- Third quarter 2026 GAAP earnings were $1.94 per share, compared to $1.94 per share in 2025; year-to-date 2026 GAAP earnings were $4.56 per share, compared to $4.47 per share in 2025

- Third quarter 2026 adjusted (non-GAAP) earnings of $2.00 per share, compared to $1.89 per share in the same quarter in 2025 and year-to-date 2026 adjusted (non-GAAP) earnings of $4.63 per share, compared to $4.40 per share in the same period in 2025

- 2026 adjusted earnings per share (EPS) guidance range is narrowed to $6.07 to $6.12 from $6.02 to $6.12; long-term targets affirmed

- Initiating standalone 2027 earnings per share guidance range of $6.53 to $6.63

- Significant regulatory execution YTD on several fronts, including in PA and NJ, with new rates in effect in Q3

- 2026 capital investment plan of $3.7 billion on track; approximately 81,000 customer connections added from acquisitions through September 30, which includes the Nexus Water systems

- Progress continues on proposed merger with Essential Utilities; three states have approved and settlements have been reached in Pennsylvania, North Carolina and Texas

CAMDEN, N.J., Oct. 28, 2026 /PRNewswire/ -- American Water Works Company, Inc. (NYSE: AWK) today reported adjusted earnings for the quarter ended September 30, 2026, of $2.00 per share, compared to $1.89 per share for the same quarter in 2025, and $4.63 per share for the year-to-date period ended September 30, 2026, compared to $4.40 per share for the same period in 2025.

"The company has delivered solid results to date in 2026, including key regulatory outcomes that provide for a reasonable and timely return on the investments made for the benefit of our customers," said John Griffith, President and CEO of American Water. "Looking forward to 2027 and beyond, we are fully confident that our long record of consistent execution on the plans we set will continue."

"On the merger front, we continue to work toward closing the merger with Essential Utilities by the end of the first quarter of 2027 as anticipated. We are encouraged by the continued progress we and Essential are making in the regulatory approval process, including reaching settlement agreements in several states, and with our merger integration planning activities."

2026 Adjusted EPS Guidance Narrowed to Top Half of Range

The company's 2026 adjusted EPS guidance range has been narrowed to $6.07 to $6.12, from the previous 2026 adjusted EPS guidance range of $6.02 to $6.12. The 2026 adjusted EPS guidance range does not include (i) transaction costs to be incurred by the company during 2026 related to the proposed merger with Essential Utilities, Inc. ("Essential Utilities"), (ii) impacts of weather during 2026, and (iii) incremental interest income through February 13, 2026 related to the 2024 amendment of the former Homeowner Services Group ("HOS") secured seller note. See "Adjustments to GAAP" below for more information about this non-GAAP financial measure.

2027 Standalone EPS Guidance and Long-Term Targets

- 2027 standalone adjusted earnings per share guidance range of $6.53 to $6.63 established, 8% EPS growth at midpoint compared to 2026 adjusted EPS guidance range. See "Adjustments to GAAP" below for more information about this non-GAAP financial measure.

- All standalone long-term targets remain unchanged

- Long-term EPS growth of 7-9%

- Long-term rate base growth of 8-9% (including acquisitions)

- Acquired customer addition growth of 2%

- Long-term dividend per share growth of 7-9%

- Updated standalone capital investment plan of $20+ billion for 2026-2030 and $48+ billion for 2026-2035

- 2027 standalone capital investment plan of $4.1 billion

Consolidated Results and Adjusted Earnings Per Share Reconciliation (a non-GAAP measure)

Revenue growth from the implementation of new rates for both the three- and nine-month 2026 periods in the Regulated Businesses from the recovery of capital and acquisition investments was partially offset by higher depreciation and financing costs to support the current capital investment plan and increased operating costs.

During the first nine months of 2026, the company invested $2.8 billion in infrastructure improvements and growth, including $437 million for regulated acquisitions. The company plans to invest a total of approximately $3.7 billion across its footprint in 2026, including acquisitions.

Regulated Businesses

In the third quarter of 2026, the Regulated Businesses' net income was $407 million, compared to $383 million for the same period in 2025. For the first nine months of 2026, the Regulated Businesses' net income was $946 million, compared to $872 million for the same period in 2025.

Operating revenues increased $60 million and $212 million for the three and nine months ended September 30, 2026, as compared to the same period in 2025. The increase in operating revenues was primarily a result of authorized revenue increases from completed general rate cases and infrastructure proceedings for the recovery of incremental capital and acquisition investments, as well as incremental revenue from closed acquisitions. For the three and nine months ended September 30, 2026, operating revenues decreased $18 million and $7 million, respectively, from unfavorable weather impacts primarily in the third quarter of 2026 and warm, dry weather primarily in the third quarter of 2025.

Since January 1, 2026, the company has been authorized additional annualized revenues of $284 million, with $179 million from general rate cases and $105 million from infrastructure surcharges. The company has general rate cases in progress in five jurisdictions and has filed for infrastructure surcharges in two jurisdictions, reflecting a total annualized incremental revenue request of $360 million.

Operating expenses were higher by $30 million and $103 million for the three and nine months ended September 30, 2026, as compared to the same periods in 2025, due in part to increased production costs from higher purchased water cost and usage and increased purchased power and chemicals costs, partially offset by a decrease in operating supplies and services costs, primarily from lower technology related costs, and a decrease in maintenance materials and supplies costs. Operating expenses also include depreciation expense, which was higher by $18 million and $60 million in the same periods, due to the increase in capital investment.

Interest expense was higher by $9 million and $32 million for the three and nine months ended September 30, 2026, as compared to the same periods in 2025, as a result of incremental short and long-term debt primarily to fund capital investments and acquisitions.

Dividends

On October 27, 2026, the company's Board of Directors declared a quarterly cash dividend payment of $0.8950 per share, payable on December 1, 2026, to shareholders of record as of November 12, 2026.

2026 Third Quarter Earnings Conference Call

The conference call to discuss the third quarter 2026 earnings, 2027 standalone adjusted EPS guidance, and affirmation of long-term targets will take place on Thursday, October 29, 2026, at 9 a.m. Eastern Time. Interested parties may listen to an audio webcast through a link on the company's Investor Relations website at ir.amwater.com. Presentation slides that will be used in conjunction with the earnings conference call will also be made available online in advance at ir.amwater.com. The company recognizes its websites as key channels of distribution to reach public investors and as a means of disclosing material non-public information to comply with the company's obligations under SEC Regulation FD.

Following the earnings conference call, a replay of the audio webcast will be available for one year on American Water's Investor Relations website at ir.amwater.com/events.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 19 military installations. American Water's 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

Throughout this press release, unless the context otherwise requires, references to the "company" and "American Water" mean American Water Works Company, Inc. and all of its subsidiaries, taken together as a whole. All statements related to earnings and earnings per share refer to diluted earnings and earnings per share.

Adjustments to GAAP

This press release includes presentations of consolidated adjusted diluted EPS, both as historical financial information and as earnings guidance. These presentations of adjusted EPS constitute "non-GAAP financial measures" under SEC rules. The most directly comparable GAAP measure for historical adjusted EPS is the reported diluted earnings per share (GAAP) and is reconciled in "Consolidated Results and Adjusted Earnings Per Share Reconciliation" above. See also "2026 EPS Guidance and Long-Term Financial Targets Affirmed" above for more information on adjustments made to diluted EPS for purposes of earnings guidance.

These non-GAAP financial measures are derived from the company's consolidated financial information but are not presented in the financial statements prepared in accordance with GAAP. These measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.