American Water narrows 2026 EPS forecast, Q3 profit misses estimates

American Water Works Company, Inc. (AWK) said on Oct. 28 in a filing that third-quarter adjusted earnings were $2.00 per share, up from $1.89 a year earlier. That missed the $2.07 consensus estimate compiled by Finnhub.

Revenue was $1.51 billion, up from $1.45 billion a year earlier and missing the $1.58 billion estimate. The company also narrowed its 2026 adjusted EPS guidance to $6.07 to $6.12, from $6.02 to $6.12.

Here's how the company did:

• Adjusted EPS: $2.00 vs. $1.89 a year earlier, missing the $2.07 estimate, according to Finnhub
• GAAP EPS: $1.94 vs. $1.94 a year earlier
• Revenue: $1.51 billion vs. $1.45 billion a year earlier, below the $1.58 billion estimate
• Year-to-date adjusted EPS: $4.63 vs. $4.40 a year earlier

The company is a regulated water and wastewater utility serving approximately 14 million people in 14 states, and on 19 military installations.

2026 and 2027 guidance

The 2026 adjusted EPS range excludes merger transaction costs, weather impacts in 2026, and incremental interest income through Feb. 13, 2026 tied to the 2024 amendment of the former Homeowner Services Group secured seller note.

The company initiated standalone 2027 adjusted EPS guidance of $6.53 to $6.63, which it said is 8% growth at the midpoint compared with the 2026 guidance range.

The company said its long-term targets are unchanged, including EPS growth of 7-9%, rate base growth of 8-9% including acquisitions, and dividend per share growth of 7-9%. It updated its standalone capital investment plan to $20 billion or more for 2026-2030 and $48 billion or more for 2026-2035.

Merger with Essential Utilities

The company said three states have approved the proposed merger with Essential Utilities, and settlements have been reached in Pennsylvania, North Carolina and Texas.

President and CEO John Griffith said, "we continue to work toward closing the merger with Essential Utilities by the end of the first quarter of 2027 as anticipated." He added that the companies are encouraged by continued progress in the regulatory approval process.

Regulated businesses and cash

Regulated business net income was $407 million in the third quarter, compared with $383 million a year earlier. For the first nine months, it was $946 million, compared with $872 million.

Since Jan. 1, 2026, the company said it has been authorized additional annualized revenues of $284 million. It has general rate cases in progress in five jurisdictions.

The company invested $2.8 billion in the first nine months of 2026 and plans about $3.7 billion in total investment for the year, including acquisitions.

The board declared a quarterly cash dividend of $0.8950 per share on Oct. 27, payable Dec. 1 to shareholders of record as of Nov. 12. The company will hold its earnings conference call on Oct. 29 at 9 a.m. Eastern Time.