UNITIL CORP

Previous wording

Fitchburg Gas and Electric Light Company (Fitchburg), which provides both electric and gas service in the greater Fitchburg area of north central Massachusetts;

Current wording

Fitchburg Gas and Electric Light Company (Fitchburg), which provides both electric and natural gas service in the greater Fitchburg area of north central Massachusetts;

Previous wording

At June 30, 2026, Unitil had an investment in Net Utility Plant of $1.9 billion. Earnings from Unitil’s utility operations are derived primarily from the return on investment in the utility assets of the five energy distribution utilities, the two water distribution utilities and Granite State.

Current wording

At September 30, 2026, Unitil had an investment in Net Utility Plant of $2.0 billion. Earnings from Unitil’s utility operations are derived primarily from the return on investment in the utility assets of the five energy distribution utilities, the two water distribution utilities and Granite State.

Previous wording

Unitil Resources is the Company’s wholly owned, non-regulated subsidiary, which currently does not have any activity. The Company’s other subsidiaries include Unitil Service Corp., which provides, at cost, a variety of administrative and professional services to Unitil’s affiliated companies; Unitil Realty Corp., which owns and manages Unitil’s corporate office building and property located in Hampton, New Hampshire and owns land in Kingston, New Hampshire, on which Unitil Energy’s solar facility is located; Unitil Power Corp., which formerly functioned as the full requirements wholesale power supply provider for Unitil Energy; and Unitil Water Corp., which currently does not have any activity. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.

Current wording

The Company’s other subsidiaries include Unitil Service Corp., which provides, at cost, a variety of administrative and professional services to Unitil’s affiliated companies; Unitil Realty Corp., which owns and manages Unitil’s corporate office building and property located in Hampton, New Hampshire and owns land in Kingston, New Hampshire, on which Unitil Energy’s solar facility is located; Unitil Power Corp., which formerly functioned as the full requirements wholesale power supply provider for Unitil Energy; Unitil Resources, Inc., a non-regulated subsidiary, which currently does not have any activity; and Unitil Water Corp., which currently does not have any activity. Unitil’s consolidated net income includes the earnings of the holding company and these subsidiaries.

Previous wording

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its energy distribution subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 regarding certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities also are regulated by the FERC. Unitil’s energy distribution utilities are subject to regulation by the applicable state public utility commissions with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the New Hampshire Public Utilities Commission (NHPUC); Fitchburg is subject to regulation by the Massachusetts Department of Public Utilities (MDPU); Northern Utilities is regulated by the NHPUC and the Maine Public Utilities Commission (MPUC); Bangor is subject to regulation by the MPUC; and Maine Natural is subject to regulation by the MPUC. Unitil's water distribution utilities are subject to regulation by the NHPUC with regard to their rates, issuance of securities and other accounting and operational matters. Granite State, Unitil’s interstate gas transmission pipeline, is subject to regulation by FERC regarding its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations and financial position.

Current wording

Unitil is subject to comprehensive regulation by federal and state regulatory authorities. Unitil and its energy distribution subsidiaries are subject to regulation as a holding company system by the FERC under the Energy Policy Act of 2005 regarding certain bookkeeping, accounting and reporting requirements. Unitil’s utility operations related to wholesale and interstate energy business activities also are regulated by the FERC. Unitil’s distribution utilities are subject to regulation by the applicable state public utility commissions with regard to their rates, issuance of securities and other accounting and operational matters: Unitil Energy is subject to regulation by the New Hampshire Public Utilities Commission (NHPUC); Fitchburg is subject to regulation by the Massachusetts Department of Public Utilities (MDPU); Northern Utilities is regulated by the NHPUC and the Maine Public Utilities Commission (MPUC); Bangor and Maine Natural are subject to regulation by the MPUC; and AWC-NH and Abenaki are subject to regulation by the NHPUC. Granite State, Unitil’s interstate gas transmission pipeline, is subject to regulation by FERC regarding its rates and operations. Because Unitil’s primary operations are subject to rate regulation, the regulatory treatment of various matters could significantly affect the Company’s operations and financial position.

Previous wording

Primarily all of Unitil's distribution subsidiaries deliver electricity, natural gas and/or water to all customers at rates established under cost of service regulation. Under this regulatory structure, Unitil’s distribution utilities are provided the opportunity to recover the cost of providing distribution service to their customers based on a test year, and to earn a reasonable return on their capital investment in utility assets. In addition, the Company’s distribution utilities and its natural gas transmission pipeline company may recover certain base rate costs, including capital project spending and enhanced reliability and vegetation management programs, through annual step adjustments and cost tracking rate mechanisms. Bangor and Maine Natural’s Augusta Service Area deliver natural gas to their customers at rates established under alternative rate plans, which provide multi-year rate changes designed to approximate market-based rates.

