American Water Sets 2027 EPS Outlook and Narrows 2026 Range After Q3

American Water Works set its first standalone outlook for 2027 on Wednesday, guiding to adjusted earnings of $6.53 to $6.63 a share, or 8% growth at the midpoint, and narrowed its 2026 forecast to the top half of its prior range.

The largest regulated U.S. water and wastewater utility now expects 2026 adjusted EPS of $6.07 to $6.12, compared with $6.02 to $6.12 before, according to its third-quarter earnings release filed with an 8-K on Wednesday.

Steady quarter, higher adjusted profit

Third-quarter GAAP earnings were flat at $1.94 a share. Adjusted earnings, which strip out weather, merger transaction costs and other items, rose to $2.00 a share from $1.89 a year earlier.

Net income attributable to common shareholders was $387 million, compared with $379 million, and operating revenues increased to $1.51 billion from $1.451 billion.

New customer rates did most of the work. The company said revenue gains from completed rate cases and infrastructure proceedings were partially offset by higher depreciation, financing and operating costs. Unfavorable weather trimmed third-quarter operating revenues by $18 million.

Net income at the Regulated Businesses rose to $407 million from $383 million.

"The company has delivered solid results to date in 2026, including key regulatory outcomes that provide for a reasonable and timely return on the investments made for the benefit of our customers," President and CEO John Griffith said in the release.

Rates, capital and long-term targets

Since Jan. 1, regulators have authorized $284 million of additional annualized revenues, including $179 million from general rate cases and $105 million from infrastructure surcharges, the company said. It has general rate cases in progress in five jurisdictions and infrastructure surcharge filings in two, seeking a combined $360 million in annualized revenue.

American Water invested $2.8 billion through September, including $437 million for regulated acquisitions, and remains on track for about $3.7 billion in 2026. It added about 81,000 customer connections through acquisitions, including the Nexus Water systems.

The company affirmed its standalone long-term targets, including 7% to 9% EPS growth, 8% to 9% rate base growth and 7% to 9% dividend growth. It updated its standalone capital plan to more than $20 billion for 2026 through 2030 and set 2027 capital investment at $4.1 billion.

Essential Utilities deal on track

On the pending merger with Essential Utilities, three states have approved the deal and settlements have been reached in Pennsylvania, North Carolina and Texas, according to the release.

"We continue to work toward closing the merger with Essential Utilities by the end of the first quarter of 2027 as anticipated," Griffith said.

The board on Oct. 27 declared a quarterly dividend of $0.8950 a share, payable Dec. 1 to shareholders of record on Nov. 12. The company will hold a conference call at 9 a.m. ET on Thursday.

Sources

1. American Water Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001410636-26-000150)

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