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American Water Q1 Earnings Top Estimates on Effective New Rates
AWKAmerican Water Works pany(AWK) ZACKS·2025-05-01 16:00

Core Viewpoint - American Water Works Company (AWK) reported strong first-quarter 2025 results, with operating earnings per share (EPS) of 1.05,exceedingestimatesandshowingayear−over−yearimprovementof10.51.05, exceeding estimates and showing a year-over-year improvement of 10.5% from 0.95 [1] Financial Performance - Total revenues for the quarter reached 1.14billion,surpassingtheZacksConsensusEstimateof1.14 billion, surpassing the Zacks Consensus Estimate of 1.02 billion by 11% and increasing 12.9% from 1.01billioninthepreviousyear[2]−Operatingexpensestotaled1.01 billion in the previous year [2] - Operating expenses totaled 771 million, up 12.6% from 685millionayearago,primarilyduetoincreasedoperatingandmaintenancecosts[4]−Operatingincomewasreportedat685 million a year ago, primarily due to increased operating and maintenance costs [4] - Operating income was reported at 371 million, reflecting a 13.8% increase from 326millionintheprioryear[4]SegmentPerformance−Netrevenuesfromregulatedbusinesseswere326 million in the prior year [4] Segment Performance - Net revenues from regulated businesses were 1.04 billion, marking a 13% year-over-year increase [3] - Other net revenues amounted to 93million,up1293 million, up 12% year over year [3] Growth Initiatives - The company added 2,150 customers through three completed acquisitions as of April 30, 2025, with 18 pending acquisitions expected to add 37,400 customers [5] - New rates effective January 1, 2025, are projected to increase revenues by 161 million for the full year, with potential additional revenue of 384millionfrompendingratecases[5]FinancialPosition−Cashandcashequivalentsstoodat384 million from pending rate cases [5] Financial Position - Cash and cash equivalents stood at 114 million as of March 31, 2025, compared to 96millionattheendof2024[6]−Totallong−termdebtincreasedto96 million at the end of 2024 [6] - Total long-term debt increased to 13.32 billion, up 6.4% from 12.51billionattheendof2024[6]−Cashflowfromoperatingactivitieswas12.51 billion at the end of 2024 [6] - Cash flow from operating activities was 331 million, down from 382millioninthesameperiodlastyear[6]Long−TermGuidance−AWKreiteratedits2025EPSguidanceof382 million in the same period last year [6] Long-Term Guidance - AWK reiterated its 2025 EPS guidance of 5.65-5.75,withaZacksConsensusEstimateof5.75, with a Zacks Consensus Estimate of 5.72 [7] - The company aims for long-term earnings and dividend growth in the range of 7-9% and plans to invest approximately 3.3billionin2025[7]−Capitalexpenditureisprojectedtobebetween3.3 billion in 2025 [7] - Capital expenditure is projected to be between 17-18billionfor2025−2029and18 billion for 2025-2029 and 40-$42 billion for 2025-2034 [8]