American Water Works Company, Inc. Stock Price: Quote, Forecast, Splits & News (AWK)

Perplexity Finance

AWK

American Water Works Company, Inc.

AWK

NYSE

Market Open

Wednesday, May 21, 2025

$144.04

+$0.22

0.15%

May 21, 11:29:11 AM EDT

Change

+$0.22

0.15%

Financial Profile

Prev Close

$143.82

Market Cap

$28.09B

Day Range

$143.27 - $144.47

Open

$144.08

P/E Ratio

26.2

52W Range

$118.74 - $155.50

24H Volume

$38.26M

Dividend Yield

2.17%

EPS

5.49

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

10m 47s

Thank you, Danielle. Good morning, everyone, and thank you for joining us for today's call. At the end of our prepared remarks, we will open the call for your questions. Me first go over some safe harbor language. Today, we will be making forward looking statements that represent our expectations regarding our future performance or other future events. These statements are predictions based on our current expectations, estimates and assumptions. However, since these statements deal with future events, they are subject to numerous known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results indicated or implied by such statements. Additional information regarding these risks, uncertainties and factors as well as a more detailed analysis of our financials and other important information is provided in the first quarter earnings release and Form 10 Q each filed yesterday with the SEC. Finally, all statements during this presentation related to earnings and earnings per share refer to diluted earnings and diluted earnings per share. John Griffith, our President will share year to date highlights, our affirmation of 2025 EPS guidance and long term targets and our dividend increase. David Bohler, our Executive Vice President and CFO, will discuss our first quarter financial results provide rate case and legislative updates and will review our affirmation of growth drivers and financing plans.

12m 13s

Cheryl Norton, our Executive Vice President and COO will then discuss our capital investment program, our acquisition outlook and we'll conclude with comments on the state of infrastructure in The U. S. After our prepared remarks, we'll then close by answering your questions. Our CEO, Susan Hardwick, is also with us and will be available for Q and A. With that, I'll turn the call over to American Water's President, John Griffith. Thank you, Aaron, and good morning, everyone.

12m 41s

As we announced yesterday, we started 2025 with solid financial results. As shown on Slide five, earnings were $1.05 per share for the quarter, a nearly 11% increase compared to $0.95 last year. Increased results are on track to achieve our full year earnings guidance which we are pleased to affirm, representing our expectation of 8% EPS growth in 2025 compared to our weather normalized 2024 EPS. First quarter twenty twenty five results included $03 per share of additional interest income from February 2024 amendment of the seller note related to the sale of homeowner services. Here, you can also see a recap of some of our other key accomplishments so far in 2025 and David and Cheryl will add to these in their remarks. We continued our track record of regulatory and capital plan execution the first quarter, with new rates effective in several states and investments in infrastructure progressing well. I'm proud of our team's efforts supporting two key priorities in Missouri this year. Achieved a constructive settlement the general rate case in Missouri and are awaiting a final order. And through a collaborative effort with many stakeholders, future test year legislation was signed into law in the state.

14m 3s

Both outcomes are supportive of important utility infrastructure investments and aligned with our focus on providing safe, clean, reliable affordable service to our customers. In addition, we were pleased to see S and P and Moody's again recognize our strong balance sheet and cash flows and our low risk profile as they both affirmed our strong investment grade credit ratings and stable outlook. Turning to Slide six. This quarter, we are again affirming our long term targets for both earnings and dividend growth at 7% to 9% driven by 8% to 9% rate base growth. This affirmation is based on our clear top tier capital growth plan and our strong regulatory and operational execution, that I believe is a positive differentiator from our peers. We expect to consistently grow earnings and dividends at an industry leading pace over the next five years and beyond leading to a very competitive value proposition for our shareholders. Moving on to Slide seven. As we announced yesterday, our Board of Directors approved an increase in the company's quarterly cash dividend from $0.07 $65 per share to $0.08 $2.03 $25 per share an 8.2% increase. We have grown our dividend consistently over the last decade, significantly outpacing virtually all of our utility peers.

