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

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

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