American Water Q1 revenue rises on the back of new rates, acquisitions

American Water Works Co

29/04/2026 21:39

Overview

US water utility's Q1 revenue rose yr/yr, supported by new rates and acquisitions

Adjusted EPS for Q1 declined slightly from prior year

Company raised quarterly dividend by 8.2%

Outlook

American Water affirms 2026 adjusted EPS guidance range of $6.02 to $6.12

Company maintains long-term EPS and dividend growth targets of 7-9%

Result Drivers

RATE INCREASES AND ACQUISITIONS - Co said higher operating revenues were driven by new rates from completed general rate cases, infrastructure proceedings, and closed acquisitions

HIGHER OPERATING COSTS - Co said operating expenses rose due to increased production costs, including purchased water, power, and chemicals

INCREASED DEPRECIATION AND INTEREST - Co said higher depreciation and interest expenses resulted from increased capital investment and additional debt

Company press release: ID:nPn9lcBc9a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.21 bln
$1.20 bln (2 Analysts)
Q1 Net Income
$196 mln
Q1 Operating Income
Miss
$391 mln
$440 mln (2 Analysts)
Q1 Operating Expenses
$816 mln
Q1 Pretax Profit
$259 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "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 $142.00, about 7% above its April 28 closing price of $132.67

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)