American Water Works Company, Inc.

Adjusted earnings were $1.61 per share in Q2 2026 versus $1.49 per share in Q2 2025, up just over 8%. For the first six months of 2026, adjusted earnings were $2.62 per share versus $2.51 per share in the prior-year period. Revenue was higher in the quarter due to authorized rate increases, while depreciation, financing costs, and general taxes rose as expected; O&M costs were flat year over year. The company reaffirmed 2026 adjusted EPS guidance of $6.02 to $6.12 per share, implying about 8% EPS growth, and said its 7% to 9% EPS and dividend growth target through 2030 and beyond remains intact.

John Griffith said the quarter was solid and tied the results to execution across regulation, capital investment, and acquisitions. He emphasized that the company’s strategy is centered on operating in supportive regulatory environments, investing in infrastructure, and growing scale in a fragmented industry to improve efficiency and affordability. On the merger with Essential Utilities, he said integration planning is progressing constructively and that the company still expects closing by the end of the first quarter of 2027.

David Bowler said Q2 consolidated earnings of $1.61 per share were up more than 8% from $1.49, and first-half EPS of $2.62 was ahead of $2.51 last year. He noted that revenue was supported by authorized rate increases, O&M was flat, and the main cost pressures were depreciation, financing costs, and taxes. On the balance sheet, he said debt-to-capital was 58% at June 30, the company issued $500 million of long-term debt at 4.625%, and it settled 3.4 million of about 8 million equity forwards for net proceeds of $476 million, with the remaining forwards expected to be settled in Q4.

Analysts focused on Pennsylvania regulation, Missouri’s new future-test-year filing, Indiana affordability, and the merger process. Management said Pennsylvania strategy is still investment-driven and that it is exploring broadening the DSIC mechanism, which currently covers about 40% of Pennsylvania CapEx, but would need legislation for a wholesale expansion. On the merger, management said Pennsylvania approval is judged on substantial affirmative public benefit and that affordability is part of the broader case, while other states are progressing and Texas has a settlement in principle. They also said Missouri’s forecast-year filing could be compared to prior cases for context, but they did not quantify the benefit versus a historical filing.