Financial Performance & Guidance - 2025 YTD EPS reached $2.53, driven by increased revenue from higher rate base and rate case outcomes, showing a 9.4% increase compared to 2024 on a weather-normalized basis[12] - The company narrowed its 2025 EPS guidance to the top half of the range, now expecting $5.70 to $5.75, reflecting an 8.6% EPS growth at the midpoint on a weather-normalized basis[9, 27, 28, 29] - The company affirms long-term financial targets of 7-9% EPS growth and 7-9% dividend per share growth, with a dividend payout ratio target of 55-60% and a debt to capital ratio of less than 60%[13, 15] - The company's projected dividend payout ratio for 2025 is 58%, based on projected cash dividends per share of $3.2475 and EPS guidance midpoint of $5.625, excluding $0.10 incremental interest from amended HOS seller note[56, 57] Capital Investments & Acquisitions - The company invested $1.3 billion in infrastructure improvements and acquisitions through June 30, 2025[12] - The company agreed to purchase Nexus Water Group systems in eight states for $315 million, adding nearly 47,000 customers[12] - The company anticipates ~$1 billion of capital expenditure related to PFAS treatment and up to ~$50 million annually for operating expenses in its 2025-2029 plan[71] Regulatory & Rate Cases - New rates became effective in 2025 in IL, CA, TN, VA, IN, MO, and IA; general cases were filed in KY, WV, and CA[12] - The company completed rate filings that are effective since January 1, 2025, which are expected to generate $232 million in additional annualized revenue from rate cases and $38 million from infrastructure charges, totaling $270 million[82, 83, 86] - The company has pending rate case filings requesting a total revenue increase of $123 million and pending infrastructure surcharges filings requesting $3 million, totaling $126 million[88]
American Water Works pany(AWK) - 2025 Q2 - Earnings Call Presentation