15m 27s

Looking ahead, we continue to expect to grow our dividend at 7% to 9% per year, in line with our compelling 7% to 9% EPS growth target. Our Board and management team understand and appreciate how important the dividend component of our total shareholder return is to our investors. Finally, I would like to note that today is our last earnings call with Susan at the helm. You recall, we announced in February with the Q4 release, Susan will be retiring upon our Annual Shareholders Meeting on the fourteenth of this month. Susan, we will miss your presence, your leadership and your wisdom are grateful for everything that you have done for American Water. Had a long and very distinguished career in the utility sector we wish you much happiness and a lot of relaxation in your retirement. With that, I'll hand it over to David to cover our financial results and rate case and legislative updates in further detail. David? Thanks, Sean, and good morning, everyone.

16m 28s

Turning to Slide nine, I'll provide some further insights into our financial results for the quarter. Consolidated reported earnings were $1.05 per share up $0.10 per share versus the same period in 2024. Revenues were higher by $0.44 per share. Primarily due to authorized rate increases to recover investment across our states. Revenues were also higher from closed water and wastewater acquisitions, and organic customer growth.

16m 55s

And looking at operating costs, O and M was higher by point one five dollars per share driven primarily by employee related costs and other increases to support growth in the business. And cost related acquisitions completed in 2024 as we expected. Depreciation increased $0.11 per share and financing costs increased $0.10 per share, both as expected in support of our investment growth. And finally, have $01 per share of additional interest income from the February 2024 note amendment related to the sale of HOS which is included in the other net column. Turning to Slide 10, I'll cover the latest regulatory activity in our states. The two key developments this quarter were rate cases in Missouri and Virginia. In Missouri, we entered into a settlement agreement with several parties including commission staff, the Office of Public Counsel. We agreed to an annualized revenue increase of $63,000,000 as compared to our most recent revised request of $107,000,000 New rates are expected to go into effect on 05/31/2025. And once a final order is received from the commission, we will give our view on ROE in capital structure. In Virginia, the commission issued an order approving our settlement of the of the general rate case.

18m 13s

The order approved a $15,000,000 annualized increase in water and wastewater revenues compared to the original filing that had requested a $20,000,000 increase. The order also approved a return on equity of 9.7% and a higher equity component of the capital structure than in our previous case at nearly 46%. Since interim rates were implemented in May of twenty twenty four, results in 2025 won't be meaningfully impacted by this case. Turning to active cases, the proceeding in Iowa is progressing as expected and we expect to receive a final order this month. In Hawaii, we filed a partial settlement agreement subject to regulatory approval that results in a $1,500,000 increase based on a nine point seven five percent ROE. We expect to receive a final order midyear 2025. And finally, later today, we'll be making an initial submission related to next general rate case in California, which is in keeping with the state's three year cycle. The California case will seek to recover nearly $750,000,000 in planned investment in pipe replacement resiliency and other important system needs. Slide 11 outlines three important pieces of priority legislation for us that were signed into law already in 2025. First, Missouri passed Senate Bill four as a result of as a result beginning 07/01/2026, water and wastewater utilities may request the use of a future test year in a general rate case for rate base and certain expenses.

19m 47s

As you know, our current Missouri general rate case was filed on 07/01/2024. So we expect that our next general rate case in Missouri will request this future test year treatment. This is a positive step for the regulatory and business environment in Missouri. Turning to Indiana, legislators there passed Senate Bill four twenty six in March. Which modifies the existing distribution system improvement charge to allow for the deferral depreciation post in service carrying costs from the in service date of eligible investments until they are included for recovery in rates. The language also provides important protections from lawsuits when utilities are meeting applicable water quality standards. Then in Virginia, Senate Bill eight fifty was passed and will permit a water or wastewater utility to petition the Virginia Commission for the recovery of an expanded list of eligible infrastructure costs outside of a base rate case. Collectively, these three laws represent progress towards achieving our allowed returns in each state and are supportive of further investments. I'd like to congratulate our government and external affairs teams who worked alongside many others to help achieve these constructive policies in 2025. And finally, on Slide 12, as John mentioned, we've affirmed our 2025 EPS guidance which again represents 8% annual growth.

