American Water Works Company, Inc. · NYSE:AWK
American Water Works — Investor Presentation (March 2026)
38 slides from American Water Works's investor presentation, March 2026
Slide 1: Investor Presentation
Investor Presentation March 2026
Slide 2: 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 3: American Water (Standalone) Business Review
American Water (Standalone) Business Review 3
Slide 4: Only Pure Play, Large-Cap Water Utility in the U.S.
Only Pure Play, Large-Cap Water Utility in the U.S. Regulated Customer Count* 11.2% 22.8% Pennsylvania 4.9% New Jersey 5.5% Missouri 3.6M Total Customer Illinois 9.8% Connections Indiana 21.0% California 10.5% West Virginia Other 14.3% * As of December 31, 2025 Regulated Operations* Military Service
Slide 5: 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 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: Top Tier Dividend Growth Continued in 2025
Top Tier Dividend Growth Continued in 2025 8.2% Increase Aligns with Long-Term Target AWK’s Strong and Consistent Total Dividend Payout Ratio Dividend Growth* As of December 31, Long-Term 2025** Target 58% 55-60% $3.2475 $3.0025 $2.7775 ** Annual 2025 cash dividends per share of $3.2475 over 2025 ad
Slide 8: System Needs Drive Continued Investments
System Needs Drive Continued Investments Supports Water Quality, Reliability, and a Focus on Affordability Investing in Pipe Replacement, Other System Needs Investments Drive Continued Rate Base Growth Regulated Capital Investments Estimated Rate Base** ~8-9% (Includes Acquisitions) (Includes Acquis
Slide 9: Five- and Ten-Year Capital Plans: Investments to Support System Needs
Five- and Ten-Year Capital Plans: Investments to Support System Needs Capital Plan ($ in billions) Capital Recovery Outlook $46 - $48 $4 - $5 Regulated ~70% Infrastructure Surcharge Acquisitions Mechanisms ~45% $19 - $20* $2.0 - $2.5 Years ~30% Future TestTraditional Regulated Recovery ~25% $42 - $4
Slide 10: 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 11: 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 12: Highly Fragmented Water/Wastewater Industry Creates Opportunity
Highly Fragmented Water/Wastewater Industry Creates Opportunity Industry Opportunity American Water Footprint >50K Water Systems >16K Wastewater Systems • Ideal for industry consolidation opportunities • Target 5,000-50,000 customer connections per 16% Investor Owned 2% Investor Owned acquisition •
Slide 13: ASCE 2025 Infrastructure Report Card (March 2025)
ASCE 2025 Infrastructure Report Card (March 2025) American Society of Civil Engineers’ Latest Study Highlights Investment Needs The U.S. AWK Drinking Water: C- United States’ Vast Aging Pipes, Meters, Acquisition Wastewater: D+ Infrastructure Needs and Service Lines Opportunities Plentiful Report Ca
Slide 14: ~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 15: 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 16: 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 17: AWK's Steady Growth Drivers Serve Critical Needs
AWK’s Steady Growth Drivers Serve Critical Needs Low-Risk Plan to Achieve 7-9% EPS/DPS Growth that is Affordable Aging Pipes, Meters, Increasing Water Quality Acquisition Affordability of Water and Service Lines and Resiliency Needs Opportunities Plentiful Remains Industry Best Decades of Pipe Treat
Slide 18: Merger Update, 2025 Results, and 2026 Outlook
Merger Update, 2025 Results, and 2026 Outlook 18
Slide 19: 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 20: 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 21: 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 22: 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 began in Feb., Testimony expected in summer New Jersey January 16, 2026 $1.4 billion Fall 2026 Discov
Slide 23: 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 24: 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 25: Appendix
Appendix 25
Slide 26: 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 27: 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 constitutes a “non-GAAP financial measure” under SEC rules. The most directly compara
Slide 28: 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 29: 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. 29
Slide 30: 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) $1.15 (0.03) Q4 2024 Revenue O&M Depreciation Financing General Taxes Other, net Q4 2025 Adjusted EPS Adjusted EPS Note: Adjusted EPS is a non-GAAP measure. Please see appendix for reconciliation and further information
Slide 31: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ 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 $24.3 * An approximation of rate base
Slide 32: Closed Acquisitions
Closed Acquisitions December 31, 2025 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS Pennsylvania 7 7,800 3,500 11,300 New Jersey 2 5,300 - 5,300 California 4 1,600 - 1,600 Illinois 1 - 1,500 1,500 West Virginia 1 900 - 900 Iowa 2 100 10
Slide 33: Acquisitions Under Agreement + Nexus Water Group Systems
Acquisitions Under Agreement NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS West Virginia 7 3,500 14,700 18,200 New Jersey 2 15,600 - 15,600 Dec. 31, 2025 Pennsylvania 5 2,700 9,800 12,500 Missouri 3 5,500 5,400 10,900 Illinois 1 - 300 3
Slide 34: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ in millions) Rate Filings Completed* Requested Revenue in Pending Rate Proceedings Effective since January 1, 2025 $36 $543 $507 $384 $65 $286 $36 $319 $250 $98 $29 $69 Rate Cases Infrastructure Total Rate Cases Infrastructure Total (Includes Charges (Excl
Slide 35: Rates Effective Since…
Rates Effective Since… ($ 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, Step Increase 1/1/2026 $1
Slide 36: Pending Rate Case Filings
Pending Rate Case Filings ($ in millions) Rate Cases Filed Docket/Case Number Date Filed Requested Revenue Increase ROE Requested Rate Base California (a) Case No. A.25-07-003 7/1/2025 $51 N/A $1,242 Virginia Docket No. PUR-2025-00185 11/3/2025 22 10.75% 446 Pennsylvania (b) Docket Nos. R-2025-30579
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 $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)
Slide 38: 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
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