American Water Works Company (AWK) Company Report

Pennsylvania American Water filed for new water and wastewater rates to fund $1.2 billion in capital investments through mid-2027, targeting $169 million in incremental annual revenue plus $19 million in infrastructure surcharges; the proposal uses a 10.95% return on equity and a 55.33% equity ratio, with rates effective August 2026 if approved.
The requested funding supports replacing 117 miles of aging water main, continued lead service line removal, PFAS mitigation and 32 miles of wastewater main upgrades.
Estimated customer impacts include a $14 monthly bump for typical water service, $10 for wastewater and $20 for combined stormwater/wastewater systems.
Proposals also feature a Deduct Adjustment to calculate summer wastewater bills using average winter water use and a Renter Assistance Pilot Program offering quarterly stipends to low-income renters in master-metered buildings.

Nov 14, 2025, 9:27 PM

8-K

American Water files rate request to fund $115 M infrastructure investments

AWK

New Projects/Investments

Virginia American Water filed with the Virginia SCC for a $21.9 million annual revenue increase to support over $115 million in water and wastewater system investments.
The company’s proposed interim rates, effective on or about May 1, 2026, would raise monthly bills by approximately $11 for an average residential customer using 4,000 gallons per month.
Investments encompass treatment-plant updates, pipeline replacements, and upgrades to storage tanks, pumping stations and meters; the last general rate case was filed in November 2023.
Final rates remain subject to SCC approval, with any difference between interim and final rates refunded to customers.

Nov 3, 2025, 9:30 PM

Press Release

American Water reports Q3 2025 results

AWK

Earnings

Guidance Update

M&A

Q3 EPS of $2.53 (vs. $2.37 YoY) and YTD EPS of $4.47, up 9.0% on a weather-normalized basis; 2025 EPS guidance reaffirmed at $5.70–$5.75.
2026 EPS guidance initiated at $6.02–$6.12, implying ~8% growth at midpoint on a weather-normalized basis.
Completed financing: $900 M 30-year senior notes at 5.70% in August and $800 M 10-year senior notes at 5.25% in February; entered into $1 B equity forward agreements for mid-2026 settlement.
Advanced regulatory and M&A execution: $600 M+ of acquisitions under agreement (~107,000 customer connections) and announced merger with Essential Utilities; completed rate cases in TN, VA, MO, IA, HI and filed cases in KY, WV, CA, MD.

Oct 30, 2025, 1:00 PM

Presentation

American Water reports Q3 2025 results and updates guidance

AWK

Earnings

Guidance Update

M&A

Q3 2025 EPS were $1.94 vs $1.80 in Q3 2024; YTD EPS were $4.47 vs $4.17 in 2024.
Affirmed 2025 weather-normalized EPS guidance of $5.70–$5.75, including $0.10 per share incremental interest from the amended HOS note.
Initiated 2026 EPS guidance of $6.02–$6.12, implying ~8% EPS growth at the midpoint versus 2025.
Announced all-stock merger with Essential Utilities, expected to close in Q1 2027.
Affirmed long-term targets: EPS and dividend per share CAGR of 7–9%, rate base growth of 8–9%, and capital plans of $19–$20 B for 2026–2030 and $46–$48 B for 2026–2035.

Oct 29, 2025, 8:37 PM

8-K

American Water Works and Essential Utilities announce all-stock merger

AWK

M&A

The companies agreed to an all-stock merger in which American Water Works shareholders will own 69% and Essential Utilities shareholders 31% of the combined entity, with closing expected by end of Q1 2027 subject to customary approvals.
The combined company will have a $34 billion rate base as of end-2024, serve 5.4 million water, wastewater and gas connections across 17 states (including ~750,000 gas customers), operate under the American Water name and be headquartered in Camden, NJ.
Leadership will include John Griffith as President & CEO and Chris Franklin as Executive Vice Chair, supported by a 15-member board (10 American Water and 5 Essential directors) chaired by Carl Kerse.
Financial targets remain unchanged: 7–9% EPS growth, 8–9% rate base growth, 7–9% dividend per share growth with a 55–60% payout ratio, and the merger is expected to be accretive in year one post-close.

