AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS
Rhea-AI Summary
American Water (NYSE: AWK) reported first quarter 2026 adjusted EPS of $1.01, versus $1.02 a year earlier, and GAAP EPS of $1.00. The company affirmed 2026 adjusted EPS guidance of $6.02–$6.12 and long-term EPS/dividend growth targets of 7–9%. The board declared a quarterly dividend of $0.8950 payable June 2, 2026. The company invested $652 million in Q1 and plans ~$3.7 billion of 2026 investment; issued $700 million 5.200% senior notes due 2036 and noted one state regulatory approval for the proposed Essential merger.
AI-generated analysis. Not financial advice.
Positive
- Adjusted EPS affirmed at $6.02–$6.12 guidance for 2026
- Quarterly dividend increased to $0.8950 (8.2% quarter over quarter)
- Invested $652 million in Q1; $3.7 billion planned for 2026
- Issued $700 million of 5.200% senior notes due 2036
- Regulated Businesses net income rose to $208 million in Q1
Negative
- Q1 adjusted EPS declined slightly to $1.01 from $1.02 in 2025
- Operating expenses increased by $44 million in Q1 2026
- Depreciation rose by $21 million in Q1 due to capital investment
- Interest expense increased by $12 million in Q1 from incremental debt
News Market Reaction – AWK
On the day this news was published, AWK declined 2.69%, reflecting a moderate negative market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $684M from the company's valuation, bringing the market cap to $24.73B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
AWK is modestly higher while key peers are mixed: closest peer Essential Utilities (WTRG) is up 0.53%, but several other regulated utilities (AEE, ATO, DTE, FE) are down, pointing to a company-specific reaction to the earnings and guidance.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 09 | Earnings preview | Neutral | +0.0% | Announcement of Q3 2025 release timing and 2026 guidance discussion. |
| Jul 30 | Quarterly earnings | Positive | +0.4% | Strong Q2 2025 results and narrowing 2025 EPS guidance to upper range. |
| Apr 30 | Quarterly earnings | Positive | -0.4% | Strong Q1 2025 earnings with affirmed EPS guidance and growth targets. |
| Oct 30 | Quarterly earnings | Positive | +1.8% | Strong Q3 2024 EPS, major acquisition, and large multi-year capital plans. |
| Oct 02 | Earnings preview | Neutral | +0.3% | Scheduling of Q3 2024 call and 2025 guidance and targets discussion. |
Earnings and guidance updates have generally produced small, mostly positive price moves, though there has been at least one instance where strong results were followed by a mild decline.
Over the past few years, American Water has consistently highlighted solid quarterly earnings, reaffirmed EPS guidance ranges, and maintained long-term growth targets of 7–9%. Prior earnings releases emphasized steady EPS growth, expanding capital plans, and incremental revenues from rate cases and acquisitions. Today’s Q1 2026 results, slight year-on-year EPS dip, affirmed $6.02–$6.12 2026 EPS guidance, and dividend growth continue this pattern of stable fundamentals backed by ongoing infrastructure investment.
Historical Comparison
Recent earnings-related announcements saw an average move of about 0.42%, typically modest and mostly aligned with steady guidance and growth messaging, similar in tone to this Q1 2026 update.
Earnings communications have moved from strong 2024 results to tightened 2025 guidance and now Q1 2026 results that affirm a 7–9% long-term EPS and dividend growth framework and explicit 2026 EPS targets.
Market Pulse Summary
This announcement details Q1 2026 EPS of $1.00 GAAP and $1.01 adjusted, slightly below 2025, while affirming 2026 EPS guidance of $6.02–$6.12 and 7–9% long-term EPS and dividend growth targets. The company boosted its quarterly dividend to $0.8950 and continues a robust $3.7 billion 2026 capital plan. Investors may focus on how higher operating, depreciation, and interest costs balance against authorized rate increases and ongoing merger-related expenses.
