分组1 - American Water Works reported quarterly earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.28 per share, but showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of -3.13% [1] - The company posted revenues of $1.27 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.87%, compared to year-ago revenues of $1.2 billion [2] - Over the last four quarters, American Water Works has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] 分组2 - The stock has added about 2.3% since the beginning of the year, outperforming the S&P 500, which has shown zero return [3] - The current consensus EPS estimate for the coming quarter is $1.13 on $1.16 billion in revenues, and for the current fiscal year, it is $6.11 on $5.18 billion in revenues [7] - The Zacks Industry Rank for Utility - Water Supply is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Exhibit 99.1 February 18, 2026 Investor Contact: Aaron Musgrave Vice President, Investor Relations 856-955-4029 aaron.musgrave@amwater.com Media Contact: Maureen Duffy Executive Vice President, Communications and External Affairs 856-955-4163 maureen.duffy@amwater.com The company affirms its 2026 adjusted EPS guidance range of $6.02 to $6.12 (non-GAAP) compared to adjusted EPS in 2025 of $5.64 (non-GAAP). The 2026 adjusted EPS guidance range does not include (i) transaction costs to be incurred by the compa ...

Core Viewpoint - American Water Works Company reported strong financial results for 2025, achieving adjusted earnings per share (EPS) of $5.64, a significant increase from $5.18 in 2024, and affirmed its 2026 EPS guidance range of $6.02 to $6.12, highlighting the benefits of its pending merger with Essential Utilities [1][2][3] Financial Performance - 2025 GAAP earnings were $5.69 per share, compared to $5.39 per share in 2024, with fourth quarter 2025 GAAP earnings remaining stable at $1.22 per share [1] - Adjusted earnings for the fourth quarter of 2025 were $1.24 per share, up from $1.15 per share in 2024, reflecting an overall increase in adjusted earnings for the year [1][2] - The company invested $3.2 billion in regulated operations in 2025, focusing on infrastructure improvements and completing 18 acquisitions across seven states [1][2] Revenue and Expenses - Operating revenues increased by $61 million and $427 million for the fourth quarter and full year 2025, respectively, primarily due to authorized revenue increases from completed rate cases and infrastructure proceedings [2] - Operating expenses rose by $36 million and $260 million for the fourth quarter and full year 2025, respectively, driven by higher employee-related costs and increased production costs [2][3] Merger and Future Guidance - The merger with Essential Utilities was overwhelmingly approved by shareholders, which is expected to enhance scale and growth potential for both companies [1] - The company affirmed its long-term financial targets, including an EPS and dividend growth rate target of 7-9% [1][2] Dividends - A quarterly cash dividend of $0.8275 per share was declared, payable on March 3, 2026, to shareholders of record as of February 10, 2026 [2]

