American Water Works (AWK)
NYSEUtilitiesUtilities - Regulated WaterSnapshot 2026-07-08
$131.85-2.20%
Close 2026-07-08 · 1-day change
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Track AWK free→Warn: Management is running behind on a stated commitment.
American Water plans to earn about $6.07 per share in 2026. It aims to grow earnings and dividends 7-9% yearly. The company seeks $518 million in new rates to support growth. It plans to invest $3.7 billion in infrastructure this year.
The company missed earnings in recent quarters. Rate requests face legal challenges. The merger with Essential Utilities may delay or fail. These risks could hurt growth and profits.
The stock price is about 13% above our fair value near $119. Analysts expect about 7% revenue growth. Our fair value is below the Street median of $137.
Breaks if: Capital investment falls below $3.2 billion in FY26
Invest approximately $3.7 billion in infrastructure improvements and acquisitions across the company's footprint in 2026.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. The company invested $3.2 billion in 2025 and plans to increase capital investment to approximately $3.7 billion in 2026. This reflects a growing capital allocation to infrastructure and acquisitions. The trajectory is delivering increased investment consistent with stated plans.
“The company plans to invest approximately $3.7 billion across its footprint in 2026, including acquisitions.”
“Invested $3.2 billion in capital in 2025, driven by system need in support of water quality and reliability.”
“Announcing 2026-2030 capital plan of $19 to $20 billion and 2026 capital investment plan of $3.7 billion.”
Breaks if: Adjusted EPS falls below $6.02 in FY26
Continue to deliver adjusted EPS in the range of $6.02 to $6.12 for 2026 and maintain long-term EPS and dividend growth targets of 7-9%.
Stated as a priority in 4 of last 4 quarters. The company affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12 and long-term EPS and dividend growth targets of 7-9%. Adjusted EPS was $1.01 in 2026-Q1 compared to $1.02 in 2025-Q1, showing stable performance. The trajectory is delivering consistent affirmation of growth targets.
“2026 EPS guidance range of $6.02 to $6.12 affirmed and long-term targets of 7-9% EPS and dividend growth.”
“Affirms 2026 adjusted EPS guidance range of $6.02 to $6.12 and long-term EPS and dividend growth targets of 7-9%.”
“Initiating 2026 EPS guidance range of $6.02 to $6.12 and affirming long-term targets of 7-9%.”
“Affirmed long-term EPS and dividend growth targets of 7-9%.”
Breaks if: Merger not completed by end of Q1 2027
Advance merger integration planning and obtain regulatory approvals to close merger with Essential Utilities by end of Q1 2027.
Stated as a priority in 3 of last 3 quarters. Management has consistently communicated progress on merger integration planning and expects to close the merger with Essential Utilities by end of Q1 2027, subject to regulatory approvals. The trajectory shows ongoing focus and regulatory milestones achieved.
“Encouraged with progress in merger integration planning and received first state regulatory approval for merger last week in Kentucky.”
“Shareholders overwhelmingly approved merger-related proposals; merger expected to close by end of Q1 2027.”
“Announced merger agreement with Essential Utilities; expected closing Q1 2027 subject to regulatory approvals.”
Breaks if: Annualized revenue requests fall below $346 million
Pursue general rate cases and infrastructure surcharge approvals to increase authorized revenues and support capital investments.
Stated as a priority in 4 of last 4 quarters. The company has actively pursued regulatory rate adjustments with total annualized revenue requests increasing from $346 million in 2025-Q2 to $518 million in 2026-Q1. This supports revenue growth aligned with capital investments. The trajectory shows consistent regulatory activity and progress.
“General rate cases in progress in five jurisdictions and filed for infrastructure surcharge in one, total annualized revenue request $518 million.”
“General rate cases in progress in seven jurisdictions and filed for three infrastructure surcharges, total annualized revenue request $573 million.”
“General rate cases in progress in four jurisdictions and filed for infrastructure surcharges in two, total annualized revenue request $141 million.”
“Authorized additional annualized revenues of $346 million with $256 million from general rate cases and $90 million from infrastructure surcharges.”