21m 13s

Our outlook and plans for 2025 remain unchanged from our February call. As Cheryl will speak to you, we don't expect any of the recent tariff related announcements to have a material impact on our 2025 plan or financial results. I'm confident in our team's ability to execute on our financial and operating plans and cost management strategies. This includes delivering cost effective financing while maintaining our balance sheet strength and credit profile. As we announced in late February, we completed a successful long term debt issuance of $800,000,000 at a 5.25 coupon that attracted strong demand. Our treasury team did a great job of timely executing part of our financing for the year amidst a challenging market environment. Our total debt to capital ratio as of the end of the quarter, net of $114,000,000 a cash on hand was 58%, which was within our target of less than 60%. Also as John mentioned, S and P affirmed our A rating in April which followed Moody's affirmation of our Baa1 investment credit rate credit rating in January. With a stable outlook from both. Both agencies note advantages of our scale, our low risk business profile, strong regulatory and operational diversity across 14 states, and our steady financial performance in their analysis.

22m 38s

Also noted our expected sustained FFO to debt ratios well within the current ratings thresholds. We are confident our business and financial profile including FFO to debt will continue to support either our current or higher investment grade credit ratings. With that, I'll turn it over to Cheryl to talk more about our capital program our recent acquisition activity a look at the state of infrastructure in The U. S. Cheryl?

23m 6s

David, and good morning, everyone.

23m 7s

On Slide 14, our capital program is off to a good start this year. Investing $518,000,000 in the first quarter. Our state and corporate leaders and their teams did a great job working through a particularly harsh winter across many of our states. This result keeps us on pace to hit our goal of approximately $3,300,000,000 of capital investment in 2025. We continue to expect these capital investments and infrastructure and in acquisitions will grow regulated rate base at a long term rate of 8% to 9%. As our capital investments related to PFAS remediation lead service line replacement began to ramp up, We've been asked by investors if the amount or timing of our investments will change. Our answer is still the same. We haven't changed our plans. EPA's rules around PFAS and lead and copper are final regulations. Some of our states also have existing regulations for PFAS and lead and copper. So while we'll continue to monitor for any potential changes in this realm, for now we're moving forward. As I'll note a bit later in my comments, if the capital spend needed to address PFAS and or lead and copper goes down, we would redeploy it to other important system needs such as pipe replacement.

24m 24s

This quarter, we also thought it would be helpful to share a few comments about the potential impact of tariffs on our capital and operating expenses. Our teams analyze the potential cost increases that could come from tariffs on various raw materials or finished goods that we purchased to serve our customers. Good news, as David alluded to, is that our supply chain is predominantly sourced domestically and therefore our exposure is very limited on things like fleet pumps and some construction related materials.

24m 53s

Of course, we'll work to mitigate even that small exposure through our supply chain team and our purchasing power. Related to operating costs, we don't expect any significant tariff related impacts as most of our key expenses such as labor, power and chemicals are primarily sourced domestically. Domestically. So again, even with the uncertainty around tariffs, amidst other uncertainties, I believe the high degree the market is seeing how resilient American Water is. I'll say it again. I believe the high degree of visibility to our capital investment plan combined with the low risk nature of the plan uniquely positions positions American Water in the utility sector and is fundamental to our investment thesis. Turning to Slide 15. We continue to be well positioned for growth through acquisitions across many states. With about 37,000 customer connections under agreement. I want to highlight three states in particular today as we think about our acquisition outlook. First, in Pennsylvania, already this year, we've received multiple unanimous approvals from the commission to acquire water and wastewater systems. We We remain confident in our Pennsylvania acquisition pipeline, and we are continuing to invest in regulated acquisition opportunities in Pennsylvania driven by the need for system consolidation and upgrading.

26m 15s

A great example of this is the East Dunkirk water system, which we just closed this week. That system was out of EPA compliance since 2014 and the residents in that community could not trust that the water coming out of their taps was safe to drink. The system was placed into a receivership under Pennsylvania American Water last year and our team has done a phenomenal job in rectifying approximately 75 violations from the state DEP. In Pennsylvania, as in all our states, American Water will continue to be the solution provider to communities who deserve high quality water and wastewater service. Next, you can see that West Virginia has nearly 15,000 customer connections under agreement. Our business development team there is doing an excellent job in identifying consolidation opportunities and converting them to signed asset purchase agreements. And finally, in New Jersey, we have a signed purchase agreement for the South Orange Water System which passed a voted referendum last fall. That system is in need of significant follow-up follow on capital over the next decade, which in particular, includes a great deal of lead service line replacement. To close on Slide 16, the American Society of Civil Engineers latest report card for America's infrastructure issued every four years since 02/2001 recently gave the nation's drinking water systems a C minus grade and wastewater systems a D plus grade.

