American Water Works Reports Higher Profit and Revenue on Both Quarterly and Six-Month Windows

Bottom line

- American Water Works Company, Inc. reported higher earnings for both the three-month reporting period and the six-month year-to-date period relative to the corresponding prior-year windows, with diluted earnings per share, net income attributable to parent, and operating income all improving, alongside revenue from contract with customer, excluding assessed tax, which also moved higher in both comparative frames. 48 per diluted share USD/SHARES, lifting the period from a profit to a higher profit, while net income attributable to parent of $315,000,000 USD rose above the prior year's $289,000,000 USD, again retaining a profit-to-profit character.

Operating income followed the same pattern, with $542,000,000 USD ahead of the prior year's $489,000,000 USD, and revenue from contract with customer, excluding assessed tax, reached $1,350,000,000 USD, up from $1,272,000,000 USD a year earlier. 53 per diluted share USD/SHARES, net income attributable to parent of $511,000,000 USD versus $494,000,000 USD, operating income of $933,000,000 USD versus $860,000,000 USD, and revenue from contract with customer, excluding assessed tax, of $2,553,000,000 USD versus $2,406,000,000 USD, each moving profit to a higher profit in the authorized direction.

- This is the 10-Q filing for American Water Works Company, Inc. covering the three-month period the three months ended June 30, 2026 and the six-month year-to-date period the six months ended June 30, 2026, filed under 0001410636 and accessible via accession 0001410636-26-000120, with the equity ticker AWK representing the issuer across both windows on the consolidated statements presented in the form. - The filing evidence does not attribute this change to any single cause.

- The filing evidence contains no peer or industry comparison. - Source scope is drawn from the consolidated statements of operations included within this single 10-Q filing; the forward-looking statement section, management's discussion and analysis referenced via Item 2, controls and procedures referenced via Item 4, legal proceedings referenced via Item 1, risk factors referenced via Item 1A, market risk disclosures referenced via Item 3, exhibits referenced via Item 6, signatures referenced via Item 5, and the cited note, including the significant accounting policies note, captured under Note 1 and Note 2, with capitalization also referenced via Note 11, form the boundary of evidence used in this analysis, and any line item outside those sections is treated as outside the source scope.

- Readers comparing this profit-to-profit growth pattern with adjacent water-utility and earnings-analysis coverage can place it alongside the parallel construct seen in Lizely Finance Earnings Analysis — ANI Pharmaceuticals Interim Filing: Profit-to-Profit Growth on Both Windows and the related non-utility construct in Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows, which frame profit-to-profit movement on both quarter and six-month windows in the same analytical shape.

Financial performance

YOY - Revenue from Contract with Customer, Excluding Assessed Tax for the three-month reporting period rose compared with the prior-year comparative, continuing the company's revenue-growth profile into the current window; the six-month year-to-date revenue also moved higher relative to the prior-year six-month comparative. - Operating Income (Loss) for both the three-month reporting period and the six-month year-to-date period increased compared with the prior-year comparatives; in each case the current figure is a profit and the prior-year figure is also a profit, so the transition is profit to profit on both windows. - Net Income (Loss) Attributable to Parent increased against the prior-year comparative for both the three-month reporting period and the six-month year-to-date period, with each current figure a profit versus a profit in the prior year — a profit-to-profit transition on both windows. - Earnings Per Share, Diluted was higher than the prior-year comparative on both the three-month and the six-month year-to-date basis, with both periods profitable on a diluted basis in the prior year as well.

QOQ - The filing evidence presented here is year-over-year only; the report discloses revenue, operating income, net income, and diluted EPS for the current three-month period and its prior-year comparative but does not present the immediately preceding sequential quarter as a baseline, so the period-over-period direction across the most recent two quarters is not stated in the facts available for this section.

GUIDANCE EXPECTATIONS - The forward-looking narrative identifies prospective drivers touching the company's financial outlook, including the timing and amount of rate and revenue adjustments, the Company's ability to execute capital-expenditure and growth plans, the impact of increasing financing costs, inflation and interest rates, the outcome of the pending merger with Essential Utilities, Inc., and the Company's ability to obtain adequate alternative water supplies through its California subsidiary in lieu of diversions from the Carmel River. - The forward-looking statement cautions that prospective words such as "expect," "estimate," "forecast," "project," "believe," "anticipate," and similar terms identify forward-looking statements and that those statements are not guarantees of any outcome. - The Company's stated environmental and sustainability goals — including greenhouse gas emission reduction, water delivery efficiency, and water system resiliency goals — are listed as forward-looking commitments whose achievement depends on future events. - Quantitative forward-looking guidance, such as a projected range for revenue, operating income, net income, diluted EPS, or capital expenditures, is not specified among the facts available for this section; readers should consult the cited forward-looking discussion for the breadth of qualitative topics the Company has identified as prospective.

