We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Water Works Q4 Earnings Miss Estimates, Revenues Beat
Read MoreHide Full Article
Key Takeaways
AWK's Q4 adjusted EPS rose 7.8% year over year despite missing consensus estimates.
American Water's 2025 revenues grew to $5.14B on rate cases and infrastructure recovery.
AWK plans $3.7B in 2026 investments and sees long-term EPS growth of 7-9%.
American Water Works Company (AWK - Free Report) 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.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
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.
California Water Service Group (CWT - Free Report) 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 - Free Report) 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 - Free Report) 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
American Water Works Q4 Earnings Miss Estimates, Revenues Beat
Key Takeaways
American Water Works Company (AWK - Free Report) 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.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote
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 - Free Report) 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 - Free Report) 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 - Free Report) 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.