Current wording

Primarily all of Unitil's distribution subsidiaries deliver electricity, natural gas and/or water to all customers at rates established under cost of service regulation. Under this regulatory structure, Unitil’s distribution utilities are provided the opportunity to recover the cost of providing distribution service to their customers based on a test year, and to earn a reasonable return on their capital investment on utility assets. In addition, the Company’s distribution utilities and its natural gas transmission pipeline company may recover certain base rate costs, including capital project spending and enhanced reliability and vegetation management programs, through annual step adjustments and cost tracking rate mechanisms. Bangor and Maine Natural’s Augusta Service Area deliver natural gas to their customers at rates established under alternative rate plans, which provide multi-year rate changes designed to approximate market-based rates.

Previous wording

The MD&A includes financial information prepared in accordance with generally accepted accounting principles in the United States (GAAP), as well as certain non-GAAP financial measures. The Company's management believes that the non-GAAP presentations of earnings and Earnings Per Share (EPS) and Electric and Gas Adjusted Gross Margins are a more meaningful representation of the Company's financial performance and provide additional and useful information to readers of this report in analyzing the historical and future performance of the business. The non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

Current wording

The MD&A includes financial information prepared in accordance with GAAP, as well as certain non-GAAP financial measures. The Company's management believes that the non-GAAP presentations of earnings and Earnings Per Share (EPS) and Electric and Gas Adjusted Gross Margins are a more meaningful representation of the Company's financial performance and provide additional and useful information to readers of this report in analyzing the historical and future performance of the business. The non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

Previous wording

Electric GAAP Gross Margin was $23.0 million in the three months ended June 30, 2026, an increase of $5.0 million compared to the same period in 2025. Electric GAAP Gross Margin was $44.3 million in the six months ended June 30, 2026, an increase of $6.7 million compared to the same period in 2025. The three-month period increase was driven by higher rates and customer growth of $5.8 million, partially offset by higher depreciation and amortization expense of $0.8 million. The six-month period increase was driven by higher rates of $8.6 million, partially offset by higher depreciation and amortization expense of $1.2 million and a one-time reduction of FERC transmission revenue of $0.7 million (see Note 7 Regulatory Matters: FERC Transmission Formula Rate Proceedings).

Current wording

Electric GAAP Gross Margin was $26.1 million in the three months ended September 30, 2026, an increase of $1.0 million compared to the same period in 2025. Electric GAAP Gross Margin was $70.4 million in the nine months ended September 30, 2026, an increase of $7.7 million compared to the same period in 2025. The three-month period increase was driven by higher rates and customer growth of $1.7 million, partially offset by higher depreciation and amortization expense of $0.7 million. The nine-month period increase was driven by higher rates of $10.3 million, partially offset by higher depreciation and amortization expense of $1.9 million and a one-time reduction of FERC transmission revenue of $0.7 million (see Note 7 Regulatory Matters: FERC Transmission Formula Rate Proceedings).

Previous wording

Gas GAAP Gross Margin was $25.0 million in the three months ended June 30, 2026, an increase of $1.8 million compared to the same period in 2025. Gas GAAP Gross Margin was $92.1 million in the six months ended June 30, 2026, an increase of $11.8 million compared to the same period in 2025. The increase in the three-month period was driven by higher rates and customer growth of $3.4 million, partially offset by higher depreciation and amortization of $1.6 million. The increase in the six-month period was driven by higher rates and customer growth of $13.2 million, the favorable effects of colder winter weather in 2026 of $1.4 million, partially offset by higher depreciation and amortization of $2.8 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended June 30, 2026 was $4.2 million, $1.5 million and $0.8 million, respectively, related to Maine Natural. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the six months ended June 30, 2026 was $22.5 million, $13.8 million and $1.5 million, respectively, related to Maine Natural.

Current wording

Gas GAAP Gross Margin was $13.5 million in the three months ended September 30, 2026, an increase of $1.1 million compared to the same period in 2025. Gas GAAP Gross Margin was $105.6 million in the nine months ended September 30, 2026, an increase of $12.9 million compared to the same period in 2025. The increase in the three-month period was driven by higher rates and customer growth of $2.6 million, partially offset by higher depreciation and amortization of $1.5 million. The increase in the nine-month period was driven by higher rates and customer growth of $15.8 million, the favorable effects of colder winter weather in 2026 of $1.4 million, partially offset by higher depreciation and amortization of $4.3 million. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the three months ended September 30, 2026 was $2.9 million, $1.1 million and $0.9 million, respectively, related to Maine Natural. Included in gas operating revenue, cost of gas sales and depreciation and amortization for the nine months ended September 30, 2026 was $25.4 million, $14.9 million and $2.4 million, respectively, related to Maine Natural.

