10-QPeriod: Q1 FY2026

American Water Works Company, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 29, 2026For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) reported its first-quarter 2026 financial results, demonstrating stable operations within the regulated utility sector. While net income attributable to common shareholders slightly decreased year-over-year to $196 million ($1.00 per diluted share) from $205 million ($1.05 per diluted share) in Q1 2025, this was primarily driven by planned increases in operating costs and depreciation to support significant capital investment. The company continues its strategic focus on infrastructure improvement and regulated acquisitions, with substantial capital expenditures of $652 million in Q1 2026. AWK is also progressing with its planned merger with Essential Utilities, Inc., which is anticipated to close by the first quarter of 2027, subject to regulatory approvals. Significant debt refinancing and issuance occurred, including the sale of $700 million in senior notes by its finance subsidiary, AWCC, to fund operations and repay commercial paper. Overall, AWK maintains a strong liquidity position and is actively managing its regulatory and operational landscape to support future growth.

Financial Highlights

47 data points
Beta

Revenue

$1.20B

Net Income

$196.00M

16.3% Net Margin

EPS (Diluted)

$1.00

Total Assets

$35.26B

Cash & Equivalents

$137.00M

Free Cash Flow

-$354.00M

Financial Statements
Beta
Revenue$1.20B
Operating Expenses$816.00M
Operating Income$391.00M
Net Income$196.00M
EPS (Basic)$1.00
EPS (Diluted)$1.00
Shares Outstanding (Basic)195.00M
Shares Outstanding (Diluted)195.00M

Key Highlights

  • 1Total operating revenues increased to $1.207 billion in Q1 2026 from $1.142 billion in Q1 2025, driven by rate increases and acquisitions.
  • 2Net income attributable to common shareholders decreased slightly to $196 million in Q1 2026 from $205 million in Q1 2025, with diluted EPS at $1.00 for both periods.
  • 3Capital expenditures totaled $652 million in Q1 2026, primarily for infrastructure improvements, reflecting continued investment in the business.
  • 4The company is actively pursuing growth through a pending merger with Essential Utilities, Inc., expected to close by Q1 2027.
  • 5AWK's finance subsidiary, AWCC, issued $700 million in Senior Notes due 2036, enhancing liquidity and funding needs.
  • 6Liquidity remains strong, with total available liquidity of $1.436 billion as of March 31, 2026.
  • 7The company is actively seeking regulatory approvals for rate increases, with $36 million in annualized incremental revenues from general rate cases becoming effective in early 2026.

Frequently Asked Questions

In Q1 2026, American Water Works reported a slight decrease in net income attributable to common shareholders to $196 million from $205 million in Q1 2025. Diluted earnings per share remained stable at $1.00 for both periods. Operating revenues increased to $1.207 billion from $1.142 billion, driven by rate increases and acquisitions, but this was offset by higher operating expenses and depreciation costs associated with significant capital investments.

American Water Works continues to prioritize growth through capital investment in infrastructure, regulated acquisitions, and organic growth within its existing systems. The company plans to invest approximately $3.7 billion in these areas in 2026. In Q1 2026, capital expenditures amounted to $652 million, with $632 million allocated to infrastructure improvements and replacements, and $20 million for regulated acquisitions.

The company entered into an Agreement and Plan of Merger with Essential Utilities, Inc. on October 26, 2025. The transaction is a stock-for-stock combination, and it is currently estimated to close by the end of the first quarter of 2027. Completion is subject to customary conditions, including regulatory approvals from all applicable public utility commissions and antitrust clearance.

American Water Works maintains a strong liquidity position, with total available liquidity of $1.436 billion as of March 31, 2026, comprising cash and equivalents and availability on its revolving credit facility. The company's finance subsidiary, AWCC, issued $700 million in Senior Notes in April 2026 to fund operations and repay commercial paper. Debt covenants remain in compliance, with a consolidated debt to consolidated capitalization ratio of 0.59 to 1.00 as of March 31, 2026.