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American Water Works Company AWK posted first-quarter 2025 operating earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate of $1.04 by nearly 1%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The bottom line improved 10.5% from the year-ago quarter's 95 cents. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses from capital and acquisition investments.
Total quarterly revenues of $1.14 billion surpassed the Zacks Consensus Estimate of $1.02 billion by 11%. The top line also increased 12.9% from the year-ago figure of $1.01 billion.
American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote
Regulated businesses’ net revenues in the first quarter were $1.04 billion, up 13% year over year.
Other’s net revenues in the first quarter were $93 million, up 12% year over year.
Total operating expenses for the first quarter were $771 million, up 12.6% from the year-ago quarter’s $685 million, due to an increase in operating and maintenance expenses.
The operating income was $371 million, up 13.8% from the year-ago figure of $326 million.
AWK continues to expand operations through acquisitions and organic means. As of April 30, 2025, the company added 2,150 customers through three closed acquisitions. Another 18 pending acquisitions, when completed, will add 37,400 customers.
New rates effective since Jan.1, 2025, will increase revenues for the full year by $161 million. As of Jan. 1, 2025, the pending rate cases, if approved without any changes, can increase revenues by another $384 million.
Cash and cash equivalents amounted to $114 million as of March 31, 2025, compared with $96 million as of Dec. 31, 2024. Total liquidity (including cash and credit) was $1.78 billion as of March 31, which is enough to meet near-term obligations.
Total long-term debt was $13.32 billion as of March 31, 2025, up 6.4% from $12.51 billion as of Dec. 31, 2024.
In first-quarter 2025, cash flow from operating activities was $331 million compared with $382 million in the year-ago period.
American Water reiterated its 2025 EPS guidance to $5.65-$5.75. The Zacks Consensus Estimate of $5.72 per share is a tad higher than the company’s guided range. AWK reiterated long-term earnings and dividend growth in the range of 7-9%. The company plans to invest nearly $3.3 billion in 2025.
AWK reiterated its long-term capital expenditure plan to strengthen and expand existing infrastructure. For 2025-2029, capital expenditure is expected in the range of $17-$18 billion and for 2025-3034 in the band of $40-$42 billion.
American Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Essential Utilities Inc. WTRG is set to report first-quarter 2025 earnings on May 12. The Zacks Consensus Estimate for Essential Utilities’ first-quarter EPS is pegged at 80 cents, implying an increase of 9.59% from the prior-year figure. Long-term (three to five years) earnings growth is pegged at 5.18%.
American States Water AWR is set to report first-quarter 2025 earnings on May 27. The Zacks Consensus Estimate for American States Water’s EPS is pinned at 70 cents, indicating a decline of 12.9% from the year-ago quarter. Long-term earnings growth is pegged at 5.65%.
Global Water Resources Inc. GWRS is scheduled to report first-quarter 2025 earnings on May 14. The Zacks Consensus Estimate for Global Water Resources’ EPS is pegged at 2 cents, indicating a decline of 33.3% from the year-ago quarter. Long-term earnings growth is pegged at 15%.
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This article originally published on Zacks Investment Research (zacks.com).
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