American Water Reports Strong Third Quarter 2024 Results; Affirms Long-Term Targets and 2024 EPS Guidance; Announces 2025 EPS Guidance, Reflecting Growth of 8%
American Water reported strong Q3 2024 results with earnings of $1.80 per share, up from $1.66 in 2023. Year-to-date earnings reached $4.17 per share, compared to $4.03 in 2023. The company affirmed its 2024 weather-normalized EPS guidance of $5.25-$5.30 and announced 2025 EPS guidance of $5.65-$5.75. A significant milestone includes the $230 million acquisition of Butler Area Sewer Authority assets in Pennsylvania, adding 15,000 customer connections. The company also announced its 2025-2029 capital plan of $17-$18 billion and 2025-3034 plan of $40-$42 billion, while affirming long-term EPS and dividend growth targets of 7-9% CAGR.
American Water ha riportato risultati forti per il terzo trimestre del 2024 con un utile di $1,80 per azione, in aumento rispetto a $1,66 nel 2023. Gli utili dall'inizio dell'anno hanno raggiunto $4,17 per azione, rispetto a $4,03 nel 2023. L'azienda ha confermato la sua previsione di EPS normalizzato per il clima del 2024 di $5,25-$5,30 e ha annunciato la previsione di EPS per il 2025 di $5,65-$5,75. Un traguardo significativo include l' degli asset della Butler Area Sewer Authority in Pennsylvania, aggiungendo 15.000 collegamenti con i clienti. L'azienda ha anche annunciato il suo piano di capitale 2025-2029 di $17-$18 miliardi e il piano 2025-2034 di $40-$42 miliardi, confermando nel contempo gli obiettivi di crescita degli utili e dei dividendi a lungo termine del 7-9% CAGR.
American Water reportó resultados sólidos para el tercer trimestre de 2024, con ganancias de $1.80 por acción, un aumento desde $1.66 en 2023. Las ganancias acumuladas hasta la fecha alcanzaron $4.17 por acción, en comparación con $4.03 en 2023. La compañía reafirmó su guía de EPS normalizado por clima para 2024 de $5.25-$5.30 y anunció la guía de EPS para 2025 de $5.65-$5.75. Un hito significativo incluye la adquisición de $230 millones de activos de la Butler Area Sewer Authority en Pennsylvania, añadiendo 15,000 conexiones de clientes. La compañía también anunció su plan de capital 2025-2029 de $17-$18 mil millones y el plan 2025-2034 de $40-$42 mil millones, mientras reafirma los objetivos de crecimiento de EPS y dividendos a largo plazo de 7-9% CAGR.
아메리칸 워터는 2024년 3분기 실적을 보고하며 주당 $1.80의 수익을 기록하였고, 이는 2023년의 $1.66에서 증가한 수치입니다. 올해 누적 수익은 $4.17로, 2023년의 $4.03와 비교됩니다. 회사는 2024년의 기후 보정 EPS 가이던스를 $5.25-$5.30으로 확인하고, 2025년 EPS 가이던스를 $5.65-$5.75로 발표했습니다. 중요한 이정표로는 펜실베이니아의 벨터 지역 하수도 당국 자산의 $230 백만 인수가 있으며, 15,000명의 고객 연결을 추가하였습니다. 회사는 또한 2025-2029년의 자본 계획을 $17-$18억과 2025-2034년 계획을 $40-$42억으로 발표하며, 7-9% CAGR의 장기 EPS 및 배당 성장 목표를 재확인했습니다.
