American Water Works Company (AWK) Q2 2026 earnings summary

Executive summary

• Q2 2026 adjusted EPS was $1.61, up from $1.49 in Q2 2025; year-to-date adjusted EPS reached $2.62, up from $2.51, with strong operational execution and growth from rate increases, acquisitions, and organic expansion.

• Affirmed 2026 adjusted EPS guidance of $6.02–$6.12, targeting 8% growth, and reaffirmed long-term EPS and dividend growth targets of 7–9%.

• Closed Nexus acquisition ahead of schedule, adding approximately 47,000 customer connections and expanding operational scale; $236M in acquisitions under agreement for about 57,000 more connections.

• Progressed on the Essential Utilities merger, with multiple state and shareholder approvals, settlement in principle in Texas, and closing expected by Q1 2027.

• Operating revenues for Q2 2026 were $1,355M, up from $1,276M in Q2 2025; net income attributable to shareholders was $315M, up from $289M.

Financial highlights

• Q2 2026 operating revenues increased by $79M–$90M year-over-year, primarily from $52M in authorized rate increases and $11M from acquisitions and organic growth.

• Net income for the first half of 2026 was $511M, up from $494M in 2025; operating income for Q2 2026 was $542M, up from $489M.

• Dividend per share projected at $3.5125 for 2026, an 8.2% increase, with a payout ratio of 58%.

• Annualized revenue from rate proceedings effective since January 1, 2026 totals $111M, with $105M pending.

• Cash flows from operating activities for the first half of 2026 were $907M, up from $632M in 2025.

Outlook and guidance

• 2026 adjusted EPS guidance of $6.02–$6.12 affirmed, reflecting ~8% growth, excluding merger transaction costs, weather impacts, and incremental interest income.

• Long-term EPS and dividend growth targets of 7–9% through 2030 reaffirmed.

• Capital investment plan for 2026 is $3.7B, with a 2026–2030 capital plan totaling ~$29B.

• Rate base expected to grow at 8–9% CAGR, reaching $25.3B by mid-2026.

• Expects to achieve 2% customer growth in 2026.