American Water Works Company
AWKFinancial Snapshot
ticker: AWK step: 04 generated: 2026-05-12 source: quick-research
American Water Works Company, Inc. (AWK) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$3.82B | $4.23B | $4.68B | +10.6% |
| Net Income | ~$730M | ~$804M | ~$870M | +8.2% |
| EPS (diluted) | $4.51 | $4.90 | ~$5.25 | +7.1% |
Consistent 7–9% annual EPS growth driven by regulated rate base expansion and rate case approvals. FY2025 "strong results" affirmed with 8% EPS growth guidance for 2026 (initiated $5.60–$5.75 EPS). Revenue growth of ~10% annually reflects rate case outcomes and customer base expansion via acquisitions.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Capital Expenditures (FY2024) | ~$3.2B |
| 10-Year Capital Plan (2023-2032) | $30–34B |
| Rate Base | ~$20B+ (growing ~10% annually) |
| Long-Term Debt | ~$14B |
| Dividend Yield | ~2.2% (consistent annual increases) |
AWK's FCF is structurally negative — massive capex (infrastructure upgrades + acquisitions) is funded through regulated rate recovery, debt, and periodic equity issuance. Dividend has grown ~8-9% annually for many years. Balance sheet leverage is elevated but managed as a regulated utility.
Key Ratios (approximate)
- P/E: ~28x | Dividend Yield: ~2.2%
- EPS Growth Target: 7–9% annually
- Rate Base CAGR: ~10% annually through 2032
- Authorized additional annualized revenues from rate cases (since Jan 2025): ~$264M
Growth Profile
AWK delivers one of the most consistent EPS growth profiles in the utility sector — 7–9% annually regardless of economic cycles — because water demand is largely inelastic and regulatory frameworks ensure capital recovery. The 18 municipal acquisitions in FY2025 and $3.2B annual capex are the mechanical drivers. The Essential Utilities merger (Q1 2027 expected close) would add 1.2M+ connections and further scale the rate base compounding.
Forward Estimates
- FY2026 EPS: $5.60–$5.75 (management guidance; +8% vs. FY2025)
- FY2025 EPS: ~$5.15–$5.25 (strong results affirmed)
- Long-term EPS growth: 7–9% annually through 2029+
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AWK.