The Bottom Line: Unitil, Connection, and Stock Market

A roundup of news updates from public companies in NH and nationwide

UNITIL RELEASES SUSTAINABILITY REPORT

Unitil Corporation (NYSE:UTL) earlier this month released its 2025 Corporate Sustainability and Responsibility Report, which highlights the company’s 2024 successes as well as continuing initiatives in 2025, and outlines progress toward its commitment to environmental sustainability, human capital management, safety and reliability, and customer engagement.

“We are pleased to highlight the key initiatives that demonstrate our deep commitment to the sustainability of our Company, our employees, our communities, and our planet,” said Thomas P. Meissner, Jr., Unitil’s chairman and CEO. “As we transform our business to meet the ever-changing energy needs of future generations, we are firmly engaged in our sustainability initiatives, and we are excited to share our progress.”

Featured topics in the 2025 CSR include: governance and integrity, carbon reduction and environmental stewardship, operational safety and reliability, employee development and safety, and customer satisfaction and engagement.

The web-based, interactive and mobile-responsive CSR aligns with SASB reporting standards, and includes industry-specific metrics in accordance with the American Gas Association and Edison Electric Institute reporting templates for regulated electric and gas utility companies.

To view Unitil’s CSR and learn more about Unitil’s sustainability initiatives, visit unitil.com/2025-Sustainability-Report.

CONNECTION REPORTS Q3 EARNINGS

Connection (NASDAQ: CNXN) reported mixed third-quarter results for the period ending Sept. 30, 2025, highlighted by record gross profit but lower net income. The IT solutions provider also declared a quarterly dividend of $0.15 per share, payable Nov. 28 to shareholders of record on Nov. 11.

Q3 net sales fell 2.2% year over year, while gross profit rose 2.4% to a record $138.6 million, lifting gross margin by 90 basis points to 19.6%. Net income declined 8.6% to $24.7 million (or $0.97 per diluted share). Adjusted diluted EPS was $0.97.

CEO Timothy McGrath attributed the strong margin performance to ongoing demand for data center modernization, digital workplace initiatives and supply chain innovation.

Segment performance was mixed: Business Solutions: Net sales up 1.7% to $256.8 million; gross profit up 7.8%; margin reached a record 26.5%.

Public Sector: Net sales down 24.3% to $132.5 million; gross profit down 12.4%, though margin improved to 17.2%.

Enterprise Solutions: Net sales up 7.7% to $319.8 million; gross profit up 3.4%; margin slipped to 14.9%.

Product trends showed strong growth in software (+11%) and servers/storage (+17%), while networking (-17%) and notebooks/desktops (-5%) declined.

SG&A expenses rose to $108.4 million, and the company reported $399.2 million in cash and short-term investments. Connection repurchased 83,693 shares for $5.1 million during the quarter. For the first nine months of 2025, net sales increased 3.7%, but net income fell 5.1% to $63 million. Adjusted EPS rose to $2.53, while 12-month adjusted EBITDA slipped 1% to $122.7 million.

ECONOMISTS WARN STOCK MARKET FRAGILE

Consumer sentiment dropped sharply in November, even as stock markets hit record highs — deepening concerns about a widening split in the U.S. economy. The University of Michigan’s consumer sentiment index slid more than 6% and is now roughly 30% lower than a year ago, driven largely by worries that the prolonged federal government shutdown will weigh on growth.

But one group stood out: Americans with significant stock holdings reported an 11% jump in sentiment, buoyed by soaring markets. The S&P 500 is up more than 16% this year and the Nasdaq nearly 22%, fueled by enthusiasm around artificial intelligence.

Economists say this divergence reflects a “Kshaped” economy, where wealthier households — benefiting from market gains, rising home values and low pandemic-era mortgage rates — continue to spend, while lower-income Americans face rising strain. RSM chief economist Joe Brusuelas warned that equity strength is masking “severe market stress” among consumers who don’t own stocks and aren’t benefiting from the AI boom.

Despite market resilience, several economists caution that the picture could change quickly once federal labor data resumes. Analysts say wealthy consumers can support demand only as long as employment holds steady. If job losses emerge, they warn, markets could reverse sharply, and the top tier’s spending power may no longer be enough to sustain the recovery.