American Water a rapporté de solides résultats pour le troisième trimestre de 2024, avec des bénéfices de 1,80 $ par action, en hausse par rapport à 1,66 $ en 2023. Les bénéfices cumulatifs de l'année se sont élevé à 4,17 $ par action, contre 4,03 $ en 2023. La société a confirmé sa prévision d'EPS normalisé en fonction du climat pour 2024 de 5,25 $ à 5,30 $ et a annoncé la prévision d'EPS pour 2025 de 5,65 $ à 5,75 $. Un jalon important inclut l'acquisition de 230 millions de dollars des actifs de la Butler Area Sewer Authority en Pennsylvanie, ajoutant 15 000 connexions clients. L'entreprise a également annoncé son plan d'investissement 2025-2029 de 17 à 18 milliards de dollars et son plan 2025-2034 de 40 à 42 milliards de dollars, tout en confirmant des objectifs de croissance à long terme des EPS et des dividendes de 7 à 9 % CAGR.
American Water berichtete von starken Ergebnissen im 3. Quartal 2024 mit einem Gewinn von 1,80 $ pro Aktie, ein Anstieg von 1,66 $ im Jahr 2023. Die bisherigen Erträge erreichten 4,17 $ pro Aktie, im Vergleich zu 4,03 $ im Jahr 2023. Das Unternehmen bestätigte seine Prognose für das Wetter-normalisierte EPS 2024 von 5,25 $-5,30 $ und gab die EPS-Prognose für 2025 von 5,65 $-5,75 $ bekannt. Ein bedeutender Meilenstein ist die 230 Millionen Dollar Übernahme von Vermögenswerten der Butler Area Sewer Authority in Pennsylvania, wodurch 15.000 Kundenanschlüsse hinzugefügt werden. Das Unternehmen gab auch seinen Kapitalplan für 2025-2029 von 17-18 Milliarden $ und für 2025-2034 von 40-42 Milliarden $ bekannt, während es langfristige Wachstumsziele für EPS und Dividenden von 7-9 % CAGR bekräftigte.
- Q3 2024 EPS increased 8.4% to $1.80 from $1.66 in 2023
- YTD 2024 EPS grew 3.5% to $4.17 from $4.03 in 2023
- $230 million acquisition adding 15,000 customer connections
- Substantial capital plans: $17-$18B (2025-2029) and $40-$42B (2025-3034)
- Strong 7-9% projected long-term EPS and dividend growth
- Year-to-date results affected by unfavorable weather impact of $0.04 per share
Insights
Strong quarterly performance with
The company's guidance for
-
Third quarter 2024 earnings were
per share, compared to$1.80 per share in 2023; year-to-date 2024 earnings were$1.66 per share, compared to$4.17 per share in 2023$4.03 -
Year-to-date 2024 and 2023 comparative results reflect a net unfavorable weather impact of an estimated
per share; no weather impact quarter over quarter$0.04
-
Year-to-date 2024 and 2023 comparative results reflect a net unfavorable weather impact of an estimated
-
2024 weather-normalized earnings per share guidance range of
to$5.25 affirmed; includes$5.30 per share of incremental interest income from the Homeowner Services Group (HOS) seller note that was amended in early 2024$0.10 -
2024 earnings per share guidance range of
to$5.15 , excluding the$5.20 per share of incremental interest income from the amended HOS note$0.10
-
2024 earnings per share guidance range of
-
On October 29, completed the acquisition of the wastewater collection and treatment system assets of Butler Area Sewer Authority in
Pennsylvania for , which adds approximately 15,000 customer connections$230 million -
Initiating 2025 earnings per share guidance range of
to$5.65 , which includes$5.75 per share of incremental interest income from the amended HOS note$0.10 -
2025 earnings per share guidance range of
to$5.55 , excluding the$5.65 per share of incremental interest income from the amended HOS note$0.10
-
2025 earnings per share guidance range of
-
Affirming long-term targets, including long-term EPS and dividend per share compounded annual growth rates (CAGRs) of 7
-9% -
Announcing 2025-2029 capital plan of
and 2025-3034 capital plan of$17 -$18 billion $40 -$42 billion
-
Announcing 2025-2029 capital plan of
“The company has delivered strong results to date in 2024, including key regulatory outcomes that set a good foundation going forward,” said M. Susan Hardwick, CEO of American Water. “We are also very pleased to have closed on the Butler Area Sewer Authority wastewater acquisition and look forward to serving those customers.”
