American Water Works Company Past Earnings Performance
Past criteria checks 3/6
American Water Works Company has been growing earnings at an average annual rate of 1.7%, while the Water Utilities industry saw earnings growing at 7.5% annually. Revenues have been growing at an average rate of 7.3% per year. American Water Works Company's return on equity is 9.7%, and it has net margins of 21.3%.
Key information
1.71%
Earnings growth rate
-0.29%
EPS growth rate
| Water Utilities Industry Growth | 8.91% |
| Revenue growth rate | 7.34% |
| Return on equity | 9.67% |
| Net Margin | 21.35% |
| Next Earnings Update | 29 Oct 2026 |
Recent past performance updates
Recent updates
Seeking Alpha • Jul 17
American Water Works: Tricky Even After The Rate Upside
Summary American Water Works is rated 'HOLD' with a reduced price target of $130/share, reflecting persistent CapEx and leverage risks. AWK’s negative free cash flow, high leverage above 5.5x, and ongoing heavy CapEx challenge the bullish AEPS growth assumptions. Regulatory caps on returns and financing costs make 4-5% AEPS growth more realistic than the 7-9% forecasted by bulls. AWK underperforms peers like York Water, which offers better yield and growth at a lower P/E, further limiting AWK’s upside. Read the full article on Seeking Alpha
Narrative Update • Jul 15
AWK: Regulatory Progress And Essential Merger Plans Will Shape Balanced Forward Outlook
Analysts have raised the fair value estimate for American Water Works Company from $135.55 to $138.73, citing generally constructive regulatory outcomes, expectations around key rate case decisions, and progress on the planned merger with Essential Utilities. These factors are reflected in updated assumptions for revenue growth, margins, and future P/E.Narrative Update • Jun 16
AWK: Regulatory Settlements And Nexus Acquisition Will Shape A Steady Forward Outlook
Analysts have nudged their blended price target on American Water Works Company slightly lower, reflecting modest trims to revenue assumptions in several regulated states and a mixed set of recent target moves that include reductions from BofA and Truist, along with an upgrade and higher $140 target from UBS. Analyst Commentary Recent research on American Water Works Company reflects a mix of caution around rate case outcomes and deal related uncertainty, alongside some constructive views on regulatory progress and valuation.Narrative Update • Jun 02
AWK: Easing Regulatory Overhang And Infrastructure Investments Will Support A More Constructive Outlook
Analysts have trimmed the fair value estimate for American Water Works Company to $135.73 from $139.45, reflecting slightly higher discount rate assumptions, mixed Street price target revisions between about $130 and $140, and updated expectations around Pennsylvania regulatory outcomes and merger progress. Analyst Commentary Recent Street research on American Water Works Company has been mixed, with some analysts becoming more constructive on the stock while others are trimming price targets and staying cautious around regulatory and earnings assumptions.Narrative Update • Apr 23
AWK: Governance Changes And Steady Execution Will Support A Neutral Yet Guarded Outlook
Narrative Update Analysts have lifted the blended price target for American Water Works Company by about $1 to roughly $139, citing updated views on long term revenue growth, profit margin resilience, and a modestly higher future P/E outlook informed by recent research from Wells Fargo, Truist, and Barclays. Analyst Commentary Recent research points to a cautiously constructive stance on American Water Works Company, with price target changes and a neutral initiation reflecting a balance between confidence in the business model and awareness of execution and valuation risks.Narrative Update • Apr 08
AWK: Essential Utilities Merger Prospects Will Support A Neutral Yet Guarded Outlook
Analysts have inched their fair value estimate for American Water Works Company up to $138.50 from $137.70, reflecting updated assumptions on revenue growth, profit margins and future P/E, as well as recent research that highlights potential upside if the proposed Essential Utilities merger ultimately goes through. Analyst Commentary Recent Street research signals a more balanced view on American Water Works Company, with some prior concerns seen as already reflected in the share price and the proposed Essential Utilities merger emerging as a key swing factor for valuation and execution risk.Narrative Update • Mar 24
