American Water Works Company (AWK) Investor presentation summary

Business overview and footprint

• Operates as the only pure-play, large-cap water utility in the U.S., serving 3.6 million customer connections across 14 states with 55,000 miles of pipe and 600 water treatment plants.

• Military Services Group serves 19 military installations, providing regulated-like earnings and strategic value.

• Industry remains highly fragmented, offering significant consolidation and acquisition opportunities, with a pipeline exceeding 1.5 million customer connections.

Financial performance and guidance

• Affirmed 2026 adjusted EPS guidance of $6.02–$6.12, with a 2023–2026 CAGR of 8.4%, targeting long-term EPS and dividend growth of 7–9%.

• Dividend per share projected to grow 8.2% in 2026, with a payout ratio of 58%, aligning with the long-term target of 55–60%.

• Maintains a strong balance sheet with S&P A and Moody’s Baa1 ratings, total debt to capital at 58%, and $1.45 billion in available liquidity as of June 30, 2026.

Capital investment and infrastructure

• Plans $19–$20 billion in capital investments from 2026–2030, and $46–$48 billion through 2035, focusing on infrastructure renewal, resiliency, and water quality.

• Estimated rate base to grow at 8–9% CAGR, reaching $25.3 billion by mid-2026.

• $2 billion allocated for PFAS compliance, with ongoing litigation settlements and regulatory advocacy for liability protections.