Key Terms
gaap financial
non-gaap financial
eps financial
senior notes financial
general rate cases regulatory
infrastructure surcharges regulatory
regulation fd regulatory
AI-generated analysis. Not financial advice.
- First quarter 2026 GAAP earnings were
$1.00 $1.05 - Excluding transaction costs for the proposed Essential Utilities merger and incremental interest income from the repaid HOS secured seller note, first quarter 2026 adjusted earnings of
$1.01 $1.02
- Excluding transaction costs for the proposed Essential Utilities merger and incremental interest income from the repaid HOS secured seller note, first quarter 2026 adjusted earnings of
- 2026 earnings per share guidance range of
$6.02 $6.12 - Announced quarterly cash dividend of
$0.8950 8.2% - Successfully issued in April
$700 million 5.200% senior notes due 2036
"The company has delivered solid first quarter results and we are affirming our long-term targets for both earnings and dividend growth at 7 to 9 percent," said John Griffith, President and CEO of American Water. "We are also encouraged with the progress we and Essential have made thus far in merger integration planning work and were pleased to receive the first state regulatory approval for the merger last week in
2026 EPS Guidance and Long-Term Financial Targets Affirmed
The company affirms its 2026 adjusted earnings per share ("EPS") guidance range of
Consolidated Results Adjusted Earnings per Share Reconciliation (A Non-GAAP, unaudited measure)
For the Three Months Ended March 31, | |||
2026 | 2025 | ||
Diluted earnings per share (GAAP): | |||
Net income attributable to shareholders | $ 1.00 | $ 1.05 | |
Non-GAAP adjustments: | |||
Estimated impact of weather | — | — | |
Income tax impact | — | — | |
Net non-GAAP adjustment | — | — | |
Incremental interest income from amended HOS seller note | (0.01) | (0.04) | |
Income tax impact | — | 0.01 | |
Net non-GAAP adjustment | (0.01) | (0.03) | |
Transaction costs associated with the pending merger with Essential | 0.03 | — | |
Income tax impact | (0.01) | — | |
Net non-GAAP adjustment | 0.02 | — | |
Total net adjustments | 0.01 | (0.03) | |
Adjusted diluted earnings per share (non-GAAP) | $ 1.01 | $ 1.02 | |
For the three months ended March 31, 2026, adjusted earnings per share (a non-GAAP measure) were
During the first three months of 2026, the company invested
Regulated Businesses
In the first quarter of 2026, the Regulated Businesses' net income was
Operating revenues increased
Since January 1, 2026, the company has been authorized additional annualized revenues of
Operating expenses were higher by
Interest expense was higher by
Dividends
On March 3, 2026, the Company paid a quarterly cash dividend of
On April 29, 2026, the company's Board of Directors declared a quarterly cash dividend payment of
2026 First Quarter Earnings Conference Call
The conference call to discuss the first quarter 2026 earnings, 2026 adjusted EPS guidance, and affirmation of long-term targets will take place on Thursday, April 30, 2026, at 9 a.m. Eastern Time. Interested parties may listen to an audio 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 earnings conference call will also be made available online in advance at ir.amwater.com. 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 earnings conference call, a replay of the audio webcast will be available for one year on American Water's Investor Relations website at ir.amwater.com/events.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
Throughout this press release, unless the context otherwise requires, references to the "company" and "American Water" mean American Water Works Company, Inc. and all of its subsidiaries, taken together as a whole. All statements related to earnings and earnings per share refer to diluted earnings and earnings per share.
Adjustments to GAAP
This press release includes presentations of consolidated adjusted diluted EPS, both as historical financial information and as earnings guidance. These presentations of adjusted EPS constitute "non-GAAP financial measures" under SEC rules. The most directly comparable GAAP measure for historical adjusted EPS is the reported diluted earnings per share (GAAP) and is reconciled in this press release. See "2026 EPS Guidance and Long-Term Financial Targets Affirmed" above for more information on adjustments made to diluted EPS for purposes of earnings guidance.