27m 43s

Both of which are unchanged from the 2021 report card. EPA estimates that our country's water infrastructure needs total $625,000,000,000 of investments over the next twenty years and that estimate keeps going up, not down, each time they update their estimates. We believe even that estimate is way too low by a factor of two or three. Aging infrastructure, extreme weather events, and costs associated with regulatory and environmental compliance continue to place increased strain on the nation's water systems. And this strain is generally felt is generally most acutely by small to medium sized municipal systems that don't always have the capital or the expertise to address the issues at hand. The need for consolidation of the fragmented U. S. Water industry to help solve these problems is dire. Within the communities we already serve, we need to invest $36,000,000,000 to $37,000,000,000 over the next ten years to help ensure safe, clean, reliable and affordable water and wastewater The solutions needed across the country will require the public and private sectors to work together. Together, we can safeguard public health, incentivize economic investment, and ultimately create American jobs.

29m 2s

With that, I'll turn it back over to our operator to begin Q and A and take any questions you may have.

29m 8s

Thank you. We will now begin the question and answer session. The first question comes from Richard Southern Sunderland from JP JPMorgan. Please go ahead.

29m 36s

Hi, good morning. Good morning, Rich. Well, first congrats again to John, Susan and the whole team. Susan, I hope you enjoy your retirement.

29m 48s

Thanks, Rich. I certainly appreciate it. I plan to.

29m 51s

Great. Starting off, any thoughts on pulling forward your 2026 equity issuance given the recent share price strength or just financing thoughts overall on a approach to equity?

30m 4s

Hi, Rich. Thanks for the question. We'll continue to evaluate the market and opportunities, but at this point, plans to pull that forward. We're going to issue equity when we need the financing. [indiscernible] we'll leave it at that.

30m 24s

Understood. Very clear. And then circling back to some of the earlier M and A acquisition outlook, commentary, How do you see the landscape standing under a scenario where recession puts pressure on muni finances? Do you think this could bolster some of the medium term opportunities for you?

30m 44s

Rich, it's John here. I would say our prior narrative that we expect to see continuous flow of of acquisition opportunities is still in place It's possible that whether it's recession or just less federal funding could drive some sellers or potential sellers to want to transact is an opportunity and we think about that as part of a broader list of reasons why sellers could sell, whether it's environmental remediation, deferred capital investment spend, retiring operators, things like that. All point to continued activity.

31m 27s

Great. Thanks for the time today.

31m 31s

Thanks, Rich.

31m 36s

The next question comes from Anthony Crowdell from Mizuho. Please go ahead.

31m 43s

Hey, good morning. And I echo Rich's comments. Congrats to all Just if I could just quickly just hit on one state on California. I think you mentioned you're going to file, guess, a notice that you're planning to file a rate case Curious if you could just talk about maybe percentage increase that you think you'll be asking in that case? And then also I just apologize, I forgot. Is the timing of when you guys would file the I think you do it separately, so a cost of capital proceeding in California? Anthony, this is David. So the California case that we're filing, you know, there's a requirement to file a case every three years. We went to disclosed percentage increase and won't disclose that at this time. As far as the cost of capital proceeding, that's correct. There's a separate proceeding [indiscernible] requested that that be delayed until 2026. That was approved earlier this year. So the 10.2% we have in place will stay in place until through 2025. So through twenty twenty twenty five, do you have to file it this year then to have a new cost of capital in 2026 or you begin the filing in 2026 for a new cost of capital in 2027?

33m 1s

Filing in '26 for Newcross Capital in January 27, Anthony.

33m 5s

Great. Thank you so much. That's all I have. Thanks.

33m 10s

The next question comes from Greg Orrill from UBS. Please go ahead.

33m 16s

Yes, thanks for taking my question. Thank you, Susan. Appreciate all your help.

33m 22s

Thanks, Greg.

33m 24s

Just maybe a little different topic. Just do you could you provide an update on the California desalination project? And how that's going to help you there?

