Company's net income was $46.1 million ($1.93 per share) compared with $36.7 million ($1.60 per share) during the prior-year period. Excluding the transaction and transition-related expenses, adjusted net income was $46.2 million ($1.94 per share) compared with $37.3 million ($1.63 per share) during the fourth quarter of 2024.
2025 Highlights Driving Strong Growth and Performance**:
Strong year-over-year residential customer growth of 4.1 percent in Delmarva and 2.8 percent in Florida
10 transmission capital projects brought online throughout 2024 and 2025, driving $18.8 million of incremental adjusted gross margin or $0.58 of incremental EPS
$121.2 million of infrastructure capital investments, driving $13.8 million of incremental adjusted gross margin or $0.43 of incremental EPS
Increased demand for CNG/LNG/RNG services driving $10.7 million of incremental adjusted gross margin or $0.33 of incremental EPS
Completion of three rate cases in DE, MD and Florida Electric, driving $12.6 million of incremental adjusted gross margin or $0.39 of incremental EPS
Higher customer consumption that added $9.5 million of incremental adjusted gross margin or $0.28 of incremental EPS
Implemented the 1CX SAP Customer Billing Platform for FCG
"We started the year with a simple mission: deliver with purpose and reach new heights, so I'm proud that our full-year performance and results demonstrate exactly that: we provided safe and reliable energy to over 450 thousand customers, were active members of our communities, invested a record-breaking $470 million of capital and achieved nearly 12 percent year-over-year Adjusted EPS growth," said Jeff Householder, the Company's Chair of the Board, President and Chief Executive Officer. "These achievements demonstrate our ongoing commitment to the goals we set upon acquiring FCG two years ago and are a testament to our dedicated teammates who consistently strive to provide high-quality service for our valued customers."
"Looking forward to 2026, I am excited about the opportunities ahead as we build on the blueprint we've established and leverage the capabilities of our team to continually transform the Company for future growth. As we tackle larger-scale capital projects, improve FCG's return profile and implement significant technology upgrades across our enterprise, we are positioning the Company for a new level of service, efficiency and growth, which will drive sustained value for all our stakeholders for years to come."
Capital Investment and Earnings Guidance
The Company's 2025 capital expenditures totaled $470.4 million which exceeded the top end of the 2025 capital guidance range by approximately $20 million.
The Company continues to re-affirm its five-year (2024-2028) capital guidance range of $1.5 billion to $1.8 billion and projects capital expenditures of $450 million to $500 million for 2026. Additionally, the Company continues to re-affirm its 2028 EPS guidance range of $7.75 to $8.00 per share.
* Unless otherwise noted, EPS and Adjusted EPS information is presented on a diluted basis.** See "Non-GAAP Financial Measures" below for additional information and reconciliations.
Non-GAAP Financial Measures
**This press release including the tables herein, include references to both Generally Accepted Accounting Principles ("GAAP") and non-GAAP financial measures, including Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.
The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions, and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit's and the overall Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.
The following tables reconcile Gross Margin, Net Income, and EPS, all as defined under GAAP, to our non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS for each of the periods presented.
Adjusted Gross Margin
For the Year Ended December 31, 2025
(in millions)
Regulated Energy
Unregulated Energy
Other and Eliminations
Total
Operating Revenues
$ 687.8
$ 271.9
$ (29.7)
$ 930.0
Cost of Sales:
Natural gas, propane and electric costs
(193.8)
(127.3)
29.6
(291.5)
Depreciation & amortization
(70.9)
(20.8)
—
(91.7)
Operations & maintenance expenses (1)
(54.7)
(39.1)
0.1
(93.7)
Gross Margin (GAAP)
368.4
84.7
—
453.1
Operations & maintenance expenses (1)
54.7
39.1
(0.1)
93.7
Depreciation & amortization
70.9
20.8
—
91.7
Adjusted Gross Margin (Non-GAAP)
$ 494.0
$ 144.6
$ (0.1)
$ 638.5
For the Year Ended December 31, 2024
(in millions)
Regulated Energy
Unregulated Energy
Other and Eliminations
Total
Operating Revenues
$ 583.4
$ 228.4
$ (24.6)
$ 787.2
Cost of Sales:
Natural gas, propane and electric costs
(144.2)
(100.2)
24.6
(219.8)
Depreciation & amortization
(48.8)
(16.9)
—
(65.7)
Operations & maintenance expenses (1)
(48.6)
(33.1)
—
(81.7)
Gross Margin (GAAP)
341.8
78.2
—
420.0
Operations & maintenance expenses (1)
48.6
33.1
—
81.7
Depreciation & amortization
48.8
16.9
—
65.7
Adjusted Gross Margin (Non-GAAP)
$ 439.2
$ 128.2
$ ,
$ 567.4
For the Three Months Ended December 31, 2025
(in millions)
Regulated Energy
Unregulated Energy
Other and Eliminations
Total
Operating Revenues
$ 190.0
$ 76.6
$ (7.7)
$ 258.9
Cost of Sales:
Natural gas, propane and electric costs
(56.5)
(33.9)
7.6
(82.8)
Depreciation & amortization
(18.3)
(5.7)
—
(24.0)
Operations & maintenance expense (1)
(14.2)
(10.1)
0.2
(24.1)
Gross Margin (GAAP)
101.0
26.9
0.1
128.0
Operations & maintenance expenses (1)
14.2
10.1
(0.2)
24.1
Depreciation & amortization
18.3
5.7
—
24.0
Adjusted Gross Margin (Non-GAAP)
$ 133.5
$ 42.7
$ (0.1)
$ 176.1
For the Three Months Ended December 31, 2024
(in millions)
Regulated Energy
Unregulated Energy
Other and Eliminations
Total
Operating Revenues
$ 153.7
$ 68.3
$ (7.0)
$ 215.0
Cost of Sales:
Natural gas, propane and electric costs
(38.6)
(29.2)
7.0
(60.8)
Depreciation & amortization
(9.3)
(4.6)
—
(13.9)
Operations & maintenance expenses (1)
(12.9)
(8.8)
—
(21.7)
Gross Margin (GAAP)
92.9
25.7
—
118.6
Operations & maintenance expense (1)
12.9
8.8
—
21.7
Depreciation & amortization
9.3
4.6
—
13.9
Adjusted Gross Margin (Non-GAAP)
$ 115.1
$ 39.1
$ ,
$ 154.2
(1) Operations & maintenance expenses within the Consolidated Statements of Income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under US GAAP.