Peer-industry context was not provided in the filing evidence for this section; the report does not present comparable utility-sector metrics, so no peer-baseline or industry-average contrast is available at this stage. The accounting basis for the figures cited here is the same as in the prior-year comparatives on both the three-month and six-month year-to-date bases, as presented in the income-statement excerpt for the current filing; any post-period restatement or reclassification is not indicated in the facts available. The filing evidence contains no peer or industry comparison. The filing evidence does not attribute this change to any single cause.

Operating drivers and segments

$1,350,000,000 USD of Revenue from Contract with Customer, Excluding Assessed Tax is reported for the three-month period the three months ended June 30, 2026, compared with $1,272,000,000 USD for the three months ended June 30, 2025, a direction the filing classifies as increase on the quarter-over-quarter axis while staying positive on both sides. For the six-month year-to-date window, $2,553,000,000 USD is recorded against $2,406,000,000 USD for the six months ended June 30, 2025, again higher than the prior period on a positive base. On operating profitability, $542,000,000 USD is the quarter Operating Income (Loss), versus $489,000,000 USD the year before, with both periods presented as profit. The half-year Operating Income (Loss) of $933,000,000 USD is compared with $860,000,000 USD, both positive. The filing does not provide a segment breakdown, a regulated-versus-market split, or a rate-case attribution inside this report, and the cited note covers significant accounting policies rather than operating segments. The filing evidence also contains no peer or industry comparison.

Management's narrative inside Part I wraps a wide list of prospective themes around the Company, including rate and revenue adjustments, regulatory lag, the timing of acquisition activity (specifically the merger agreement with Essential Utilities, Inc. and the acquisition of systems formerly owned indirectly by Nexus Water Group, Inc.), projected capital expenditures and related funding requirements, financing-cost impacts, environmental and sustainability targets, and pending or threatened litigation. These items appear in the forward-looking statements preamble as the topics management expects could shape future results. The forward-looking inventory is descriptive of intent rather than a quantified explanation for the quarter and year-to-date revenue and operating-income movements cited above. The filing evidence does not attribute this change to any single cause.. The Company, identified by American Water Works Company, Inc. and AWK and reporting on 10-Q for period-ended-2026-06-30 under accession 0001410636-26-000120, does not link those prospective themes to the specific revenue or operating-income deltas in this section's evidence set, and no other item-by-item cause is offered for them inside the cited excerpts.

Independent reading: the revenue and operating-income lines are both reported as higher than their prior-period comparatives, with the year-to-date and quarter both remaining profitable. Without segment, geography, or volume-versus-rate detail in the filing evidence, an independent reader cannot separate organic customer growth from authorized rate increases or from acquisition contributions, and cannot tell how much of the operating-income lift came from revenue mix versus from opex control. The forward-looking statement list points to plausible channels — rate cases, surcharge filings, the Essential merger, and the Nexus-related systems acquisition — but those are future-oriented descriptors, not a quantified bridge to the reported numbers. Readers who want a cross-issuer contrast on similar profit-to-profit revenue patterns can look at Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing, which shares the same directional pattern on these lines for a different registrant. The remaining unknowns — segment composition, regulatory-revenue share, weather normalization, and inflation pass-through — are not addressed by the cited notes, which cover only significant accounting policies and total capitalization framing.

Cash flow and capital

- Reported facts (cash flow statement, six-month year-to-date view): Operating activities provided $907,000,000 USD for the six months ended June 30, 2026, versus $632,000,000 USD for the six months ended June 30, 2025, with the year-over-year direction authorized as an increase (positive to positive). , a smaller outflow in the current period). Financing activities provided $309,000,000 USD for the current period versus $703,000,000 USD a year earlier, with the year-over-year direction authorized as a decrease (positive to positive).

- Reported facts (capital allocation line items): Property, plant and equipment additions absorbed $1,519,000,000 USD for the six months ended June 30, 2026 and $1,281,000,000 USD a year earlier, with the year-over-year direction authorized as an increase. Common-stock dividend payments were $336,000,000 USD for the current window versus $311,000,000 USD in the prior-year window, with the year-over-year direction authorized as an increase. - Reported facts (balance sheet, as of the balance sheet date of June 30, 2026): Cash and cash equivalents stood at $191,000,000 USD, accounts receivable (after the allowance for credit loss) at $432,000,000 USD, and accounts payable (current) at $326,000,000 USD.

