10-Q · April 29, 2026
In the Q1 2026 10-Q filing, American Water Works Company (AWK) reported revenues of $1.207 billion, a 5.7% increase compared to $1.142 billion in Q1 2025. Gross margins are steady at 100%, while GAAP EPS decreased to…
Earnings analysis · 10-Q
AWK earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
The supplied 10-Q excerpt does not include the income statement, balance sheet, cash flow statement, segment results or MD&A, so current-quarter revenue, margins, EPS, cash flow and balance-sheet trends cannot be…
Read full summary
The supplied 10-Q excerpt does not include the income statement, balance sheet, cash flow statement, segment results or MD&A, so current-quarter revenue, margins, EPS, cash flow and balance-sheet trends cannot be assessed. The filing contains meaningful regulatory and execution developments, including a revised Monterey project estimate of $825 million plus AFUDC and PFAS proceeds of $235 million received to date. Risk factors were unchanged from the Form 10-K, but project approvals, litigation and regulatory allocation of settlement proceeds remain material uncertainties.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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PFAS recoveries provide customer funding
PFAS multi-district litigation settlements generated $235 million of payments received as of September 30, 2026, net of legal fees and administrative costs. Approximately $126 million of escrowed funds had been transferred for distribution to utility subsidiaries.
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Additional PFAS settlements advance
Four additional PFAS class settlements received preliminary approval, totaling approximately $149 million. The final fairness hearing is scheduled for January 15, 2027.
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Gordon’s Corner transaction closed
The Company issued 350,652 treasury shares on July 27, 2026, as consideration for the Gordon’s Corner Water Company merger, expanding its New Jersey operations.
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No quarterly share repurchases
The Company did not repurchase shares during the quarter. The anti-dilutive program had 5,140,000 shares remaining available as of September 30, 2026.
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Controls remained effective
Management stated that there were no material changes in internal control over financial reporting during the three months ended September 30, 2026, and disclosure controls were effective at a reasonable level of assurance as of September 30, 2026.
What to watch
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Water project cost escalation
Cal Am’s updated application increased the total estimated cost of the Monterey Peninsula Water Supply Project to $825 million plus AFUDC, from the amount approved in the 2018 Final Decision. The application remains subject to public comment and CPUC review and approval.
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PFAS proceeds depend on approvals
Only 8 of 11 utility subsidiaries that filed for regulatory approval to use PFAS settlement proceeds had obtained approval as of September 30, 2026; 2 had been denied and 1 remained pending. In addition, $108 million remained in escrow and had not yet been transferred to the Company or returned to customers.
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Regulatory and permitting uncertainty
The SWRCB hearing on potential modification of the moratorium on new service connections is scheduled for November 5, 2026, followed by a draft order. The Company also faces a CPUC complaint seeking to halt current desalination activities and potential sanctions.
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No formal risk-factor update
The filing states that there were no material changes to previously disclosed Form 10-K risk factors. However, the Monterey project application reflects escalation in labor, material, construction, engineering, procurement and legal costs, with the revised estimate at $825 million plus AFUDC.
Management's outlook
The supplied 10-Q excerpt contains no quantitative revenue or EPS outlook. No change to prior outlook can be determined from the filing; the report focuses on legal proceedings, controls and other information.
Earlier filings 4
10-K · February 18, 2026
American Water’s 2025 10-K highlights continued top-line expansion in its Regulated Businesses (operating revenues of $4,723 million in 2025, up from $4,296 million in 2024 and $3,920 million in 2023) while the company…
10-Q · April 30, 2025
American Water reported Q1 operating revenues of $1,142 million (up $131 million vs. Q1 2024's $1,011 million) and diluted EPS of $1.05 (up $0.10 vs. $0.95 in Q1 2024). Operating income rose to $371 million from $326…
10-K · February 19, 2025
American Water emphasizes its position as the largest publicly-traded U.S. water and wastewater utility, with Regulated Businesses generating $4,296 million in operating revenues in 2024 and serving roughly 3.5 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.