American Water Posts 8.9% EPS Growth and $3.2B Investment; Reaffirms 2026 Guidance
American Water delivered 2025 adjusted EPS of $5.64, up 8.9% year-over-year, and invested $3.2B in infrastructure upgrades. The company completed six rate cases including Kentucky’s $18M revenue increase at 9.7% ROE, secured 104,000 customer connections under agreement, reaffirmed 2026 EPS guidance of $6.02–6.12 and targets 7–9% long-term growth.
1. Financial Results and Guidance
American Water delivered 2025 adjusted EPS of $5.64, up 8.9% year-over-year, near the upper end of its guidance range. The company reaffirmed 2026 adjusted EPS guidance of $6.02 to $6.12, targeting 8% growth and long-term EPS and dividend growth of 7–9% through 2030.
2. Rate Cases and Revenue Impact
The company completed six rate cases in 2025, highlighted by a December Kentucky order authorizing an $18M annual revenue increase at 9.7% ROE and an equity layer just north of 52%. Active rate filings include Pennsylvania seeking $169M, New Jersey $146M and Illinois $134M in additional annual revenue, with final orders and new rates expected between mid-2026 and early 2027.
3. Capital Investments and Acquisitions
American Water invested $3.2B in 2025 capital programs focused on pipe replacements, treatment upgrades, PFAS remediation and smart meter deployments. The company secured agreements for 104,000 customer connections totaling $582M, anticipates an August 2026 closing of the Nexus Water Group acquisition and is pursuing 19 additional deals representing about 58,000 connections.