American Water Works Stock Earnings Reports

American Water reaffirmed its 2026 guidance and long-term targets, expecting adjusted EPS of $6.02–$6.12 (about 8% EPS growth versus 2025) with most growth backloaded into the second half as new rates take effect. The Board approved an 8.2% quarterly dividend increase to $0.8950 and continues to target 7%–9% annual dividend growth in line with EPS targets. Operational/regulatory highlights include ~$185 million of net payments from PFAS manufacturers to offset remediation costs, passage of multiple state-level affordability and regulatory measures (Iowa, Indiana, Maryland, Virginia) that reduce regulatory lag, and progress on rate cases in Pennsylvania, New Jersey, Virginia, California, Illinois, West Virginia and Maryland (final orders received in WV and MD). The company closed a $700 million long-term debt issuance at 5.2%, improved its total debt-to-capital to 58% after repaying a $795 million note, and plans to settle roughly $1 billion of equity-forward proceeds midyear with another debt issuance planned in H2. Acquisition pipeline remains active (105,000 connections under agreement, ~$565 million) and Nexus Water closing is expected by June 30. Management continues to pursue the proposed merger with Essential Utilities, requiring approvals in seven states and targeting close by end of Q1 2027. A New Jersey corporate alternative minimum tax change yields an expected $84 million refund and material annual cash benefit (~$100 million/year in earlier forecasts) that will be incorporated into the midyear plan refresh.