American Water Reports 2020 Results

American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today reported 2020 results of $3.91 per share, compared to $3.43 per share in 2019. The Company today also announced 2021 diluted earnings per share guidance, long-term EPS growth targets, and capital investment plans.

“Highlights of our achievements in 2020, an unprecedented year, include approximately $1.9 billion in capital investment, continued cost management, success in growth with 23 completed regulated acquisitions, the addition of our 17th military installation contract, and the execution of enhanced COVID-19 safety protocols,” said Walter Lynch, president and CEO of American Water.

“We will continue to build on that momentum in 2021, providing essential services across our footprint, investing much needed capital of just under $2 billion for infrastructure replacement, resiliency, and strategic growth where we create the most value for all of our stakeholders and an unrelenting commitment to safety and operational excellence,” added Lynch. “Our 2021 earnings guidance and long-term targets are based on the continued execution of our strategic goals from the outstanding dedication and performance of our employees.”

2021 Investor Day

American Water will host a virtual 2021 Investor Day on February 25, 2021, at 9:00 a.m. Eastern Standard Time. The event will feature presentations by Walter Lynch, president and chief executive officer; Susan Hardwick, executive vice president and chief financial officer; and other company leaders. The company will outline its vision and strategy for the future and discuss strategic activities to drive value creation. The company will also discuss an increased capital investment program to provide reliable and sustainable water and wastewater services and its ongoing effort to enhance customer experience.

Interested parties may access the video webcast through a link on the Company’s Investor Relations website at ir.amwater.com. Presentation slides that will be used in conjunction with the event will also be made available online. The Company recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under SEC Regulation FD.

Following the event, an archive of the webcast will be available for one year on American Water’s investor relations website at ir.amwater.com/events.

The company’s earnings guidance, capital spending, dividend growth, rate base growth and O&M efficiency forecasts are subject to numerous risks and uncertainties, including, without limitation, those described under “Forward-Looking Statements” below and under “Risk Factors” in its annual and quarterly reports filed with the Securities and Exchange Commission (SEC).

2021 Earnings Guidance and Long-Term Outlook

• 2021 earnings guidance range of $4.18 to $4.28 per share
• Long-term EPS growth expectation of 7-10% for 2021-2025
• 2021-2025 investment plan of $10.3-$10.5 billion and expected $22-$25 billion for the 10-year period of 2021-2030
• 2021-2025 rate base growth expectation of 7-8%
• 2021-2025 dividend growth expectation at the high end of 7-10%
• 2021-2025 plan includes $700 million of public equity issuances to support growth
• 2025 O&M efficiency target of 30.4%

Consolidated Results

For the three months ended Decem