American Water Works Company, Inc. · NYSE:AWK
American Water Works — Q3 2025 Earnings Presentation
35 slides from American Water Works's earnings presentation, Oct 29, 2025
Slide 1: 2025 Third Quarter Earnings & 2026 Outlook Investor Presentation
2025 Third Quarter Earnings & 2026 Outlook Investor Presentation October 29, 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: Strong Third Quarter and YTD 2025 Results
Strong Third Quarter and YTD 2025 Results 2025 EPS Guidance of $5.70 to $5.75 Affirmed* Earnings Per Share** Q3/YTD Highlights ✓ 2025 YTD EPS of $4.47 driven by higher revenue on increased rate $4.47 base and rate case outcomes $4.17 • YTD 2025 results up 9.0% vs. 2024 on a weather-normalized basis
Slide 6: Initiating 2026 EPS Guidance
Initiating 2026 EPS Guidance Consistent Future Earnings Growth Within 7-9% Range 2025 EPS 2026 EPS Guidance* Guidance 7-9% EPS 2024 EPS of $5.70 - CAGR Target Assumes HOS of $5.39 $5.75 note to be repaid around 2026 EPS Guidance $0.10 year-end 2025 Reflects $0.12 incremental $6.02 - $6.12 of weather
Slide 7: 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 8: David Bowler, Executive Vice President & Chief Financial Officer
David Bowler Executive Vice President & Chief Financial Officer 8
Slide 9: Details of Year-To-Date 2025 EPS
Details of Year-To-Date 2025 EPS 1.42 (0.41) (0.32) 0.01 $4.47 $4.17 (0.27) (0.06) $0.08* $0.07* (0.07) Q3 YTD 2024 Weather** Revenue O&M Depreciation Financing General Taxes Other, net Q3 YTD 2025 * Results for the nine months ended September 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 August 1, Hawaii General $1 million August 1, 2025 Maryland $22 million March 20
Slide 11: Considerations for 2026 Outlook
Considerations for 2026 Outlook Initiating 2026 EPS Guidance of $6.02 to $6.12* 2026 Growth Drivers ✓ 8% EPS growth in 2026 (at midpoint) vs. 2025 on a weather-normalized basis ✓ Revenue growth in base rates and in infrastructure mechanisms from capital investment ✓ Focus on customer affordability a
Slide 12: Continued Strong Balance Sheet & Credit Ratings
Continued Strong Balance Sheet & Credit Ratings AWK Long-Term Senior Unsecured Ratings Total Debt to Total Capital S&P Moody’s A Baa1 As of Long-Term (Stable Outlook) (Stable Outlook) September 30, 2025 Target Ratings and Stable Outlook ✓ Low risk business profile 58% <60% ✓ Strong regulatory affirm
Slide 13: Funding the 2026-2030 Capital Investment Plan
Funding the 2026-2030 Capital Investment Plan ($ in millions) Financing Plan: 2026-2030 Operating Cash Flows $14,000 Debt Financing $12,500 Equity Issuances $2,500 Sale Proceeds (HOS)* $0 Total Sources: ~$29 Billion * Plan assumes repayment of $795 million HOS note around year-end 2025. ➢ $2.5B of e
Slide 14: Cheryl Norton, Executive Vice President & Chief Operating Officer
Cheryl Norton Executive Vice President & Chief Operating Officer 14
Slide 15: Five- and Ten-Year Capital Plans: Investments to Support System Needs
Five- and Ten-Year Capital Plans: Investments to Support System Needs Capital Plan ($ in billions) ➢ $2 billion increase in 5-year capital plan • $1 billion to meet compliance requirements for EPA’s PFAS Rule • $0.5 billion to meet compliance requirements for EPA’s Lead & Copper Rule Improvements (L
Slide 16: Continued Focus on Customer Affordability
Continued Focus on Customer Affordability Residential Water Bill as % of $ Median Household Income* Values Around Affordability ➢ Focused on keeping customer bills affordable compared to income (wallet share) • Goal for AW average residential water customer bills: 1.00% 1% or less of median househol
Slide 17: 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 Rat
Slide 18: ~107,000 Customer Connections Under Agreement Totaling Over $600 Million
~107,000 Customer Connections Under Agreement Totaling Over $600 Million Under Agreement Nexus Water Group Systems Closed YTD as of Oct. 29, 2025 (excl. Nexus) Closing expected by or before Aug. 2026 YTD as of Oct. 29, 2025 ~60,100 Customer Connections ~46,600 Customer Connections ~17,500 Customer C
Slide 19: 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 Analyst, Investor Relations & ESG janelle.mcnally@amwater.com kelley
Slide 20: Appendix
Appendix 20
Slide 21: Forward Looking Statements
Forward Looking Statements Certain statements made, referred to or relied upon in this presentation including, without limitation, 2025 and 2026 earnings guidance, the Company’s long-term financial, growth and dividend targets, the ability to achieve the Company’s strategies and goals, customer affo
Slide 22: 2025 Earnings and 2026 Earnings Guidance (Non-GAAP)
2025 Earnings and 2026 Earnings Guidance (Non-GAAP) This presentation includes a description of American Water’s 2025 and 2026 earnings per share guidance ranges, excluding (i) the $0.10 per share of incremental interest to be recognized from the amended HOS seller note and (ii) transaction costs an
Slide 23: Details of Third Quarter 2025 EPS
Details of Third Quarter 2025 EPS 0.48 (0.09) (0.11) $1.94 (0.09) (0.02) (0.02) $0.03* $1.80 $0.03* (0.01) Q3 2024 Weather** Revenue O&M Depreciation Financing General Taxes Other, net Q3 2025 * Results for the three months ended September 30, 2025 and 2024 include incremental interest income of $0.
