American Water Works Q3 Earnings Beat Estimates, Revenues Up Y/Y

American Water Works Company AWK reported third-quarter 2025 earnings per share (EPS) of $1.94, which beat the Zacks Consensus Estimate of $1.90 by 2.1%.The bottom line improved 7.8% from the year-ago quarter's level of $1.80, driven by higher year-over-year revenues and operating income growth.    Total Revenues of AWKAWK’s total quarterly revenues of $1.45 billion surpassed the Zacks Consensus Estimate of $1.32 billion by 19.6%. The top line also increased 9.8% from the year-ago figure of $1.32 billion, driven by the implementation of new rates in the Regulated Businesses from the recovery of capital and acquisition investments. American Water Works Company, Inc. Price, Consensus and EPS Surprise American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. QuoteAWK’s Segmental DetailsRegulated businesses’ net revenues were $1.34 billion, up 10.2% year over year.Others’ net revenues were $108 million, up 3.8% year over year.Highlights of AWK’s Q3 ReleaseTotal operating expenses for the third quarter were $837 million, up 7.3% from the year-ago quarter’s $780 million, on account of an increase in employee-related costs and technology related costs, as well as general taxes associated with increased capital investment, and other operation and maintenance costs related to acquisitions closed in 2024.The operating income totaled $614 million, up 13.1% from the year-ago figure of $543 million.The company entered into equity forward sale agreements in August 2025, with expectations to draw down total net proceeds of approximately $1.15 billion in mid-2026.Financial Highlights of AWKCash and cash equivalents amounted to $166 million as of Sept. 30, 2025, compared with $96 million as of Dec. 31, 2024.Total long-term debt was $13.02 billion as of Sept. 30, 2025, up 4% from $12.51 billion as of Dec. 31, 2024.For the nine months of 2025, AWK’s cash flow from operating activities amounted to $1.40 billion as of Sept. 30, 2025, compared with $1.41 million as of Sept. 30, 2024.Merger AnnouncementAlong with its third-quarter results release, the company mentioned its recently signed merger agreement with Essential Utilities, Inc., which was announced on Oct. 27, 2025. This merger is projected to create a leading regulated U.S. water and wastewater public utility, with a pro forma enterprise value of approximately $63 billion.Under the terms of the agreement, Essential shareholders will receive 0.305 shares of American Water for each share they own, representing a 10% premium and resulting in current American Water shareholders owning approximately 69% of the combined company.AWK’s Long-Term GuidanceAmerican Water reiterated its 2025 EPS guidance in the range of $5.70 to $5.75. The Zacks Consensus Estimate of $5.72 per share lies just below the midpoint of the company’s guided range.For 2026, the company expects to generate EPS in the range of $6.02 to $6.12. The Zacks Consensus Estimate of $6.14 per share lies above the company’s guided range.AWK plans to invest $3.7 billion in 2026.Over the long run, most of its outlook remains unchanged. The company still expects its long-term EPS and dividend growth to be 7-9% and rate base growth to be 8-9%. In terms of its long-term capital expenditure plan, AWK expects to invest $19-$20 billion during 2026-2030 and $46-$48 billion during 2026-2035.Zacks Rank of AWKAmerican Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Utility ReleasesFirstEnergy Corp.  FE reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 76 cents by 9.2%.FE’s long-term (three to five years) earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.53, indicating a year-over-year decline of 3.8%.NextEra Energy NEE posted third-quarter 2025 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.04 by 8.65%. NEE’s long-term earnings growth is currently pegged at 8.04%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.68, indicating year-over-year growth of 7.29%.CenterPoint Energy, Inc. CNP reported third-quarter 2025 adjusted earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 8.7%.CNP’s long-term earnings growth is currently pegged at 7.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.76, indicating year-over-year growth of 8.64%. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report FirstEnergy Corporation (FE): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report American Water Works Company, Inc. (AWK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks