American Water Works Company (AWK) Q1 2026 earnings summary

Executive summary

• Adjusted EPS for Q1 2026 was $1.01, nearly flat year-over-year, with GAAP EPS at $1.00 versus $1.05 last year; full-year EPS guidance reaffirmed at $6.02–$6.12, reflecting 8% growth over 2025.

• Dividend increased by 8.2% to $0.895 per share, aligning with a long-term payout ratio target of 55–60% and 7–9% annual growth.

• Progress continues on the proposed merger with Essential Utilities, with first state approval received and closure expected by Q1 2027.

• Operating revenues for Q1 2026 were $1,207 million, up 5.7% year-over-year, driven by rate increases and acquisitions.

• Net income attributable to common shareholders was $196 million, down from $205 million in Q1 2025, with diluted EPS of $1.00.

Financial highlights

• Q1 2026 adjusted EPS was $1.01, compared to $1.02 in Q1 2025.

• $652 million invested in Q1, primarily for water system improvements and regulated acquisitions.

• $565 million of acquisitions under agreement, representing ~105,000 customer connections.

• Annualized revenue from rate proceedings effective since January 1, 2026 totals $89 million.

• Operating income for Q1 2026 was $391 million, up from $371 million in Q1 2025.

Outlook and guidance

• 2026 adjusted EPS guidance range affirmed at $6.02–$6.12, with a 7–9% long-term EPS CAGR target.

• Most EPS growth projected for the second half of 2026 as new rates are implemented.

• Revenue growth expected from base rates and infrastructure mechanisms.

• De-risked 2026 financing plan includes strategic equity forward contracts and $1.5–2.0B of long-term debt.

• General rate cases in progress in five jurisdictions and an infrastructure surcharge filed in one, with a total annualized revenue request of $518 million.