American Water Works Company, Inc. · NYSE:AWK
American Water Works — Investor Presentation (September 2026)
38 slides from American Water Works's investor presentation, September 2026
Slide 1: Investor Presentation September 2026
Investor Presentation September 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. American Water National Footprint 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 Regu
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 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 $3.5125 over 2026
Slide 8: System Needs Drive Continued Investments
System Needs Drive Continued Investments Supports Water Quality, Reliability, and a Focus on Affordability Investing in Pipe Replacement, Other System Needs Investments Drive Continued Rate Base Growth Capital Investments Estimated Rate Base** ~8-9% (Includes Acquisitions) (Includes Acquisitions) CA
Slide 9: Five- and Ten-Year Capital Plans: Investments to Support System Needs
Five- and Ten-Year Capital Plans: Investments to Support System Needs Capital Plan ($ 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: Closed Acquisitions of ~79k Customers YTD
Closed Acquisitions of ~79k Customers YTD Includes Completion of the Acquisition of Nexus Systems Closed Under Agreement Nexus Water Group Systems As of September 4, 2026 As of September 4, 2026 ~46,600 Customer Connections ~32,300 Customer Connections ~35,500 Customer Connections 60 Systems in 8 St
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) June 30, 2026 Target Ratings and Stable Outlook ✓ Low risk business profile 58% <60% ✓ Strong regulatory affirmed a
Slide 16: 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 16
Slide 17: Military Services Group Provides Strategic Value
Military Services Group Provides Strategic Value Currently Serving 70 Additional Installation 19 Military Installations Opportunities 13 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 18: 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 19: Merger Update, Q2 2026 Results, and 2026 Outlook
Merger Update, Q2 2026 Results, and 2026 Outlook 19
Slide 20: Continued Progress on the Path to Merger Close
Continued Progress on the Path to Merger Close Three state approvals received and additional settlements reached 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
Slide 21: Solid Second Quarter 2026 Results
Solid Second Quarter 2026 Results Adjusted Earnings Per Share* Q2/YTD 2026 Highlights ✓ 2026 EPS on track; revenue increases from PA and NJ expected to $2.62 become effective in Q3 driving strong 2H 2026 financial results $2.51 ✓ Continued success in regulatory execution, including rate cases • Comp
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 Missouri July 1, 2026 $1.6 billion June 2027 Discovery ongoing Kentucky May 15, 2026 $108 million December 2026 Rebuttal due in Sept. , Hearings in Oct. Illinois J
Slide 23: 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 24: Appendix
Appendix 24
Slide 25: 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 26: 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 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 EPS constitutes a “non-GAAP financial measure” under SEC rules. The most directly com
Slide 28: 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 29: 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 30: 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 ($0.01) of dilution related to the equity for
Slide 31: Reconciliation of Estimated Rate Base
Reconciliation of Estimated Rate Base Estimated Rate Base* ($ 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 $25.3 * An approximation of rate base,
Slide 32: Closed Acquisitions: Nexus Water Group Systems
Closed Acquisitions Sept. 4, 2026 NUMBER WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS STATE TOTAL CUSTOMER CONNECTIONS OF SYSTEMS New Jersey 2 16,200 - 16,200 Missouri 2 5,400 5,400 10,800 West Virginia 1 - 4,600 4,600 Pennsylvania 1 - 500 500 Kentucky 1 200 - 200 Total 7 21,800 10,500
Slide 33: Acquisitions Under Agreement
Acquisitions Under Agreement Sept. 4, 2026 NUMBER STATE OF SYSTEMS WATER CUSTOMER CONNECTIONS WASTEWATER CUSTOMER CONNECTIONS TOTAL CUSTOMER CONNECTIONS West Virginia 9 4,600 13,900 18,500 Pennsylvania 4 2,700 9,700 12,400 Kentucky 1 3,400 - 3,400 New Jersey 4 200 500 700 Illinois 2 100 300 400 Miss
Slide 34: Annualized Revenue from Rate Proceedings
Annualized Revenue from Rate Proceedings ($ 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)
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
American Water Works Company — Investor Presentation (September 2026) on 6ix