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Mar 31, 2023

American Water Q1 2023 Earnings Report

American Water reported strong first quarter results and affirmed 2023 guidance and long-term targets.

Key Takeaways

American Water had a strong first quarter in 2023, with earnings per share of $0.91, compared to $0.87 per share in 2022. The company invested $538 million in the first three months of the year and is on track to invest approximately $2.9 billion in 2023. They also affirmed their 2023 earnings per share guidance range of $4.72 to $4.82 and long-term targets.

First quarter 2023 earnings were $0.91 per share, compared to $0.87 per share in 2022.

2023 earnings per share guidance range of $4.72 to $4.82 was affirmed, and long-term targets were also affirmed.

Invested $538 million in the first three months of the year, with a total capital plan to invest approximately $2.9 billion in 2023.

Announced agreements to purchase the assets related to the wastewater system of Towamencin Municipal Authority in Pennsylvania for $104 million and the wastewater treatment plant from Granite City in Illinois for $83 million.

Total Revenue
$938M
Previous year: $842M
+11.4%
EPS
$0.91
Previous year: $0.87
+4.6%
Gross Profit
$545M
Previous year: $478M
+14.0%
Cash and Equivalents
$213M
Previous year: $75M
+184.0%
Free Cash Flow
-$241M
Previous year: -$270M
-10.7%
Total Assets
$28.3B
Previous year: $25.7B
+10.1%

American Water

American Water

Forward Guidance

The Company affirms its 2023 earnings per share guidance range of $4.72 to $4.82. The Company also affirms its long-term financial targets for the 2023-2027 period announced in Nov. 2022, including its long-term EPS and dividend growth rate targets of 7-9%.

Positive Outlook

  • Affirms 2023 earnings per share guidance range of $4.72 to $4.82
  • Affirms long-term financial targets for the 2023-2027 period announced in Nov. 2022
  • Long-term EPS growth rate targets of 7-9%
  • Long-term dividend growth rate targets of 7-9%

Challenges Ahead

  • Earnings forecasts are subject to numerous risks and uncertainties
  • Decisions of governmental and regulatory bodies
  • Changes in customer demand for, and patterns of use of, water and energy
  • Limitations on the availability of the Company’s water supplies or sources of water, or restrictions on its use thereof
  • Changes in laws, governmental regulations and policies