10-K · February 18, 2026
American Water’s 2025 10-K highlights continued top-line expansion in its Regulated Businesses (operating revenues of $4,723 million in 2025, up from $4,296 million in 2024 and $3,920 million in 2023) while the company…
Earnings analysis · 10-Q
AWK earnings analysis
Filed April 29, 2026 · Our reading of the company's report
The latest report
In the Q1 2026 10-Q filing, American Water Works Company (AWK) reported revenues of $1.207 billion, a 5.7% increase compared to $1.142 billion in Q1 2025. Gross margins are steady at 100%, while GAAP EPS decreased to…
Read full summary
In the Q1 2026 10-Q filing, American Water Works Company (AWK) reported revenues of $1.207 billion, a 5.7% increase compared to $1.142 billion in Q1 2025. Gross margins are steady at 100%, while GAAP EPS decreased to $1.00 from $1.05 year-over-year. Segment growth driven by infrastructure surcharge authorizations is seen, although operating costs increased, affecting net income. Management highlights growth through capital investments and expects to capitalize on ongoing regulatory approvals.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1
- Gross margin
- 100%
What stood out
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Revenue Growth of 5.7% YoY
Q1 2026 revenues rose to $1.207 billion, up from $1.142 billion in Q1 2025.
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Stable Gross Margin
Gross margin remains at 100%, consistent with the previous quarter and year.
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Operating Costs Increase
Operating expenses were $493 million, reflecting rising costs impacting overall profitability.
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Segment Growth from Surcharges
New infrastructure surcharges authorized are expected to yield additional revenues of $53 million annually.
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EPS Performance
GAAP EPS decreased to $1.00 from $1.05 in Q1 2025.
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Merger Transactions Impact
Transaction costs of $3 million associated with the merger with Essential Utilities were noted.
What to watch
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Regulatory Approval Delays
Ongoing regulatory approvals related to settlement payments could delay revenue recognition.
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Market Competition Pressure
Increasing competition in the utility sector poses risks to maintaining revenue growth.
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Cost Increases Impacting Margins
Higher operational and financing costs dampened margins, contributing to lower EPS.
Management's outlook
Management anticipates growth from regulatory approvals and ongoing infrastructure investments.
Earlier filings 4
10-Q · April 30, 2025
American Water reported Q1 operating revenues of $1,142 million (up $131 million vs. Q1 2024's $1,011 million) and diluted EPS of $1.05 (up $0.10 vs. $0.95 in Q1 2024). Operating income rose to $371 million from $326…
10-K · February 19, 2025
American Water emphasizes its position as the largest publicly-traded U.S. water and wastewater utility, with Regulated Businesses generating $4,296 million in operating revenues in 2024 and serving roughly 3.5 million…
10-Q · July 31, 2024
Q2 results showed modest revenue growth and higher operating income but slight EPS compression versus prior year. Operating revenues rose to $1,149 million (up $52 million, +4.7% vs $1,097 million in Q2 2023) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.