American Water Works Reports 6.2% Revenue Growth in Q2 2026

American Water Works Company, Inc. reported a solid financial performance for the second quarter of 2026, with operating revenues reaching $1.355 billion, a 6.2% increase from $1.276 billion in the same period last year. For the first half of 2026, revenues totaled $2.562 billion, up from $2.418 billion in the prior year, reflecting a growth of 5.9%. The company’s net income attributable to common shareholders was $315 million for the quarter, translating to earnings per share of $1.61, compared to $289 million and $1.48 per share in the second quarter of 2025. For the six-month period, net income was $511 million, or $2.61 per share, compared to $494 million and $2.53 per share in the previous year.

The company experienced significant changes in its operational metrics, including a rise in customer demand and the successful implementation of new rates across its regulated businesses. The increase in revenues was primarily driven by authorized rate increases, which contributed $52 million and $108 million to the quarterly and half-year results, respectively. Additionally, the company added approximately 52,700 customers through acquisitions, including a notable acquisition of regulated water and wastewater system assets from Nexus Regulated Utilities, LLC for $319 million, which added around 47,000 customers.

American Water's operational developments included a total of 19 pending acquisition agreements aimed at expanding its customer base by an estimated 56,600 additional customers. The company also reported a total of 9,000 new customers added through organic growth in existing systems. As of June 30, 2026, the company’s total assets stood at $36.453 billion, up from $35.442 billion at the end of 2025, reflecting ongoing investments in infrastructure and capital improvements.

In terms of strategic developments, American Water is in the process of merging with Essential Utilities, Inc., with the merger expected to close by the end of the first quarter of 2027, pending regulatory approvals. The company incurred $9 million in merger-related costs during the first half of 2026. Furthermore, the company has been actively involved in addressing regulatory matters, including general rate cases that are expected to yield an additional $111 million in annualized revenues across various states, effective in 2026.

Looking ahead, American Water anticipates continued growth through capital investments, with plans to invest approximately $3.7 billion in infrastructure and acquisitions in 2026. The company remains focused on enhancing its operational efficiency and expanding its service offerings while navigating regulatory challenges and market conditions. The outlook for the remainder of the year remains positive, supported by the expected benefits from the merger and ongoing capital projects.