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.
Why Is American Water Works (AWK) Up 4.4% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for American Water Works (AWK - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is American Water Works due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
American Water Works Q4 Earnings Miss Estimates, Revenues Beat
American Water Works Company 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 Works and Essential Utilities overwhelmingly approved their merger-related proposals.
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 $6.11 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 Works expects to invest $19-$20 billion during 2026-2030 and $46-$48 billion during 2026-2035.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, American Water Works has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, American Water Works has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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
Why Is American Water Works (AWK) Up 4.4% Since Last Earnings Report?
It has been about a month since the last earnings report for American Water Works (AWK - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is American Water Works due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
American Water Works Q4 Earnings Miss Estimates, Revenues Beat
American Water Works Company 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 Works and Essential Utilities overwhelmingly approved their merger-related proposals.
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 $6.11 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 Works expects to invest $19-$20 billion during 2026-2030 and $46-$48 billion during 2026-2035.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, American Water Works has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, American Water Works has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.