Adjusted Net Income and Adjusted EPS
Year Ended
Three Months Ended
December 31,
December 31,
(dollars in millions, shares in thousands (except per share data))
2025
2024
2025
2024
Net Income (GAAP)
$ 140.3
$ 118.6
$ 46.1
$ 36.7
FCG transaction and transition-related expenses, net (1)
0.8
2.9
0.1
0.6
Adjusted Net Income (Non-GAAP)
$ 141.1
$ 121.5
$ 46.2
$ 37.3
Weighted average common shares outstanding - diluted
23,488
22,531
23,867
22,914
Earnings Per Share - Diluted (GAAP)
$ 5.97
$ 5.26
$ 1.93
$ 1.60
FCG transaction and transition-related expenses, net (1)
0.04
0.13
0.01
0.03
Adjusted Earnings Per Share - Diluted (Non-GAAP)
$ 6.01
$ 5.39
$ 1.94
$ 1.63
(1) Transaction and transition-related expenses represent non-recurring costs attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding, and legal fees.
Operating Results for the Years Ended December 31, 2025 and 2024
Consolidated Results
Year Ended December 31,
(in millions)
2025
2024
Change
Percent Change
Adjusted gross margin**
$ 638.5
$ 567.4
$ 71.1
12.5 %
Depreciation, amortization and property taxes (1)
127.9
101.6
(26.3)
(25.9) %
Other operating expenses
253.5
233.6
(19.9)
(8.5) %
FCG transaction and transition-related expenses
1.2
4.0
2.8
NMF
Operating income
$ 255.9
$ 228.2
$ 27.7
12.1 %
(1) Includes the absence of a reserve surplus amortization mechanism ("RSAM") adjustment from FCG which represented a $15.5 million benefit during the year ended December 31, 2024.
Operating income during 2025 was $255.9 million, an increase of $27.7 million compared to the prior year. Excluding transaction and transition-related expenses associated with the acquisition and integration of FCG, operating income increased $24.9 million or 10.7 percent compared to the prior year. The increase in adjusted gross margin during 2025 was driven by incremental margin from regulatory initiatives and infrastructure programs, pipeline expansion projects and natural gas organic growth, increased Marlin CNG, RNG and LNG services, and increased customer consumption resulting from the year-over-year colder temperatures in the Company's Ohio, Delmarva and Florida service territories. Higher operating expenses were driven largely by increased depreciation expense attributable to growth projects and the absence of an RSAM adjustment from FCG (which represented a $15.5 million benefit during 2024). Increased facilities, maintenance and outside services costs; payroll, benefits and other employee-related expenses; insurance-related costs; and credit, collections and customer service costs also contributed to the increase in operating expenses compared to 2024.
Regulated Energy Segment
Year Ended December 31,
(in millions)
2025
2024
Change
Percent Change
Adjusted gross margin**
$ 494.0
$ 439.2
$ 54.8
12.5 %
Depreciation, amortization and property taxes (1)
104.7
82.5
(22.2)
(26.9) %
Other operating expenses
166.1
156.5
(9.6)
(6.1) %
FCG transaction and transition-related expenses
1.2
4.0
2.8
NMF
Operating income
$ 222.0
$ 196.2
$ 25.8
13.1 %
(1) Includes the absence of an RSAM adjustment from FCG which represented a $15.5 million benefit during the year ended December 31, 2024.
The key components of the increase in adjusted gross margin** are shown below:
(in millions)
Natural gas transmission service expansions, including interim services
$ 18.8
Contributions from regulated infrastructure programs
13.8
Rate changes associated with recent rate case activities (1)
12.6
Natural gas growth including conversions (excluding service expansions)
7.4
Increased customer consumption
2.4
Other variances
(0.2)
Year-over-year increase in adjusted gross margin**
$ 54.8
(1) Includes adjusted gross margin contributions from both interim and permanent base rates. Refer to Major Projects and Initiatives discussion for additional information.
