American Water Q2 revenue beats estimates helped by rate increases, acquisitions

• American Water affirms 2026 adj EPS guidance range of $6.02 to $6.12
• Company maintains long-term EPS and dividend growth targets of 7-9%
• American Water says 2026 capital investment plan of $3.7 bln is on track

Revenue growth was primarily driven by new rates from completed general rate cases, infrastructure surcharges, and incremental revenue from closed acquisitions.

Increased production costs, purchased water, power, and chemicals, as well as higher depreciation and interest expenses, partially offset revenue gains.

Approximately 52,000 customer connections were added through acquisitions, including the Nexus Water systems.

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "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 $135.15, about 2.1% below its July 28 closing price of $138.04
• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

• U.S. water utility's Q2 revenue rose and beat analyst expectations