33m 40s

Sure. Greg, I think on [indiscernible] as you recall, we got our last major permit approval back in November of twenty twenty two, which was the California Coastal Commission We've got a CPCN from the California PUC we'll need to provide updates to PUC But as we had noted in our 10 ks, we expect to break ground this year on desal.

34m 17s

That's not a part of the rate case.

34m 20s

Correct. That's a separate docket.

34m 24s

Got it.

34m 24s

Thank you. Thanks, Greg.

34m 31s

The next question comes from Paul Zimbardo from Jefferies. Please go ahead.

34m 37s

Hi. Thank you, team, and congrats again, everyone, especially Susan.

34m 42s

Thanks, Paul.

34m 42s

One from oh no, of course, of course. Just one for me on the legislative progress that you talked about, the three states.

34m 51s

I think you mentioned potential for stronger earned returns and incremental capital.

34m 56s

Is there any way that you could frame the opportunities there? I know some states are larger in your mix versus some others. Just any quantification would be helpful if you can. [indiscernible] Paul, this is David. We haven't really framed up how much of an opportunity the future test year in Missouri will provide to us. Nor have we for the other states. I mean, it will incrementally help help our earned returns in each state.

35m 32s

Okay. Okay.

35m 33s

Leave it there. Thank you very much.

35m 39s

This concludes our question and answer session. And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Key Insights

AWK reported Q1 2025 earnings of $1.05 per share, an 11% increase from $0.95 last year, and affirmed full-year 2025 EPS guidance, targeting 8% EPS growth over weather-normalized 2024.
The company’s Board approved an 8.2% increase in the quarterly dividend to $0.8325 per share, and AWK reaffirmed its long-term targets for both earnings and dividend growth at 7%-9%, driven by 8%-9% rate base growth.
Regulatory progress included constructive rate case settlements in Missouri (awaiting final order for a $63M annualized revenue increase) and Virginia (approved $15M annualized increase, 9.7% ROE, and higher equity ratio), with additional active cases in Iowa, Hawaii, and California.
AWK invested $518M in capital in Q1, on track for ~$3.3B in 2025, with a focus on infrastructure upgrades, PFAS/lead remediation, and acquisitions; the company maintains a robust acquisition pipeline with 37,000 customer connections under agreement.
Credit ratings were affirmed by S&P (A) and Moody’s (Baa1), with a stable outlook; recent $800M debt issuance at 5.25% coupon supports financing needs, and total debt to capital ratio remains within target at 58%.

Recent Transcripts

Q1 EPS up 11%, 2025 guidance and 8.2% dividend hike affirmed.

2024 EPS grew 8%, 2025 guidance affirmed with 7-9% growth targets.

Feb 20

Q4 2024

EPS Growth

+8% (2024), 7-9% target

Capital Investment

$3.3B (2024)

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$3.8B	$3.9B	$3.8B	$4.2B	$4.7B
Cost of Revenue	$1.6B	$1.8B	$1.6B	$1.7B	$1.9B
Gross Profit	$2.2B	$2.2B	$2.2B	$2.5B	$2.8B
Gross Profit %	57%	55%	58%	59%	60%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$3.8B

$3.9B

$3.8B

$4.2B

$4.7B

Cost of Revenue

$1.6B

$1.8B

$1.6B

$1.7B

$1.9B

Gross Profit

$2.2B

$2.5B

$2.8B

Gross Profit %

57%

55%

58%

59%

60%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$709M	$1.3B	$820M	$944M	$1.1B
Dep. & Amort.	$604M	$636M	$649M	$704M	$788M
Def. Tax	$207M	$230M	$80M	$208M	$0
Stock Comp.	$21M	$17M	$28M	$25M	$0
Chg. in WC	-$55M	$126M	-$355M	$27M	-$12M

2020

2021

2022

2023

2024

Net Income

$709M

$1.3B

$820M

$944M

$1.1B

Dep. & Amort.

$604M

$636M

$649M

$704M

$788M

Def. Tax

$207M

$230M

$80M

$208M

Stock Comp.

$21M

$17M

$28M

$25M

Chg. in WC

-$55M

$126M

-$355M

$27M

-$12M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$547M	$116M	$85M	$330M	$96M
ST Investments	$11M	$17M	$67M	$62M	$0
Cash & ST Inv.	$547M	$116M	$85M	$330M	$96M
Receivables	$527M	$568M	$609M	$727M	$756M
Inventory	$47M	$57M	$98M	$112M	$103M

2020

2021

2022

2023

2024

Cash

$547M

$116M

$85M

$330M

$96M

ST Investments

$11M

$17M

$67M

$62M

Cash & ST Inv.