Business Strategy and Growth - The company is focused on executing its current and long-term business, operational, and growth strategies, including a merger agreement with Essential Utilities, Inc. and the proposed acquisition of systems from Nexus Water Group, Inc.[10] - The company anticipates organic customer growth and aims to achieve its environmental and sustainability goals, including greenhouse gas emission reduction and water delivery efficiency improvements[10] - The company is actively working on technology development and strategic initiatives to improve operational efficiency and customer service[10] Financial Risks and Liquidity - The company is exposed to risks related to changes in interest rates, which could impact its ability to finance operations and capital expenditures[179] - The company plans to address regulatory lag through filings for rate adjustments and infrastructure surcharges, which may affect its liquidity and cash flows[10] - The company relied on a $2.75 billion revolving credit facility and a $2.60 billion commercial paper program to meet liquidity needs in 2025[184] - As of December 31, 2025, the company had $1,590 million in commercial paper outstanding and $84 million in outstanding letters of credit[184] - The company plans to issue a combination of short-term and long-term debt, as well as additional equity, over the next five years to meet capital expenditure needs[186] - The company must comply with covenants that limit consolidated debt to no more than 70% of consolidated capitalization[185] - Any significant write-down of goodwill could lead to a default under the revolving credit facility, increasing funding costs[185] - The company may need to take measures to conserve cash, such as delaying capital expenditures or reducing dividends, in case of market disruptions[186] Regulatory and Compliance Issues - The company is assessing the impacts of potential changes in governmental regulations and policies on its operations and financial performance[11] - The company is committed to maintaining compliance with environmental regulations and addressing emerging contaminants in water quality[12] - The combined company will face extensive regulatory compliance requirements, which may adversely affect revenue stability and operational costs[222] Merger and Acquisition Details - The proposed Essential merger will convert each share of Essential common stock into 0.305 shares of the parent company's common stock, with no adjustments for market price fluctuations[200] - The completion of the Essential merger is anticipated in the first quarter of 2027, subject to regulatory approvals and other closing conditions[201] - The company may incur a termination fee of $835 million if it terminates the Essential Merger Agreement under certain conditions[204] - The proposed merger is expected to be accretive to earnings per share in 2028, although this is subject to change based on transaction and integration costs[210] - The proposed Essential merger is expected to incur approximately $150 million in merger-related costs prior to closing, with $13 million already incurred for the year ended December 31, 2025[214] - Following the merger, parent company shareholders will own an estimated 69% of the combined company, while Essential's shareholders will own 31% on a fully diluted basis[215] - The merger may trigger change in control provisions in existing agreements, potentially leading to adverse impacts on business operations and financial condition[217] Operational Challenges and Integration - Integration of Essential's operations may be complex, potentially leading to disruptions and increased costs[208] - The company faces risks associated with aging infrastructure and the need for updates or replacements, which could impact operational growth projections[12] - The success of the merger will depend on the combined company's ability to execute its business strategy effectively, with risks of not realizing anticipated benefits[221] - The combined company's business size will significantly increase, necessitating effective management of expanded operations to avoid adverse impacts on financial performance[220] - The company’s success is contingent upon attracting and retaining skilled employees, which may be challenged by market conditions and the merger[227] Market and Economic Conditions - The company is monitoring customer demand changes and patterns of water and energy use, which may result from conservation efforts[11] - The company faces risks related to market volatility affecting pension and postretirement benefit plan assets, which could increase funding requirements[199] - Changes in market conditions or business performance could lead to impairments in goodwill or other assets, negatively impacting financial results[198] - The ability to pay dividends may be impacted by cash flow changes, Board decisions, and compliance with Delaware law, with no assurance of maintaining current dividend rates[213][219] - The company may incur substantial unexpected transaction fees related to the merger, which could offset anticipated efficiencies from integration[214]

Core Points - New Jersey American Water has launched the 2026 American Water Charitable Foundation Water and Environment Grant Program, inviting community partners to apply for grants focused on clean water, conservation, environmental education, climate variability, and water-based recreation projects [1] - In 2025, the Foundation awarded a total of $1.7 million in grants to 80 organizations across 12 states, including nine organizations based in New Jersey [1] - The American Water Charitable Foundation has invested over $25 million in funding since 2012, supporting eligible organizations in communities served by American Water [1] Company Overview - American Water is the largest regulated water and wastewater utility company in the United States, providing services to over 14 million people across 14 states and 18 military installations [1] - New Jersey American Water, a subsidiary of American Water, serves approximately 2.9 million people in New Jersey [1] Philanthropic Efforts - The Foundation focuses on three pillars of giving: Water, People, and Communities, and is funded by American Water shareholders without impacting customer rates [1] - Applications for the grant program will be accepted until March 6, 2026 [1]

Board Chair Karl Kurz called the meeting to order at 10:01 a.m. Eastern Time and noted the special meeting was being held solely via remote communication, as permitted by the company’s bylaws. He said the virtual format was intended to permit broad access for shareholders and shareholder employees. Kurz added that members of the public were allowed to listen through the virtual platform in a listen-only mode.American Water Works Doesn’t Come Cheap, but it May be Worth ItAccording to Griffith, the combined c ...

