American Water Works pany(US:AWK) Prnewswire·2026-02-18 21:35Core Viewpoint - American Water Works Company reported strong financial results for 2025, achieving adjusted earnings per share (EPS) of $5.64, a significant increase from $5.18 in 2024, and affirmed its 2026 EPS guidance range of $6.02 to $6.12, highlighting the benefits of its pending merger with Essential Utilities [1][2][3] Financial Performance - 2025 GAAP earnings were $5.69 per share, compared to $5.39 per share in 2024, with fourth quarter 2025 GAAP earnings remaining stable at $1.22 per share [1] - Adjusted earnings for the fourth quarter of 2025 were $1.24 per share, up from $1.15 per share in 2024, reflecting an overall increase in adjusted earnings for the year [1][2] - The company invested $3.2 billion in regulated operations in 2025, focusing on infrastructure improvements and completing 18 acquisitions across seven states [1][2] Revenue and Expenses - Operating revenues increased by $61 million and $427 million for the fourth quarter and full year 2025, respectively, primarily due to authorized revenue increases from completed rate cases and infrastructure proceedings [2] - Operating expenses rose by $36 million and $260 million for the fourth quarter and full year 2025, respectively, driven by higher employee-related costs and increased production costs [2][3] Merger and Future Guidance - The merger with Essential Utilities was overwhelmingly approved by shareholders, which is expected to enhance scale and growth potential for both companies [1] - The company affirmed its long-term financial targets, including an EPS and dividend growth rate target of 7-9% [1][2] Dividends - A quarterly cash dividend of $0.8275 per share was declared, payable on March 3, 2026, to shareholders of record as of February 10, 2026 [2]