American Water Works ( (AWK) ) has released its Q3 earnings. Here is a breakdown of the information American Water Works presented to its investors.
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American Water Works Company, Inc. is the largest regulated water and wastewater utility company in the United States, providing essential services to over 14 million people across 14 states and 18 military installations.
American Water Works reported strong financial results for the third quarter of 2025, with earnings per share increasing to $1.94 from $1.80 in the same period last year. The company also affirmed its 2025 earnings guidance and announced a new 2026 earnings guidance range, reflecting an 8% growth.
Key financial highlights include a year-to-date earnings per share of $4.47, compared to $4.17 in 2024, and a significant increase in operating revenues due to new rates and acquisitions. The company has also entered into equity forward sale agreements, expecting to raise approximately $1.15 billion in mid-2026. Additionally, American Water announced a merger with Essential Utilities, expected to close in the first quarter of 2027, which will create a leading U.S. water and wastewater utility with a combined market capitalization of approximately $40 billion.
Looking ahead, American Water remains confident in its ability to achieve its long-term growth targets, including a 7-9% compounded annual growth rate in earnings per share and dividends. The company has outlined a substantial capital investment plan of up to $48 billion through 2035, positioning itself for continued expansion and service improvement.
The management’s outlook is optimistic, with plans to execute on strategic growth initiatives and complete the merger with Essential Utilities, enhancing the company’s scale and capabilities to address water and wastewater challenges nationwide.