# American Water Works Company (AWK) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/AWK/thesis · /stocks/AWK/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AWK/fundamental

## Navigation

- Overview: /stocks/AWK
- Financials (this page): /stocks/AWK/financials
- Thesis: /stocks/AWK/thesis
- Investment Memo: /stocks/AWK/memo
- Coverage universe: /stocks