American Water Works Company, Inc. operates across the United States, delivering essential water and wastewater solutions via its various subsidiary companies. Its ...
American Water Works Company, Inc. (NYSE: AWK), headquartered in Camden, New Jersey, is the largest and most geographically diverse publicly traded water and wastewater utility in the United States. Founded in 1886, the company has a rich history of providing safe, clean, and reliable water services. Its operations span approximately ...American Water Works Company, Inc. (NYSE: AWK), headquartered in Camden, New Jersey, is the largest and most geographically diverse publicly traded water and wastewater utility in the United States. Founded in 1886, the company has a rich history of providing safe, clean, and reliable water services. Its operations span approximately 1,700 communities across 14 states, catering to a diverse customer base including residential, commercial, industrial, fire service, public authorities, and military installations. The company's infrastructure includes 80 surface water treatment plants, 480 groundwater treatment plants, 160 wastewater treatment plants, 52,500 miles of mains, 1,100 groundwater wells, 1,700 pumping stations, 1,300 treated water storage facilities, and 76 dams.
American Water delivers drinking water, wastewater management, and ancillary services to roughly 14 million people. The company's business model is heavily regulated, with a focus on long-term infrastructure investment and operational efficiency. Financially, the company has a market capitalization of around $26.89 billion, with a price-to-earnings ratio of 23.41 and a dividend yield of approximately 2.5%. It generates substantial revenue, with a gross profit margin of about 47.2% and an operating margin of 36.9%. The company's capital expenditure is significant, reflecting ongoing investment in water infrastructure, with capital expenditure to revenue ratio of 63.7%.
Key leadership includes President and CEO John C. Griffith, Chairman Karl F. Kurz, COO Cheryl Norton, and CFO David Bowler. The company employs approximately 7,000 professionals who leverage their expertise to maintain high service standards. American Water is committed to sustainability and innovation, aiming to ensure water quality and environmental stewardship. With a history of 140 years, the company continues to grow, affirming long-term growth targets and maintaining a strong presence in the regulated water utility sector.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$5.1B
+9.7%
+12.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.1B
+5.7%
+60.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+43.3%
-28.2%
+27.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+36.6%
-0.3%
+23.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+21.6%
-3.7%
+43.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-1.1B
-31.6%
+27.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-20.8%
-19.9%
+35.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
146.9%
+7.6%
-3.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.46x
+19.7%
+41.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to American Water’s Second Quarter 2026 Earnings Conference Call. As a reminder, this call is being recorded and is also being webcast with the accompanying slide presentation through the company’s Investor Relations website. The audio webcast archive will be available for one year on American Water’s Investor Relations website. I would now like to introduce your host for today’s call, Aaron Musgrave, Vice President of Investor Relations. Mr. Musgrave, you may begin.
Aaron Musgrave: Good morning, everyone, and thank you for joining us for today’s call. At the end of our prepared remarks, we will open the call for your questions. Let me first go over some safe harbor language. Today, we will be making forward-looking statements that represent our expectations regarding our future performance or other future events. These statements are predictions based on our current expectations, estimates, and assumptions. However, since these statements deal with future events, they are subject to numerous known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from the results indicated or implied by such statements. Additional information regarding these risks, uncertainties, and factors, as well as a more detailed analysis of our financials and other important information, is provided in the second-quarter earnings release and Form 10-Q, each filed yesterday with the SEC. This call will include a discussion of non-GAAP financial information. A reconciliation of our historical adjusted earnings per share to GAAP earnings per share and other disclosures related to our non-GAAP financial information can be found in the appendix of the slides for this call. And finally, all statements during this presentation related to earnings and earnings per share refer to diluted adjusted earnings and earnings per share. With that, I will turn the call over to American Water’s President and CEO, John C. Griffith.
John C. Griffith: Thanks, Aaron, and good morning, everyone. Let’s turn to Slide 5. I will start by covering some highlights of the second quarter and first half of the year. As we announced yesterday, we delivered solid financial results in the second quarter and through the first half of 2026. Adjusted earnings were $1.61 per share for the second quarter compared to $1.49 per share for the same period last year. In the first six months of 2026, adjusted earnings were $2.62 per share compared to $2.51 per share in the same period of 2025. With this strength across the business, combined with our expectations for the rest of the year, we continue to be on track to achieve our full-year earnings guidance, which we have again affirmed along with our long-term targets. David will share more about our results and guidance a bit later. I also want to acknowledge the great work of our state and corporate regulatory teams as they continue to successfully execute our regulatory …