AMERICAN WATER REPORTS STRONG 2025 RESULTS ; AFFIRMS 2026 EPS GUIDANCE AND LONG - TERM TARGETS

prnewswire.com · Feb 18, 2026 · Collected from GDELT

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2025 GAAP earnings of $5.69 per share, compared to $5.39 per share in 2024 and fourth quarter 2025 GAAP earnings of $1.22 per share, compared to $1.22 in the fourth quarter 2024 2025 results of $5.74 per share exclude $0.05 of transaction costs associated with pending merger with Essential Utilities; achieved the upper half of the earnings guidance range of $5.70 to $5.75 per share Excluding transaction costs for the pending merger and incremental interest income from the HOS secured seller note, 2025 adjusted earnings of $5.64 per share, compared to $5.18 per share in 2024, an 8.9% increase Delivered dividend growth of 8.2% for the year Invested $3.2 billion in capital in 2025, driven by system need in support of water quality and reliability HOS $795 million secured seller note repaid in full on February 13, 2026 Affirmed long-term EPS and dividend growth targets of 7-9% On February 10, 2026, shareholders of American Water and Essential Utilities overwhelmingly approved their merger-related proposals , /PRNewswire/ -- American Water Works Company, Inc. (NYSE: AWK) today reported adjusted earnings of $1.24 per share for the fourth quarter 2025 compared to $1.15 per share in 2024, and full year adjusted earnings in 2025 of $5.64 per share compared to $5.18 per share in 2024. "American Water once again successfully executed on its EPS and dividend guidance and plan in 2025. We invested $3.2 billion in regulated operations, driven by needed infrastructure improvements to water systems, and completed 18 acquisitions across seven states," said John Griffith, president and CEO of American Water. "We were also very pleased that, last week, shareholders of American Water and Essential Utilities overwhelmingly approved the respective proposals related to the pending merger announced last October," added Griffith. "This milestone further affirms the benefits of the merger - enhancing scale and combining two highly complementary businesses with significant growth potential that will benefit all stakeholders." 2026 Adjusted Earnings Per Share Guidance and Long-Term Financial Targets Affirmed The company affirms its 2026 adjusted EPS guidance range of $6.02 to $6.12 (non-GAAP) compared to adjusted EPS in 2025 of $5.64 (non-GAAP). The 2026 adjusted EPS guidance range does not include (i) transaction costs to be incurred by the company during 2026 related to the proposed merger with Essential Utilities, Inc. ("Essential Utilities"), (ii) impacts of weather, if any, during 2026, and (iii) incremental interest income through February 13, 2026 related to the 2024 amendment of the former Homeowner Services Group ("HOS") secured seller note. Management is unable to present a reconciliation of the adjusted EPS guidance range to a GAAP guidance range without unreasonable effort because management cannot reliably predict the nature, amount or probable significance of all of such adjustments for future periods; however, these adjustments may, individually or in the aggregate, cause adjusted EPS to differ significantly from GAAP EPS. The company also affirms its long-term financial targets, including its long-term EPS and dividend growth rate targets of 7-9%. The company's earnings forecasts are subject to numerous risks and uncertainties, including, without limitation, those described under "Adjustments to GAAP" and "Cautionary Statement Concerning Forward-Looking Statements" below and under "Risk Factors" in its annual, quarterly, and current reports filed with the Securities and Exchange Commission ("SEC"). Consolidated Results Adjusted Earnings per Share Reconciliation (A Non-GAAP, unaudited measure) For the Three Months Ended December 31, For the Years Ended December 31, 2025 2024 2025 2024 Diluted earnings per share (GAAP): Net income attributable to shareholders $ 1.22 $ 1.22 $ 5.69 $ 5.39 Non-GAAP adjustments: Estimated impact of favorable weather — (0.07) — (0.16) Income tax impact — 0.02 — 0.04 Net non-GAAP adjustment — (0.05) — (0.12) Incremental interest income from amended HOS seller note (0.03) (0.03) (0.13) (0.12) Income tax impact 0.01 0.01 0.03 0.03 Net non-GAAP adjustment (0.02) (0.02) (0.10) (0.09) Transaction costs associated with the pending merger with Essential Utilities 0.05 — 0.07 — Income tax impact (0.01) — (0.02) — Net non-GAAP adjustment 0.04 — 0.05 — Total net adjustments 0.02 (0.07) (0.05) (0.21) Adjusted diluted earnings per share (non-GAAP) $ 1.24 $ 1.15 $ 5.64 $ 5.18 For the three and twelve months ended December 31, 2025, adjusted earnings per share (a non-GAAP measure) were $1.24 and $5.64 respectively, compared to $1.15 and $5.18 per share in the same periods in 2024. Increased results were driven primarily by the implementation of new rates in the Regulated Businesses from capital and acquisition investments. Results also reflect increased operating costs and higher depreciation and financing costs to support the current capital investment plan. In 2025, the company invested $3.2 billion in infrastructure improvements and growth, including $83 million for regulated acquisitions. Regulated Businesses In the fourth quarter of 2025, the Regulated Businesses' net income was $265 million, compared to $250 million for the same period in 2024. For the full year 2025, the Regulated Businesses' net income was $1,137 million, compared to $1,065 million in 2024, which included an estimated $24 million of favorable weather. Operating revenues increased $61 million and $427 million for the three and twelve months ended December 31, 2025, respectively, as compared to the same periods in 2024. The increases in operating revenues were primarily a result of authorized revenue increases resulting from completed general rate cases and infrastructure proceedings to recover incremental capital and acquisition investments. Since January 1, 2025, the company has been authorized additional annualized revenues of approximately $264 million from general rate cases, with $250 million effective in 2025 and $14 million effective in 2026. Further, approximately $85 million of additional annualized revenues from infrastructure surcharges have been authorized, with $69 million effective in 2025 and $16 million effective in 2026. The company has general rate cases in progress in seven jurisdictions and filed for three infrastructure surcharges, reflecting a total annualized revenue request of approximately $573 million. Operating expenses were higher by $36 million and $260 million for the three and twelve months ended December 31, 2025, respectively, as compared to the same periods in 2024. Operating expenses were higher primarily due to an increase in employee-related costs, increased production costs, which include higher purchased power and purchased water cost and usage, as well as general taxes associated with increased capital investment. Operating expenses also include depreciation expense, which was higher by $26 million and $111 million in the same periods, respectively, due to the growing capital investment. Interest expense was higher by $12 million and $58 million for the three and twelve months ended December 31, 2025, respectively, as compared to the same periods in 2024, to fund capital investments. Dividends On December 5, 2025, the company's Board of Directors declared a quarterly cash dividend payment of $0.8275 per share of common stock payable on March 3, 2026, to shareholders of record as of February 10, 2026. 2025 Fourth Quarter and Year-End Earnings Conference Call The conference call to discuss the fourth quarter and year-end 2025 earnings, 2026 adjusted EPS guidance, and affirmation of long-term targets will take place on Thursday, February 19, 2026, at 9 a.m. Eastern Standard 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 the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. 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 earnings per share, 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. These non-GAAP financial measures are derived from the company's consolidated financial information but are not prese