$547M

$116M

$85M

$330M

$96M

Receivables

$527M

$568M

$609M

$727M

$756M

Inventory

$47M

$57M

$98M

$112M

$103M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $28B
IPO Date: 4/23/08
CEO: Mr. John C. Griffith
Fulltime Employees: 6.7K
Sector: Utilities
Industry: Regulated Water
Country: US
Exchange: New York Stock Exchange

Peers

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$47.57

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$78.62

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Watchlist

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

10m 47s

12m 13s

12m 41s

14m 3s

15m 27s

16m 28s

16m 55s

18m 13s

19m 47s

21m 13s

22m 38s

23m 6s

David, and good morning, everyone.

23m 7s

24m 24s

24m 53s

26m 15s

27m 43s

29m 2s

With that, I'll turn it back over to our operator to begin Q and A and take any questions you may have.

29m 8s

Thank you. We will now begin the question and answer session. The first question comes from Richard Southern Sunderland from JP JPMorgan. Please go ahead.

29m 36s

Hi, good morning. Good morning, Rich. Well, first congrats again to John, Susan and the whole team. Susan, I hope you enjoy your retirement.

29m 48s

Thanks, Rich. I certainly appreciate it. I plan to.

29m 51s

Great. Starting off, any thoughts on pulling forward your 2026 equity issuance given the recent share price strength or just financing thoughts overall on a approach to equity?

30m 4s

30m 24s

30m 44s

31m 27s

Great. Thanks for the time today.

31m 31s

Thanks, Rich.

31m 36s

The next question comes from Anthony Crowdell from Mizuho. Please go ahead.

31m 43s

33m 1s

Filing in '26 for Newcross Capital in January 27, Anthony.

33m 5s

Great. Thank you so much. That's all I have. Thanks.

33m 10s

The next question comes from Greg Orrill from UBS. Please go ahead.

33m 16s

Yes, thanks for taking my question. Thank you, Susan. Appreciate all your help.

33m 22s

Thanks, Greg.

33m 24s

Just maybe a little different topic. Just do you could you provide an update on the California desalination project? And how that's going to help you there?

33m 40s

34m 17s

That's not a part of the rate case.

34m 20s

Correct. That's a separate docket.

34m 24s

Got it.

34m 24s

Thank you. Thanks, Greg.

34m 31s

The next question comes from Paul Zimbardo from Jefferies. Please go ahead.

34m 37s

Hi. Thank you, team, and congrats again, everyone, especially Susan.

34m 42s

Thanks, Paul.

34m 42s

One from oh no, of course, of course. Just one for me on the legislative progress that you talked about, the three states.

34m 51s

I think you mentioned potential for stronger earned returns and incremental capital.

34m 56s

35m 32s

Okay. Okay.

35m 33s

Leave it there. Thank you very much.

35m 39s

This concludes our question and answer session. And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Key Insights

AWK reported Q1 2025 earnings of $1.05 per share, an 11% increase from $0.95 last year, and affirmed full-year 2025 EPS guidance, targeting 8% EPS growth over weather-normalized 2024.
The company’s Board approved an 8.2% increase in the quarterly dividend to $0.8325 per share, and AWK reaffirmed its long-term targets for both earnings and dividend growth at 7%-9%, driven by 8%-9% rate base growth.
Regulatory progress included constructive rate case settlements in Missouri (awaiting final order for a $63M annualized revenue increase) and Virginia (approved $15M annualized increase, 9.7% ROE, and higher equity ratio), with additional active cases in Iowa, Hawaii, and California.
AWK invested $518M in capital in Q1, on track for ~$3.3B in 2025, with a focus on infrastructure upgrades, PFAS/lead remediation, and acquisitions; the company maintains a robust acquisition pipeline with 37,000 customer connections under agreement.
Credit ratings were affirmed by S&P (A) and Moody’s (Baa1), with a stable outlook; recent $800M debt issuance at 5.25% coupon supports financing needs, and total debt to capital ratio remains within target at 58%.