American Water Narrows 2026 Guidance, Starts 2027 Outlook

The Tip Desk · November 2, 2026 · 2 min read

Adjusted earnings were $2.00 a share in the third quarter, and the company set standalone 2027 adjusted EPS guidance of $6.53 to $6.63.

American Water Works Company, Inc. (AWK), the largest regulated water and wastewater utility in the United States, reported adjusted earnings of $2.00 a share for the quarter ended September 30, 2026, compared with $1.89 a share a year earlier. GAAP earnings were $1.94 a share, unchanged from the year-ago quarter.

The company narrowed its 2026 adjusted EPS guidance to $6.07 to $6.12 from $6.02 to $6.12 after affirming the wider range in both the first- and second-quarter releases. It also initiated standalone 2027 adjusted EPS guidance of $6.53 to $6.63, which it described as 8% EPS growth at the midpoint versus the 2026 range. Long-term targets were left unchanged, including 7-9% EPS growth, 8-9% rate-base growth including acquisitions, 2% acquired-customer addition growth, and 7-9% dividend growth.

Operating revenues were $1.510 billion in the third quarter, up $60 million from $1.451 billion a year earlier. The company said the increase in Regulated Businesses operating revenues came from authorized rate increases and closed acquisitions, with $18 million of the increase offset by unfavorable weather primarily in the third quarter of 2026. Regulated Businesses net income was $407 million, compared with $383 million a year earlier.

Since January 1, 2026, the company said it has been authorized additional annualized revenues of $284 million, including $179 million from general rate cases and $105 million from infrastructure surcharges. New rates in Pennsylvania and New Jersey were in effect in the third quarter. General rate cases remain in progress in five jurisdictions, and infrastructure surcharge filings are pending in two, for a total annualized incremental revenue request of $360 million.

Operating expenses were higher by $30 million in the third quarter versus 2025, including depreciation higher by $18 million. Interest expense was higher by $9 million, which the company attributed to incremental short- and long-term debt to fund capital investments and acquisitions.

The 2026 capital investment plan of $3.7 billion remained on track. In the first nine months of 2026 the company invested $2.8 billion, including $437 million for regulated acquisitions. Approximately 81,000 customer connections had been added from acquisitions through September 30, including Nexus Water systems, versus approximately 52,000 through June 30.

Progress on the proposed merger with Essential Utilities advanced. Three states had approved the deal, and settlements were reached in Pennsylvania, North Carolina and Texas, versus three state approvals and a settlement in principle in Texas as of the second-quarter release. President and CEO John Griffith said the company continues to work toward closing the merger by the end of the first quarter of 2027 as anticipated.

The board declared a quarterly cash dividend of $0.8950 a share, payable December 1, 2026, matching the dividend announced with first-quarter results.