Essential Utilities (HAM:A2A) EBIT: €793 Mil (TTM As of Mar. 2026)


HAM:A2A Essential Utilities Inc HAM:A2A
73 GF Score
Price €32.61
GF Value €35.55
Valuation Fairly Valued
! 7 Warning Signs
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What is Essential Utilities EBIT?

Essential Utilities HAM:A2A +0.06% 73 EBIT is €793 Mil as of Mar. 2026. GuruFocus rates HAM:A2A with a GF Score™ of 73/100 and a GF Value™ of €35.55 (Fairly Valued). The stock has 7 warning signs investors should review.

Essential Utilities's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €275 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €793 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Essential Utilities's annualized ROC % for the quarter that ended in Mar. 2026 was 6.35%. Essential Utilities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Essential Utilities's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.66%.

Essential Utilities  (HAM:A2A) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Essential Utilities's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1074.816 * ( 1 - 2.77% )/( (16258.121 + 16643.787)/ 2 )
=1045.0435968/16450.954
=6.35 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=16622.978 - 496.447 - ( 29.7 - max(0, 652.868 - 521.278+29.7))
=16258.121

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=17109.799 - 493.533 - ( 65.676 - max(0, 566.096 - 538.575+65.676))
=16643.787

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Essential Utilities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1100.576/( ( (12203.323 + max(-122.501, 0)) + (12512.888 + max(-153.021, 0)) )/ 2 )
=1100.576/( ( 12203.323 + 12512.888 )/ 2 )
=1100.576/12358.1055
=8.91 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(220.106 + 96.035 + 67.371) - (496.447 + 0 + 9.566)
=-122.501

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(248.534 + 62.45 + 48.414) - (493.533 + 0 + 18.886)
=-153.021

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Essential Utilities's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=792.791/17014.266
=4.66 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Essential Utilities EBIT Related Terms

Essential Utilities EBIT Historical Data

* Premium members only.

The historical data trend for Essential Utilities's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Essential Utilities EBIT Chart

Essential Utilities Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 557.29 650.44 655.79 836.53 810.36

Essential Utilities Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 319.37 166.64 152.21 198.80 275.14

HAM:A2A vs AWR, CWT, HTO: EBIT Comparison

For the Utilities - Regulated Water subindustry, Essential Utilities's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Essential Utilities EV-to-EBIT vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Essential Utilities's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Essential Utilities's EV-to-EBIT falls into.


HAM:A2A
73GF Score
Essential Utilities Inc HAM:A2A
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Essential Utilities EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €793 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €793 Mil mean?
Essential Utilities (HAM:A2A) has a EBIT of €793 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Essential Utilities.
Is Essential Utilities' EBIT too high?
Essential Utilities' current EBIT is €793 Mil. Overall, Essential Utilities has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' EBIT compare to AWR and CWT?
Essential Utilities' EBIT of €793 Mil can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Utilities - Regulated company?
A good EBIT depends on the Utilities - Regulated industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Essential Utilities. Essential Utilities's current EBIT is €793 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Based on GuruFocus' analysis, Essential Utilities (HAM:A2A) is currently considered Fairly Valued. The stock's GF Value™ is €35.55, compared to a current price of €32.61 — trading 8.3% below its estimated fair value. The current EBIT is €793 Mil. Essential Utilities' overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Essential Utilities (HAM:A2A), the current EBIT is €793 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Essential Utilities (HAM:A2A) Overvalued in 2026?

Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued. The current stock price of €32.61 is trading 8.3% below its estimated GF Value™ of €35.55. GuruFocus considers Essential Utilities to be Fairly Valued.

Key valuation signals for HAM:A2A:

  • EBIT: €793 Mil
  • GF Value™: €35.55 vs. price of €32.61 (8.3% below fair value)
  • GF Score™: 73/100 with 7 warning signs

No single metric tells the full story. See the HAM:A2A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Essential Utilities Business Description

Other Exchanges WTRG:USAA2A:Germany
Address 762 West Lancaster Avenue, Bryn Mawr, PA, USA, 19010-3489
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
73GF Score

Get the complete analysis for HAM:A2A

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€32.61
Price
€35.55
GF Value