Slide 1: 2026 Second Quarter Earnings Conference Call
2026 Second Quarter Earnings Conference Call July 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: Solid Second Quarter 2026 Results
Solid Second Quarter 2026 Results Adjusted Earnings Per Share* Q2/YTD 2026 Highlights $2.62 ✓ 2026 EPS on track; revenue increases from PA and NJ expected to $2.51 become effective in Q3 driving strong 2H 2026 financial results ✓ Continued success in regulatory execution, including rate cases • Comp
Slide 6: Continued Progress on the Path to Merger Close
Continued Progress on the Path to Merger Close Three state approvals received Q4 2025 Q1 2026 Q2 2026 – Q1 2027 Q1 2027 Filed All State Shareholder Approvals Obtain Regulatory Approvals Transaction Close Regulatory Applications Received Approvals needed from state regulators Transaction expected to
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 2026 Adjusted EPS
Details of Second Quarter 2026 Adjusted EPS 0.30 - (0.08) $1.61 (0.07) (0.02) (0.01) $1.49 Q2 2025 Revenue O&M Depreciation Financing and Dilution* General Taxes Other, net Q2 2026 Adjusted EPS Adjusted EPS *Financing and Dilution includes ($0.01) of dilution related to the equity forward proceeds r
Slide 9: Details of Year-To-Date 2026 Adjusted EPS
Details of Year-To-Date 2026 Adjusted EPS 0.51 (0.05) (0.16) $2.62 $2.51 (0.14) (0.02) (0.03) June YTD 2025 Revenue O&M Depreciation Financing and Dilution* General Taxes Other, net June YTD 2026 Adjusted EPS Adjusted EPS *Financing and Dilution includes ($0.01) of dilution related to the equity for
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) June 30, 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 Missouri July 1, 2026 $1.6 billion June 2027 Discovery ongoing Kentucky May 15, 2026 $108 million December 2026 Testimony due in August, Rebuttal due in Sept. Illi
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: Completed the Acquisition of Nexus Systems
Completed the Acquisition of Nexus Systems YTD closed acquisitions of ~52K customers; ~57K more under agrmt. Closed Under Agreement Nexus Water Group Systems As of June 30, 2026 As of June 30, 2026 ~46,600 Customer Connections ~5,700 Customer Connections ~56,600 Customer Connections 60 Systems in 8
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 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 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, 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 20: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) reduced ownership and voting interests for the Company’s and Essential Utilities' shareholders upon completion of the proposed merger; in addition to the foregoing, various risks and other uncertainties following the acquisition of certain water and wastewater
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: 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 26: Successfully Executed Note Offerings in 2026
Successfully Executed Note Offerings in 2026 Successfully Executed $700 Million Senior Note Offering 2026 financing plan includes $1.5- 2.0B of long-term debt financing Issuer Pricing Date American Water Capital Corp. March 30, 2026 Tenor 10yr Senior Unsecured Size $700M Annual Interest Rate 5.200
Slide 27: Laddered Debt Maturity Schedule Supports Capital Spending Program
Laddered Debt Maturity Schedule Supports Capital Spending Program ($ in millions) Maturity Schedule (as of 6/30/26) $1,450 $875 $900 $800 $800 $800 $725 $750 $750 $725 $700 $650 $600 $515 $550 $550 $500 $500 $415 $325 $300 $200 $75 $0 $0 $0 $0 $0 $0 $0 27
Slide 28: Funding the 2026-2030 Capital Investment Plan
Funding the 2026-2030 Capital Investment Plan ($ 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 29: 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 $50M annually for operating expenses in its 2026-2030 plan.
Slide 30: State Legislative Highlights in 2026
State Legislative Highlights in 2026 Iowa – Water Utility Infrastructure (SEI) (SF 2304) • Authorizes the Iowa Utilities Commission to approve alternative ratemaking mechanisms allowing investor-owned water and wastewater utilities to timely recover costs associated with qualifying system enhancemen
Slide 31: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ in billions) As of 6/30/2026 Net Utility Plant $31.8 Less Advances for Construction $0.5 CIAC – Contributions in Aid of Construction $1.7 Net Deferred Income Taxes $4.3 $6.5 Total Estimated Rate Base $25.3 * An approximation of rate base,
Slide 32: Closed Acquisitions
Closed Acquisitions June 30, 2026 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS West Virginia 1 - 4,600 4,600 New Jersey 1 900 - 900 Kentucky 1 200 - 200 Total 3 1,100 4,600 5,700 NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTE
Slide 33: Acquisitions Under Agreement
Acquisitions Under Agreement June 30, 2026 NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS New Jersey 1 15,300 - 15,300 West Virginia 7 3,600 10,100 13,700 Pennsylvania 5 2,700 10,200 12,900 Missouri 3 5,500 5,400 10,900 Kentucky 1 3,400
Slide 34: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2026 $489 $5 $494 $216 $105 $111 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Excludes Charges Step Increase
Slide 35: Rates Effective Since January 1, 2026
Rates Effective Since… ($ 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 $11 Maryland 2/26/2026 2(b) Illinoi
Slide 36: Pending Rate Case Filings
Pending Rate Case Filings ($ in millions) Rate Cases Filed Docket/Case Number Date Filed Requested Revenue Increase ROE Requested Rate Base New Jersey (a) Docket No. WR26010010 1/16/2026 $145 10.75% $6,153 Illinois (b) Docket No. 26-0127 1/27/2026 107 10.75% 2,688 Kentucky Docket No. 2026-00094 5/15
Slide 37: 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 $6,600,000 9.55% 54.23% 8/13/2026 814,000 New Jersey $5,100,000 9.60% 55.00% 9/15/2024 750,000 Missouri $3,200,000(c)