American Water Works Company, Inc. · NYSE:AWK
American Water Works — Q2 2025 Earnings Presentation
34 slides from American Water Works's earnings presentation, Jul 31, 2025
Slide 1: 2025 Second Quarter Earnings Conference Call
2025 Second Quarter Earnings Conference Call July 31, 2025
Slide 2: Aaron Musgrave, Vice President, Investor Relations
Aaron Musgrave Vice President, Investor Relations 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Safe Harbor This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. They are not guarantees or assurances of any outcomes, financial resu
Slide 4: John Griffith, President & Chief Executive Officer
John Griffith President & Chief Executive Officer 4
Slide 5: Solid Second Quarter and YTD 2025 Results
Solid Second Quarter and YTD 2025 Results 2025 EPS Guidance Narrowed to Top Half of Range, now $5.70 to $5.75 from $5.65 to $5.75 Earnings Per Share* Q2/YTD Highlights $2.53 ✓ 2025 YTD EPS of $2.53 driven by higher revenue on $2.37 increased rate base and rate case outcomes • YTD 2025 results up 9.4
Slide 6: Long-Term Targets Affirmed
Long-Term Targets Affirmed Low Risk Capital Plan, Leading Earnings & Dividend Growth Outlook LONG-TERM FINANCIAL TARGETS Drivers of Sustainable Shareholder Return EPS Dividend Per Customer Sustainability Growth Share Growth Affordability Leadership 7-9% 7-9% + + Additional Supportive Targets Dividen
Slide 7: David Bowler, Executive Vice President & Chief Financial Officer
David Bowler Executive Vice President & Chief Financial Officer 7
Slide 8: Details of Second Quarter 2025 EPS
Details of Second Quarter 2025 EPS 0.50 (0.17) (0.10) $1.48 $1.42 (0.08) (0.02) (0.01) $0.02* $0.02* (0.06) Q2 2024 Weather** Revenue O&M Depreciation Financing General Taxes Other, net Q2 2025 * Results for the three months ended June 30, 2025 and 2024 include incremental interest income of $0.02 a
Slide 9: Details of Year-To-Date 2025 EPS
Details of Year-To-Date 2025 EPS 0.94 (0.32) (0.21) 0.03 $2.53 $2.37 (0.18) (0.04) $0.05* $0.04* (0.06) June YTD 2024 Weather** Revenue O&M Depreciation Financing General Taxes Other, net June YTD 2025 * Results for the six months ended June 30, 2025 and 2024 include incremental interest income of $
Slide 10: General Rate Case Updates
General Rate Case Updates Rate Cases in Progress 2025 Completed Rate Cases State Filed Capital Rates Expected State Additional Authorized Subsidiary Investment Effective Date Subsidiary Type Revenue Rates Effective Date California 7/1/25 $750 million January 1, 2027 Hawaii General $1 million Early A
Slide 11: 2025 EPS Guidance Narrowed to Top Half of Range
2025 EPS Guidance Narrowed to Top Half of Range, now $5.70 to $5.75 from $5.65 to $5.75* 2025 Outlook ✓ Now expecting 8.6% EPS growth in 2025 (at midpoint) vs. 2024 on a weather-normalized basis • Revenue growth in base rates and in infrastructure mechanisms from capital investment • Focus on custom
Slide 12: EPS Guidance and Outlook
EPS Guidance and Outlook Consistent Future Earnings Growth Within 7-9% Range 2025 EPS Guidance of 7-9% EPS 2024 EPS of $5.70 - $5.75 CAGR Target $5.39 $0.10 incremental 2025 EPS Guidance Reflects $0.12 of weather interest from amended HOS and $0.09 seller note $5.70 - $5.75 incremental interest from
Slide 13: Cheryl Norton, Executive Vice President & Chief Operating Officer
Cheryl Norton Executive Vice President & Chief Operating Officer 13
Slide 14: Investments Drive Continued Rate Base Growth
Investments Drive Continued Rate Base Growth Supports Water Quality, Reliability, and Earnings Growth Investments to Support System Needs Investments Drive Continued Rate Base Growth Regulated Capital Investments Estimated Rate Base** ~8-9% (Includes Acquisitions) (Includes Acquisitions) CAGR for Ra
Slide 15: ~87,000 Customer Connections Under Agreement Totaling $535 Million
~87,000 Customer Connections Under Agreement Totaling $535 Million Under Agreement Nexus Water Group Systems Closed As of July 30, 2025 (excl. Nexus) Under Agreement as of May 19, 2025 As of June 30, 2025 ~40,650 Customer Connections ~46,600 Customer Connections ~7,600 Customer Connections 20 Acquis
Slide 16: Q&A Session
Q&A Session 16
Slide 17: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Aaron Musgrave, CPA Jack Quinn, CPA Vice President, Investor Relations Senior Manager, Investor Relations aaron.musgrave@amwater.com jack.quinn@amwater.com Janelle McNally Kelley Uyeda Director, Sustainability Analyst, Investor Relations & ESG janelle.mcnally@amwater.com
Slide 18: Appendix
Appendix 18
Slide 19: Forward Looking Statements
Forward Looking Statements Certain statements made, referred to or relied upon in this presentation including, without limitation, 2025 earnings guidance, the Company’s long-term financial, growth and dividend targets, the ability to achieve the Company’s strategies and goals, customer affordability
