American Water Q3 revenue beats estimates, affirms 2025 EPS guidance

American Water Works Co

29/10/2025 20:40

Overview

American Water Q3 revenue beats analyst expectations, operating income misses estimates

Company affirms 2025 weather-normalized EPS guidance, initiates 2026 guidance with 8% growth

Announced merger with Essential Utilities, expected closing in Q1 2027

Outlook

American Water affirms 2025 weather-normalized EPS guidance range of $5.70 to $5.75

Company initiates 2026 EPS guidance range of $6.02 to $6.12

American Water announces 2026-2030 capital plan of $19 bln to $20 bln

Result Drivers

RATE INCREASES - Revenue growth driven by authorized rate increases and infrastructure surcharges

HIGHER EXPENSES - Operating expenses rose due to increased employee and technology costs, and higher depreciation

INTEREST EXPENSE - Higher interest expenses due to increased debt for capital investments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.45 bln
$1.35 bln (3 Analysts)
Q3 Net Income
$379 mln
Q3 Operating Income
Miss
$614 mln
$632 mln (1 Analyst)
Q3 Operating Expenses
$837 mln
Q3 Pretax Profit
$494 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 2 "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 $143.50, about 6.1% above its October 28 closing price of $134.81

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBwby8SbCa

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