American Water Works reported mixed first quarter 2026 results, with revenues beating analyst expectations while adjusted earnings per share missed. The company affirmed its full-year 2026 guidance and announced a larger-than-expected dividend increase.
Key Highlights
- Adjusted first quarter earnings of $1.01 per share missed the consensus estimate of $1.10, with higher operating and financing costs offsetting revenue gains from new rates.
- The board of directors announced a new quarterly dividend of $0.8950 per share, an increase of 8.2% that surpassed the anticipated 6.3% hike.
- Management affirmed its full-year 2026 adjusted EPS guidance range of $6.02 to $6.12 and its long-term EPS and dividend growth targets of 7-9%.
- Operating revenues increased by $62 million year-over-year, driven by authorized revenue increases from completed general rate cases and infrastructure proceedings.