Oct 27, 2025, 12:30 PM

Transcript

American Water announces all-stock merger with Essential Utilities

AWK

M&A

American Water and Essential Utilities boards have approved an all-stock merger under which American Water shareholders will own 69% and Essential Utilities shareholders 31% of the combined company; the deal is expected to close by end of 2027, subject to regulatory and shareholder approvals.
The pro forma combined utility will have a rate base of ~$34 billion, serve >5.4 million water, wastewater and gas connections across 17 states, and include ~750,000 natural gas customers in Pennsylvania and Kentucky.
Post-close leadership will feature John Griffith as President & CEO and Chris Franklin as Executive Vice Chair; the Board will comprise 10 American Water and 5 Essential Utilities directors, and the company will be headquartered in Camden, NJ, maintaining strong regional offices in Bryn Mawr and Pittsburgh.
The transaction supports maintaining American Water’s long-term targets: 8–9% rate base growth, 7–9% EPS growth, 7–9% dividend per share growth, a 55–60% payout ratio, and 2% acquired customer growth on a combined basis.

Oct 27, 2025, 12:30 PM

Transcript

American Water Works and Essential Utilities announce merger

AWK

M&A

Under a board-approved all-stock merger, American Water Works shareholders will own ~69% and Essential Utilities shareholders ~31% of the combined company; the deal is expected to close by end of Q1 2027.
The combined company will have a pro forma rate base of $34 billion and serve 5.4 million connections across 17 states (including ~750 000 gas customers) and 18 military installations.
Post-close leadership will include John Griffith as CEO, Chris Franklin as Executive Vice Chair of the Board, and a 15-member board (10 AW and 5 EU directors); headquarters will be in Camden, NJ.
Financial targets remain unchanged with 7%–9% EPS growth, 8%–9% rate base growth, and a 55%–60% dividend payout ratio; the transaction is accretive in year one.

Oct 27, 2025, 12:30 PM

Transcript

American Water and Essential Utilities announce merger

AWK

M&A

The companies agreed to an all-stock merger, with American Water shareholders owning 69% and Essential Utilities shareholders owning 31% of the combined entity.
Post-close leadership will include John Griffith as President & CEO and Chris Franklin as Executive Vice Chair, supported by a 15-member board (10 American Water directors, 5 Essential Utilities directors).
The combined company will be headquartered in Camden, New Jersey, while maintaining major operations in Bryn Mawr and Pittsburgh.
The merger preserves American Water’s long-term targets: 7%–9% EPS growth, 8%–9% rate base growth, 7%–9% dividend growth, and a 55%–60% dividend payout ratio.
Expected to close by end of Q1 2027, the transaction is EPS-accretive in year one post-close, with a pro forma 2024 rate base of $34 billion and an estimated $41 billion in 2026.

Oct 27, 2025, 12:30 PM

Transcript

American Water and Essential Utilities to merge creating leading U.S. water utility

AWK

M&A

American Water (AWK) and Essential Utilities (WTRG) will combine in an all-stock, tax-free merger to form a pro forma $40 billion market cap (enterprise value ~$63 billion) regulated water and wastewater utility serving 4.7 million connections across 17 states with a combined rate base of $29.3 billion.
Under the agreement, Essential shareholders will receive 0.305 AWK shares per WTRG share, resulting in a 69% ownership for AWK shareholders and 31% for WTRG shareholders on a fully diluted basis.
The transaction is expected to be EPS-accretive in the first year post-close, and the combined company will sustain AWK’s long-term 7–9% EPS and dividend per share growth targets.
The merger entails no debt issuance, preserving a strong investment-grade credit profile within current S&P (A/A-) and Moody’s (Baa1/Baa2) ratings bands.
The deal is anticipated to close by end of Q1 2027, subject to customary regulatory approvals (including PA, NJ, TX, VA) and shareholder votes.

Oct 27, 2025, 10:26 AM

8-K

American Water Works to merge with Essential Utilities

AWK

M&A

Dividends

American Water Works and Essential Utilities to merge in an all-stock, tax-free deal creating a leading U.S. water utility with a combined market capitalization of $40 billion and enterprise value of $63 billion.
Essential shareholders will receive 0.305 shares of American Water per share, reflecting a 10% premium, resulting in a pro-forma ownership split of 69% for American Water and 31% for Essential.
The combined company will serve 4.7 million connections across 17 states with a water and wastewater rate base of $29.3 billion.
The merger is expected to close by end of Q1 2027, pending shareholder and regulatory approvals, and to be accretive to EPS in the first year after closing.
Essential Utilities has a record of 32 consecutive years of dividend increases and a current yield of approximately 3%.

Oct 27, 2025, 10:16 AM

Morningstar

Earnings Transcripts

Quarterly earnings call transcripts for American Water Works Company.