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Sep 30
American Water Q3 2025 Earnings Report
American Water reported strong results in Q3 2025 with solid earnings growth and affirmed full-year guidance.
Key Takeaways
American Water delivered solid Q3 2025 results with higher revenue and earnings, supported by increased rate authorizations and acquisitions. The company affirmed its 2025 EPS guidance and introduced 2026 guidance with 8% projected EPS growth.
Q3 2025 EPS increased to $1.94 from $1.80 in Q3 2024
Net income for the quarter was $379 million, up from $350 million last year
Revenue rose to $1.451 billion, driven by rate increases and acquisitions
2026 EPS guidance initiated at $6.02–$6.12, reflecting 8% growth at midpoint
American Water
American Water
American Water Revenue by Segment
Revenue by Segment
Regulated Businesses Revenue
CapyFin.com Forward Guidance
American Water affirmed its 2025 EPS guidance of $5.70–$5.75 and initiated 2026 EPS guidance of $6.02–$6.12, reflecting continued growth expectations.
Positive Outlook
- Affirmed 2025 EPS guidance of $5.70–$5.75
- 2026 EPS guidance reflects 8% growth at midpoint
- Authorized $275M in new annualized revenues YTD
- 2026 capital investment plan of $3.7B announced
- Merger with Essential Utilities expected to enhance growth and scale
Challenges Ahead
- Higher operating costs driven by employee and tech expenses
- Increased depreciation from capital investment
- Interest expenses rose by $15M in Q3
- Uncertainties around merger transaction costs
- Rate case and surcharge approvals still pending in some jurisdictions