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American Water Works (MX:AWK)
:AWK
Mexico Market
EarningsQ2 2026 Earnings Report

American Water (AWK) Q2 2026 Earnings Report

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MX:AWK Q2 2026 EPS Results

Actual EPS$27.33
Consensus EPS$26.06
Beat/MissBeat by +$1.27
One Year Ago EPS$25.13

MX:AWK Q2 2026 Revenue Results

Actual Revenue$23.00B
Expected Revenue$22.51B
Beat/MissBeat by +$497.95M
YoY Revenue Growth+6.19%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:AWK Upcoming Earnings
American Water's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:AWK Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed solid operational and financial execution: double-digit initiatives were advanced (capex deployment of $1.8B, EPS growth, acquisitions, financing) and management reaffirmed full-year guidance and long-term targets. Progress on the Essential merger and multiple regulatory approvals are material positives. The principal headwinds are regulatory negotiation outcomes (e.g., Pennsylvania awarding $75M vs. $160M requested), ongoing rate case uncertainty in several states (including a large Missouri filing under a new test-year approach), modest increases in depreciation/financing costs, and leverage/forward-share settlement exposure. On balance, the strengths (EPS growth, strong capex execution, completed financing, acquisition momentum, merger progress and cost control) outweigh the regulatory and financing risks discussed.
Company Guidance
Management affirmed full-year 2026 adjusted EPS guidance of $6.02–$6.12 (implying ~8% EPS growth in 2026), noting Q2 adjusted EPS of $1.61 vs $1.49 LY (just over 8% growth) and YTD adjusted EPS of $2.62 vs $2.51; they expect the majority of EPS growth to occur in H2 as revenue increases take effect later in Q3, and they continue to target 7%–9% EPS and dividend growth through 2030 and beyond. Key financial and operational metrics supporting guidance include $1.8 billion of capital invested YTD, a 2% customer growth target, ~57,000 customer connections under agreement totaling $236 million (including ~47,000 from the Nexus deal and ~70 local employees onboarded), total debt-to-capital of 58% as of June 30, a $500 million 4.625% long‑term debt issuance (May 20), and settlement of 3.4 million of ~8 million equity forwards for net proceeds of $476 million (with the remainder expected to settle in Q4). Regulatory actions informing near‑term revenue timing include a Pennsylvania order approving $75 million of annualized revenue (vs $160 million requested) with a 9.55% ROE and 54.2% equity component (new rates effective August 13), a Kentucky filing reflecting $108 million of investments seeking $18 million of additional revenue (interim rates expected December 2026), and a Missouri filing reflecting $1.6 billion of investments seeking $179 million of additional annual revenue (expected June 2027); the company also reiterated the merger with Essential is expected to close by end of Q1 2027 and affirmed confidence that average monthly residential water bills will remain at or below 1% of median household income.
Quarterly and Year-to-Date EPS Growth
Adjusted EPS of $1.61 in Q2 2026 vs. $1.49 in Q2 2025 (~8% YoY growth); YTD adjusted EPS $2.62 vs. $2.51 in the first half of 2025 (~4.4% YoY). Management reaffirmed full-year adjusted EPS guidance of $6.02–$6.12 (targeting ~8% EPS growth for 2026).
Strong Capital Investment Program
Deployed $1.8 billion in capital projects and acquisitions year-to-date to renew infrastructure, improve resiliency and address water quality; continued focus on investments supporting long-term service reliability and affordability.
Acquisition & Customer Growth Progress
Closed Nexus Water Group systems early (June 1) and began serving ~47,000 new customer connections with ~70 local employees; ~57,000 customer connections under agreement across six states as of June 30 (totaling $236 million) and a company target of 2% customer growth for 2026.
Regulatory Wins and Rate Case Outcomes
Completed three rate cases in 2026 (West Virginia, Maryland, Pennsylvania) that authorized recovery of nearly 100% of capital investments in those states; Pennsylvania order approves $75 million annualized revenue increase, ROE 9.55% and equity ratio 54.2%, with new rates effective Aug 13.
Merger Progress with Essential Utilities
Received multiple state approvals for the proposed merger (Kentucky, Ohio, Virginia); positive public input in Pennsylvania and settlement-in-principle in Texas; management expects merger to close by end of Q1 2027 and reports constructive integration planning.
Stable Operating Cost Control
Operations and maintenance (O&M) costs were flat period-over-period (0% change), highlighting cost control while supporting operations and customer needs.
Successful Financing Activity
Completed $500 million long-term debt issuance at 4.625% (May 20) with strong demand; settled 3.4 million of ~8 million equity forwards in June for net proceeds of $476 million (≈42.5% of forwards settled), supporting liquidity and capital plan.
Long-Term Growth and Dividend Outlook
Affirmed expectation to achieve EPS and dividend growth in the 7%–9% range through 2030 and beyond, and reiteration that average monthly residential water bills are expected to remain at or below 1% of median household income.

MX:AWK Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
35.33 / -
32.934
2026 (Q2)
26.06 / 27.33
25.1258.78% (+2.21)
2026 (Q1)
18.47 / 16.98
17.825-4.76% (-0.85)
2025 (Q4)
21.32 / 20.71
20.7110.00% (0.00)
2025 (Q3)
31.92 / 32.93
30.5587.78% (+2.38)
2025 (Q2)
25.72 / 25.13
24.1074.23% (+1.02)
2025 (Q1)
17.93 / 17.83
16.12810.53% (+1.70)
2024 (Q4)
19.15 / 20.71
14.93938.64% (+5.77)
2024 (Q3)
31.17 / 30.56
28.1818.43% (+2.38)
2024 (Q2)
24.70 / 24.11
24.446-1.39% (-0.34)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed