American Water Works Company Inc
NYSE:AWK
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
American Water Works Company Inc
NYSE:AWK
|
US |
|
N
|
Netcare Ltd
JSE:NTC
|
ZA |
American Water Works Company Inc
American Water Works is a regulated water utility company. It owns and operates drinking water, wastewater, and related pipeline systems, and it treats, stores, and delivers water to homes, businesses, schools, and public agencies. It also collects and treats sewage in many of the areas it serves. The company makes money mostly by charging customers and local governments for water and wastewater service. In many places, its rates are set or reviewed by state utility regulators, which means its business is built around long-lived local franchises rather than open competition. It also earns revenue from contracts to run water systems for municipalities and other institutions. What makes American Water Works different is its role as a core infrastructure provider. Water service is essential, highly regulated, and expensive to build from scratch, so the company’s assets tend to stay in place for a long time. That gives it a steady, utility-style business tied to basic household and community needs rather than consumer trends.
American Water Works is a regulated water utility company. It owns and operates drinking water, wastewater, and related pipeline systems, and it treats, stores, and delivers water to homes, businesses, schools, and public agencies. It also collects and treats sewage in many of the areas it serves.
The company makes money mostly by charging customers and local governments for water and wastewater service. In many places, its rates are set or reviewed by state utility regulators, which means its business is built around long-lived local franchises rather than open competition. It also earns revenue from contracts to run water systems for municipalities and other institutions.
What makes American Water Works different is its role as a core infrastructure provider. Water service is essential, highly regulated, and expensive to build from scratch, so the company’s assets tend to stay in place for a long time. That gives it a steady, utility-style business tied to basic household and community needs rather than consumer trends.
EPS growth: American Water reported adjusted earnings of $1.61 per share in Q2, up from $1.49 a year ago, and $2.62 per share for the first half, up from $2.51 last year.
Guidance reaffirmed: Management said it remains on track to hit its full-year 2026 adjusted EPS guidance of $6.02 to $6.12, with most of the EPS growth expected in the second half of the year.
Regulatory wins: The company completed three rate cases in 2026 in West Virginia, Maryland, and Pennsylvania, each allowing recovery of nearly 100% of capital invested in those states.
Capital and growth: Year-to-date capital spending and acquisitions totaled $1.8 billion, and the company said it is still targeting 2% customer growth for 2026.
Merger progress: The proposed merger with Essential Utilities continues to advance, with approvals in Kentucky, Ohio, and Virginia, and management still expects the deal to close by the end of Q1 2027.
Cost control: Operating and maintenance costs were flat year over year in Q2, while higher revenue from authorized rate increases helped offset rising depreciation, financing costs, and taxes.
