In this article, we will discuss: 8 Most Profitable Utility Stocks to Invest In Now.
On April 16, 2026, Bloomberg reported that U.S. industrial production dipped 0.5% in March, reversing a revised 0.7% rise in February and falling short of forecasts for a 0.1% increase. Manufacturing output dipped by 0.1%, while utilities output fell by 2.3%, and mining output also decreased. Weakness was evident in lower production of consumer items, commercial equipment, and materials, as well as motor vehicles, primary metals, and furniture. Excluding autos, manufacturing output increased 0.1%, marking the third consecutive monthly increase. Capacity utilization fell to 75.3%.
Separate statistics from the Federal Reserve Bank of Philadelphia showed that manufacturing activity increased to one of its highest levels since 2021, with higher orders and shipments and higher input prices. According to the data, first-quarter factory output rebounded from a sluggish prior period. However, rising energy and material costs associated with the Iran war weighed on business sentiment and threatened to constrain orders if pressures remained.
With that said, here are the 8 Most Profitable Utility Stocks to Invest In Now.
Our Methodology
We used screeners to identify the Most Profitable Utility Stocks that reported operating and net profit margins exceeding 20%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the finalized stocks in ascending order by net profit margin.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8. American Water Works Company, Inc. (NYSE:AWK)
Net Profit Margin: 21.62%
Operating Margin: 32.18%
On April 7, 2026, a subsidiary of American Water Works Company, Inc. (NYSE:AWK), Indiana American Water, reported plans to build a $19 million PFAS treatment facility near Terre Haute, the company’s second such project in Indiana. The corporation secured around $14 million in State Revolving Fund funding and anticipates completion by mid-2028. The venture will use granular activated carbon technology, similar to the Charlestown facility, which opened in November 2025. President of Indiana American Water, Barry Suits, stated that the investment improves water quality and handles growing contaminants.
American Water Works Company, Inc. reported financial results for 2025, with GAAP earnings of $5.69 per share, up from $5.39 in 2024, and fourth-quarter GAAP EPS of $1.22, unchanged year on year. The corporation announced adjusted full-year EPS of $5.64, up from $5.18, and adjusted fourth-quarter EPS of $1.24, up from $1.15. The firm spent $3.2 billion in capital and reiterated its long-term EPS and dividend growth targets of 7% to 9%.
American Water Works Company, Inc. is a holding company that provides water and wastewater services. It operates through two segments: Regulated Businesses and Other.
7. Middlesex Water Company (NASDAQ:MSEX)
Net Profit Margin: 22.00%
Operating Margin: 26.33%
On March 27, 2026, Middlesex Water Company (NASDAQ:MSEX) hired Tatyana Kaplan as vice president and chief accounting officer, effective March 26. Kaplan previously worked as the director of accounting for Veolia North America’s regulated utility division, where she oversaw regulatory accounting and reporting in six jurisdictions.
Middlesex Water Company announced financial performance for 2025, with net income of $42.8 million, a $1.5 million decrease year on year, and diluted EPS of $2.36 compared to $2.47 in 2024. The corporation reported operating revenue of $194.7 million, increasing by $2.8 million due to rate hikes and client growth. The firm reported fourth-quarter net income of $8.6 million and earnings per share of $0.46, compared to $8.8 million and $0.49 in the previous year. The corporation invested $96 million in infrastructure in 2025 and aims to invest $506 million from 2026 to 2028.
Middlesex Water Company owns and manages regulated water utility and wastewater systems. The company’s services include water production, treatment, and distribution, full-service municipal contract operations, and wastewater collection and treatment. It operates in two segments: regulated and non-regulated.
6. Edison International (NYSE:EIX)
Net Profit Margin: 23.08%
Operating Margin: 35.95%
On March 23, 2026, Morgan Stanley analyst David Arcaro boosted Edison International (NYSE:EIX)’s price objective to $71 from $68 while maintaining an Underweight rating. The analyst upgraded utility sector targets, noting recent outperformance compared to the S&P and positive industry discussions about load growth and data center demand.
Edison International released fourth-quarter and full-year 2025 results, with fourth-quarter net income of $1.85 billion, or $4.80 per share, compared to $340 million, or $0.88 per share, the year before. The corporation posted core earnings of $717 million, or $1.86 per share. For the whole fiscal year 2025, the firm reported net income of $4.46 billion, or $11.58 per share, while core earnings were $2.52 billion, or $6.55 per share. The firm provided core EPS guidance for 2026 of $5.90 to $6.20, with a projection for 2027 of $6.25 to $6.65.
Edison International is a renewable energy firm. It generates and distributes electricity through its subsidiaries and also invests in energy services and technologies.
5. Essential Utilities, Inc. (NYSE:WTRG)
Net Profit Margin: 24.91%
Operating Margin: 32.43%
On March 30, 2026, Essential Utilities, Inc. (NYSE:WTRG) reported that its Aqua Pennsylvania subsidiary had purchased the Greenville Municipal Water Authority for $18 million. It added over 2,900 consumers and increased service throughout Greenville Borough, Hempfield, and West Salem Townships. The corporation intends to invest $10 million in system improvements over the next ten years. According to CEO Christopher Franklin, the deal boosts drinking water service. Aqua Pennsylvania President Marc Lucca stated that planned expenditures will improve reliability and meet regulatory criteria. The transaction was approved by the Pennsylvania Public Utility Commission on January 15, 2026, and customer rates will remain unchanged at closing.
