American Water Works pany(AWK) - 2025 Q3 - Quarterly Results

Earnings Performance - Third quarter 2025 earnings per share were $1.94, up from $1.80 in the same quarter of 2024, and year-to-date earnings per share were $4.47, compared to $4.17 in 2024, reflecting a 7.2% increase[4] - Weather-normalized year-to-date earnings per share for 2025 were $4.47, a 9% increase from $4.10 in 2024[5] - The company affirmed 2025 weather-normalized earnings per share guidance range of $5.70 to $5.75, including $0.10 per share of incremental interest income from the amended Homeowner Services Group note[7] - The 2026 earnings per share guidance range is set at $6.02 to $6.12, reflecting an 8% growth at the midpoint compared to 2025 guidance[11] - Basic earnings per share for Q3 2025 were $1.94, up from $1.80 in Q3 2024, representing a 7.8% increase[28] Revenue and Income - Operating revenues increased by $124 million and $366 million for the three and nine months ended September 30, 2025, respectively, primarily due to authorized revenue increases from rate cases and infrastructure proceedings[12] - Operating revenues for Q3 2025 reached $1,451 million, a 9.7% increase from $1,323 million in Q3 2024[28] - Operating income for the nine months ended September 30, 2025, was $1,474 million, up 11.8% from $1,318 million in the same period of 2024[28] - Net income attributable to common shareholders for Q3 2025 was $379 million, compared to $350 million in Q3 2024, reflecting an increase of 8.3%[28] - The Regulated Businesses' net income for the third quarter of 2025 was $383 million, compared to $356 million in the same period of 2024, and $872 million for the first nine months, up from $815 million in 2024[11] Capital Investment and Plans - The company plans to invest approximately $3.2 billion across its footprint in 2025, with $2.2 billion already invested in the first nine months[10] - The company announced a capital investment plan of $19 to $20 billion for 2026-2030 and $46 to $48 billion for 2026-2035[11] Merger and Growth Potential - American Water is expecting to close its merger with Essential Utilities by the end of Q1 2027, which will enhance the scale and growth potential of the combined company[6] - The merger will result in a pro forma market capitalization of approximately $40 billion and a combined enterprise value of approximately $63 billion[17] Assets and Liabilities - Total assets as of September 30, 2025, were $34,748 million, an increase from $32,830 million as of December 31, 2024[30] - Cash and cash equivalents increased to $166 million as of September 30, 2025, compared to $96 million at the end of 2024[30] - Total common shareholders' equity increased to $10,907 million as of September 30, 2025, up from $10,332 million at December 31, 2024, representing a growth of 5.55%[31] - Long-term debt rose to $13,022 million from $12,518 million, reflecting an increase of 4.02%[31] - Current liabilities increased to $3,687 million, compared to $3,150 million, marking a rise of 17.04%[31] - Deferred income taxes and investment tax credits grew to $3,064 million from $2,881 million, an increase of 6.35%[31] - Total capitalization and liabilities reached $34,748 million, up from $32,830 million, indicating a growth of 5.83%[31] Expenses and Financial Management - The company reported total operating expenses of $837 million for Q3 2025, a 7.3% increase from $780 million in Q3 2024[28] - Interest expense for Q3 2025 was $158 million, compared to $132 million in Q3 2024, indicating a 19.7% increase[28] - The company is focused on maintaining operational efficiencies and controlling operating expenses to support the affordability of its regulated utility services[25] Other Financial Metrics - Retained earnings increased to $2,662 million, up from $2,112 million, showing a significant rise of 26%[31] - Short-term debt increased to $1,005 million from $879 million, reflecting a growth of 14.31%[31] - Total regulatory and other long-term liabilities rose to $5,514 million from $5,250 million, an increase of 5.04%[31] - Contributions in aid of construction increased to $1,615 million from $1,577 million, representing a growth of 2.41%[31] - Treasury stock at cost remained relatively stable, decreasing slightly from $392 million to $391 million[31]