Slide 1: 2026 First Quarter Earnings Conference Call
2026 First Quarter Earnings Conference Call April 30, 2026
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: First Quarter 2026 Results On Track
First Quarter 2026 Results On Track Adjusted Earnings Per Share* Q1/YTD 2026 Highlights ✓ 2026 EPS on track; revenue increases from PA and NJ expected to become effective in Q3 driving stronger 2H 2026 financial results $1.02 $1.01 ✓ Continued success in regulatory execution, including rate cases •
Slide 6: Top Tier Dividend Growth Continues in 2026
Top Tier Dividend Growth Continues in 2026 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, 2026** Target 58% 55-60% $3.5125 $3.2475 ** Annual 2026 cash dividends per share of $3.5125 over 2026
Slide 7: Progressing on the Path to Merger Close
Progressing on the Path to Merger Close Approvals and Timeline Q4 2025 Q1 2026 Q2 2026 – Q1 2027 Q1 2027 Filed All State Regulatory Shareholder Approvals Obtain Regulatory Approvals Transaction Close Applications Received Approvals needed from state regulators Transaction expected to close by end of
Slide 8: David Bowler, Executive Vice President & Chief Financial Officer
David Bowler Executive Vice President & Chief Financial Officer 8
Slide 9: Details of First Quarter 2026 Adjusted EPS
Details of First Quarter 2026 Adjusted EPS 0.21 (0.05) $1.02 (0.08) $1.01 (0.09) Q1 2025, Revenue O&M Depreciation Financing Q1 2026, Adjusted EPS Adjusted EPS Note: Adjusted EPS is a non-GAAP measure. Please see appendix for reconciliation and further information. 9
Slide 10: 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) March 31, 2026 Target Ratings and Stable Outlook ✓ Low risk business profile 58% <60% ✓ Strong regulatory affirmed a
Slide 11: General Rate Case Updates
General Rate Case Updates Rate Cases in Progress State Subsidiary Date Filed Capital Investment Rates Expected Effective Date Next Steps Illinois January 27, 2026 $577 million January 2027 Testimony due in May, Rebuttal due in June New Jersey January 16, 2026 $1.4 billion Fall 2026 Testimony due in
Slide 12: Affirming 2026 EPS Guidance
Affirming 2026 EPS Guidance Achieving Consistent Earnings Growth Within 7-9% Range 2023-2026E Adjusted EPS CAGR (at midpt.) of 8.4% 7-9% EPS CAGR Target $6.12 2026 ADJUSTED EPS ~8% GUIDANCE $5.64 $6.02 - $6.12 $6.02 +8.9% $5.18 +8.6% $4.77 2030E 2023 2024 2025 2026E & Beyond Note: Adjusted EPS is a
Slide 13: Cheryl Norton, Executive Vice President & Chief Operating Officer
Cheryl Norton Executive Vice President & Chief Operating Officer 13
Slide 14: System Needs Drive Continued Investments
System Needs Drive Continued Investments Supports Water Quality, Reliability, and a Focus on Affordability Investing in Pipe Replacement, Other System Needs Investments Drive Continued Rate Base Growth Capital Investments Estimated Rate Base** ~8-9% (Includes Acquisitions) (Includes Acquisitions) CA
Slide 15: State Legislative Highlights in 2026
State Legislative Highlights in 2026 Iowa – Water Utility Infrastructure (SEI) (SF 2304) • Authorizes the Iowa Utilities Commission to approve alternative ratemaking mechanisms allowing investor-owned water and wastewater utilities to timely recover costs associated with qualifying system enhancemen
Slide 16: ~105,000 Customer Connections Under Agreement Totaling $565 Million
~105,000 Customer Connections Under Agreement Totaling $565 Million Under Agreement Nexus Water Group Systems Closed As of April 15, 2026 (excl. Nexus) Closing expected by or before June 30, 2026 For the Quarter Ended March 31, 2026 ~58,400 Customer Connections ~46,600 Customer Connections Nitro, We
Slide 17: Q&A Session
Q&A Session 17
Slide 18: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Aaron Musgrave, CPA Jack Quinn, CPA Vice President, Investor Relations Director, Investor Relations aaron.musgrave@amwater.com jack.quinn@amwater.com Janelle McNally Kelley Uyeda Director, Sustainability Senior Analyst, IR & Sustainability janelle.mcnally@amwater.com kell
Slide 19: Appendix
Appendix 19
Slide 20: Forward-Looking Statements
Forward-Looking Statements Certain statements made, referred to or relied upon in this presentation including, without limitation, 2026 adjusted earnings per share guidance, the Company’s long-term financial, growth and dividend targets, the ability to achieve the Company’s strategies and goals, cus
