American Water Works Company, Inc. · NYSE:AWK
American Water Works — Q4 2025 Earnings Presentation
38 slides from American Water Works's earnings presentation, Feb 19, 2026
Slide 1: 2025 Fourth Quarter & Year-End Earnings Conference Call
2025 Fourth Quarter & Year-End Earnings Conference Call February 19, 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: Strong 2025 Results: Continuing to Execute the Plan
Strong 2025 Results: Continuing to Execute the Plan EPS Growth Driven by Investments, Regulatory Execution Adjusted Earnings Per Share* 2025 Highlights ✓ Achieved EPS and dividend growth for the year of 8+% $5.64 $5.18 ✓ Continued success in regulatory execution, including rate cases • Completed six
Slide 6: 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 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: 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 9: David Bowler, Executive Vice President & Chief Financial Officer
David Bowler Executive Vice President & Chief Financial Officer 9
Slide 10: Details of 2025 Adjusted EPS
Details of 2025 Adjusted EPS 1.70 (0.42) (0.41) 0.03 $5.64 $5.18 (0.35) (0.09) 2024 Adjusted EPS Revenue O&M Depreciation Financing General Taxes Other, net 2025 Adjusted EPS Note: Adjusted EPS is a non-GAAP measure. Please see appendix for reconciliation and further information. 10
Slide 11: 2025 Completed Rate Cases
2025 Completed Rate Cases State Subsidiary Capital Authorized ROE Equity Layer Additional Authorized Rates Effective Date Investment Revenue Kentucky $212 million 9.70% 52.26% $18 million December 16, 2025 Hawaii $41 million 9.75% 52.11% $1 million August 1, 2025 Iowa $157 million 9.60% 52.57% $13 m
Slide 12: 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 Discovery begins in Feb., Testimony expected in summer New Jersey January 16, 2026 $1.4 billion Fall 2026 Disco
Slide 13: 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 14: 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) December 31, 2025 Target Ratings and Stable Outlook ✓ Low risk business profile 59% <60% ✓ Strong regulatory affirme
Slide 15: Cheryl Norton, Executive Vice President & Chief Operating Officer
Cheryl Norton Executive Vice President & Chief Operating Officer 15
Slide 16: 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 Regulated Capital Investments Estimated Rate Base** ~8-9% (Includes Acquisitions) (Includes Acquis
Slide 17: ~104,000 Customer Connections Under Agreement Totaling $582 Million
~104,000 Customer Connections Under Agreement Totaling $582 Million Under Agreement Nexus Water Group Systems Closed As of Dec. 31, 2025 (excl. Nexus) Closing expected by or before Aug. 2026 For Year Ended Dec. 31, 2025 ~57,700 Customer Connections ~46,600 Customer Connections ~20,900 Customer Conne
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 Cert ain stat ements mad e, ref erred to or rel ied upon in this pres entation including, without limi tation , 2026 adjusted earnings p er share guidanc e, the Co mpany ’s long-t erm financial, gro wth and div idend t argets, the abilit y to achieve the Company ’s strat e
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 informa tion and as earnings guidance (“Adjusted EPS”). Adjusted constitutes a “non-GAAP financial measure” under SEC rules. The most directly compar
Slide 22: Announced Proposed Merger with Essential Utilities; Expected Closing Q1 2027
ANNOUNCED PROPOSED MERGER WITH ESSENTIAL UTILITIES; EXPECTED CLOSING Q1 2027 900+ EMPLOYEE — ISSUED 9TH &s VOLUNTEERS; [ 5e| SUSTAINABILITY ~3,000 HOURS REPORT OF SERVICE COVERING DURING COMPANYWIDE INDUSTRY LEADERSHIP AMERICANS IN ACTION! AND PERFORMANCE AS A MONTH OF SERVICE END OF YEAR HIGHLIGHTS
Slide 23: Reconciliation Table – Consolidated EPS
Reconciliation Table – Consolidated 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 weather; (ii) i
Slide 24: Details of Fourth Quarter 2025 Adjusted EPS
Details of Fourth Quarter 2025 Adjusted EPS 0.28 (0.01) (0.09) 0.02 $1.24 (0.08) $1.15 (0.03) Q4 2024 Revenue O&M Depreciation Financing General Taxes Other, net Q4 2025 Adjusted EPS Adjusted EPS Note: Adjusted EPS is a non-GAAP measure. Please see appendix for reconciliation and further information
Slide 25: Five- and Ten-Year Capital Plans: Investments to Support System Needs
Five- and Ten-Year Capital Plans: Investments to Support System Needs Capital Plan ($ 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 & $46 - $48 Copper Rule Impro
Slide 26: Funding the 2026-2030 Capital Investment Plan
Funding the 2026-2030 Capital Investment Plan ($ 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 27: 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 28: State Legislative Highlights in 2025
State Legislative Highlights in 2025 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 became effective on Aug
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 $50M annually for operating expenses in its 2026-2030 plan.
Slide 30: Military Services Group Provides Strategic Value
Military Services Group Provides Strategic Value Currently Serving 70 Additional Installation 18 Military Installations Opportunities 12 Army 15 Army Military Services Group 5 Air Force/Space Force 23 Air Force/Space Force Regulated-like earnings Favorable ROI opportunity Capital light / cash
Slide 31: State Legislation & Regulation Enable Growth
State Legislation & Regulation Enable Growth Fair Consolidated Future Hybrid Infrastructure Affordability Value Tariff Test Year Test Year Mechanism Tariffs/Programs CA MO CA MO CA KY MD IA NJ CA MO IA NJ IA NJ HI MO NJ IL PA IA NJ IL PA IL PA IA PA WV IN TN IL PA IN VA IN VA IL TN MO VA IN TN KY WV
Slide 32: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ in billions) As of 12/31/2025 Net Utility Plant $30.5 Less Advances for Construction $0.4 CIAC – Contributions in Aid of Construction $1.6 Net Deferred Income Taxes $4.2 $6.2 Total Estimated Rate Base $24.3 * An approximation of rate base
Slide 33: Closed Acquisitions
Closed Acquisitions December 31, 2025 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania 7 7,800 3,500 11,300 New Jersey 2 5,300 - 5,300 California 4 1,600 - 1,600 Illinois 1 - 1,500 1,500 West Virginia 1 900 - 900 Iowa 2 100 10
Slide 34: Acquisitions Under Agreement + Nexus Water Group Systems
Acquisitions Under Agreement NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS West Virginia 7 3,500 14,700 18,200 Dec. 31, 2025 New Jersey 2 15,600 - 15,600 Pennsylvania 5 2,700 9,800 12,500 Missouri 3 5,500 5,400 10,900 Illinois 1 - 300 3
Slide 35: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2025 $31 $573 $542 $349 $30 $264 $14 $319 $250 $85 $16 $69 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Excl
Slide 36: Rates Effective Since…
Rates Effective Since… ($ in millions) January 1, 2025 January 1, 2026 Date Annualized Date Annualized Revenue Annualized Rate Cases & Step Increases Infrastructure Charges Date Revenue Effective Revenue Increases Effective Increases Rate Case Effective Increase California, Kentucky (QIP) 1/1/2025 $
Slide 37: 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 West Virginia (a) Docket No. 25-0426-W-42T and 25-0428-S-42T 5/5/2025 $33 10.75% $1,071 California (b) Case No. A.25-07-003 7/1/2025 51 N/A 1,242 Virginia Docke
Slide 38: 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)
American Water Works Company — Q4 2025 Earnings Presentation on 6ix