Description

American Water Works’ $236 Million Acquisition Pipeline — Can Consolidation Pay Off? – Major Drivers, Financial Forecasts, DCF & Comparable Valuation, ESG & Other Risks (9/26)

American Water Works Company, Inc. reported solid second-quarter and first-half 2026 results, with adjusted EPS of $1.61 in Q2 versus $1.49 a year earlier, representing slightly more than 8% growth. Year-to-date adjusted EPS reached $2.62 compared with $2.51 in the same period of 2025. Results were supported mainly by authorized rate increases that enabled recovery of capital investments across its 14-state footprint. Operating and maintenance costs remained flat year-over-year, demonstrating cost discipline despite expected increases in depreciation, financing costs, and general taxes. American Water invested $1.8 billion in capital expenditures and acquisitions year-to-date to renew infrastructure, improve resiliency, and address water quality. The company completed its Nexus Water systems acquisition ahead of schedule, adding approximately 47,000 customers and 70 local employees. An additional 57,000 customer connections are under agreement across six states, representing approximately $236 million of transactions.