Previous wording

The Company’s Net Income was $4.7 million, or $0.26 in Earnings Per Share (EPS) for the second quarter of 2026, an increase of $0.7 million in Net Income, or $0.01 in EPS, compared to the second quarter of 2025. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural and the Aquarion Companies, was $5.2 million, or $0.29 in EPS for the second quarter of 2026. Adjusted Net Income increased $0.5 million and was unchanged in EPS when compared to the second quarter of 2025.

Current wording

The Company’s Net Income (Loss) was ($1.5) million, or ($0.08) in EPS for the third quarter of 2026, a decrease of $1.2 million in Net Income, or $0.06 in EPS, compared to the third quarter of 2025. The Company's Adjusted Net Income (Loss) (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural and the Aquarion Companies, was ($0.7) million, or ($0.04) in EPS for the third quarter of 2026, a decrease of $1.1 million, or $0.07 in EPS, when compared to the third quarter of 2025.

Previous wording

The Company’s Net Income was $37.9 million, or $2.11 in EPS for the first six months of 2026, an increase of $6.4 million in Net Income, or $0.17 in EPS, compared to the first six months of 2025. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural and the Aquarion Companies, was $39.0 million, or $2.17 in EPS for the first six months of 2026, an increase of $5.9 million, or $0.14 in EPS, compared to the first six months of 2025.

Current wording

The Company’s Net Income was $36.4 million, or $2.02 in EPS for the first nine months of 2026, an increase of $5.2 million in Net Income, or $0.13 in EPS, compared to the first nine months of 2025. The Company's Adjusted Net Income (a non-GAAP financial measure), which excluded transaction-related costs in connection with the acquisitions of Bangor, Maine Natural and the Aquarion Companies, was $38.3 million, or $2.12 in EPS for the first nine months of 2026, an increase of $4.8 million, or $0.09 in EPS, when compared to the first nine months of 2025.

Previous wording

Gas Adjusted Gross Margin (a non-GAAP financial measure) was $40.6 million and $122.7 million in the three and six months ended June 30, 2026, respectively, increases of $3.4 million and $14.6 million, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher rates and customer growth of $3.4 million. The increase in the six-month period was driven by higher rates and customer growth of $13.2 million and the favorable effects of colder winter weather in 2026 of $1.4 million. Included in the Gas Adjusted Gross Margin for the three and six months ended June 30, 2026 was $2.7 million and $8.7 million, respectively, related to Maine Natural.

Current wording

Gas Adjusted Gross Margin (a non-GAAP financial measure) was $29.2 million and $151.9 million in the three and nine months ended September 30, 2026, respectively, increases of $2.6 million and $17.2 million, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher rates and customer growth of $2.6 million. The increase in the nine-month period was driven by higher rates and customer growth of $15.8 million and the favorable effects of colder winter weather in 2026 of $1.4 million. Included in the Gas Adjusted Gross Margin for the three and nine months ended September 30, 2026 was $1.8 million and $10.5 million, respectively, related to Maine Natural.

Previous wording

Operation and Maintenance (O&M) expenses increased $2.5 million and $3.3 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher utility operating costs of $1.6 million, and higher labor and other costs of $1.4 million, partially offset by lower acquisition costs of $0.5 million. The increase in the six-month period reflects higher utility operating costs of $2.6 million, and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. Included in O&M expenses for the three and six months ended June 30, 2026 were $1.4 million and $2.7 million, respectively, related to Maine Natural. Excluding O&M expenses for Maine Natural and transaction costs, O&M expenses for legacy operations would have increased by $1.6 million and $1.4 million for the three and six months ended June 30, 2026, respectively.

Current wording

Operation and Maintenance (O&M) expenses increased $4.9 million and $8.2 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher utility operating costs of $2.6 million, higher labor and other costs of $2.2 million and higher acquisition costs of $0.1 million. The increase in the nine-month period reflects higher utility operating costs of $5.1 million, and higher labor and other costs of $3.8 million, partially offset by lower acquisition costs of $0.7 million. Included in O&M expenses for the three and nine months ended September 30, 2026 were $1.2 million and $3.9 million, respectively, related to Maine Natural and $1.2 million and $1.2 million, respectively, related to the Aquarion Companies. Excluding O&M expenses for Maine Natural, the Aquarion Companies and transaction costs, O&M expenses for legacy operations would have increased by $2.4 million and $3.8 million for the three and nine months ended September 30, 2026, respectively.

