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Jun 30
American Water Q2 2025 Earnings Report
American Water reported solid second quarter results, narrowing its 2025 EPS guidance to the top half of the range and affirming long-term targets.
Key Takeaways
American Water delivered solid results in the second quarter of 2025, with earnings per share increasing to $1.48 from $1.42 in the prior year. The company saw increased revenues from new rates and acquisitions in its Regulated Businesses, which drove net income growth. Capital investment plans are on track, and the company announced an agreement to acquire approximately 87,000 customer connections.
Second quarter 2025 earnings per share increased to $1.48, up from $1.42 in the same period last year.
The company narrowed its 2025 EPS guidance range to $5.70 to $5.75 on a weather-normalized basis, affirming long-term targets.
Operating revenues for the Regulated Businesses increased by $121 million in the second quarter due to new rates and acquisitions.
American Water is on track with its 2025 capital investment plan, having invested $1.3 billion in the first six months of the year.
American Water
American Water
American Water Revenue by Segment
Revenue by Segment
Regulated Businesses Revenue
CapyFin.com Forward Guidance
American Water narrowed its 2025 earnings per share guidance to the top half of the range, from $5.65-$5.75 to $5.70-$5.75 on a weather-normalized basis, and affirmed its long-term EPS and dividend growth rate targets of 7-9%.
Positive Outlook
- 2025 EPS guidance narrowed to the top half of the range ($5.70 to $5.75).
- Long-term EPS growth rate target of 7-9% affirmed.
- Long-term dividend growth rate target of 7-9% affirmed.
- 2025 capital investment plan of $3.3 billion is on track.
- Positive momentum in acquisition growth strategy, including Nexus Water Group systems.
Challenges Ahead
- Earnings forecasts are subject to numerous risks and uncertainties.
- Weather impact of an estimated $0.06 per share unfavorable for the quarter and year-to-date 2025.
- Increased operating costs, depreciation, and financing costs are expected to support the capital investment plan.
- Potential for changes in laws, governmental regulations, and policies.
- Risks associated with aging infrastructure and ability to maintain/replace systems.