Oct 29 (Reuters) - American Water Works AWK.N on Wednesday forecast its 2026 profit below expectations amid rising expenses for the water and wastewater utility company.
The company has previously flagged higher employee- and technology-related costs, along with increased expenses tied to acquisitions.
On Wednesday, the company said it expects 2026 profit of $6.02 to $6.12 per share, the midpoint of which is below analysts' estimates of $6.12 per share, according to data compiled by LSEG.
This follows the company's announcement to acquire Essential Utilities WTRG.N to create a combined company worth $63 billion including debt.
American Water Works said its 2026 profit forecast did not include expenses related to that transaction.
It reported a third-quarter profit of $1.94 per share, above expectations of $1.88 per share.
Operating revenue was $1.45 billion, also above estimates of $1.35 billion.
(Reporting by Parth Chandna; Editing by Maju Samuel)
((Parth.Chandna@thomsonreuters.com;))
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