American Water Works Q4 Earnings Miss Estimates, Revenues Beat

American Water Works Company AWK reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.24, which lagged the Zacks Consensus Estimate of $1.28 by 3.1%.

The bottom line improved 7.8% from the year-ago quarter's level of $1.15, driven by higher year-over-year revenues and operating income growth.

The company reported adjusted 2025 EPS of $5.64 compared with $5.18 in 2024.

Total Revenues of AWK

AWK’s total quarterly revenues of $1.27 billion surpassed the Zacks Consensus Estimate of $1.22 billion by 3.9%. The top line also increased 5.8% from the year-ago figure of $1.2 billion.

2025 revenues were $5.14 billion compared with $4.68 billion in 2024. The year-over-year rise was primarily due to authorized revenue increases resulting from completed general rate cases and infrastructure proceedings to recover incremental capital and acquisition investments.

AWK’s Segmental Details

Regulated businesses’ net revenues in 2025 were $4.7 billion, up 10.3% year over year.

Others’ net revenues in 2025 were $417 million, up 7.5% year over year.

Highlights of AWK’s Q4 Release

Total operating expenses for the fourth quarter were $866 million, up 8.1% from the year-ago quarter’s $801 million, due to an increase in employee-related costs and production costs, which include higher purchased power and purchased water costs and usage, as well as general taxes associated with increased capital investment.

The operating income totaled $405 million, up 1.3% from the year-ago figure of $400 million.

Financial Details of AWK

Cash and cash equivalents amounted to $98 million as of Dec. 31, 2025 compared with $96 million as of Dec. 31, 2024.

Total long-term debt was $12.78 billion as of Dec. 31, 2025, up 2.1% from $12.52 billion as of Dec. 31, 2024.

In 2025, cash flow from operating activities was $2.06 billion compared with $2.05 billion in the year-ago period.

Merger Update

On Feb. 10, 2026, shareholders of American Water and Essential Utilities overwhelmingly approved their merger-related proposals.

AWK’s Long-Term Guidance

American Water affirmed its 2026 EPS guidance in the range of $6.02-$6.12. The Zacks Consensus Estimate of $6.11 lies at the high end of the company’s guided range.

AWK plans to invest $3.7 billion in 2026. Over the long run, most of its outlook remains unchanged. The company still expects its long-term EPS and dividend growth to be 7-9% and rate base growth to be 8-9%. 

In terms of its long-term capital expenditure plan, American Water expects to invest $19-$20 billion during 2026-2030 and $46-$48 billion during 2026-2035.

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

California Water Service Group CWT is slated to report fourth-quarter 2025 results on Feb. 25, after market close. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, which indicates a year-over-year increase of 9.1%.

CWT’s long-term (three to five years) earnings growth rate is 8.78%. The Zacks Consensus Estimate for fourth-quarter sales stands at $232 million, which calls for a year-over-year rise of 4.4%.

Essential Utilities Inc. WTRG is slated to report fourth-quarter 2025 results on Feb. 25, after market close. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, which implies a year-over-year decrease of 46.3%.

The Zacks Consensus Estimate for second-quarter sales stands at $588.9 million, which calls for a year-over-year decline of 2.6%.

Consolidated Water Co. Ltd CWCO is set to report fourth-quarter 2025 results soon. The Zacks Consensus Estimate for earnings is pegged at 28 cents per share.

The Zacks Consensus Estimate for fourth-quarter sales stands at $34.9 million.

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