American Water Works Q1 Earnings Lag Estimates, Revenues Rise Y/y

American Water Works Company AWK reported first-quarter 2026 adjusted earnings per share (EPS) of $1.01, which missed the Zacks Consensus Estimate of $1.10 by 8.18%. The bottom line declined 0.98% from the year-ago quarter's level of $1.02 per share.

Total Revenues of AWK

AWK’s total quarterly revenues of $1.21 billion surpassed the Zacks Consensus Estimate of $1.12 billion by 8.25%. The top line also increased 5.69% from the year-ago figure of $1.14 billion.

American Water Works Company, Inc. Price, Consensus and EPS Surprise

AWK’s Segmental Details

Regulated businesses’ net revenues in the first quarter of 2026 were $1.11 billion, up 5.91% year over year.

Others’ net revenues in the first quarter of 2026 were $96 million, up 3.23% year over year.

Highlights of AWK’s Q1 Release

Total operating expenses for the first quarter of 2026 were $816 million, up 5.84% from the year-ago quarter’s $771 million, primarily driven by higher operation and maintenance expenses.

The operating income totaled $391 million, up 5.39% from the year-ago figure of $371million.

AWK continues to expand its business through acquisitions and organic growth. As of March 31, 2026, the company closed one acquisition, adding 4,600 new customers. The completion of another 22 pending acquisitions is expected to add nearly 58,400 new customers.

New rates effective since Jan.1, 2026, will increase 2026 annual revenues by $89 million. As of April 30, 2026, the pending rate cases, if approved without any changes, are projected to increase revenues by another $518 million.

Financial Details of AWK

American Water Works’ cash and cash equivalents amounted to $137 million as of March 31, 2026, compared with $98 million as of Dec. 31, 2025.

Total long-term debt was $12.77 billion as of March 31, 2026, down 0.09% from $12.78 billion as of Dec. 31, 2025.

In first-quarter 2026, cash flow from operating activities was $305 million compared with $331 million in the year-ago period.

Merger Update

On April 21, 2026, American Water Works stated that its merger with Essential Utilities, Inc. had received its first regulatory approval from the Kentucky Public Service Commission.

AWK’s Long-Term Guidance

American Water Works affirmed its 2026 EPS guidance in the range of $6.02-$6.12. The Zacks Consensus Estimate of $6.09 lies near the high end of the company’s guided range.

AWK plans to invest $3.7 billion in 2026. The company still expects its long-term EPS and dividend growth to be 7-9% and rate-based growth to be 8-9%.

Zacks Rank of AWK

American Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

American States Water AWR is slated to report first-quarter 2026 results on May 6, after market close. The Zacks Consensus Estimate for AWR’s first-quarter EPS is pegged at 77 cents, implying an increase of 10% from the prior-year figure. The company has a dividend yield of 2.59%.

Essential Utilities Inc. WTRG is scheduled to report its first-quarter 2026 results on May 7, before the market opens. The Zacks Consensus Estimate for WTRG’s first-quarter EPS is pegged at $1.01, implying a decrease of 1.94% from the prior-year figure. The company has a dividend yield of 3.47%.

Consolidated Water Co. Ltd CWCO is set to report its first-quarter 2026 results on May 12. The Zacks Consensus Estimate for CWCO’s first-quarter EPS is pegged at 27 cents, implying a decrease of 12.90% from the prior-year figure. The company has a dividend yield of 1.73%.

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This article originally published on Zacks Investment Research (zacks.com).

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