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Dec 31, 2025
American Water Q4 2025 Earnings Report
American Water reported solid fourth quarter 2025 results with higher revenues and reaffirmed its long-term EPS growth targets.
Key Takeaways
American Water generated fourth quarter 2025 operating revenues of 1271000000 and net income of 238000000, with GAAP EPS of 1.22 and adjusted EPS of 1.24, driven primarily by authorized rate increases in its regulated businesses.
Fourth quarter GAAP EPS was 1.22 and adjusted EPS was 1.24.
Operating revenues increased to 1271000000 from 1201000000 year over year.
Net income attributable to common shareholders was 238000000.
Authorized additional annualized revenues of approximately 264000000 from general rate cases since January 1, 2025.
Revenue by Segment
Forward Guidance
American Water affirmed its 2026 adjusted EPS guidance range of 6.02 to 6.12 and reaffirmed its long-term EPS and dividend growth targets of 7% to 9%.
Positive Outlook
- 2026 adjusted EPS guidance range of 6.02 to 6.12.
- Affirmed long-term EPS growth target of 7% to 9%.
- Affirmed long-term dividend growth target of 7% to 9%.
- Strong capital investment program supporting rate base growth.
- Shareholder approval of pending merger with Essential Utilities.
Challenges Ahead
- Guidance excludes potential transaction costs related to the pending merger.
- Exposure to weather variability impacts.
- Higher interest expense due to capital investments.
- Increased operating costs including employee and production expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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