Research · Sep 3, 2026
[AWK] American Water Works Thesis 2026: Essential Utilities Merger Reshapes Water Utility Landscape
American Water Works FY25 revenue $5.14B (+10%); op income $1.88B (+9%); NI $1.11B; EPS $5.70 (adj $5.64 above guide). 8.9% YoY adj EPS growth. $3B+ capital invested. Essential Utilities merger announced (closes by Q1 2027) — combines America's two largest publicly-traded water utilities. Nexus Water Group acquisition (~47K customer connections, $535M, closes Aug 2026). 87K customer connections under acquisition. Bills <1% of median household income. FY26 adj EPS guide $6.02-$6.12 (+8%); LT 7-9% EPS/dividend growth through 2030 and beyond. Rate base growth 8-9% drives algorithm. $2.5B external equity 2026-2030.