American Water Q4 Revenues Beat by 3.9% as EPS Misses Estimates, Merger Approved
American Water Works reported Q4 EPS of $1.24, missing estimates by 3.1%, and Q4 revenues of $1.27B, beating estimates by 3.9%, with FY25 EPS of $5.64 and revenues of $5.14B. Shareholders approved merger with Essential Utilities, and the company affirmed 2026 EPS guidance of $6.02-$6.12 alongside $3.7B planned investments.
1. Q4 Financial Performance
American Water Works reported fourth-quarter 2025 adjusted EPS of $1.24, a 7.8% increase from $1.15 in Q4 2024 but 3.1% below estimates. Total revenues rose 5.8% to $1.27 billion, exceeding forecasts by 3.9%, while operating income increased 1.3% to $405 million amid higher operating expenses.
2. Full-Year 2025 Results and Guidance
For full-year 2025, American Water Works delivered adjusted EPS of $5.64, up from $5.18 in 2024, and revenues climbed 9.8% to $5.14 billion, driven by rate case approvals and infrastructure recoveries. The company affirmed 2026 EPS guidance of $6.02-$6.12 and plans $3.7 billion in capital investments, targeting long-term EPS growth of 7-9%.
3. Merger Approval and Strategic Outlook
On February 10, shareholders approved the planned merger with Essential Utilities, positioning the combined entity for scale benefits. The company outlined $19-$20 billion in capital expenditure from 2026-2030 and $46-$48 billion through 2035 to support rate base growth of 8-9%.