Chesapeake Utilities Posts 12% EPS Growth, $470M Capex Boost and Dividend Hike
Chesapeake Utilities posted record adjusted EPS of $6.01 in 2025, driven by $470 million of capital investment, 11,000 customer additions and $71 million of incremental gross margin. It raised its dividend 7% to $2.74, set 2026 capex at $450–$500 million and reaffirmed 2028 adjusted EPS of $7.75–$8.00.
1. Record 2025 Performance
Chesapeake produced adjusted EPS of $6.01 per share, up 12% year over year, marking its 19th consecutive year of growth. Adjusted gross margin reached $639 million, with net income of $141 million, supported by $470 million in capital investments. The board raised its annual dividend 7% to $2.74 per share.
2. Earnings Growth Drivers
Management attributed $2.41 of EPS benefit to projects including transmission expansion ($0.58), infrastructure expansion ($0.43), higher demand and customer growth ($0.51), and permanent rates from three 2025 rate cases ($0.39). Unregulated operations, led by Marlin Virtual Pipeline Transportation, contributed $0.29 per share.
3. 2026 Guidance and Capital Program
The company forecast $450–$500 million of 2026 capital expenditures, including $75 million for its 1CORE ERP go-live by Q2 2027. Management expects major projects to contribute approximately $47 million of gross margin in 2026 and further margins in subsequent years.
4. Regulatory Developments
Florida City Gas was denied amortization of a $19 million excess depreciation reserve and will recover $6.8 million over asset life, yielding roughly $1 million of savings in 2026. Chesapeake filed a general rate case notice in April 2026, targeting interim rates by July to restore earnings contribution.