These non-GAAP financial measures are derived from the company's consolidated financial information but are not presented in the financial statements prepared in accordance with GAAP. These measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. The company believes that these non-GAAP measures provide investors with useful information by excluding certain matters that may not be indicative of the company's ongoing operating results, and, with respect to weather, to provide for a measure of the company's operating performance without the variability of estimated weather impacts, and that providing these non-GAAP measures will allow investors to better understand the businesses' operating performance and facilitate a meaningful year-to-year comparison of the company's results of operations. Although management uses these non-GAAP financial measures internally to evaluate the company's results of operations, management does not intend results reflected by these non-GAAP measures to represent results as defined by GAAP, and the reader should not consider them as indicators of performance. In addition, these non-GAAP financial measures as defined and used above may not be comparable to similarly titled non-GAAP measures used by other companies, and, accordingly, they may have significant limitations on their use.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements made, referred to or relied upon in this press release including, without limitation, 2026 adjusted earnings per share guidance, the company's long-term financial, growth and dividend targets, the ability to achieve the company's strategies and goals, customer affordability and acquired customer growth, the outcome of the company's pending acquisition activity (including, without limitation, with respect to the proposed merger with Essential Utilities and the proposed acquisition of systems owned indirectly by Nexus Water Group, Inc.), the amount and allocation of projected capital expenditures, the company's capital recovery outlook, and estimated revenues from rate cases and other government agency authorizations, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. In some cases, these forward-looking statements can be identified by words with prospective meanings such as "intend," "plan," "estimate," "believe," "anticipate," "expect," "predict," "project," "propose," "assume," "forecast," "outlook," "likely," "uncertain," "future," "pending," "goal," "objective," "potential," "continue," "seek to," "may," "can," "will," "should" and "could" and or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on American Water's current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. These forward-looking statements are subject to a number of estimates, assumptions, known and unknown risks, uncertainties and other factors. The company's actual results may vary materially from those discussed in the forward-looking statements included in this press release as a result of the factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings with the SEC, and because of factors such as: the decisions of governmental and regulatory bodies, including decisions to raise or lower customer rates; the timeliness and outcome of regulatory commissions' and other authorities' actions concerning rates, capital structure, authorized return on equity, capital investment, system acquisitions and dispositions, taxes, permitting, water supply and management, and other decisions; changes in customer demand for, and patterns of use of, water and energy, such as may result from conservation efforts, or otherwise; limitations on the availability of the company's water supplies or sources of water, or restrictions on its use thereof, resulting from allocation rights, governmental or regulatory requirements and restrictions, drought, overuse or other factors; a loss of one or more large industrial or commercial customers due to adverse economic conditions, or other factors; present and future proposed changes in laws, governmental regulations and policies, including with respect to the environment (such as, for example, potential improvements or changes to existing Federal regulations with respect to lead and copper service lines and galvanized steel pipe), health and safety, data and consumer privacy, security and protection, water quality and water quality accountability, contaminants of emerging concern (including without limitation per- and polyfluoroalkyl substances (collectively, "PFAS")), public utility and tax regulations and policies, and impacts resulting from
These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above, and the risk factors included in the company's annual, quarterly and other SEC filings, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements the company makes shall speak only as of the date of this press release. Except as required by the federal securities laws, the company does not have any obligation, and it specifically disclaims any undertaking or intention, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise. New factors emerge from time to time, and it is not possible for the company to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the company's businesses, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. The foregoing factors should not be construed as exhaustive.
