10-QPeriod: Q2 FY2026

American Water Works Company, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) reported solid financial results for the second quarter and first half of 2026. The company demonstrated consistent revenue growth, driven by rate increases in its regulated businesses and strategic acquisitions. Net income attributable to common shareholders increased year-over-year for both the three and six-month periods, reflecting operational efficiencies and successful integration of acquired assets. AWK's ongoing commitment to infrastructure investment remains a key strategic focus, with significant capital expenditures deployed during the period to maintain and upgrade its essential water and wastewater systems. The company also provided updates on its significant pending merger with Essential Utilities, Inc., which continues to progress towards an estimated closing in the first quarter of 2027, subject to regulatory approvals. The company maintained a strong liquidity position and a stable credit rating, underscoring its financial health and ability to fund its growth initiatives and dividend payments.

Key Highlights

  • 1Total operating revenues increased to $1,355 million for the three months ended June 30, 2026, up from $1,276 million in the prior year period.
  • 2Net income attributable to common shareholders rose to $315 million ($1.61 per diluted share) for the three months ended June 30, 2026, compared to $289 million ($1.48 per diluted share) in the same period last year.
  • 3Capital expenditures totaled $1,519 million for the six months ended June 30, 2026, primarily directed towards infrastructure improvements and replacements in regulated businesses.
  • 4The company completed the acquisition of regulated water and wastewater system assets from Nexus Regulated Utilities, LLC for $319 million, adding approximately 47,000 customer connections.
  • 5The pending merger with Essential Utilities, Inc. is progressing, with an estimated closing date by the end of the first quarter of 2027. Merger-related costs of $9 million were incurred in the first six months of 2026.
  • 6Total available liquidity stood at $1,363 million as of June 30, 2026, comprising $191 million in cash and cash equivalents and $1,172 million in availability on its revolving credit facility.
  • 7The company received $234 million in net settlement payments from PFAS Multi-District Litigation defendants.

Frequently Asked Questions

American Water Works Company, Inc. continues to progress with its pending merger with Essential Utilities, Inc. The company estimates the closing to occur by the end of the first quarter of 2027, subject to customary closing conditions, including regulatory approvals from all applicable public utility commissions and antitrust clearance. Merger-related costs of $9 million were incurred in the first six months of 2026.

The company is making substantial investments in its infrastructure, with $1.519 billion in capital expenditures for the six months ended June 30, 2026. The majority of these investments are in its Regulated Businesses, focusing on infrastructure improvements and replacements to ensure safe, clean, and reliable water and wastewater services. Additionally, the company invested $346 million in regulated acquisitions during the same period.

American Water Works Company, Inc. has received $234 million in net settlement payments from defendants in the PFAS Multi-District Litigation as of June 30, 2026. The company is seeking regulatory approval to use these proceeds for the benefit of customers where permissible. As of July 1, 2026, 7 out of 11 utility subsidiaries have received approval, two were denied, and two remain pending.

In the first six months of 2026, AWCC completed the sale of $500 million of 4.625% Senior Notes due 2029 and $700 million of 5.200% Senior Notes due 2036, with net proceeds used for debt repayment and general corporate purposes. The company also repaid $1,061 million in aggregate principal amount of outstanding long-term debt.