American Water Works Company (AWK) Q2 2025 earnings summary

Executive summary

• Q2 2025 EPS was $1.48, up from $1.42 in Q2 2024; year-to-date EPS reached $2.53, up from $2.37, with weather-normalized EPS up 9.4% and a net unfavorable weather impact of $0.06 per share.

• 2025 EPS guidance narrowed to $5.70–$5.75, reflecting strong business performance, regulatory execution, and cost management.

• Invested $1.3 billion in capital projects year-to-date, supporting infrastructure renewal and growth.

• Announced agreement to acquire Nexus Water Group systems for $315 million, adding nearly 47,000 customer connections across eight states, with total pending acquisitions potentially adding up to 87,000 connections.

• Dividend per share increased 8.2% to $3.2475, aligning with long-term targets.

Financial highlights

• Q2 2025 operating revenues were $1,276 million, up from $1,149 million; six-month revenues were $2,418 million, up from $2,160 million.

• Net income for Q2 2025 was $289 million, up from $277 million; six-month net income was $494 million, up from $462 million.

• Revenue growth contributed $0.50/share to Q2 EPS and $0.94/share to YTD EPS, offset by higher O&M, depreciation, and financing costs.

• O&M costs rose $0.17/share in Q2 and $0.32/share YTD, mainly due to employee, maintenance, and technology expenses.

• Cash flows from operating activities for H1 2025 were $632 million, down from $727 million, mainly due to tax payments and higher receivables.

Outlook and guidance

• 2025 EPS guidance narrowed to $5.70–$5.75, with expected 8.6% EPS growth at the midpoint and long-term EPS and dividend growth targets of 7–9%.

• Capital investment plan for 2025 remains on track at $3.3 billion, with $1.3 billion invested through June 30, 2025.

• Five- and ten-year capital plans are $17–$18 billion and $40–$42 billion, respectively.

• Focus on customer affordability, cost management, and maintaining a strong credit profile.

• Pending acquisitions totaling $499 million could add 84,000 customers; Nexus deal expected to close by August 2026.