Slide 20: 2025 Earnings and 2025 Earnings Guidance (Non-GAAP)
2025 Earnings and 2025 Earnings Guidance (Non-GAAP) This presentation includes a description of American Water’s 2025 earnings per share guidance range, and its 2025 dividend payout ratio, excluding the incremental interest from the amendment in early 2024 of the HOS seller note. This information wo
Slide 21: Top Tier Dividend Growth Continues in 2025
Top Tier Dividend Growth Continues in 2025 8.2% Increase Aligns with Long-Term Target AWK’s Strong and Consistent Total Dividend Payout Ratio Dividend Growth* Projected as of Long-Term December 31, 2025** Target 58% 55-60% $3.2475 $3.0025 ** Annual projected 2025 cash dividends per share of $3.2475
Slide 22: Continued Strong Balance Sheet & Credit Ratings
Continued Strong Balance Sheet & Credit Ratings AWK Long-Term Senior Unsecured Ratings Total Debt to Total Capital S&P Moody’s A Baa1 As of Long-Term (Stable Outlook) (Stable Outlook) June 30, 2025 Target Ratings and Stable Outlook ✓ Low risk business profile 58% <60% ✓ Strong regulatory affirmed at
Slide 23: Successfully Executed $800M Note Offering
Successfully Executed $800M Note Offering Closed this offering on February 27, 2025 2025 financing plan includes $1.5- 2.0B of long-term debt financing Successfully Executed $800 Million Senior Note Offering Issuer American Water Capital Corp. Pricing Date February 24, 2025 Strong demand for iss
Slide 24: PFAS Treatment Plans Remain on Track
PFAS Treatment Plans Remain on Track Implications of Final Federal PFAS Rule ➢ U.S. EPA announced on May 14, 2025 its intent to maintain drinking water limits of 4.0 parts per trillion for PFOA and PFOS. ➢ American Water estimates ~$1B of capital and up to ~$50M annually for operating expenses in it
Slide 25: 2025 YTD Legislative Updates
2025 YTD Legislative Updates Missouri - Future Test Year (SB4) • Water and wastewater utilities may request the use of a Future Test Year in a general rate case beginning July 1, 2026 • Passed on March 13, 2025 – signed by the Governor on April 9, 2025 • Legislation becomes effective on August 28, 2
Slide 26: Five- and Ten-Year Capital Plans
Five- and Ten-Year Capital Plans: Investments to Support System Needs Capital Plan ($ in billions) Capital Recovery Outlook $40 - $42 $4 - $5 Regulated Acquisitions ~70% Infrastructure Surcharge Mechanisms ~45% $17 - $18* $1.5 - $2.0 $3.3 $36 - $37 Regulated System Years ~30% Future TestTraditional
Slide 27: State Legislation & Regulation Enable Growth
State Legislation & Regulation Enable Growth Fair Consolidated Future Hybrid Infrastructure Affordability Value Tariff Test Year Test Year Mechanism Tariffs/Programs CA MO CA MO CA MO MD IA NJ CA MO IA NJ IA NJ HI KY NJ IL PA IA NJ IL PA IL PA IA PA WV IN TN IL PA IN VA IN VA IL TN KY VA IN TN KY WV
Slide 28: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ in billions) As of 6/30/2025 Net Utility Plant $28.9 Less Advances for Construction $0.4 CIAC – Contributions in Aid of Construction $1.6 Net Deferred Income Taxes $4.0 $6.0 Total Estimated Rate Base $22.9 * An approximation of rate base,
Slide 29: Closed Acquisitions
Closed Acquisitions June 30, 2025 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania 4 5,700 1,300 7,000 California 2 350 - 350 New Jersey 1 250 - 250 Total 7 6,300 1,300 7,600 29
Slide 30: Acquisitions Under Agreement
Acquisitions Under Agreement NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS Pennsylvania 8 4,700 12,000 16,700 West Virginia 4 3,400 12,300 15,700 July 30, 2025 New Jersey 1 5,000 - 5,000 Illinois 1 - 1,500 1,500 California 2 1,250 - 1,2
Slide 31: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2025 $38 $270 $232 $123 $3 $126 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Includes Charges Step Increases
Slide 32: Rates Effective Since January 1, 2025
Rates Effective Since… January 1, 2025 ($ in millions) Date Annualized Date Annualized Revenue Rate Cases & Step Increases Infrastructure Charges Effective Revenue Increases Effective Increases Illinois 1/1/2025 105(a) Kentucky (QIP) 1/1/2025 $2 California, Step Increase 1/1/2025 17 West Virginia (D
Slide 33: Pending Rate Case Filings
Pending Rate Case Filings ($ in millions) Rate Cases Filed Docket/Case Number Date Filed Requested Revenue Increase ROE Requested Rate Base Docket No. 25-0426-W-42T and 25- West Virginia (a) 5/5/2025 $33 10.75% $1,071 0428-S-42T Kentucky (b) Docket No. 2025-00122 5/16/2025 27 10.75% 674 California (
Slide 34: Regulatory Information – Top States
Regulatory Information – Top 10 States CALIFORNIA ILLINOIS INDIANA KENTUCKY MISSOURI Authorized Rate Base* $882,554g) $2,185,956 $1,835,553 $489,426 $3,152,205(c) ROE 10.20%(a) 9.84% 9.65% 9.70% 9.75%(d) Equity 57.04%(a) 49.00% 56.30%(b) 52.22% 50.00%(e) Effective Date of Rate Case 1/1/2024(g) 1/1/2
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