“Looking forward to 2025 and beyond, we have demonstrated consistently now that we execute on the plans we set, and we are fully confident in our ability to continue to deliver on our near-term and long-term growth and capital plans in this latest update,” said
2024 EPS Guidance Affirmed
The company affirms weather-normalized 2024 earnings per share guidance range of
2025 EPS Guidance and Long-Term Targets
-
2025 earnings per share guidance range of
to$5.65 established; includes the$5.75 per share of incremental interest income from the amended HOS note$0.10 -
Long-term EPS CAGR of 7
-9% remains unchanged-
Long-term rate base growth of 8
-9% (including acquisitions) remains unchanged -
Acquired customer additions at a CAGR of
2% remains unchanged
-
Long-term rate base growth of 8
-
Long-term dividend per share CAGR expectation of 7
-9% remains unchanged -
Established capital investment plan of
for 2025-2029 and$17 -$18 billion for 2025-2034$40 -$42 billion -
2025 capital investment plan of
$3.3 billion
-
2025 capital investment plan of
Consolidated Results
For the three and nine months ended September 30, 2024, earnings per share were
The company is on track to modestly exceed its original capital investment plan for the year with investments of
Regulated Businesses
In the third quarter of 2024, the Regulated Businesses’ net income was
Operating revenues increased
Since January 1, 2024, the company has been authorized additional annualized revenues of
Operating expenses were higher by
Interest expense was higher by
Dividends
On October 29, 2024, the company’s Board of Directors declared a quarterly cash dividend payment of
2024 Third Quarter Earnings Conference Call
The conference call to discuss third quarter 2024 earnings, 2025 earnings guidance, and long-term targets will take place on Thursday, October 31, 2024, at 9 a.m. Eastern Daylight Time. Interested parties may listen to an audio webcast through a link on the company’s Investor Relations website at ir.amwater.com. Presentation slides that will be used in conjunction with the earnings conference call will also be made available online in advance at ir.amwater.com. The company recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under SEC Regulation FD.
Following the earnings conference call, a replay of the audio webcast will be available for one year on American Water’s investor relations website at ir.amwater.com/events.
About American Water
American Water (NYSE: AWK), a large capitalization value company, is the largest regulated water and wastewater utility company in
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
Throughout this press release, unless the context otherwise requires, references to the “company” and “American Water” mean American Water Works Company, Inc. and all of its subsidiaries, taken together as a whole. All statements related to earnings and earnings per share refer to diluted earnings and diluted earnings per share.
Non-GAAP Financial Measures
This press release includes a presentation of American Water’s 2024 and 2025 earnings guidance ranges excluding the
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release including, without limitation, 2024 and 2025 earnings guidance, the company’s long-term financial, growth and dividend targets, the ability to achieve the company’s strategies and goals, customer affordability and acquired customer growth, the outcome of the company’s pending acquisition activity, the amount and allocation of projected capital expenditures, and estimated revenues from rate cases and other government agency authorizations, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. In some cases, these forward-looking statements can be identified by words with prospective meanings such as “intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,” “predict,” “project,” “propose,” “assume,” “forecast,” “outlook,” “likely,” “uncertain,” “future,” “pending,” “goal,” “objective,” “potential,” “continue,” “seek to,” “may,” “can,” “will,” “should” and “could” and or the negative of such terms or other variations or similar expressions. These forward-looking statements are predictions based on American Water’s current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may vary materially from those discussed in the forward-looking statements included in this press release as a result of the factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent filings with the SEC, and because of factors such as: the decisions of governmental and regulatory bodies, including decisions to raise or lower customer rates; the timeliness and outcome of regulatory commissions’ and other authorities’ actions concerning rates, capital structure, authorized return on equity, capital investment, system acquisitions and dispositions, taxes, permitting, water supply and management, and other decisions; changes in customer demand for, and patterns of use of, water and energy, such as may result from conservation efforts, or otherwise; limitations on the availability of the company’s water supplies or sources of water, or restrictions on its use thereof, resulting from allocation rights, governmental or regulatory requirements and restrictions, drought, overuse or other factors; a loss of one or more large industrial or commercial customers due to adverse economic conditions, or other factors; present and future proposed changes in laws, governmental regulations and policies, including with respect to the environment (such as, for example, potential improvements to existing Federal regulations with respect to lead and copper service lines and galvanized steel pipe), health and safety, data and consumer privacy, security and protection, water quality and water quality accountability, contaminants of emerging concern (including without limitation per- and polyfluoroalkyl substances (“PFAS”)), public utility and tax regulations and policies, and impacts resulting from
These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above, and the risk factors included in American Water’s annual, quarterly and other SEC filings, and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements American Water makes speak only as of the date of this press release. American Water does not have or undertake any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for the company to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on the company’s businesses, either viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. The foregoing factors should not be construed as exhaustive.
