American Water Works ( (AWK) ) has released its Q2 earnings. Here is a breakdown of the information American Water Works presented to its investors.
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American Water Works Company, Inc. is the largest regulated water and wastewater utility company in the United States, providing essential services to over 14 million people across 14 states and 18 military installations. The company is known for its commitment to delivering safe, clean, and affordable water and wastewater services.
American Water Works reported solid financial results for the second quarter of 2025, with earnings per share increasing to $1.48 from $1.42 in the same quarter of 2024. The company also narrowed its 2025 earnings per share guidance to the top half of its range and affirmed its long-term financial targets.
Key highlights from the earnings report include a 9.4% increase in year-to-date earnings per share on a weather-normalized basis, and a strategic acquisition agreement with Nexus Water Group, which will add approximately 87,000 customer connections. The company also remains on track with its 2025 capital investment plan, having invested $1.3 billion through the first half of the year.
Operating revenues saw a significant increase due to authorized revenue hikes from completed general rate cases and infrastructure proceedings. However, the company also faced higher operating expenses, driven by increased employee-related costs, technology investments, and depreciation expenses.
Looking ahead, American Water Works maintains a positive outlook, supported by its strategic growth initiatives and continued investments in infrastructure. The company remains committed to achieving its long-term earnings and dividend growth targets, while navigating the challenges and opportunities in the water utility sector.