Previous wording

Depreciation and Amortization expense increased $2.4 million and $4.0 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the six-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and six months ended June 30, 2026 was $0.8 million and $1.5 million, respectively, related to Maine Natural.

Current wording

Depreciation and Amortization expense increased $2.6 million and $6.6 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the nine-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and nine months ended September 30, 2026 was $0.9 million and $2.4 million, respectively, related to Maine Natural and $0.4 million and $0.4 million, respectively, related to the Aquarion Companies.

Previous wording

Taxes Other Than Income Taxes increased $2.2 million and $3.4 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. These increases reflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and six months ended June 30, 2026 were $0.4 million and $0.8 million, respectively, related to Maine Natural.

Current wording

Taxes Other Than Income Taxes increased $0.1 million and $3.5 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. These increases reflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and nine months ended September 30, 2026 were $0.5 million and $1.3 million, respectively, related to Maine Natural and $0.2 million and $0.2 million, respectively, related to the Aquarion Companies.

Previous wording

Interest Expense, Net increased $1.1 million and $2.8 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense on regulatory liabilities.

Current wording

Interest Expense, Net increased $2.1 million and $4.9 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense for regulatory liabilities.

Previous wording

Other Expense (Income), Net decreased $0.1 million and $0.2 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily from lower retirement benefit costs.

Current wording

Other Expense (Income), Net decreased $0.7 million and $0.9 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily from lower retirement benefit costs.

Previous wording

Provision for Income Taxes increased $0.4 million and $2.8 million in the three and six months ended June 30, 2026, respectively, compared with the same periods in 2025, reflecting higher pre-tax earnings in 2026.

Current wording

Provision for (Benefit from) Income Taxes increased $0.4 million in the three months ended September 30, 2026, compared with the same period in 2025, reflecting higher pre-tax loss in 2026. Provision for (Benefit from) Income Taxes increased $2.4 million in the nine months ended September 30, 2026, compared with the same period in 2025, reflecting higher pre-tax earnings in 2026.

Previous wording

Electric Operating Revenues and Electric Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Electric Operating Revenues and Electric Adjusted Gross Margin for the three and six months ended June 30, 2026 and 2025:

Current wording

Electric Operating Revenues and Electric Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Electric Operating Revenues and Electric Adjusted Gross Margin for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Total Electric Operating Revenue increased $10.7 million, or 21.0%, and $16.0 million, or 14.4%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher electric distribution rates and higher costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers. The increase in the six-month period reflects higher electric distribution rates, and higher costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers, partially offset by a one-time reduction of FERC transmission revenue.

Current wording

Total Electric Operating Revenue increased $4.3 million, or 6.7%, and $20.3 million, or 11.6%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher electric distribution rates and higher costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers. The increase in the nine-month period reflects higher electric distribution rates, and higher costs of electric sales, which are tracked and reconciled to costs that are passed through directly to customers, partially offset by a one-time reduction of FERC transmission revenue.

Previous wording

Kilowatt-hour Sales - Unitil’s total electric kWh sales increased 0.3% and decreased 1.6% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Sales to Residential customers increased 3.1% in the three months ended June 30, 2026, compared to the same period in 2025, reflecting customer growth. Sales to Commercial and Industrial (C&I) customers decreased 1.5% in the three months ended June 30, 2026, compared to the same period in 2025, reflecting the loss of a large industrial customer in the Fitchburg service area in 2025, partially offset by customer growth. Sales to Residential customers increased 2.5% in the six months ended June 30, 2026, compared to the same period in 2025, reflecting colder winter weather for heating purposes in 2026, and customer growth. Sales to C&I customers decreased 4.8% in the six months ended June 30, 2026, compared to the same period in 2025, reflecting the loss of a large industrial customer in the Fitchburg service area in 2025, partially offset by customer growth. As of June 30, 2026, the number of electric customers increased by approximately 510 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales. Substantially all of the Company’s electric kWh sales volumes are decoupled.

Current wording

Kilowatt-hour Sales - Unitil’s total electric kWh sales increased 1.3% and decreased 0.6% in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. Sales to Residential and Commercial and Industrial (C&I) customers increased 0.4% and 2.0%, respectively, in the three months ended September 30, 2026, compared to the same period in 2025, reflecting customer growth. Sales to Residential customers increased 1.8% in the nine months ended September 30, 2026, compared to the same period in 2025, reflecting colder winter weather for heating purposes in 2026, and customer growth. Sales to C&I customers decreased 2.4% in the nine months ended September 30, 2026, compared to the same period in 2025, reflecting the loss of a large industrial customer in the Fitchburg service area in 2025, partially offset by customer growth. As of September 30, 2026, the number of electric customers increased by approximately 430 over the previous year. Sales margins derived from decoupled unit sales are not sensitive to changes in electric kWh sales. Substantially all of the Company’s electric kWh sales volumes are decoupled.

