American Water Works Co. Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did AWK Beat Earnings? Q3 2025 Results
American Water Works delivered a strong third quarter for 2025, posting earnings per share of $1.94 against a consensus estimate of $1.88, a beat of roughly 2.99%, while revenue climbed to $1.45 billion, topping the $1.33 billion estimate by 9.43% and rising 9.7% from the year-ago period. The primary engine behind the results was higher regulated revenues from authorized rate increases designed to recover capital and acquisition investments, with the Regulated Businesses segment generating net income of $383 million compared to $356 million a year earlier. The quarter also carried strategic weight, as the company announced a definitive all-stock merger agreement with Essential Utilities that would create a combined entity with a pro forma market capitalization of approximately $40 billion. Looking ahead, management affirmed 2025 weather-normalized EPS guidance of $5.70 to $5.75 and initiated 2026 guidance of $6.02 to $6.12, representing 8% growth at the midpoint, while expanding its 2026-2030 capital investment plan to $19 billion to $20 billion to address infrastructure demands including EPA PFAS compliance.
- Authorized revenue increases from completed general rate cases and infrastructure proceedings
- Recovery of incremental capital and acquisition investments
- Incremental revenue from closed acquisitions
- Favorable weather impact of $0.03 per share in Q3 2025 vs $0.04 per share in Q3 2024
- Incremental interest income from amended HOS seller note
“The company delivered strong results to date in 2025. Looking forward to 2026 and beyond, we have demonstrated that we consistently execute on the plans we set, and we are fully confident in our ability to continue to deliver on our near-term and long-term growth and capital plans in this latest update.”
American Water Works CEO, on the earnings call
Forward Guidance & Outlook
American Water affirmed 2025 weather-normalized EPS guidance of $5.70 to $5.75 (including $0.10 from incremental HOS note interest income). The company initiated 2026 EPS guidance of $6.02 to $6.12, representing 8% growth at the midpoint versus the 2025 weather-normalized range (excluding HOS note interest). 2026 guidance assumes the $795 million HOS note is repaid around year-end 2025 and the equity forward is settled mid-year 2026, and excludes transaction costs from the proposed Essential Utilities merger. Long-term targets remain unchanged: 7-9% EPS CAGR, 7-9% dividend per share CAGR, 8-9% rate base growth (including acquisitions), and 2% acquired customer addition growth. The company established a 2026 capital investment plan of $3.7 billion, a 2026-2030 plan of $19-$20 billion, and a 2026-2035 plan of $46-$48 billion. The 2026-2030 financing plan includes approximately $14 billion from operating cash flows, $12.5 billion from debt financing, and $2.5 billion from equity issuances.
AWK YoY Financials
Figures from SEC filings and company reports. Not investment advice.