American Water Works Company, Inc. Q4 FY2025 earnings call

• 2025 achieved financial results near upper end of expectations, adjusted earnings $5.64 per share, up from $5.18 in 2024, EPS growth 8.9%. • Regulatory and state teams active, completing and initiating significant rate cases in 2025, invested over $3 billion. • Kept residential water bills well under 1% of median household income on average. • Entered definitive merger agreement with Essential Utilities, shareholders voted in favor, expected to close by end of first quarter of 2027. • Affirmed 2026 earnings guidance of $6.02 to $6.12 per share, 8% EPS growth.

Consolidated earnings were $5.64 per share in 2025, up from $5.18 in 2024. Revenues were higher due to authorized rate increases, acquisitions, and organic growth. Operating costs, depreciation, and financing costs also increased.

• Affirmed 2026 adjusted EPS guidance of $6.02 to $6.12 per share, expecting 8% EPS growth. • Expect consistent EPS and dividend growth within 7% to 9% range through 2030 and beyond. • 2026 - 2030 financing plan includes estimated $2.5 billion of external equity issuances, with ~$1 billion settled in mid - 2026 from equity forward.

• Forward - looking statements subject to numerous known and unknown risks, uncertainties and other factors that may cause actual results to be materially different. • Uncertainties in rate case progress may impact revenues.

Q: On portfolio positioning post - close, plans for Peoples Gas business use of proceeds and 2025 realized FFO to debt and forecast pro forma for Essential Utilities transactions?

A: Will review strategic alternatives post - merger closing, if sale proceeds used for reinvestment, portion for debt repayment and rate base investment; typically don't disclose FFO to debt, can generally calculate from financial statements.

Q: Key approvals remaining for Nexus and PFAS settlement monies?

A: Nexus has ~5 states left to approve, progressing well; PFAS proceeds received some, returning to customers via regulatory process, future payments ahead.

Q: Pace of rate cases in Pennsylvania and New Jersey and impact of affordability?

A: Pennsylvania rate cases on 2 - year cycle, expected progress unchanged; New Jersey rate cases driven by system investments, water bills below 1% of median household income and forecasted to remain so through 2035