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Dec 31, 2024
American Water Q4 2024 Earnings Report
American Water reported strong financial performance with revenue and earnings growth driven by rate increases and acquisitions.
Key Takeaways
American Water achieved significant revenue and earnings growth in Q4 2024, driven by rate increases and acquisitions. Net income rose by 39.77% YoY, and the company reaffirmed its long-term EPS and dividend growth targets of 7-9%.
Revenue increased 16.37% YoY to $1.201 billion.
Net income grew 39.77% YoY to $239 million.
Operating income increased to $400 million, up from $299 million in Q4 2023.
American Water reaffirmed its long-term financial targets, including a 7-9% EPS and dividend growth.
Forward Guidance
American Water reaffirmed its 2025 EPS guidance of $5.65 - $5.75 and its long-term 7-9% EPS and dividend growth targets.
Positive Outlook
- 2025 EPS guidance range set at $5.65 - $5.75.
- Long-term EPS and dividend growth target of 7-9% reaffirmed.
- Continued investment in infrastructure with $3.3 billion invested in 2024.
- Customer base expanded with nearly 90,000 new connections, including acquisitions.
- Ongoing regulatory approvals support revenue growth.
Challenges Ahead
- Higher operating expenses due to increased employee and production costs.
- Depreciation expense rose by $25 million YoY in Q4 2024.
- Interest expense increased by $15 million in Q4 2024 due to capital investments.
- Future revenue growth depends on regulatory rate approvals.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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