AWK-IR
American Water Works Company, Inc. and Subsidiary Companies Consolidated Statements of Operations (Unaudited) (In millions, except per share data) |
|||||||||||||||
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating revenues |
$ |
1,323 |
|
|
$ |
1,167 |
|
|
$ |
3,483 |
|
|
$ |
3,202 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Operation and maintenance |
|
496 |
|
|
|
436 |
|
|
|
1,339 |
|
|
|
1,248 |
|
Depreciation and amortization |
|
200 |
|
|
|
177 |
|
|
|
581 |
|
|
|
523 |
|
General taxes |
|
84 |
|
|
|
76 |
|
|
|
246 |
|
|
|
227 |
|
Other |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Total operating expenses, net |
|
780 |
|
|
|
689 |
|
|
|
2,165 |
|
|
|
1,997 |
|
Operating income |
|
543 |
|
|
|
478 |
|
|
|
1,318 |
|
|
|
1,205 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(132 |
) |
|
|
(117 |
) |
|
|
(387 |
) |
|
|
(342 |
) |
Interest income |
|
22 |
|
|
|
23 |
|
|
|
71 |
|
|
|
52 |
|
Non-operating benefit costs, net |
|
7 |
|
|
|
9 |
|
|
|
23 |
|
|
|
26 |
|
Other, net |
|
13 |
|
|
|
14 |
|
|
|
31 |
|
|
|
37 |
|
Total other (expense) income |
|
(90 |
) |
|
|
(71 |
) |
|
|
(262 |
) |
|
|
(227 |
) |
Income before income taxes |
|
453 |
|
|
|
407 |
|
|
|
1,056 |
|
|
|
978 |
|
Provision for income taxes |
|
103 |
|
|
|
84 |
|
|
|
244 |
|
|
|
205 |
|
Net income attributable to common shareholders |
$ |
350 |
|
|
$ |
323 |
|
|
$ |
812 |
|
|
$ |
773 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share: (a) |
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
$ |
1.80 |
|
|
$ |
1.66 |
|
|
$ |
4.17 |
|
|
$ |
4.03 |
|
Diluted earnings per share: (a) |
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
$ |
1.80 |
|
|
$ |
1.66 |
|
|
$ |
4.17 |
|
|
$ |
4.03 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
195 |
|
|
|
195 |
|
|
|
195 |
|
|
|
192 |
|
Diluted |
|
195 |
|
|
|
195 |
|
|
|
195 |
|
|
|
192 |
|
-
Amounts may not calculate due to rounding.
