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Dec 31, 2022

American Water Q4 2022 Earnings Report

American Water reported strong results, meeting expectations and affirming 2023 guidance and long-term targets.

Key Takeaways

American Water reported Q4 2022 earnings of $0.81 per share, compared to $3.55 per share in 2021. The company invested a record $2.6 billion in capital and added 70,000 customer connections through closed acquisitions in 2022. 2023 earnings per share guidance range of $4.72 to $4.82 was affirmed.

Delivered EPS results of $4.51 slightly ahead of expectations, led by strong growth in the Regulated Businesses

Successfully completed general rate cases in New Jersey, Pennsylvania, Illinois, West Virginia, and Hawaii

Invested a record $2.3 billion for infrastructure improvements and replacements in 2022

Closed on 26 acquisitions of various regulated water and wastewater systems in 2022, adding a record 70,000 customer connections, totaling $0.3 billion of investment

Total Revenue
$931M
Previous year: $951M
-2.1%
EPS
$0.81
Previous year: $0.85
-4.7%
Customer Connections Added
70K
Gross Profit
$498M
Previous year: $460M
+8.3%
Cash and Equivalents
$85M
Previous year: $116M
-26.7%
Free Cash Flow
-$356M
Previous year: -$147M
+142.2%
Total Assets
$27.8B
Previous year: $26.1B
+6.6%

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%.