AWK earnings analysis
What we found in AWK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 5.7% YoY
- Q1 2026 revenues rose to $1.207 billion, up from $1.142 billion in Q1 2025.
- Stable Gross Margin
- Gross margin remains at 100%, consistent with the previous quarter and year.
- Operating Costs Increase
- Operating expenses were $493 million, reflecting rising costs impacting overall profitability.
- Segment Growth from Surcharges
- New infrastructure surcharges authorized are expected to yield additional revenues of $53 million annually.
- EPS Performance
- GAAP EPS decreased to $1.00 from $1.05 in Q1 2025.
- Merger Transactions Impact
- Transaction costs of $3 million associated with the merger with Essential Utilities were noted.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Regulatory Approval Delays
- Ongoing regulatory approvals related to settlement payments could delay revenue recognition.
- Market Competition Pressure
- Increasing competition in the utility sector poses risks to maintaining revenue growth.
- Cost Increases Impacting Margins
- Higher operational and financing costs dampened margins, contributing to lower EPS.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1
- Gross margin
- 100%
What they said about what is next.
Management anticipates growth from regulatory approvals and ongoing infrastructure investments.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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