AWK-IR
American Water Works Company, Inc. and Subsidiary Companies Consolidated Statements of Operations (Unaudited) (In millions, except per share data) | |||
For the Three Months Ended March 31, | |||
2026 | 2025 | ||
Operating revenues | $ 1,207 | $ 1,142 | |
Operating expenses: | |||
Operation and maintenance | 493 | 468 | |
Depreciation and amortization | 237 | 216 | |
General taxes | 86 | 87 | |
Total operating expenses, net | 816 | 771 | |
Operating income | 391 | 371 | |
Other (expense) income: | |||
Interest expense | (163) | (144) | |
Interest income | 12 | 22 | |
Non-operating benefit costs, net | 5 | 4 | |
Other, net | 14 | 17 | |
Total other (expense) income | (132) | (101) | |
Income before income taxes | 259 | 270 | |
Provision for income taxes | 63 | 65 | |
Net income attributable to common shareholders | $ 196 | $ 205 | |
Basic earnings per share: (a) | |||
Net income attributable to common shareholders | $ 1.00 | $ 1.05 | |
Diluted earnings per share: (a) | |||
Net income attributable to common shareholders | $ 1.00 | $ 1.05 | |
Weighted-average common shares outstanding: | |||
Basic | 195 | 195 | |
Diluted | 195 | 195 | |
(a) | Amounts may not calculate due to rounding. |
American Water Works Company, Inc. and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) | |||
March 31, 2026 | December 31, 2025 | ||
ASSETS | |||
Property, plant and equipment | $ 38,569 | $ 37,955 | |
Accumulated depreciation | (7,496) | (7,379) | |
Property, plant and equipment, net | 31,073 | 30,576 | |
Current assets: | |||
Cash and cash equivalents | 137 | 98 | |
Restricted funds | 19 | 21 | |
Accounts receivable, net of allowance for uncollectible accounts of | 386 | 395 | |
Income tax receivable | 112 | 9 | |
Unbilled revenues | 451 | 433 | |
Materials and supplies | 114 | 112 | |
Secured seller promissory note from the sale of the Homeowner Services Group | — | 795 | |
Other | 305 | 328 | |
Total current assets | 1,524 | 2,191 | |
Regulatory and other long-term assets: | |||
Regulatory assets | 1,138 | 1,132 | |
Operating lease right-of-use assets | 82 | 85 | |
Goodwill | 1,156 | 1,156 | |
Other | 291 | 302 | |
Total regulatory and other long-term assets | 2,667 | 2,675 | |
Total assets | $ 35,264 | $ 35,442 | |
American Water Works Company, Inc. and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) | |||
March 31, 2026 | December 31, 2025 | ||
CAPITALIZATION AND LIABILITIES | |||
Capitalization: | |||
Common stock ( | $ 2 | $ 2 | |
Paid-in-capital | 8,652 | 8,642 | |
Retained earnings | 2,771 | 2,575 | |
Accumulated other comprehensive income | 8 | 6 | |
Treasury stock, at cost (5,487,595 and 5,428,008 shares, respectively) | (396) | (388) | |
Total common shareholders' equity | 11,037 | 10,837 | |
Long-term debt | 12,766 | 12,777 | |
Redeemable preferred stock at redemption value | 3 | 3 | |
Total long-term debt | 12,769 | 12,780 | |
Total capitalization | 23,806 | 23,617 | |
Current liabilities: | |||
Short-term debt | 1,366 | 1,588 | |
Current portion of long-term debt | 1,494 | 1,479 | |
Accounts payable | 272 | 378 | |
Accrued liabilities | 580 | 830 | |
Accrued taxes | 94 | 134 | |
Accrued interest | 135 | 140 | |
Other | 177 | 198 | |
Total current liabilities | 4,118 | 4,747 | |
Regulatory and other long-term liabilities: | |||
Advances for construction | 468 | 435 | |
Deferred income taxes and investment tax credits | 3,382 | 3,190 | |
Regulatory liabilities | 1,409 | 1,416 | |
Operating lease liabilities | 72 | 74 | |
Accrued pension expense | 160 | 167 | |
Other | 204 | 166 | |
Total regulatory and other long-term liabilities | 5,695 | 5,448 | |
Contributions in aid of construction | 1,645 | 1,630 | |
Commitments and contingencies | |||
Total capitalization and liabilities | $ 35,264 | $ 35,442 | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/american-water-reports-first-quarter-2026-results-on-track-affirms-2026-eps-guidance-and-long-term-targets-302757934.html
SOURCE American Water