Outlook
AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETSGuidance reaffirmed
Results
4Second quarter 2026 GAAP earnings were $1.61 per share, compared to $1.48 per share in 2025; year-to-date 2026 earnings were $2.61 per share, compared to $2.53 per share in 2025Guidance reaffirmed
7Second quarter 2026 adjusted (non-GAAP) earnings of $1.61 per share, compared to $1.49 per share in the same quarter in 2025 and year-to-date 2026 adjusted earnings of $2.62 per share, compared to $2.51 per share in the same period in 2025Guidance reaffirmed
Outlook
2026 earnings per share guidance range of $6.02 to $6.12 affirmed; long-term targets affirmedGuidance reaffirmed
Significant regulatory execution YTD on several fronts, including PA with new rates to go into effect August 13Guidance reaffirmed
2026 capital investment plan of $3.7 billion on track; approx. 52,000 customer connections added from acquisitions through June 30, which includes the Nexus Water systemsGuidance reaffirmed
Corporate events
Progress continues on proposed merger with Essential Utilities; three states have approved, settlement in principle reached in Texas, and integration planning progressing
Results
2CAMDEN, N.J., July 29, 2026 - American Water Works Company, Inc. (NYSE: AWK) today reported adjusted results for the quarter ended June 30, 2026, of $1.61 per share, compared to $1.49 per share for the same quarter in 2025 and $2.62 per share for the year-to-date period ended June 30, 2026, compared to $2.51 per share for the same period in 2025.Guidance reaffirmed
Management commentary
“The company has delivered solid results for the first half of the year and we are pleased to have received a constructive decision in our Pennsylvania general rate case to begin the second half of 2026,” said John Griffith, President and CEO of American Water.Guidance reaffirmed
8“We are also encouraged with the continuing progress we and Essential Utilities are making in merger integration planning and have received three state regulatory approvals for the merger so far,” added Griffith.
Outlook
2026 EPS Guidance and Long-Term Financial Targets AffirmedGuidance reaffirmed
The company affirms its 2026 adjusted earnings per share (“EPS”) guidance range of $6.02 to $6.12 (non-GAAP).Guidance reaffirmed
The 2026 adjusted EPS guidance range does not include (i) transaction costs to be incurred by the company during 2026 related to the proposed merger with Essential Utilities, Inc. (“Essential Utilities”), (ii) impacts of weather during 2026, and (iii) incremental interest income through February 13, 2026 related to the 2024 amendment of the former Homeowner Services Group (“HOS”) secured seller note.Guidance reaffirmed
Management is unable to present a reconciliation of the adjusted EPS guidance range to a GAAP guidance range without unreasonable effort because management cannot reliably predict the nature, amount or probable significance of all of such adjustments for future periods; however, these adjustments may, individually or in the aggregate, cause adjusted EPS to differ significantly from GAAP EPS.Guidance reaffirmed
The company also affirms its long-term financial targets, including its long-term EPS and dividend growth rate targets of 7-9%.Guidance reaffirmed
Revenue growth through the implementation of new rates for both the three- and six-month 2026 periods in the Regulated Businesses from the recovery of capital and acquisition investments was partially offset by increased operating costs and higher depreciation and financing costs to support the current capital investment plan.Guidance reaffirmed
During the first six months of 2026, the company invested $1.8 billion in infrastructure improvements and growth, including $346 million for regulated acquisitions.
The company plans to invest a total of approximately $3.7 billion across its footprint in 2026, including acquisitions.Guidance reaffirmed
Regulated BusinessesGuidance reaffirmed
Results
In the second quarter of 2026, the Regulated Businesses’ net income was $331 million, compared to $288 million for the same period in 2025.
6For the first six months of 2026, the Regulated Businesses’ net income was $539 million, compared to $489 million for the same period in 2025.
1Operating revenues increased $90 million and $152 million for the three and six months ended June 30, 2026, as compared to the same period in 2025.
The increase in operating revenues was primarily a result of authorized revenue increases from completed general rate cases and infrastructure proceedings for the recovery of incremental capital and acquisition investments, as well as incremental revenue from closed acquisitions.
Corporate events
Since January 1, 2026, the company has been authorized additional annualized revenues of $216 million, with $111 million from general rate cases and $105 million from infrastructure surcharges.
The company has general rate cases in progress in six jurisdictions and has filed for an infrastructure surcharge in one jurisdiction, reflecting a total annualized incremental revenue request of $494 million.
Results
5Operating expenses were higher by $29 million and $73 million for the three and six months ended June 30, 2026, as compared to the same periods in 2025, due in part to increased production costs from higher purchased water cost and usage and increased purchased power and chemicals costs.
Operating expenses also include depreciation expense, which was higher by $21 million and $42 million in the same periods, due to the increase in capital investment.
3Interest expense was higher by $11 million and $23 million for the three and six months ended June 30, 2026, as compared to the same periods in 2025, as a result of incremental short and long-term debt primarily to fund capital investments.
Corporate events
Equity Forward Sale Agreements
In August 2025, the Company entered into separate forward sale agreements (the “Forward Sale Agreements”) with several forward purchasers relating to an aggregate of 8,098,592 shares of the Company’s common stock at an initial forward price of $139.657 per share.
The Forward Sale Agreements provide for settlement on a settlement date or dates to be specified at the Company’s discretion on or prior to December 31, 2026.
During June 2026, the Company elected to physically settle an aggregate of 3,403,756 shares at the applicable forward price provided in the relevant Forward Sale Agreements.
The total net proceeds received by the Company from these settlements were $476 million.
As of June 30, 2026, 4,694,836 shares of the Company’s common stock remain available for future settlement under the remaining Forward Sale Agreements.
The Company intends to use any net cash proceeds that it may receive upon future settlement of the Forward Sale Agreements for general corporate purposes.
Capital return
Dividends
On July 29, 2026, the company’s Board of Directors declared a quarterly cash dividend payment of $0.8950 per share, payable on September 1, 2026, to shareholders of record as of August 11, 2026.
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