AWK · American Water Works Company, Inc.

American Water Works delivered first quarter 2026 results with GAAP diluted EPS of $1.00, down from $1.05 in the prior year, primarily due to transaction costs for the proposed Essential Utilities merger and reduced incremental interest income from the amended HOS seller note, yielding adjusted EPS of $1.01 versus $1.02 last year. Regulated Businesses drove performance with net income rising to $208 million from $201 million, supported by $62 million higher operating revenues from new rates, general rate cases, infrastructure proceedings, and acquisitions, including $89 million in authorized annualized revenues since January 1. These gains were offset by $44 million higher operating expenses from increased production costs, purchased water, power, chemicals, and $21 million elevated depreciation from capital investments, plus $12 million more interest expense on debt funding the plan. The company invested $652 million in Q1 toward a $3.7 billion full-year capital plan, including acquisitions. Management affirmed 2026 adjusted EPS guidance of $6.02-$6.12, excluding merger costs, weather, and HOS note income, and long-term 7-9% EPS and dividend growth targets. CEO John Griffith highlighted solid results, merger integration progress, and Kentucky regulatory approval. The board raised the quarterly dividend 8.2% to $0.8950 per share, payable June 2, signaling confidence. In April, $700 million 5.200% senior notes due 2036 were issued to support capital needs. Ongoing rate cases seek $518 million annualized revenues across six jurisdictions.