Slide 24: 2025 EPS Guidance of $5.70 to $5.75 Affirmed at Top Half of Previous Range
2025 EPS Guidance of $5.70 to $5.75 Affirmed at Top Half of Previous Range* 2025 Outlook ✓ Continue to expect 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 customer affor
Slide 25: Successfully Completed 2025 Financing Plan
Successfully Completed 2025 Financing Plan Successfully Executed $800 Million Senior Note Offering Issuer American Water Capital Corp. Pricing Date February 24, 2025 Successfully completed our long- Tenor 10yr Senior Unsecured term debt financing for the year with issuance of Senior Notes Size Ann
Slide 26: 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 $50M annually for operating expenses in its 2026-2030 plan.
Slide 27: Military Services Group Provides Strategic Value
Military Services Group Provides Strategic Value Currently Serving 70 Additional Installation 18 Military Installations Opportunities 12 Army 15 Army Military Services Group 5 Air Force/Space Force 23 Air Force/Space Force Regulated-like earnings Favorable ROI opportunity Capital light / cash
Slide 28: State Legislation & Regulation Enable Growth
State Legislation & Regulation Enable Growth Fair Consolidated Future Hybrid Infrastructure Affordability Value Tariff Test Year Test Year Mechanism Tariffs/Programs CA MO CA MO CA MO MD IA NJ CA MO IA NJ IA NJ HI KY NJ IL PA IA NJ IL PA IL PA IA PA WV IN TN IL PA IN VA IN VA IL TN KY VA IN TN KY WV
Slide 29: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ in billions) As of 9/30/2025 Net Utility Plant $29.5 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 $23.5 * An approximation of rate base,
Slide 30: Closed Acquisitions
Closed Acquisitions October 29, 2025 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania 5 7,200 1,300 8,500 New Jersey 2 5,250 - 5,250 California 3 1,350 - 1,350 Illinois 1 - 1,500 1,500 West Virginia 1 900 - 900 Total 12 14,700
Slide 31: Acquisitions Under Agreement
Acquisitions Under Agreement NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS West Virginia 7 3,500 14,700 18,200 Pennsylvania 7 3,300 12,100 15,400 Oct. 29, 2025 Missouri 4 5,600 5,400 11,000 New Jersey 1 15,000 - 15,000 California 1 250
Slide 32: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2025 $43 $275 $232 $16 $141 $125 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Includes Charges Step Increase
Slide 33: Rates Effective Since January 1, 2025
Rates Effective Since… January 1, 2025 ($ 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 $2 California, Step Increase 1/1/2025 17 West Virginia (D
Slide 34: Pending Rate Case Filings
Pending Rate Case Filings ($ in millions) Rate Cases Filed Docket/Case Number Date Filed Requested Revenue Increase ROE Requested Rate Base 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 35: Regulatory Information
Regulatory Information *Rate Base stated in $000s PENNSYLVANIA NEW JERSEY MISSOURI ILLINOIS INDIANA Authorized Rate Base* $5,823,752 $5,050,637 $3,152,205(c) $2,185,956 $1,835,553 ROE 9.45% 9.60% 9.75%(d) 9.84% 9.65% Equity 55.30% 55.00% 50.00%(e) 49.00% 56.30%(b) Effective Date of Rate Case 8/7/202
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