American Water Works Company

AWK
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
TTM ROIC
9.7%
FY2024 · Earned ROE: Net Income / Total Equity; regulated utility framework · WACC ~6% · Moat spread +3.7pp

Financial 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.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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