American Water Works Company, Inc. and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|||||||
Property, plant and equipment |
$ |
33,940 |
|
|
$ |
32,189 |
|
Accumulated depreciation |
|
(6,933 |
) |
|
|
(6,751 |
) |
Property, plant and equipment, net |
|
27,007 |
|
|
|
25,438 |
|
Current assets: |
|
|
|
||||
Cash and cash equivalents |
|
127 |
|
|
|
330 |
|
Restricted funds |
|
40 |
|
|
|
34 |
|
Accounts receivable, net of allowance for uncollectible accounts of |
|
453 |
|
|
|
339 |
|
Income tax receivable |
|
7 |
|
|
|
86 |
|
Unbilled revenues |
|
310 |
|
|
|
302 |
|
Materials and supplies |
|
105 |
|
|
|
112 |
|
Other |
|
195 |
|
|
|
186 |
|
Total current assets |
|
1,237 |
|
|
|
1,389 |
|
Regulatory and other long-term assets: |
|
|
|
||||
Regulatory assets |
|
1,119 |
|
|
|
1,106 |
|
Secured seller promissory note from the sale of the Homeowner Services Group |
|
795 |
|
|
|
720 |
|
Operating lease right-of-use assets |
|
89 |
|
|
|
86 |
|
Goodwill |
|
1,143 |
|
|
|
1,143 |
|
Other |
|
400 |
|
|
|
416 |
|
Total regulatory and other long-term assets |
|
3,546 |
|
|
|
3,471 |
|
Total assets |
$ |
31,790 |
|
|
$ |
30,298 |
|
American Water Works Company, Inc. and Subsidiary Companies Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
CAPITALIZATION AND LIABILITIES |
|||||||
Capitalization: |
|
|
|
||||
Common stock ( |
$ |
2 |
|
|
$ |
2 |
|
Paid-in-capital |
|
8,588 |
|
|
|
8,550 |
|
Retained earnings |
|
2,172 |
|
|
|
1,659 |
|
Accumulated other comprehensive loss |
|
(8 |
) |
|
|
(26 |
) |
Treasury stock, at cost (5,451,216 and 5,414,867 shares, respectively) |
|
(392 |
) |
|
|
(388 |
) |
Total common shareholders' equity |
|
10,362 |
|
|
|
9,797 |
|
Long-term debt |
|
12,550 |
|
|
|
11,715 |
|
Redeemable preferred stock at redemption value |
|
3 |
|
|
|
3 |
|
Total long-term debt |
|
12,553 |
|
|
|
11,718 |
|
Total capitalization |
|
22,915 |
|
|
|
21,515 |
|
Current liabilities: |
|
|
|
||||
Short-term debt |
|
215 |
|
|
|
179 |
|
Current portion of long-term debt |
|
585 |
|
|
|
475 |
|
Accounts payable |
|
259 |
|
|
|
294 |
|
Accrued liabilities |
|
585 |
|
|
|
791 |
|
Accrued taxes |
|
174 |
|
|
|
67 |
|
Accrued interest |
|
129 |
|
|
|
93 |
|
Other |
|
185 |
|
|
|
252 |
|
Total current liabilities |
|
2,132 |
|
|
|
2,151 |
|
Regulatory and other long-term liabilities: |
|
|
|
||||
Advances for construction |
|
379 |
|
|
|
352 |
|
Deferred income taxes and investment tax credits |
|
2,833 |
|
|
|
2,717 |
|
Regulatory liabilities |
|
1,403 |
|
|
|
1,481 |
|
Operating lease liabilities |
|
77 |
|
|
|
73 |
|
Accrued pension expense |
|
243 |
|
|
|
262 |
|
Other |
|
239 |
|
|
|
196 |
|
Total regulatory and other long-term liabilities |
|
5,174 |
|
|
|
5,081 |
|
Contributions in aid of construction |
|
1,569 |
|
|
|
1,551 |
|
Commitments and contingencies |
|
|
|
||||
Total capitalization and liabilities |
$ |
31,790 |
|
|
$ |
30,298 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030411432/en/
Investor:
Aaron Musgrave
Vice President, Investor Relations
856-955-4029
aaron.musgrave@amwater.com
Media:
Maureen Duffy
Senior Vice President, Communications and External Affairs
856-955-4163
maureen.duffy@amwater.com
Source: American Water
FAQ
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