UTL

Unitil is a small-cap, pure-play regulated electric and gas distribution utility serving ~215,100 customers across NH, MA, and ME, with $1.8B of net utility plant earning a regulated return — exactly the kind of low-volatility compounder where the call hinges on rate-base growth versus financing cost. The FY2025 numbers are clean on the operating line: revenue +8.3% to $536M, operating income +11.7% to $101M (18.9% margin), and net income +6.6% to $50.2M, helped by the October 31, 2025 acquisition of Maine Natural Gas (which the auditor flags as 4.9% of consolidated assets and 1.5% of revenue). The MD&A's reconciling rate structure for purchased power/gas explicitly insulates earnings from commodity swings, and the divested long-term power contracts further trim commodity risk — a real quality marker for the business model.

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