Previous wording

The following table details total kWh sales for the three and six months ended June 30, 2026 and 2025 by major customer class:

Current wording

The following table details total kWh sales for the three and nine months ended September 30, 2026 and 2025 by major customer class:

Previous wording

Gas Operating Revenues and Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Gas Operating Revenues and Gas Adjusted Gross Margin for the three and six months ended June 30, 2026 and 2025:

Current wording

Gas Operating Revenues and Adjusted Gross Margin (a non-GAAP financial measure) - The following table details Total Gas Operating Revenues and Gas Adjusted Gross Margin for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Total Gas Operating Revenue increased $3.7 million, or 7.2%, and increased $44.5 million, or 27.4%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period includes $4.2 million of gas operating revenue for Maine Natural, higher rates and customer growth, partially offset by lower costs of gas sales for legacy gas operations, which are tracked and reconciled costs that are passed through directly to customers. The increase in the six-month period includes $22.5 million of gas operating revenue for Maine Natural, higher rates and customer growth, the favorable impact of colder winter weather in 2026 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.

Current wording

Total Gas Operating Revenue increased $4.1 million, or 11.1%, and increased $48.6 million, or 24.4%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period includes $2.9 million of gas operating revenue for Maine Natural, higher rates and customer growth, and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers. The increase in the nine-month period includes $25.4 million of gas operating revenue for Maine Natural, higher rates and customer growth, the favorable impact of colder winter weather in 2026 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.

Previous wording

Gas Adjusted Gross Margin increased $3.4 million, or 9.1%, and increased $14.6 million, or 13.5%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period includes $2.7 million of gas adjusted gross margin for Maine Natural, higher rates and customer growth. The increase in the six-month period includes $8.7 million of gas adjusted gross margin for Maine Natural, higher rates and customer growth, the favorable impact of colder winter weather in 2026 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.

Current wording

Gas Adjusted Gross Margin increased $2.6 million, or 9.8%, and increased $17.2 million, or 12.8%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period includes $1.8 million of gas adjusted gross margin for Maine Natural, higher rates and customer growth. The increase in the nine-month period includes $10.5 million of gas adjusted gross margin for Maine Natural, higher rates and customer growth, the favorable impact of colder winter weather in 2026 and higher costs of gas sales, which are tracked and reconciled costs that are passed through directly to customers.

Previous wording

Therm Sales- Unitil’s total gas therm sales increased 8.8% and 12.0% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. In the second quarter of 2026, sales to Residential and C&I customers increased 9.6% and 8.7%, respectively, compared to the same period in 2025, reflecting customer growth and colder spring weather in 2026. In the first six months of 2026, sales to Residential and C&I customers increased 13.4% and 11.6%, respectively, compared to the same period in 2025, reflecting colder winter weather in 2026 and customer growth. Included in the total gas therm sales increases were 4.2 million therms and 14.8 million therms for the three and six months ended June 30, 2026, respectively, related to Maine Natural. Based on weather data collected in the Company’s gas service areas, on average there were 2.3% higher effective degree days in the first six months of 2026 compared to the same period in 2025. As of June 30, 2026, the number of gas customers increased by approximately 6,600 over the previous year. Included in this increase was 6,400 customers related to Maine Natural. Sales margins derived from decoupled unit sales (currently representing approximately 38% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served.

Current wording

Therm Sales- Unitil’s total gas therm sales increased 10.5% and 11.9% in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. In the third quarter of 2026, sales to Residential and C&I customers increased 6.9% and 10.9%, respectively, compared to the same period in 2025, reflecting customer growth. In the first nine months of 2026, sales to Residential and C&I customers increased 13.2% and 11.5%, respectively, compared to the same period in 2025, reflecting colder winter weather in 2026 and customer growth. Included in the total gas therm sales increases were 2.3 million therms and 17.1 million therms for the three and nine months ended September 30, 2026, respectively, related to Maine Natural. Based on weather data collected in the Company’s gas service areas, on average there were 2.3% higher effective degree days in the first nine months of 2026 compared to the same period in 2025. As of September 30, 2026, the number of gas customers increased by approximately 6,550 over the previous year. Included in this increase was 6,300 customers related to Maine Natural. Sales margins derived from decoupled unit sales (currently representing approximately 38% of total annual therm sales volume) are not sensitive to changes in gas therm sales, although those sales margins are sensitive to changes in the number of customers served.