Core Insights - American Water Works (AWK) shares increased by 3.8% to $128.37, following a significant trading volume, contrasting with a 6.6% decline over the past four weeks [1] Group 1: Company Performance - AWK generates 100% of its net income from regulated operations, focusing on expanding these operations through capital investments, which has resulted in stable returns and increased shareholder value [2] - The company is expected to report quarterly earnings of $1.28 per share, reflecting a year-over-year increase of 4.9%, with revenues projected at $1.22 billion, up 1.9% from the previous year [4] Group 2: Mergers and Acquisitions - AWK and Essential Utilities have received shareholder approval for their merger, which is anticipated to enhance efficiencies, financial strength, and long-term value through improved scale and service delivery [3] Group 3: Earnings Estimates and Market Trends - The consensus EPS estimate for AWK has been revised 1.1% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] - Essential Utilities, a peer in the same industry, has seen its EPS estimate decrease by 1.9% over the past month, representing a significant year-over-year decline of 46.3% [6]

Core Viewpoint - American Water Works Company (AWK) is set to release its fourth-quarter 2025 results on February 18, with an earnings surprise of 2.11% in the previous quarter [1] Group 1: Q4 Expectations - The Zacks Consensus Estimate for AWK's earnings is $1.28 per share, reflecting a year-over-year increase of 4.92% [2] - The consensus estimate for revenues stands at $1.22 billion, indicating a growth of 1.89% compared to the same quarter last year [2] Group 2: Factors Influencing Q4 Performance - AWK's fourth-quarter earnings are expected to benefit from new rates implemented on January 1, 2025, which are projected to increase annual revenues by $275 million [3] - Systematic capital investment for infrastructure upgrades and efficient cost management strategies have helped keep utility rates low, attracting new customers and contributing positively to quarterly performance [4] - The company continues to expand its customer base and service area through acquisitions, which are anticipated to have positively impacted fourth-quarter results, along with synergies from completed acquisitions [5] Group 3: Earnings Prediction - The current model does not predict an earnings beat for AWK, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6][7]

Core Viewpoint - American Water Works Company, Inc. (AWK) has shown underperformance compared to the broader market and specific water-related ETFs despite reporting stronger-than-expected earnings in Q3. Financial Performance - AWK reported Q3 operating revenue of $1.5 billion, a 9.7% increase year-over-year, exceeding consensus estimates by 9.8% [5] - Earnings per share (EPS) grew 7.8% from the previous year to $1.94, surpassing analyst expectations by 2.1% [5] - For the current fiscal year, analysts project AWK's EPS to grow 6.3% year-over-year to $5.73 [6] Market Comparison - Over the past 52 weeks, AWK shares have gained only 1.6%, while the S&P 500 Index has increased by 14.4% [2] - AWK has also underperformed the Invesco Global Water ETF (PIO), which rose 17.9% over the same period [3] Cost and Debt Concerns - Operating expenses increased by 7.3% year-over-year to $837 million, raising concerns among investors [5] - Total long-term debt rose by 4% to $13 billion [5] Analyst Ratings - Among 13 analysts covering AWK, the consensus rating is a "Hold," with two "Strong Buy," ten "Hold," and one "Strong Sell" ratings [6] - The configuration of analyst ratings has become less bullish compared to a month ago, with three analysts suggesting a "Strong Buy" [8] - Barclays PLC maintained a "Sell" rating on AWK with a price target of $122 [9]

Core Viewpoint - American Water Works Company, Inc. and Essential Utilities, Inc. have received overwhelming shareholder approval for their proposed merger, with approximately 99% of American Water's shares and nearly 95% of Essential Utilities' shares voting in favor of the transaction [1]. Company Overview - American Water is the largest regulated water and wastewater utility company in the U.S., serving over 14 million people across 14 states and 18 military installations [1]. - Essential Utilities provides water, wastewater, and natural gas services to approximately 5.5 million people across nine states, focusing on sustainable growth and operational excellence [1]. Merger Details - The merger is expected to close by the end of the first quarter of 2027, pending customary closing conditions and regulatory approvals [1]. - The merger will enhance the combined company's ability to deliver reliable services and improve operational efficiencies [1]. Shareholder Support - Shareholders of both companies expressed strong confidence in the merger, indicating a positive outlook for the transaction [1].