Overview

* American Water Q2 revenue of $1.276 bln beats analyst expectations, per LSEG data

* EPS for Q2 2025 rises to $1.48 from $1.42 in 2024

* Co narrows 2025 EPS guidance to $5.70-$5.75, affirms long-term targets

Outlook

* American Water narrows 2025 EPS guidance to $5.70-$5.75 from $5.65 to $5.75

* Company affirms long-term EPS and dividend growth targets of 7-9%

Result Drivers

* REVENUE INCREASE - Higher operating revenues from new rates and acquisition investments

* OPERATING COSTS - Increased costs due to employee, technology, and depreciation expenses

* WEATHER IMPACT - Net unfavorable weather impact of $0.06 per share

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.28 $1.22

Revenue bln bln (4

Analysts

)

Q2 Net $289 mln

Income

Q2 $787 mln

Operatin

g

Expenses

Q2 $489 mln

Operatin

g Income

Q2 $376 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the water & related utilities peer group is "buy."

* Wall Street's median 12-month price target for American Water Works Co Inc ( AWK ) is $147.50, about 4.4% above its July 29 closing price of $140.95

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)