Previous wording

The following table details total therm sales for the three and six months ended June 30, 2026 and 2025 by major customer class:

Current wording

The following table details total therm sales for the three and nine months ended September 30, 2026 and 2025 by major customer class:

Previous wording

The Company transported 5.7 million therms and 68.6 million therms in the three and six months ended June 30, 2026, respectively, to two electric generation facilities in Maine. As these facilities were charged fixed fees and utilized third-party energy suppliers for natural gas, the therms were not included in the above table.

Current wording

The Company transported 6.8 million therms and 75.5 million therms in the three and nine months ended September 30, 2026, respectively, to two electric generation facilities in Maine. As these facilities were charged fixed fees and utilized third-party energy suppliers for natural gas, the therms were not included in the above table.

Previous wording

Cost of Electric Sales - Cost of Electric Sales includes the cost of electric supply and spending on energy efficiency programs. Cost of Electric Sales increased $4.9 million, or 19.4%, and $8.1 million, or 14.0%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher wholesale electricity prices. The increase in the six-month period reflects higher wholesale electricity prices and energy efficiency spending, and an increase in the amount of electricity purchased by customers directly from third-party suppliers. Because the Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Current wording

Cost of Electric Sales - Cost of Electric Sales includes the cost of electric supply and spending on energy efficiency programs. Cost of Electric Sales increased $2.6 million, or 8.3%, and $10.7 million, or 12.0%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase primarily reflects higher wholesale electricity prices and energy efficiency spending. Because the Company reconciles and recovers the approved Cost of Electric Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Previous wording

Cost of Gas Sales - Cost of Gas Sales includes the cost to supply the Company’s total gas requirements and spending on energy efficiency programs. Cost of Gas Sales increased $0.3 million, or 2.1%, and $29.9 million, or 55.3%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher gas therm sales, including $1.5 million at Maine Natural, partially offset by lower wholesale gas commodity prices. The increase in the six-month period reflects higher wholesale gas commodity prices and higher gas therm sales, including $13.8 million at Maine Natural. Because the Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Current wording

Cost of Gas Sales - Cost of Gas Sales includes the cost to supply the Company’s total gas requirements and spending on energy efficiency programs. Cost of Gas Sales increased $1.5 million, or 14.7%, and $31.4 million, or 48.8%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher gas therm sales, including $1.1 million at Maine Natural, partially offset by lower wholesale gas commodity prices. The increase in the nine-month period reflects higher wholesale gas commodity prices and higher gas therm sales, including $14.9 million at Maine Natural. Because the Company reconciles and recovers the approved Cost of Gas Sales in its rates at cost on a pass-through basis, changes in approved expenses do not affect earnings.

Previous wording

Operation and Maintenance (O&M) -O&M expense includes electric and gas utility operating costs, and the operating cost of the Company’s corporate and other business activities. O&M expenses increased $2.5 million, or 11.7%, and $3.3 million, or 7.5%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher utility operating costs of $1.6 million, and higher labor and other costs of $1.4 million, partially offset by lower acquisition costs of $0.5 million. The increase in the six-month period reflects higher utility operating costs of $2.6 million, and higher labor and other costs of $1.5 million, partially offset by lower acquisition costs of $0.8 million. Included in O&M expenses for the three and six months ended June 30, 2026 were $1.4 million and $2.7 million, respectively, related to Maine Natural. Excluding O&M expenses for Maine Natural and transaction costs, O&M expenses for legacy operations would have increased by $1.6 million, or 7.5%, and $1.4 million, or 3.2%, for the three and six months ended June 30, 2026, respectively.

Current wording

Operation and Maintenance (O&M) - O&M expense includes electric, gas and water utility operating costs, and the operating cost of the Company’s corporate and other business activities. O&M expenses increased $4.9 million, or 22.4%, and $8.2 million, or 12.5%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher utility operating costs of $2.6 million, higher labor and other costs of $2.2 million and higher acquisition costs of $0.1 million. The increase in the nine-month period reflects higher utility operating costs of $5.1 million, and higher labor and other costs of $3.8 million, partially offset by lower acquisition costs of $0.7 million. Included in O&M expenses for the three and nine months ended September 30, 2026 were $1.2 million and $3.9 million, respectively, related to Maine Natural and $1.2 million and $1.2 million, respectively, related to the Aquarion Companies. Excluding O&M expenses for Maine Natural, the Aquarion

Previous wording

Depreciation and Amortization - Depreciation and Amortization expense increased $2.4 million, or 11.0%, and $4.0 million, or 9.2%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the six-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and six months ended June 30, 2026 was $0.8 million and $1.5 million, respectively, related to Maine Natural.

