American Water Works Company, Inc. Q2 FY2025 earnings call

• John Griffith noted solid financial results in Q2 2025 ($1.48 per share) and H1 2025 ($2.53 per share), with $1.3B invested in capital projects YTD. Announced new acquisition agreements like Nexus Water Group (adding ~47k customer connections, closing by Aug 2026) and regulatory execution with new rates and cases filed. • David Bowler discussed Q2 results: consolidated earnings up $0.06 per share, revenues higher due to rate increases and acquisitions, unfavorable weather impact, and O&M, depreciation, financing costs details. Narrowed 2025 EPS guidance to $5.70-$5.75, top half of previous range. • Cheryl Norton talked about capital program with $1.3B invested YTD, 87k customer connections under acquisition agreement ($535M), Pennsylvania stakeholder relationships, and California decoupling bill progress.

• Narrowed 2025 EPS guidance to the top half of $5.70 to $5.75 from $5.65 to $5.75 previously, expecting second half strength to achieve this. • Affirming long-term targets for earnings and dividend growth at 7% to 9%, driven by 8% to 9% rate base growth.

Q: How are you thinking about Pennsylvania stakeholder relationships and engagements in advance of the next rate case application in the state?

A: Cheryl D. Norton said they've been doing a lot of work in the stakeholder space, providing great customer service and having a stakeholder plan to build relationships across groups.

Q: Anything you guys can provide as a basis for the earnings power of the Nexus acquisition asset and how it compares to municipal M&A?

A: Cheryl D. Norton said Nexus acquisition is a great opportunity to expand footprint in existing states, similar to other acquisitions, and municipal deals are still being pursued.

Q: Could you just kind of talk a little bit more on the landscape in Pennsylvania on the fair market value front? And about the decoupling bill in California?

A: Cheryl D. Norton said Pennsylvania deals are long lead time, more deals expected, and the California decoupling bill was designed to close gaps and is moving through the process. David Bowler added it passed out of appropriations committee and goes to full legislature then governor's desk.

Q: On the strength in 2025 pushing up the guidance towards the top end. Is there anything else in particular that kind of drove that strength?

A: David M. Bowler said strong usage was the primary driver, John C. Griffith added consistent regulatory execution and diversified platform strength contributed.