American Water Works Reports 8.9% EPS Growth and $3.2B Investment
American Water Works posted adjusted EPS of $5.64 for 2025, up 8.9% from $5.18, fueled by $1.70 per share revenue gains from rate hikes and acquisitions. The company invested $3.2 billion in 2025, completed six rate cases including an $18M Kentucky order, and reaffirmed 2026 EPS guidance of $6.02-$6.12.
1. 2025 Financial Performance
American Water Works delivered adjusted EPS of $5.64 in 2025, up from $5.18 in 2024, a 8.9% increase, driven by $1.70 per share revenue gains from authorized rate increases, contributions from water and wastewater acquisitions, and organic customer growth across its 14 million customer footprint.
2. Regulatory Rate Case Updates
The company completed six rate cases in 2025, notably a Kentucky order authorizing $18 million of annualized revenue on a 9.7% ROE and a 52% equity layer, while progressing general rate cases in seven jurisdictions including final orders expected soon in West Virginia and Maryland and active filings in Pennsylvania, New Jersey, and Illinois.
3. Capital Investments and Acquisitions
American Water invested $3.2 billion in 2025 in pipe replacement, treatment upgrades, PFAS remediation, lead line removals and smart meters, secured 104,000 customer connections under agreement from $582 million of deals, and targets a long-term 8%-9% growth in regulated rate base.
4. 2026 Guidance and Merger Timeline
The company reaffirmed its 2026 adjusted EPS guidance of $6.02 to $6.12, expecting 8% growth, remains on track for 7%-9% EPS and dividend growth through 2030, and anticipates closing the Essential Utilities merger around August 2026 pending remaining state approvals.