Current wording

Depreciation and Amortization -Depreciation and Amortization expense increased $2.6 million, or 11.7%, and $6.6 million, or 10.0%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. The increase in the three-month period reflects higher levels of utility plant in service, and higher amortization of recoverable storm costs and other deferred costs. The increase in the nine-month period reflects higher levels of utility plant in service and higher amortization of recoverable storm costs, partially offset by lower amortization of other deferred costs. Included in Depreciation and Amortization for the three and nine months ended September 30, 2026 was $0.9 million and $2.4 million, respectively, related to Maine Natural and $0.4 million and $0.4 million, respectively, related to the Aquarion Companies.

Previous wording

Taxes Other Than Income Taxes - Taxes Other Than Income Taxes increased $2.2 million, or 33.3%, and $3.4 million, or 23.4%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. These increases reflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and six months ended June 30, 2026 were $0.4 million and $0.8 million, respectively, related to Maine Natural.

Current wording

Taxes Other Than Income Taxes - Taxes Other Than Income Taxes increased $0.1 million, or 1.2%, and $3.5 million, or 15.2%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. These increases reflect higher local property taxes on higher utility plant in service and higher payroll taxes. Included in Taxes Other Than Income Taxes for the three and nine months ended September 30, 2026 were $0.5 million and $1.3 million, respectively, related to Maine Natural and $0.2 million and $0.2 million, respectively, related to the Aquarion Companies.

Previous wording

Other Expense (Income), Net -Other Expense (Income), Net decreased $0.1 million and $0.2 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily from lower retirement benefit costs.

Current wording

Other Expense (Income), Net -Other Expense (Income), Net decreased $0.7 million and $0.9 million in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily from lower retirement benefit costs.

Previous wording

Provision for Income Taxes - Federal and State Income Taxes increased $0.4 million and $2.8 million in the three and six months ended June 30, 2026, respectively, compared with the same periods in 2025, reflecting higher pre-tax earnings in 2026.

Current wording

Provision for (Benefit from) Income Taxes - Federal and State Income Taxes decreased $0.4 million in the three months ended September 30, 2026, compared with the same period in 2025, reflecting lower pre-tax earnings in 2026. Federal and State Income Taxes increased $2.4 million in the nine months ended September 30, 2026, compared with the same period in 2025, reflecting higher pre-tax earnings in 2026.

Previous wording

Unitil’s utility subsidiaries operate several reconciling rate mechanisms to recover specifically identified costs on a pass-through basis. These reconciling rate mechanisms track costs and revenue on a monthly basis. In any given month, this tracking and reconciling process will produce either an under-collected or an over-collected position. In accordance with the energy and water distribution utilities’ rate tariffs, interest is accrued on these balances and will produce either interest income or interest expense. Consistent with regulatory precedent, interest income is recorded on an under-collection of costs which creates a regulatory asset to be recovered in future periods when rates are reset. Interest expense is recorded on an over-collection of costs, which creates a regulatory liability to be refunded in future periods when rates are reset.

Current wording

Unitil’s energy utility subsidiaries operate several reconciling rate mechanisms to recover specifically identified costs on a pass-through basis. These reconciling rate mechanisms track costs and revenue on a monthly basis. In any given month, this tracking and reconciling process will produce either an under-collected or an over-collected position. In accordance with the energy distribution utilities’ rate tariffs, interest is accrued on these balances and will produce either interest income or interest expense. Consistent with regulatory precedent, interest income is recorded on an under-collection of costs which creates a regulatory asset to be recovered in future periods when rates are reset. Interest expense is recorded on an over-collection of costs, which creates a regulatory liability to be refunded in future periods when rates are reset.

Previous wording

Interest Expense, Net increased $1.1 million, or 11.8%, and $2.8 million, or 15.2%, in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense on regulatory liabilities.

Current wording

Interest Expense, Net increased $2.1 million, or 23.6%, and $4.9 million, or 17.9%, in the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily reflecting higher levels of short-term borrowings and long-term debt, partially offset by lower interest expense for regulatory liabilities.

Previous wording

On June 3, 2025, the Company entered into an at-the-market equity offering program (the ATM program) with sales agents under which the Company may, from time to time, offer and sell shares of Unitil's common stock having an aggregate offering price of up to $50 million. Sales of common stock under the ATM program, if any, are made pursuant to a shelf registration statement on Form S-3 (File No. 333-287753) and a related prospectus supplement filed with the Securities and Exchange Commission. As of June 30, 2026, the Company had sold an aggregate of 239,662 shares under the ATM program for net proceeds of $12.3 million. As of June 30, 2026, approximately $37.5 million remains available for future sales under the program. There were 212,042 shares sold under the ATM program for net proceeds of $10.8 million during the six months ended June 30, 2026.

