Excluding transaction costs for the proposed Essential Utilities merger and incremental interest income from the repaid HOS secured seller note, first quarter 2026 adjusted earnings of $1.01 per share, compared to $1.02 per share in the same quarter in 2025
2026 earnings per share guidance range of $6.02 to $6.12 affirmed
Announced quarterly cash dividend of $0.8950 per share of common stock, payable in June, an increase of 8.2%
Successfully issued in April $700 million of 5.200% senior notes due 2036
CAMDEN, N.J., April 29, 2026 /PRNewswire/ -- American Water Works Company, Inc. (NYSE:AWK) today reported adjusted results for the quarter ended March 31, 2026, of $1.01 per share, compared to $1.02 per share for the same quarter in 2025.
"The company has delivered solid first quarter results and we are affirming our long-term targets for both earnings and dividend growth at 7 to 9 percent," said John Griffith, President and CEO of American Water. "We are also encouraged with the progress we and Essential have made thus far in merger integration planning work and were pleased to receive the first state regulatory approval for the merger last week in Kentucky," added Griffith.
2026 EPS Guidance and Long-Term Financial Targets AffirmedThe company affirms its 2026 adjusted earnings per share ("EPS") guidance range of $6.02 to $6.12 (non-GAAP). 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, if any, 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. 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. The company also affirms its long-term financial targets, including its long-term EPS and dividend growth rate targets of 7-9%. The company's earnings forecasts are subject to numerous risks and uncertainties, including, without limitation, those described under "Adjustments to GAAP" and "Cautionary Statement Concerning Forward-Looking Statements" below and under "Risk Factors" in its annual, quarterly, and current reports filed with the Securities and Exchange Commission ("SEC").
Consolidated Results Adjusted Earnings per Share Reconciliation (A Non-GAAP, unaudited measure)
For the Three Months Ended March 31,
2026
2025
Diluted earnings per share (GAAP):
Net income attributable to shareholders
$ 1.00
$ 1.05
Non-GAAP adjustments:
Estimated impact of weather
—
—
Income tax impact
—
—
Net non-GAAP adjustment
—
—
Incremental interest income from amended HOS seller note
(0.01)
(0.04)
Income tax impact
—
0.01
Net non-GAAP adjustment
(0.01)
(0.03)
Transaction costs associated with the pending merger with Essential
0.03
—
Income tax impact
(0.01)
—
Net non-GAAP adjustment
0.02
—
Total net adjustments
0.01
(0.03)
Adjusted diluted earnings per share (non-GAAP)
$ 1.01
$ 1.02
For the three months ended March 31, 2026, adjusted earnings per share (a non-GAAP measure) were $1.01, compared to $1.02 per share in the same period in 2025. Revenue growth through the implementation of new rates in the Regulated Businesses from the recovery of capital and acquisition investments was offset by increased operating costs and higher depreciation and financing costs to support the current capital investment plan.
During the first three months of 2026, the company invested $652 million. The company plans to invest a total of approximately $3.7 billion across its footprint in 2026, including acquisitions.
Regulated BusinessesIn the first quarter of 2026, the Regulated Businesses' net income was $208 million, compared to $201 million for the same period in 2025.
Operating revenues increased $62 million for the three months ended March 31, 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.
Since January 1, 2026, the company has been authorized additional annualized revenues of $89 million, with $36 million from general rate cases and $53 million from infrastructure surcharges. The company has general rate cases in progress in five jurisdictions and has filed for an infrastructure surcharge in one jurisdiction, reflecting a total annualized revenue request of $518 million.
Operating expenses were higher by $44 million for the three months ended March 31, 2026, as compared to the same period 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 in the same period, due to the increase in capital investment.
Interest expense was higher by $12 million for the three months ended March 31, 2026, as compared to the same period in 2025, as a result of incremental short and long-term debt primarily to fund capital investments.
DividendsOn March 3, 2026, the Company paid a quarterly cash dividend of $0.8275 per share to shareholders of record as of February 10, 2026.
On April 29, 2026, the company's Board of Directors declared a quarterly cash dividend payment of $0.8950 per share, payable on June 2, 2026, to shareholders of record as of May 12, 2026, representing an 8.2% increase over last quarter's common stock dividend.
2026 First Quarter Earnings Conference CallThe conference call to discuss the first quarter 2026 earnings, 2026 adjusted EPS guidance, and affirmation of long-term targets will take place on Thursday, April 30, 2026, at 9 a.m. Eastern Time. Interested parties may listen to an audio webcast through a link on the company's Investor Relations website at ir.amwater.com. Presentation slides that will be used in conjunction with the earnings conference call will also be made available online in advance at ir.amwater.com. The company recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under SEC Regulation FD.
Following the earnings conference call, a replay of the audio webcast will be available for one year on American Water's Investor Relations website at ir.amwater.com/events.
About American WaterAmerican Water (NYSE:AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
Throughout this press release, unless the context otherwise requires, references to the "company" and "American Water" mean American Water Works Company, Inc. and all of its subsidiaries, taken together as a whole. All statements related to earnings and earnings per share refer to diluted earnings and earnings per share.
Adjustments to GAAPThis press release includes presentations of consolidated adjusted diluted EPS, both as historical financial information and as earnings guidance. These presentations of adjusted EPS constitute "non-GAAP financial measures" under SEC rules. The most directly comparable GAAP measure for historical adjusted EPS is the reported diluted earnings per share (GAAP) and is reconciled in this press release. See "2026 EPS Guidance and Long-Term Financial Targets Affirmed" above for more information on adjustments made to diluted EPS for purposes of earnings guidance.
These non-GAAP financial measures are derived from the company's consolidated financial information but are not presented in the financial statements prepared in accordance with GAAP. These measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. The company believes that these non-GAAP measures provide investors with useful information by excluding certain matters that may not be indicative of the company's ongoing operating results, and, with respect to weather, to provide for a measure of the company's operating performance without the variability of estimated weather impacts, and that providing these non-GAAP measures will allow investors to better understand the businesses' operating performance and facilitate a meaningful year-to-year comparison of the company's results of operations. Although management uses these non-GAAP financial measures internally to evaluate the company's results of operations, management does not intend results reflected by these non-GAAP measures to represent results as defined by GAAP, and the reader should not consider them as indicators of performance. In addition, these non-GAAP financial measures as defined and used above may not be comparable to similarly titled non-GAAP measures used by other companies, and, accordingly, they may have significant limitations on their use.
Cautionary Statement Concerning Forward-Looking StatementsCertain statements made, referred to or relied upon in this press release including, without limitation, 2026 adjusted earnings per share guidance, the company's long-term financial, growth and dividend targets, the ability to achieve the company's strategies and goals, customer affordability and acquired customer growth, the outcome of the company's pending acquisition activity (including, without limitation, with respect to the ...
