American Water Raises Dividend 8.2%, Affirms $6.02–$6.12 EPS Guidance
American Water reported Q1 GAAP EPS of $1.00 and adjusted EPS of $1.01, compared with $1.05 and $1.02 a year earlier, and affirmed 2026 adjusted EPS guidance of $6.02–$6.12. The board declared an 8.2% dividend hike to $0.895 per share and issued $700 million of senior notes due 2036.
1. First Quarter 2026 Results
American Water delivered GAAP net income per share of $1.00 and adjusted EPS of $1.01, driven by $652 million of capital investments and rate-driven revenue increases. Regulated Businesses reported net income of $208 million, supported by a $62 million rise in operating revenues offset by a $44 million increase in operating expenses.
2. 2026 Guidance and Long-Term Targets
The company affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12 and maintained long-term EPS and dividend growth targets of 7%–9%, excluding merger-related costs and potential weather impacts. Management cautioned that adjustments may cause non-GAAP results to diverge from GAAP earnings.
3. Capital Investments and Debt Financing
In the first quarter, American Water invested $652 million toward system upgrades and acquisitions, with a full-year plan of approximately $3.7 billion. To support its capital program, the company issued $700 million of 5.20% senior notes due 2036 in April.
4. Dividend Increase and Merger Progress
The board declared a quarterly cash dividend of $0.895 per share, an 8.2% increase payable on June 2. Merger integration planning with Essential Utilities advanced, with Kentucky granting the first state regulatory approval for the transaction.