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.
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. (NYSE:AWK) 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. (NYSE:AWK) 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 (NASDAQ:MSEX) 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 (NASDAQ:MSEX) 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.
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