Essential Utilities, Inc. released financial results for 2025, with net income of $616.4 million, or $2.20 per share, compared to $595.3 million, or $2.17 per share, in 2024. The firm reported sales of $2.47 billion, up 18.6%, with fourth-quarter net income of $132.7 million, or $0.47 per share.
Essential Utilities, Inc. is a holding company that offers water, wastewater, and natural gas services through its subsidiaries. It functions through two segments: regulated water and regulated natural gas.
4. NextEra Energy, Inc. (NYSE:NEE)
Net Profit Margin: 24.93%
Operating Margin: 24.45%
On March 24, 2026, on Bloomberg TV, NextEra Energy, Inc. (NYSE:NEE) CEO John Ketchum discussed how artificial intelligence is driving power demand growth, stressing the company’s strength in renewables, battery storage, gas-fired production, and nuclear. The executive stated that Florida Power & Light keeps bills 30% to 40% lower than the national average despite growing approximately 2% each year, stressing cost discipline. The CEO pointed out that the company supports data centers through “bring your own generation” models, which ensure hyperscalers fund infrastructure while insulating users from costs.
In the same interview, the CEO stated that the US energy industry and administration support the expansion of power supply, which will allow for faster approval and deployment. The corporation aims to add 15 to 30 gigawatts of capacity by 2035, with progress being made through collaborations such as a partnership with Google on nuclear and data center development.
NextEra Energy, Inc. has secured 10 gigawatts of projects in Texas and Pennsylvania, totaling approximately $33 billion in investment, while also exploring acquisitions such as Symmetry Energy and analyzing further opportunities.
NextEra Energy, Inc. provides renewable energy. It is operated by the Florida Power and Light Company, NextEra Energy Resources, and NEET.
3. The York Water Company (NASDAQ:YORW)
Net Profit Margin: 25.89%
Operating Margin: 33.66%
On March 30, 2026, The York Water Company (NASDAQ:YORW) announced the acquisition of wastewater system assets serving the Pine Run Retirement Community in Hamilton Township, adding 141 customers and establishing itself as the only provider of water and wastewater services. President & CEO at The York Water Company JT Hand said that the purchase expands integrated utility services, while Pine Run Management expressed trust in the firm’s operational skills. The sale followed the company’s previous purchase of the community’s water system, which allowed for simplified operations and a broader service reach throughout Adams County.
The York Water Company released 2025 results, with operating revenue of $77.5 million, up $2.5 million, and net income of $20.1 million, down by $267,000. The company posted EPS of $1.39, which was down $0.03. Fourth-quarter revenue grew $606,000, while net income increased $25,000, with EPS remaining at $0.36. The corporation invested $48.7 million in infrastructure and expects to spend another $48 million per year in 2026 and 2027.
The York Water Company is involved in the impounding, purification, and distribution of drinking water. It owns and runs both wastewater collection and treatment systems.
2. Enlight Renewable Energy Ltd (NASDAQ:ENLT)
Net Profit Margin: 27.04%
Operating Margin: 43.00%
On April 9, 2026, Deutsche Bank analyst Corinne Blanchard increased Enlight Renewable Energy Ltd (NASDAQ:ENLT)’s price objective to $65 from $56, maintaining a Hold rating.
Enlight Renewable Energy Ltd announced its fourth-quarter and full-year 2025 results, with yearly revenue and income of $582 million, a 46% increase year on year, and net income of $161 million, up 142%. The company had adjusted EBITDA of $438 million, up 51%, and operational cash flow of $283 million, up 11%. Fourth-quarter sales were $152 million, up 46%, while net income was $21 million, rising 153%. The corporation reported adjusted EBITDA of $99 million, up 51%, and operating cash flow of $75 million, up 38%.
The company provided an outlook for 2026, estimating revenue and income of $755 million to $785 million and adjusted EBITDA of $545 million to $565 million.
Enlight Renewable Energy Ltd is a wind and solar energy company that operates in Israel and around the world. It initiates, plans, develops, funds, and oversees the building and running of electricity-generating projects. It operates in the following markets: MENA, Europe, U.S.A., Others.
1. Central Puerto S.A. (NYSE:CEPU)
Net Profit Margin: 31.56%
Operating Margin: 22.39%
On April 13, 2026, Central Puerto S.A. (NYSE:CEPU) announced its entry into the oil and gas business by acquiring 100% of Patagonia Energy S.A with Patagonia Assets Limited. The transaction represents the firm’s entry into Vaca Muerta, adding assets in the Aguada del Chivato and Aguada Bocarey domains, covering around 110 km² in the Neuquén Basin. The move broadens its energy matrix and supports its aim of developing an integrated energy platform in Argentina.
Central Puerto S.A. reported fourth-quarter revenue of $172.8 million, a 3% increase year-over-year. The company’s adjusted EBITDA fell 16% to $84.7 million from $101.1 million in the previous quarter. Total generation was 3,957 GWh, down 13% sequentially and 27% year over year.
Central Puerto S.A. secured a $245 million bid in January 2026 to extend the Piedra del Águila concession until 2055. The corporation also expanded its renewable portfolio by bringing the 15 MW San Carlos solar plant online. The firm finished the 420 MW Brigadier López combined-cycle operation while scheduling Luján de Cuyo maintenance, with a planned return in the second half of 2026.
Central Puerto S.A. generates and distributes electricity. It operates in four segments: Electric Power Generation from Conventional Sources; Electric Power Generation from Renewable Sources; Natural Gas Transport and Distribution; Forest and Others.
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