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AWK · American Water Works Company, Inc.

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$136.20 -0.26 (-0.19%) At close · Aug 14
Market Cap
$27.07B
Shares
198.73M
All earnings calls

Earnings call · FY2026 Q1

American Water Works Company, Inc. Q1 FY2026 Earnings Call

American Water Works Company, Inc. Q1 FY2026 Earnings Call

Concluded Apr 30, 2026 Audio replay
Apr 30, 2026 5:35 4 turns
Period
FY2026 Q1
Runtime
5:35
Sources
4 artifacts

Executive readout · one minute

What matters this quarter

American Water reported Q1 2026 adjusted EPS of $1.01 (GAAP $1.00), affirmed its 2026 EPS guidance of $6.02 to $6.12 and long-term 7–9% EPS/dividend growth targets, and approved an 8.2% quarterly dividend increase to $0.895 per share.

Essential Utilities merger 7 Customer affordability and assistance 6 Dividend growth 6 Earnings guidance and execution 5 PFAS remediation and recovery 4 Regulatory and rate cases 4

Management tone

Confident

Net tone +62 · low hedging

Grounding quotes
  • “we started 2026 with financial results that were right on track to achieve our full-year earnings guidance, which we are pleased to affirm again this quarter, along with our long-term targets”
  • “Adjusted earnings were $1.01 per share for the quarter and reflect a successful execution of our plan so far in 2026”
  • “I am confident we'll successfully execute on our plans for 2026 and beyond”
  • “We expect to again deliver 8% EPS growth in 2026 while continuing to provide high-quality, affordable service to our customers”

Forward guidance

4 guided metrics

Management's latest ranges and targets are included below.

Research coverage

4 live sources

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Revenue $1.20B +6.1% YoY
Diluted EPS $1.00 -4.8% YoY
Net income $196.00M -4.4% YoY

Research materials

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Key takeaways

What improved, and what deserves a closer read.

Constructive signals

  • Affirmed 2026 adjusted EPS guidance range of $6.02 to $6.12 and reaffirmed long-term 7–9% EPS and dividend growth targets
  • Board approved an 8.2% increase in the quarterly cash dividend to $0.895 per share
  • Successfully issued $700 million of 5.200% senior notes due 2036 in April
  • Secured approximately $185 million in net payments from PFAS manufacturers to be passed on to customers or offset remediation costs
  • Received first state regulatory approval for the proposed Essential Utilities merger in Kentucky, with the Virginia decision expected in June
  • Two additional states advanced legislation in 2026 expected to lay the foundation for expanded limited-income customer bill assistance

Risks & pressure points

  • Q1 2026 GAAP EPS of $1.00 declined from $1.05 in Q1 2025, and adjusted EPS of $1.01 declined from $1.02 year-over-year
  • 2026 adjusted EPS guidance excludes Essential Utilities merger transaction costs, weather impacts, and incremental interest income from the HOS secured seller note, which may cause GAAP EPS to differ from adjusted EPS
  • Merger-related transaction costs of $0.03 per share (pre-tax) were excluded from adjusted EPS in Q1 2026
  • Merger close is not expected until the end of Q1 2027, with Hart-Scott-Rodino notification planned for late summer and pending decisions in Pennsylvania, New Jersey, and other states

Key moments

Jump directly to management's words in the synchronized transcript.

Forward guidance

From the 8-K filed Apr 29, 2026.

Metric Guided
Long-term EPS growth rate
long-term
7% – 9%
Long-term dividend growth rate
long-term
7% – 9%
Capital investment
2026
$3.7B

Guidance from the call

Stated verbally and extracted from the transcript.

Metric Guided
Dividend growth
per year
7% – 9%

Quarter detail

How the reported period landed and where the business moved.

Capital returned

Dividend / share
$0.90
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