AWK: Pending Essential Utilities Merger Will Shape Neutral Yet Balanced Outlook
Analysts recently raised their price target on American Water Works Company to $139 from $117, highlighting their view that earlier concerns are already reflected in the stock. They also noted that these concerns could be further addressed if the pending Essential Utilities merger is ultimately approved.Narrative Update • Mar 09
AWK: Neutral Stance And Merger Vote Will Shape Fairly Balanced Outlook
Analysts have trimmed their fair value estimate for American Water Works Company to $137.70 from $138.40, reflecting updated assumptions around revenue growth, profitability and future P/E multiples in light of recent research that highlights both prior concerns and potential benefits if the Essential Utilities merger is ultimately approved. Analyst Commentary Recent research has shifted tone on American Water Works, with some prior concerns seen as already reflected in the share price and more attention now on how the proposed Essential Utilities merger could reshape the risk and reward profile.Narrative Update • Feb 22
AWK: Merger Vote And Neutral Rating Will Frame A Balanced Outlook
Analysts have inched their price target for American Water Works Company slightly lower from $138.70 to $138.40, reflecting updated views on revenue, profit margins and future P/E assumptions, while acknowledging that potential merger approval could reduce some of the key risks they previously highlighted. Analyst Commentary Bullish Takeaways Bullish analysts see the move to a Neutral stance and the shift in target toward about $139 as a signal that earlier concerns around valuation and risk are now more fully reflected in the share price.Narrative Update • Feb 08
AWK: Essential Utilities Merger Path Will Shape A More Constructive Outlook
Analysts have trimmed their fair value estimate for American Water Works Company from $143.00 to $138.70, citing slightly higher discount rate assumptions, a modestly lower future P/E outlook, and updated expectations around revenue growth, margins, and the potential impact of the Essential Utilities merger. Analyst Commentary Recent Street research has focused heavily on how the proposed Essential Utilities merger could reshape the risk and reward profile for American Water Works Company.Narrative Update • Jan 12
AWK: Merger Path And EPS Guidance Will Shape A Measured Outlook
Analysts have trimmed their fair value estimate for American Water Works Company to $143 from about $143.78, reflecting slightly softer revenue growth assumptions, a higher discount rate, and a modestly lower future P/E multiple, even as they factor in merger potential highlighted in recent rating and price target changes across the Street. Analyst Commentary Recent Street research on American Water Works Company reflects a mixed but generally balanced stance, with several firms resetting ratings and targets around the proposed merger with Essential Utilities and broader sector views on utilities.Narrative Update • Oct 27
Regulatory Reforms And Demand Trends Will Sustain Utilities Sector Momentum
Analysts have modestly increased their fair value estimate for American Water Works Company from $141.11 to $143.78 per share. They cite solid sector fundamentals and ongoing earnings growth prospects as the reasons for this adjustment.Narrative Update • Sep 21
Urbanization And Regulatory Reforms Will Drive Water Utility Expansion
The marginal decrease in American Water Works Company's Future P/E multiple, while revenue growth forecasts remain stable, has led to a slight downward revision in its consensus analyst price target to $141.11. What's in the News American Water Works Company completed a $1 billion follow-on equity offering, issuing 7,042,254 common shares at $142 each with a $2.343 discount per share.Seeking Alpha • Apr 16
American Water Works Is Fairly Valued But Debt A Concern, Hold Maintained
Summary We are maintaining a hold rating on American Water Works due to shares selling at a fair valuation, insider selling, a potential pullback, low dividend yield, debt and other factors. The stock is not very volatile because institutions own a vast majority of shares, but there are concerns about the debt-to-equity ratio. Clean water and wastewater services and infrastructure development make American Water Works a long term worthwhile hold and potentially a growth investment. Read the full article on Seeking AlphaSeeking Alpha • Feb 03
American Water Works: A Compelling Buying Opportunity On Long-Term Return Potential