Current wording

On June 3, 2025, the Company entered into an at-the-market equity offering program (the ATM program) with sales agents under which the Company may, from time to time, offer and sell shares of Unitil's common stock having an aggregate offering price of up to $50 million. Sales of common stock under the ATM program, if any, are made pursuant to a shelf registration statement on Form S-3 (File No. 333-287753) and a related prospectus supplement filed with the Securities and Exchange Commission. As of September 30, 2026, the Company had sold an aggregate of 356,020 shares under the ATM program for net proceeds of $18.3 million. As of September 30, 2026, approximately $31.3 million remains available for future sales under the program. There were 328,400 shares sold under the ATM program for net proceeds of $16.9 million during the nine months ended September 30, 2026. Subsequent to September 30, 2026, through the date of this filing the Company had sold an aggregate of 200,000 shares under the ATM program for net proceeds of $9.9 million, and approximately $21.3 million remains available for future issuance under the ATM program.

Previous wording

The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $174.5 million for the six months ended June 30, 2026. Total gross repayments were $238.0 million for the six months ended June 30, 2026. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of June 30, 2026, June 30, 2025 and December 31, 2025:

Current wording

The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were $326.9 million for the nine months ended September 30, 2026. Total gross repayments were $337.2 million for the nine months ended September 30, 2026. The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of September 30, 2026, September 30, 2025 and December 31, 2025:

Previous wording

On June 30, 2026, the Company entered into an Amended and Restated senior unsecured delayed-draw term loan facility with the Bank of Nova Scotia, which amended and restated the previous facility entered into on October 31, 2025. Tranche A in the agreement equals the aggregate commitment of $86.0 million used to fund the acquisition of Maine Natural on October 31, 2025 and has a maturity date of October 31, 2026. As of June 30, 2026, the Company’s Tranche A borrowings outstanding were $86.0 million. Tranche B in the agreement equals the aggregate commitment of $50.0 million used to fund the acquisition of the Aquarion Water companies on June 30, 2026 and has a maturity date of June 30, 2027. As of June 30, 2026, the Company’s Tranche B borrowings outstanding were $42.6 million. The facility provides that the Company has an option for determining whether interest on loans under the facility will bear interest based on a Base Rate plus an applicable margin of 0.25% or based on a one-month Term SOFR plus a SOFR adjustment of 0.10% plus an applicable margin of 1.25%. The Base Rate is equal to the highest of the (a) Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by The Bank of Nova Scotia as its "prime rate", or (c) one-month Term SOFR plus a SOFR adjustment of 0.10% plus 1.00%.

Current wording

On June 30, 2026, the Company entered into an Amended and Restated senior unsecured delayed-draw term loan facility with the Bank of Nova Scotia, which amended and restated the previous facility entered into on October 31, 2025. Tranche A in the agreement equals the aggregate commitment of $86.0 million used to fund the acquisition of Maine Natural on October 31, 2025 and has a maturity date of October 31, 2026. As of September 30, 2026, the Company’s Tranche A borrowings outstanding were $42.5 million. Tranche B in the agreement equals the aggregate commitment of $50.0 million used to fund the acquisition of the Aquarion Water companies on June 30, 2026 and has a maturity date of June 30, 2027. As of September 30, 2026, the Company’s Tranche B borrowings outstanding were $42.6 million. The facility provides that the Company has an option for determining whether interest on loans under the facility will bear interest based on a Base Rate plus an applicable margin of 0.25% or based on a one-month Term SOFR plus a SOFR adjustment of 0.10% plus an applicable margin of 1.25%. The Base Rate is equal to the highest of the (a) Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by The Bank of Nova Scotia as its “prime rate,” or (c) one-month Term SOFR plus a SOFR adjustment of 0.10% plus 1.00%. On October 22, 2026, the Company repaid all outstanding amounts under the Credit Agreement, without premium or penalty. The Company may not reborrow any portion of the repaid amounts under the Credit Agreement.

Previous wording

The Company provides limited guarantees on certain energy and gas storage management contracts entered into by the energy distribution utilities. The Company’s policy is to limit the duration of these guarantees. As of June 30, 2026, there were $50.3 million of guarantees outstanding.

Current wording

The Company provides limited guarantees on certain energy and gas storage management contracts entered into by the energy distribution utilities. The Company’s policy is to limit the duration of these guarantees. As of September 30, 2026, there were $47.9 million of guarantees outstanding.