American Water Works Company (AWK) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.510B, net income $387M and adjusted diluted EPS $2.00 vs. $1.89; GAAP EPS was $1.94, flat YoY.

• 9M revenue was $4.072B, net income $898M and adjusted EPS $4.63 vs. $4.40; GAAP EPS was $4.56 vs. $4.47.

• Rate increases and acquisitions supported growth, partly offset by higher depreciation, financing and operating costs.

• Essential merger approvals advanced, with settlements in Pennsylvania, Texas and North Carolina; closing remains targeted for end-Q1 2027.

Financial highlights

• Q3 adjusted EPS bridge: revenue +$0.28, O&M -$0.01, depreciation -$0.07, financing and dilution +$0.02, general taxes -$0.08, other -$0.03.

• 9M adjusted EPS bridge included revenue +$0.79, O&M -$0.06, depreciation -$0.23, financing and dilution -$0.22, and general taxes -$0.05.

• Interest expense was $167M in Q3 vs. $158M and $497M in 9M vs. $453M, reflecting incremental debt issuance.

• Pennsylvania and New Jersey rate increases effective in Q3 supported revenue growth and stronger second-half results.

Outlook and guidance

• 2026 adjusted EPS guidance narrowed to $6.07–$6.12 from $6.02–$6.12; management expects delivery in the top half of the initial range.

• Standalone 2027 adjusted EPS guidance is $6.53–$6.63, with 8% midpoint growth vs. 2026; 2023–2027E midpoint CAGR is 8.4%.

• Long-term targets remain 7–9% EPS and dividend-per-share growth and 8–9% rate-base growth, including acquisitions.

• Standalone capital investment plans are $4.1B for 2027, $20B+ for 2026–2030 and $48B+ for 2026–2035.

• Guidance excludes specified weather, merger transaction costs and HOS seller-note interest impacts.