American Water Works Q4 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Should l Buy AWK?
Source: seekingalpha
- Disappointing Earnings: American Water Works reported a Q4 non-GAAP EPS of $1.24, missing expectations by $0.03, indicating pressure on profitability that could affect investor confidence.
- Lackluster Revenue Growth: The company generated $1.27 billion in revenue for Q4, a 5.8% year-over-year increase, yet fell short of expectations by $20 million, reflecting unmet market demand that may influence future investment decisions.
- Long-Term Financial Targets Affirmed: American Water Works reaffirmed its adjusted EPS guidance for 2026 at $6.02 to $6.12, an increase from $5.64 in 2025, demonstrating confidence in future profitability despite current challenges.
- Potential and Challenges: While the company maintains an optimistic outlook on long-term financial goals, the capital expenditure challenges it faces may hinder its ability to achieve these targets, prompting investors to closely monitor its future capital allocation strategies.
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Analyst Views on AWK
Wall Street analysts forecast AWK stock price to fall
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 133.510
Low
122.00
Averages
129.00
High
139.00
Current: 133.510
Low
122.00
Averages
129.00
High
139.00
About AWK
American Water Works Company, Inc. is a water and wastewater utility company. The Company's primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. It also operates other businesses that provide water and wastewater services to the United States government on military installations, as well as municipalities. The Company operates its business through the Regulated Businesses segment. The Regulated Businesses segment includes subsidiaries that provide water and wastewater services to customers in approximately 14 states. The Company's utilities operate in states such as Pennsylvania, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maryland, Tennessee, Virginia and West Virginia. The Company also serves commercial customers, fire service customers, industrial customers, public authorities, other utilities and community water and wastewater systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMERICAN WATER REPORTS Q4 REVENUE OF USD 1.271 BILLION
- Revenue Overview: American Water reported a revenue of $1,271 million for the fourth quarter.
- Financial Performance: The revenue figure reflects the company's performance and growth in the water utility sector.
See More
American Water Works Set to Release Q4 Earnings on February 18
- Earnings Announcement: American Water Works is set to announce its Q4 2023 earnings on February 18 after market close, with consensus EPS estimated at $1.27 and revenue projected at $1.29 billion, reflecting a 7.5% year-over-year growth, which will provide crucial insights into the company's financial health.
- Earnings Estimate Fluctuations: Over the past three months, EPS estimates have seen no upward revisions and three downward adjustments, indicating a divergence among analysts regarding the company's profitability, which could affect market confidence in its future performance.
- Merger Progress: The merger deal between American Water Works and Essential Utilities has been approved by shareholders, although it faces a lengthy approval process; this merger is expected to enhance the company's market position and achieve economies of scale.
- Rating Upgrade: Bank of America has upgraded its rating on American Water Works, acknowledging the challenges in the merger approval process while aiming to address market concerns regarding the company's future growth, reflecting analysts' confidence in its long-term potential.
See More
American Water Works Plans Major Infrastructure Investment
- Infrastructure Investment Plan: American Water Works (AWK) plans to invest $46 to $48 billion over the next decade for infrastructure replacement, which will drive profit growth and enhance its market position in the water utility sector.
- Consistent Dividend Record: AWK has raised its dividend for 17 consecutive years, and despite its stock price being 25% below its 2021 highs, the stable dividend policy is likely to attract long-term investors and could drive a price rebound.
- Analyst Rating Changes: Bank of America upgraded AWK from 'Underperform' and raised the price target by nearly 20%, indicating growing market confidence in AWK's future performance, which may attract more investor attention.
- Investment Opportunity: With a dividend yield of 2.6%, AWK's stock price is expected to rise due to potential upgrades amidst generally bearish analyst sentiment, presenting a timely opportunity for investors to capitalize on potential gains.
See More
American Water Works Q4 Earnings Analysis
- Disappointing Earnings: American Water Works reported a Q4 non-GAAP EPS of $1.24, missing expectations by $0.03, indicating pressure on profitability that could affect investor confidence.
- Lackluster Revenue Growth: The company generated $1.27 billion in revenue for Q4, a 5.8% year-over-year increase, yet fell short of expectations by $20 million, reflecting unmet market demand that may influence future investment decisions.
- Long-Term Financial Targets Affirmed: American Water Works reaffirmed its adjusted EPS guidance for 2026 at $6.02 to $6.12, an increase from $5.64 in 2025, demonstrating confidence in future profitability despite current challenges.
- Potential and Challenges: While the company maintains an optimistic outlook on long-term financial goals, the capital expenditure challenges it faces may hinder its ability to achieve these targets, prompting investors to closely monitor its future capital allocation strategies.
See More
American Water Works Reports Strong 2025 Earnings and Merger Progress
- Earnings Growth: American Water Works reported an adjusted EPS of $1.24 for Q4 2025, up 7.8% from $1.15 in 2024, with a full-year adjusted EPS of $5.64, reflecting an 8.9% increase from $5.18 in 2024, indicating sustained improvement in profitability.
- Infrastructure Investment: The company invested $3.2 billion in infrastructure improvements for regulated operations in 2025, completing 18 acquisitions across seven states, which is expected to further drive revenue growth and market share in the future.
- Merger Progress: The merger proposal with Essential Utilities received overwhelming approval from shareholders, marking a significant step towards combining two complementary businesses, which is anticipated to enhance scale and deliver substantial growth potential for all stakeholders.
- Future Outlook: The company affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12, demonstrating confidence in future performance, while maintaining long-term EPS and dividend growth targets of 7-9%, providing investors with a stable return expectation.
