American Water Works Co 2025 adjusted EPS rises

Reuters02-19
American Water Works Co 2025 adjusted EPS rises

Overview

  • Adjusted EPS for 2025 rose 8.9% yr/yr, driven by new rates and capital investments

  • Company affirms 2026 EPS guidance and long-term growth targets

Outlook

  • American Water affirms 2026 adjusted EPS guidance of $6.02 to $6.12

  • Company maintains long-term EPS and dividend growth targets of 7-9%

  • 2026 EPS guidance excludes merger transaction costs and weather impacts

Result Drivers

  • RATE INCREASES - New rates in regulated businesses drove revenue growth, contributing to higher adjusted EPS

  • CAPITAL INVESTMENTS - $3.2 bln invested in infrastructure improvements and acquisitions supported water quality and reliability

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Operating Revenue

Miss

$1.27 bln

$1.29 bln (2 Analysts)

Q4 Net Income

$238 mln

Q4 Operating Income

Miss

$405 mln

$459.46 mln (2 Analysts)

Q4 Operating Expenses

$866 mln

Q4 Pretax Profit

$282 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the water & related utilities peer group is "buy."

  • Wall Street's median 12-month price target for American Water Works Co Inc is $139.00, about 4.1% above its February 17 closing price of $133.51

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nPn4rDWqNa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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