American Water Works Company reported second-quarter 2026 diluted and adjusted earnings per share of $1.61, up from $1.48 in Q2 2025, and year-to-date adjusted EPS of $2.62 versus $2.51 a year earlier. The company affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12 and reaffirmed long-term targets, including a 7–9% EPS and dividend growth rate. Revenue growth reflected new rates and acquisitions while higher operating, depreciation and financing costs accompanied capital investment activity.

Financial Highlights

  • Revenue: Operating revenues of $1,355 million for the three months ended June 30, 2026 ($2,562 million for the six months).
  • Operating income: $542 million for the three months ended June 30, 2026 ($933 million for the six months).
  • Net income attributable to common shareholders: $315 million for the quarter (basic/diluted EPS $1.61); $511 million year-to-date (EPS $2.61).
  • Adjusted diluted EPS (non-GAAP): $1.61 for Q2 2026 and $2.62 for the six months ended June 30, 2026 (compared with $1.49 and $2.51 in 2025).
  • Capital and liquidity: Invested $1.8 billion in the first six months of 2026; $476 million net proceeds received from physical settlement of forward equity sale agreements in June 2026.

Business Highlights

  • Regulatory execution: Significant activity year-to-date including a Pennsylvania general rate case decision with new rates effective August 13, 2026; authorized additional annualized revenues of $216 million since January 1, 2026.
  • Capital program: 2026 capital investment plan of approximately $3.7 billion on track; $1.8 billion invested through June 30, 2026, including $346 million for regulated acquisitions.
  • Acquisitions and customer additions: Approximately 52,000 customer connections added from acquisitions through June 30, 2026, including systems acquired from Nexus Water.
  • Merger progress: Continued integration planning and regulatory approvals for the proposed merger with Essential Utilities, with three state approvals and a settlement in principle reached in Texas.
  • Operational drivers: Revenue growth in regulated businesses driven by recovery of capital and acquisition investments via new rates and infrastructure surcharges; operating expenses rose due to higher purchased water, power and chemical costs and increased depreciation from capital deployment.

Original SEC Filing:

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