Summary American Water Works, a utility company that provides water and wastewater services in the IUS, is now a $24 billion (by market cap) water utility giant. AWK estimates that its monthly water bill to its customers is less than 1% of median household income. The company increased its dividend for 17 consecutive years, with a 10-year dividend growth rate of 9.5%. American Water Works increased its revenue from $3 billion to $4.2 billion in FY 2023, a compound annual growth rate of 3.8%. Read the full article on Seeking AlphaSeeking Alpha • Dec 19
American Water Works: Time To Buy This Water Utility Now
Summary Since my previous article, shares of American Water Works have declined 13%. The water utility reaffirmed its long-term diluted EPS growth outlook of 7% to 9% annually. AWK's debt-to-capital ratio remains below its long-term target of 60% or better. The water utility's shares could be priced at a 14% discount to fair value. AWK stock could be poised to deliver approximately 30% cumulative total returns through 2026. Read the full article on Seeking AlphaSeeking Alpha • Oct 11
Don't Dive Into American Water Works Company
Summary American Water Works is a moderately profitable utility, with growth driven by acquisitions. The stock is overvalued compared to sector medians of the utilities industry. Analysts predict AWK's share price could reach $142-144, but we doubt it will break $140; the stock remains a hold opportunity. Risks include high PE ratios, low dividend yield, rising debt, and hedge fund selling; another quarterly miss could lead to a price drop. Despite essential services and growth potential, AWK's low dividend yield and price volatility make it a questionable investment for retail value investors. Read the full article on Seeking AlphaRevenue & Expenses Breakdown
Revenue & Expenses Breakdown
How American Water Works Company makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 30 Jun 26 | 5,284 | 1,128 | -18 | 0 |
| 31 Mar 26 | 5,205 | 1,102 | -17 | 0 |
| 31 Dec 25 | 5,140 | 1,111 | -16 | 0 |
| 30 Sep 25 | 5,070 | 1,112 | -17 | 0 |
| 30 Jun 25 | 4,942 | 1,083 | -20 | 0 |
| 31 Mar 25 | 4,815 | 1,071 | -23 | 0 |
| 31 Dec 24 | 4,684 | 1,051 | -28 | 0 |
| 30 Sep 24 | 4,515 | 983 | -29 | 0 |
| 30 Jun 24 | 4,359 | 956 | -31 | 0 |
| 31 Mar 24 | 4,307 | 959 | -32 | 0 |
| 31 Dec 23 | 4,234 | 944 | -32 | 0 |
| 30 Sep 23 | 4,133 | 920 | -45 | 0 |
| 30 Jun 23 | 4,048 | 894 | -55 | 0 |
| 31 Mar 23 | 3,888 | 832 | -67 | 0 |
| 31 Dec 22 | 3,792 | 820 | -77 | 0 |
| 30 Sep 22 | 3,812 | 1,318 | -77 | 0 |
| 30 Jun 22 | 3,822 | 1,299 | -78 | 0 |
| 31 Mar 22 | 3,884 | 1,288 | -77 | 0 |
| 31 Dec 21 | 3,930 | 1,263 | -78 | 0 |
| 30 Sep 21 | 3,902 | 763 | -71 | 0 |
| 30 Jun 21 | 3,889 | 749 | -63 | 0 |
| 31 Mar 21 | 3,821 | 718 | -56 | 0 |
| 31 Dec 20 | 3,777 | 709 | -49 | 0 |
| 30 Sep 20 | 3,756 | 662 | -41 | 0 |
| 30 Jun 20 | 3,690 | 638 | -33 | 0 |
| 31 Mar 20 | 3,641 | 632 | -25 | 0 |
| 31 Dec 19 | 3,610 | 621 | -16 | 0 |
| 30 Sep 19 | 3,558 | 635 | -22 | 0 |
| 30 Jun 19 | 3,521 | 582 | -23 | 0 |
| 31 Mar 19 | 3,492 | 574 | -21 | 0 |
| 31 Dec 18 | 3,440 | 567 | -20 | 0 |
| 30 Sep 18 | 3,411 | 454 | -8 | 0 |
| 30 Jun 18 | 3,371 | 470 | -1 | 0 |
| 31 Mar 18 | 3,362 | 439 | 3 | 0 |
| 31 Dec 17 | 3,357 | 426 | 9 | 0 |
| 30 Sep 17 | 3,338 | 528 | 21 | 0 |
| 30 Jun 17 | 3,332 | 473 | 19 | 0 |
| 31 Mar 17 | 3,315 | 479 | 17 | 0 |
| 31 Dec 16 | 3,302 | 468 | 5 | 0 |
| 30 Sep 16 | 3,283 | 466 | 14 | 0 |
| 30 Jun 16 | 3,249 | 492 | 14 | 0 |
| 31 Mar 16 | 3,204 | 478 | 14 | 0 |
| 31 Dec 15 | 3,159 | 476 | 14 | 0 |
| 30 Sep 15 | 3,107 | 471 | 15 | 0 |
Quality Earnings: AWK has high quality earnings.
Growing Profit Margin: AWK's current net profit margins (21.3%) are lower than last year (21.9%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: AWK's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: AWK's earnings growth over the past year (4.2%) exceeds its 5-year average (1.7% per year).
Earnings vs Industry: AWK earnings growth over the past year (4.2%) did not outperform the Water Utilities industry 4.2%.
Return on Equity
High ROE: AWK's Return on Equity (9.7%) is considered low.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/09/09 03:51 |
| End of Day Share Price | 2026/09/09 00:00 |
| Earnings | 2026/06/30 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
American Water Works Company, Inc. is covered by 30 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| John Staszak | Argus Research Company |
| Benjamin Kallo | Baird |
| Nicholas Campanella | Barclays |