American Water Works ( (AWK) ) has released its Q3 earnings. Here is a breakdown of the information American Water Works presented to its investors.
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American Water Works Company, Inc. is the largest regulated water and wastewater utility company in the United States, providing essential services to over 14 million people across 14 states and numerous military installations. The company is renowned for its commitment to delivering safe and reliable water and wastewater services, leveraging its significant expertise and national scale.
In its latest earnings report, American Water Works has announced strong financial results for the third quarter of 2024, with earnings per share (EPS) rising to $1.80 from $1.66 in the same period last year. The year-to-date 2024 EPS also showed growth, reaching $4.17 compared to $4.03 in 2023. The company affirmed its 2024 EPS guidance, demonstrating confidence in its financial trajectory.
Key financial highlights include the completion of the $230 million acquisition of the wastewater assets of Butler Area Sewer Authority in Pennsylvania, which will enhance the company’s customer base by approximately 15,000 connections. Additionally, American Water has outlined a robust capital investment plan, projecting $17-$18 billion between 2025 and 2029, with a long-term plan of $40-$42 billion through 2034. These investments are anticipated to support the company’s growth and infrastructure improvements, underpinning its long-term EPS and dividend growth targets of 7-9% compounded annually.
Further financial metrics reveal that operating revenues increased significantly, driven by new rates in the Regulated Businesses and strategic acquisition investments. However, the company also faced higher operating expenses due to increased employee-related costs and depreciation from ongoing capital investments. Despite these challenges, American Water’s strong financial foundation and strategic acquisitions position it well for future growth.
Looking ahead, American Water remains optimistic about its growth prospects, reaffirming its long-term financial targets and announcing a new EPS guidance range for 2025, reflecting an anticipated 8% growth. The company continues to focus on executing its strategic plans to drive shareholder value and ensure the provision of high-quality services to its customers.
