Oct 29 (Reuters) - American Water Works ( AWK ) on

Wednesday forecast its 2026 profit below expectations amid

rising expenses for the water and wastewater utility company.

The company has previously flagged higher employee- and

technology-related costs, along with increased expenses tied to

acquisitions.

On Wednesday, the company said it expects 2026 profit of

$6.02 to $6.12 per share, the midpoint of which is below

analysts' estimates of $6.12 per share, according to data

compiled by LSEG.

This follows the company's announcement to acquire Essential

Utilities ( WTRG ) to create a combined company worth $63

billion including debt.

American Water Works ( AWK ) said its 2026 profit forecast did not

include expenses related to that transaction.

It reported a third-quarter profit of $1.94 per share, above

expectations of $1.88 per share.

Operating revenue was $1.45 billion, also above estimates of

$1.35 billion.