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes presentations of consolidated adjusted diluted earnings per share, both as historical financial information and as earnings guidance (“Adjusted EPS”). Adjusted EPS constitutes a “non-GAAP financial measure” under SEC rules. The most directly com
Slide 22: Reconciliation Table – Consolidated Adjusted EPS
Reconciliation Table – Consolidated Adjusted EPS Adjusted diluted earnings per share represents a non-GAAP financial measure and, as shown in the table above, is calculated as GAAP diluted earnings per share, excluding the impact of one or more of the following events: (i) estimated impact of weathe
Slide 23: Affirming 2026 EPS Guidance of $6.02 to $6.12
Affirming 2026 EPS Guidance of $6.02 to $6.12* 2026 Growth Drivers ✓ Adjusted EPS growth of ~8% in 2026 vs. 2025 ✓ Revenue growth in base rates and in infrastructure mechanisms from capital investment ✓ Focus on customer affordability and driving effective and efficient cost management strategies ✓
Slide 24: Long-Term Targets Affirmed
Long-Term Targets Affirmed Strong and Sustainable Growth Outlook for the Future 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 Dividend Debt to Pay
Slide 25: Successfully Executed $700M Note Offering
Successfully Executed $700M Note Offering Closed this offering on April 1, 2026 2026 financing plan includes $1.5- 2.0B of long-term debt financing Successfully Executed $700 Million Senior Note Offering Issuer American Water Capital Corp. Pricing Date March 30, 2026 Tenor 10yr Senior Unsecured
Slide 26: Laddered Debt Maturity Schedule Supports Capital Spending Program
Laddered Debt Maturity Schedule Supports Capital Spending Program ($ in millions) Maturity Schedule As of 3/31/26 $1,475 $950 $875 $900 $800 $800 $725 $750 $750 $725 $700 $650 $600 $515 $550 $550 $500 $500 $325 $300 $200 $75 $0 $0 $0 $0 $0 $0 $0 $0 * On April 1, 2026, American Water Capital Corp., t
Slide 27: Funding the 2026-2030 Capital Investment Plan
Funding the 2026-2030 Capital Investment Plan ($ in millions) Financing Plan: 2026-2030 Operating Cash Flows $14,000 Debt Financing $11,800 Equity Issuances $2,500 Sale Proceeds (HOS)* $795 Total Sources: ~$29 Billion * $795 million HOS note was repaid in full on February 13, 2026. ➢ $2.5B of equity
Slide 28: PFAS Treatment Plans
PFAS Treatment Plans 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 $2B of capital and up to $50M annually for operating expenses in its 2026-2030 plan.
Slide 29: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ in billions) As of 3/31/2026 Net Utility Plant $31.0 Less Advances for Construction $0.5 CIAC – Contributions in Aid of Construction $1.6 Net Deferred Income Taxes $4.3 $6.4 Total Estimated Rate Base $24.6 * An approximation of rate base,
Slide 30: Closed Acquisitions
Closed Acquisitions March 31, 2026 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS West Virginia 1 - 4,600 4,600 Total 1 - 4,600 4,600 30
Slide 31: Acquisitions Under Agreement + Nexus Water Group Systems
Acquisitions Under Agreement NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS New Jersey 3 16,900 - 16,900 April 15, 2026 West Virginia 7 3,600 10,100 13,700 Pennsylvania 5 2,700 10,200 12,900 Missouri 3 5,500 5,400 10,900 Kentucky 2 3,600
Slide 32: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2026 $18 $518 $500 $53 $89 $36 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Includes Charges Step Increases)
Slide 33: Rates Effective Since January 1, 2026
Rates Effective Since… ($ in millions) January 1, 2026 Date Annualized Date Annualized Revenue Rate Cases & Step Increases Infrastructure Charges Effective Revenue Increases Effective Increases California, Step Increase 1/1/2026 $14(a) Pennsylvania (DSIC) 1/1/2026 $11 Maryland 2/26/2026 2(b) Illinoi
Slide 34: Pending Rate Case Filings
Pending Rate Case Filings ($ in millions) Rate Cases Filed Docket/Case Number Date Filed Requested Revenue Increase ROE Requested Rate Base California (a) Case No. A.25-07-003 7/1/2025 $51 N/A $1,249 Virginia Docket No. PUR-2025-00185 11/3/2025 22 10.75% 446 Pennsylvania (b) Docket Nos. R-2025-30579
Slide 35: Regulatory Information
Regulatory Information * Rate Base stated in $000s, rounded ** Rounded as of 12/31/25 Authorized Rate Base* ROE Equity Effective Date of Rate Case Customer Connections** Pennsylvania $5,800,000 9.45% 55.30% 8/7/2024 814,000 New Jersey $5,100,000 9.60% 55.00% 9/15/2024 750,000 Missouri $3,200,000(c)