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American Water Works (AWK)
NYSE:AWK
Earnings Data
Report Date
May 06, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.15Last Year’s EPS
1.05Same Quarter Last Year
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call presents a largely positive operational and financial picture: American Water delivered solid adjusted EPS growth (8.9% year-over-year), invested heavily (~$3.2B) in infrastructure, maintained affordability targets (residential bills <1% MHI), advanced a robust acquisition pipeline (104,000 connections under agreement) and affirmed 2026 guidance with an 8% EPS growth target. The company also made meaningful financing and balance sheet moves (HOS note repayment, equity forward) and retained investment-grade ratings. Offsetting factors include rising O&M, depreciation and financing costs that increased per-share expense, a leverage level near the company’s stated 60% cap, ongoing large rate cases across multiple states with attendant regulatory and affordability scrutiny, some timing uncertainty around PFAS proceeds, and planned equity issuances. Overall, highlights outweigh lowlights given strong execution, affirmed guidance and strategic M&A progress, though regulatory and cost pressures warrant monitoring.Company Guidance
Strong Adjusted EPS Growth
Adjusted earnings per share of $5.64 for FY2025 versus $5.18 in 2024, representing EPS growth of 8.9% year-over-year.
Affirmed 2026 Guidance and Long-Term Targets
2026 adjusted EPS guidance affirmed at $6.02–$6.12, implying ~8% EPS growth versus 2025; reiterated long-term EPS and dividend growth target of 7%–9% through 2030 and beyond.
Substantial Capital Investment
Invested approximately $3.2 billion in 2025 (on plan), focused on pipe replacement, treatment upgrades, PFAS remediation, lead service line removal and smart meters; long-term regulated rate base growth expected at 8%–9%.
Revenue Drivers and Rate Case Recoveries
Revenues were higher by $1.70 per share driven by authorized rate increases, recent acquisitions and organic customer growth; closed 6 rate cases in 2025 (including Kentucky authorization for $18M of additional revenue with a 9.7% ROE and ~52% equity layer).
Acquisition Pipeline and Customer Growth
104,000 customer connections under agreement heading into 2026 (deals totaling $582M); additional 19 acquisitions under agreement for $267M expected to add ~58,000 customer connections; continued focus on achieving a ~2% annual customer addition goal.
Balance Sheet and Liquidity Actions
Repaid $795M secured seller note (HOS) in full on Feb 13, 2026; financing plan includes ~$1B equity forward expected mid‑2026 and total planned external equity issuance of ~$2.5B (2026–2030), with target to remain under 60% debt-to-capital.
Credit Ratings and Financial Position
S&P rating maintained at A with stable outlook; Moody's affirmed Baa1 with stable outlook; company expects FFO-to-debt metrics to remain within rating thresholds.
Strategic M&A Progress
Definitive merger agreement announced with Essential Utilities; shareholders of both companies overwhelmingly approved merger proposals on Feb 10; company expects close by end of Q1 2027. Nexus Water Group transaction progressing (HSR early termination granted) with anticipated close by August 2026.
Customer Affordability and Regulatory Focus
Maintained goal of residential water bills well under 1% of median household income on average across footprint and forecasts staying under 1% through 2035; ongoing emphasis on affordability in rate filings and communications with regulators.
Operational Contributions
Military Services Group provides incremental earnings growth (serving 18 installations); company highlights strong safety and water quality metrics as per 2025 disclosures.
AWK Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
AWK Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 18, 2026 | $131.16 | $131.36 | +0.15% |
Oct 29, 2025 | $128.36 | $125.04 | -2.58% |
Jul 30, 2025 | $137.04 | $137.62 | +0.42% |
Apr 30, 2025 | $143.40 | $142.84 | -0.39% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does American Water Works (AWK) report earnings?
American Water Works (AWK) is schdueled to report earning on May 06, 2026, After Close (Confirmed).
What is American Water Works (AWK) earnings time?
American Water Works (AWK) earnings time is at May 06, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is AWK EPS forecast?
AWK EPS forecast for the fiscal quarter 2026 (Q1) is 1.15.