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 Q1 Earnings Lag Estimates, Revenues Rise Y/Y
Read MoreHide Full Article
Key Takeaways
AWK posted Q1 EPS of $1.01, missing estimates, while revenues rose 5.69% year over year.
American Water added 4,600 customers via acquisitions, with 22 pending deals for 58,400 more.
AWK affirmed 2026 EPS guidance and expects pending rate cases to boost revenues by $518 million.
American Water Works Company (AWK - Free Report) 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
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%.
American States Water (AWR - Free Report) 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 - Free Report) 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 - Free Report) 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%.
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: Zacks
American Water Works Q1 Earnings Lag Estimates, Revenues Rise Y/Y
Key Takeaways
American Water Works Company (AWK - Free Report) 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
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 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 - Free Report) 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 - Free Report) 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 - Free Report) 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%.