The key components of the increase in other operating expenses are as follows:
(in millions)
Facilities expenses, maintenance costs and outside services
$ (4.7)
Insurance-related costs
(1.7)
Credit, collections and customer service costs
(1.3)
Payroll, benefits and other employee-related expenses
(1.2)
Other variances
(0.7)
Year-over-year increase in other operating expenses
$ (9.6)
Unregulated Energy Segment
Year Ended December 31,
(in millions)
2025
2024
Change
Percent Change
Adjusted gross margin**
$ 144.6
$ 128.2
$ 16.4
12.8 %
Depreciation, amortization and property taxes
23.1
19.1
(4.0)
(20.9) %
Other operating expenses
87.9
77.4
(10.5)
(13.6) %
Operating income
$ 33.6
$ 31.7
$ 1.9
6.0 %
The key components of the increase in adjusted gross margin** are shown below:
(in millions)
Propane Operations
Increased propane customer consumption
$ 4.5
Change in propane margins and service fees
(1.4)
CNG/RNG/LNG Transportation and Infrastructure
Increased demand for CNG/RNG/LNG services
10.7
Aspire Energy
Increased customer consumption
2.6
Year-over-year increase in adjusted gross margin**
$ 16.4
The major components of the increase in other operating expenses are as follows:
(in millions)
Payroll, benefits and other employee-related expenses
$ (5.5)
Facilities, maintenance costs, and outside services
(4.5)
Other variances
(0.5)
Year-over-year increase in other operating expenses
$ (10.5)
Operating Results for the Quarters Ended December 31, 2025 and 2024
Consolidated Results
Three Months Ended December 31,
(in millions)
2025
2024
Change
Percent Change
Adjusted gross margin**
$ 176.1
$ 154.2
$ 21.9
14.2 %
Depreciation, amortization and property taxes (1)
32.7
23.8
(8.9)
(37.4) %
Other operating expenses
69.4
62.6
(6.8)
(10.9) %
FCG transaction and transition-related expenses
0.2
0.9
0.7
NMF
Operating income
$ 73.8
$ 66.9
$ 6.9
10.3 %
(1) Includes the absence of an RSAM adjustment from FCG which represented a $6.6 million benefit during the quarter ended December 31, 2024.
Operating income for the fourth quarter of 2025 was $73.8 million, an increase of $6.9 million compared to the same period in 2024. Excluding transaction and transition-related expenses associated with the acquisition and integration of FCG, operating income increased $6.2 million or 9.1 percent compared to the same period in 2024. The increase in adjusted gross margin during the quarter was driven largely by pipeline expansion projects and organic growth, incremental margin from regulatory initiatives and infrastructure programs, increased customer consumption resulting from the period-over-period colder temperatures in the Company's Ohio, Delmarva and Florida service territories and increased Marlin CNG, RNG and LNG services. Higher operating expenses were driven largely by increased depreciation expense attributable to growth projects and the absence of an RSAM adjustment from FCG (which represented a $6.6 million benefit during the fourth quarter of 2024). Higher payroll, benefits and other employee-related expenses, credit, collections and customer service costs, and facilities, maintenance and outside services costs also contributed to the increase in operating expenses.
Regulated Energy Segment
Three Months Ended December 31,
(in millions)
2025
2024
Change
Percent Change
Adjusted gross margin**
$ 133.5
$ 115.1
$ 18.4
16.0 %
Depreciation, amortization and property taxes (1)
26.4
18.8
(7.6)
(40.4) %
Other operating expenses
46.1
41.8
(4.3)
(10.3) %
FCG transaction and transition-related expenses
0.2
0.9
0.7
NMF
Operating income
$ 60.8
$ 53.6
$ 7.2
13.4 %
(1) Includes the absence of an RSAM adjustment from FCG which represented a $6.6 million benefit during the quarter ended December 31, 2024.
The key components of the increase in adjusted gross margin** are shown below:
(in millions)
Natural gas transmission service expansions, including interim services
$ 7.1
Rate changes associated with recent rate case activities (1)
3.4
Margin from regulated infrastructure programs
2.8
Natural gas growth including conversions (excluding service expansions)
1.9
Increased customer consumption
1.5
Florida Electric growth
0.7
Eastern Shore contracted rate adjustments
0.4
Other variances
0.6
Period-over-period increase in adjusted gross margin**
$ 18.4
(1) Includes adjusted gross margin contributions from both interim and permanent base rates. Refer to Major Projects and Initiatives discussion for additional information.
The major components of the increase in other operating expenses are as follows:
(in millions)
Credit, collections and customer service costs
$ (1.6)
Payroll, benefits and other employee-related expenses
(1.3)
Insurance-related costs
(0.6)
Other variances
(0.8)
Period-over-period increase in other operating expenses
$ (4.3)
Unregulated Energy Segment
Three Months EndedDecember 31,
(in millions)
2025
2024