See More
American Water Works Reports Strong 2025 Earnings and Merger Approval
- Significant Earnings Growth: American Water Works reported a GAAP earnings per share of $5.69 for 2025, up 5.6% from $5.39 in 2024, indicating strong performance in the water utility market and reinforcing its leadership position.
- Adjusted Earnings Increase: The adjusted earnings per share for 2025 reached $5.64, an 8.9% increase from $5.18 in 2024, reflecting effective cost control and revenue growth driven by capital investments and acquisitions.
- Increased Capital Investment: The company invested $3.2 billion in infrastructure improvements in 2025, primarily aimed at enhancing water quality and reliability, which not only meets growing market demands but also lays the groundwork for future business expansion.
- Shareholder Support for Merger: On February 10, 2026, shareholders overwhelmingly approved the merger proposal with Essential Utilities, which is expected to enhance overall growth potential through economies of scale and business complementarity, thereby increasing shareholder value.
See More
AMERICAN WATER REPORTS Q4 REVENUE OF USD 1.271 BILLION
- Revenue Overview: American Water reported a revenue of $1,271 million for the fourth quarter.
- Financial Performance: The revenue figure reflects the company's performance and growth in the water utility sector.
See More
American Water Works Set to Release Q4 Earnings on February 18
- Earnings Announcement: American Water Works is set to announce its Q4 2023 earnings on February 18 after market close, with consensus EPS estimated at $1.27 and revenue projected at $1.29 billion, reflecting a 7.5% year-over-year growth, which will provide crucial insights into the company's financial health.
- Earnings Estimate Fluctuations: Over the past three months, EPS estimates have seen no upward revisions and three downward adjustments, indicating a divergence among analysts regarding the company's profitability, which could affect market confidence in its future performance.
- Merger Progress: The merger deal between American Water Works and Essential Utilities has been approved by shareholders, although it faces a lengthy approval process; this merger is expected to enhance the company's market position and achieve economies of scale.
- Rating Upgrade: Bank of America has upgraded its rating on American Water Works, acknowledging the challenges in the merger approval process while aiming to address market concerns regarding the company's future growth, reflecting analysts' confidence in its long-term potential.
See More
American Water Works Plans Major Infrastructure Investment
- Infrastructure Investment Plan: American Water Works (AWK) plans to invest $46 to $48 billion over the next decade for infrastructure replacement, which will drive profit growth and enhance its market position in the water utility sector.
- Consistent Dividend Record: AWK has raised its dividend for 17 consecutive years, and despite its stock price being 25% below its 2021 highs, the stable dividend policy is likely to attract long-term investors and could drive a price rebound.
- Analyst Rating Changes: Bank of America upgraded AWK from 'Underperform' and raised the price target by nearly 20%, indicating growing market confidence in AWK's future performance, which may attract more investor attention.
- Investment Opportunity: With a dividend yield of 2.6%, AWK's stock price is expected to rise due to potential upgrades amidst generally bearish analyst sentiment, presenting a timely opportunity for investors to capitalize on potential gains.
See More
American Water Works Q4 Earnings Analysis
- Disappointing Earnings: American Water Works reported a Q4 non-GAAP EPS of $1.24, missing expectations by $0.03, indicating pressure on profitability that could affect investor confidence.
- Lackluster Revenue Growth: The company generated $1.27 billion in revenue for Q4, a 5.8% year-over-year increase, yet fell short of expectations by $20 million, reflecting unmet market demand that may influence future investment decisions.
- Long-Term Financial Targets Affirmed: American Water Works reaffirmed its adjusted EPS guidance for 2026 at $6.02 to $6.12, an increase from $5.64 in 2025, demonstrating confidence in future profitability despite current challenges.
- Potential and Challenges: While the company maintains an optimistic outlook on long-term financial goals, the capital expenditure challenges it faces may hinder its ability to achieve these targets, prompting investors to closely monitor its future capital allocation strategies.
See More
American Water Works Reports Strong 2025 Earnings and Merger Progress
- Earnings Growth: American Water Works reported an adjusted EPS of $1.24 for Q4 2025, up 7.8% from $1.15 in 2024, with a full-year adjusted EPS of $5.64, reflecting an 8.9% increase from $5.18 in 2024, indicating sustained improvement in profitability.
- Infrastructure Investment: The company invested $3.2 billion in infrastructure improvements for regulated operations in 2025, completing 18 acquisitions across seven states, which is expected to further drive revenue growth and market share in the future.
- Merger Progress: The merger proposal with Essential Utilities received overwhelming approval from shareholders, marking a significant step towards combining two complementary businesses, which is anticipated to enhance scale and deliver substantial growth potential for all stakeholders.
- Future Outlook: The company affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12, demonstrating confidence in future performance, while maintaining long-term EPS and dividend growth targets of 7-9%, providing investors with a stable return expectation.
See More
American Water Works Reports Strong 2025 Earnings and Merger Approval
- Significant Earnings Growth: American Water Works reported a GAAP earnings per share of $5.69 for 2025, up 5.6% from $5.39 in 2024, indicating strong performance in the water utility market and reinforcing its leadership position.
- Adjusted Earnings Increase: The adjusted earnings per share for 2025 reached $5.64, an 8.9% increase from $5.18 in 2024, reflecting effective cost control and revenue growth driven by capital investments and acquisitions.
- Increased Capital Investment: The company invested $3.2 billion in infrastructure improvements in 2025, primarily aimed at enhancing water quality and reliability, which not only meets growing market demands but also lays the groundwork for future business expansion.
- Shareholder Support for Merger: On February 10, 2026, shareholders overwhelmingly approved the merger proposal with Essential Utilities, which is expected to enhance overall growth potential through economies of scale and business complementarity, thereby increasing shareholder value.
See More
