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American Water Works Company, Inc.

Q2 FY26Water Utilities

American Water Works Company, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management said on revenue, margins and capex.

Price₹122
Market cap₹23.9K Cr
P/E22.0
Updated29 May 2026
Read4 min read

What the Q2 FY26 call signalled

3 of 5 strong

RevenueSlow growth
MarginMargins steady
CapexCapex planned
FundraiseFundraise planned
Order bookOrder book rising

The short version

- The company expects consistent EPS growth within the 7% to 9% range through 2030 and beyond (Page 3). - American Water reaffirms 2026 adjusted EPS guidance range of $6.02 to $6.12, expecting 8% EPS growth compared to 2025.

From American Water Works Company, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Slow growth
  • The company expects consistent EPS growth within the 7% to 9% range through 2030 and beyond (Page 3).
  • Revenue growth is supported by authorized rate increases across states, investments in infrastructure, and acquisitions (Page 2, 3).
  • Capital investments focus on pipe replacement, PFAS remediation, lead service line removal, and smart meters, underpinning service reliability and revenue growth (Page 3).
  • Growth through acquisitions is targeted across many states, with 105,000 customer connections under agreement from deals totaling $565 million to meet a 2% customer addition goal (Page 3).

2 more points from American Water Works Company, Inc.'s call on revenue

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Profitability & Margins

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Capital Expenditure Plans

Capex planned
  • Ongoing capital projects focus on pipe replacement, aboveground treatment facilities including PFAS remediation, lead service line removal, and updated technologies like smart meters.
  • In the Nitro wastewater system acquisition (West Virginia), American Water plans to invest over $40 million in the next 5 years for necessary capital upgrades to maintain environmental compliance.
  • The company continues acquiring systems to meet a 2% customer additions growth goal with $565 million of deals under agreement across multiple states.
  • New infrastructure recovery mechanisms and legislative wins in Iowa and Indiana will facilitate timely investment cost recoveries, supporting capital expenditure.

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Fundraising & Capital Structure

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Order Book & Pipeline

Order book rising
  • American Water has 105,000 customer connections currently under agreement from deals totaling $565 million.
  • Recent acquisition includes the Nitro wastewater system in West Virginia for $20 million.
  • The Nitro system requires extensive capital upgrades, with plans to invest over $40 million in the next 5 years.

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Frequently Asked Questions

What were American Water Works Company, Inc. Q2 FY26 results?

- The company expects consistent EPS growth within the 7% to 9% range through 2030 and beyond (Page 3). - American Water reaffirms 2026 adjusted EPS guidance range of $6.02 to $6.12, expecting 8% EPS growth compared to 2025.

What is American Water Works Company, Inc. share price analysis?

American Water Works Company, Inc. currently shows a neutral. The stock trades at a P/E of 22.0 with a market cap of $23,893. Investors should review the full earnings analysis for detailed insights.

Is American Water Works Company, Inc. planning capital expenditure?

- Ongoing capital projects focus on pipe replacement, aboveground treatment facilities including PFAS remediation, lead service line removal, and updated technologies like smart meters.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.