- Management explanation: The forward-looking narrative inside 10-Q for American Water Works Company, Inc. frames the cash and balance-sheet drivers around rate-case outcomes, infrastructure investment, and access to debt and equity capital. The filing flags access to capital markets on satisfactory terms, covenant compliance, and the cost of debt as material to financing activity, and ties investing activity to the regulated capital plan.

Cash-flow line items are presented without a separate narrative explanation in the source. - Analyst inference: With operating cash flow higher year over year and investing outflows also higher year over year (smaller outflow in the current period by the authorized direction), the operating-versus-investing gap is consistent with a utility funding a meaningful share of its capex internally before drawing on financing. The increase in capex alongside higher dividend payments suggests capital allocation remained tilted toward rate-base growth and shareholder returns.

The filing evidence does not attribute this change to any single cause. , the operating and investing lines together absorbed more of the funding mix. Because cash and cash equivalents are disclosed only as the as-of point in the balance sheet date of June 30, 2026, the year-to-date change in cash cannot be read from this filing alone.

The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension. - Unknowns: Segment-level operating, investing, and capex detail are not broken out in the filing evidence; reconciliation between operating cash flow and net income is not given here.

The filing evidence does not disclose segment-level detail for this dimension.

Peer and historical context

Compared with the prior-year six-month window, the reported top line moved higher on both periods in view. Revenue from Contract with Customer, Excluding Assessed Tax for the six-month year-to-date period exceeded the prior-year comparative, and the three-month reporting period also came in above the prior-year quarter — both consistent with a rate-regulated utility continuing to bill a larger customer base under approved tariffs.

Operating Income (Loss) on a year-to-date basis was higher than the prior-year comparative, and the three-month operating result was also higher than the prior-year quarter, so the operating side of the income statement kept pace with the revenue expansion across both windows. Net Income (Loss) Attributable to Parent likewise registered higher than the prior year on both the six-month and the three-month comparison, preserving a profit-to-profit transition on each window.

Cash generation strengthened on a year-to-date basis. Net Cash Provided by (Used in) Operating Activities for the six-month year-to-date period exceeded the prior-year comparative, which is the directional pattern one would expect when billed revenue is up and the underlying receivables cycle is functioning normally for a regulated water utility.

the filing does not disaggregate the year-over-year movements into rate-base additions, authorized rate-case outcomes, customer-growth step-ups, or purchased-water and energy pass-throughs. The seasonality language in the cited note states that interim results are not necessarily indicative of the full-year outcome, so the half-year strength reported here cannot, on its own, be projected onto the annual period without further evidence. Causality is not assigned to any single driver in the source material for the revenue, operating income, or net income changes, so any margin or rate-case attribution would be invented rather than read.

On the peer side, the filing does not name comparable water utilities, does not provide industry-benchmark ratios, and does not include regulator-issued peer performance data, so no external peer comparison is possible from this filing alone.

Scenario analysis

- In the three-month reporting window, Revenue from Contract with Customer, Excluding Assessed Tax moved higher than the prior reporting period, paired with a higher profit in Net Income (Loss) Attributable to Parent against the prior year's quarter, both lines registered as profit-to-profit in the cited transition.

- The six-month year-to-date period shows the same shape: Revenue from Contract with Customer, Excluding Assessed Tax came in above the prior-year comparative, and Net Income (Loss) Attributable to Parent expanded on a profit-to-profit basis, supporting an upside reading that compounds the quarterly pattern across the half. - For investors weighing framework comparisons, this stall-style compounding on both windows is the same pattern surfaced in Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing, where revenue and profit advanced on a year-over-year basis in the cited transition.

- A softer outcome would arise if the half-year step-up in Revenue from Contract with Customer, Excluding Assessed Tax fails to repeat in the next quarter, leaving the three-month reporting window flat or lower quarter-over-quarter, even though the year-over-year comparisons on both windows still register as profit-to-profit and higher. - Downside risk also reads through the regulatory and environmental proceedings referenced in the cited Part II items, including the legal proceedings and risk factors headings captured in Item 1 and Item 1A, which sit alongside the Controls and Procedures discussion in Item 4 and the Market Risk disclosure in Item 3; any adverse outcome in those tracks could compress the operating envelope that supports the year-over-year profit-to-profit and higher pattern on both windows. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

Together, the base case treats the year-over-year lift in revenue and the year-over-year profit-to-profit lift in net income on both the three-month reporting period and the six-month year-to-date period as the central reference set, the upside case extends that read across the second half if the half-year revenue lift sustains, and the downside case flags regulatory and qualitative-disclosure paths as the leading swing factors, with peer benchmarking and the precise causal driver of the half-year step-up left as machine-owned statements.

Risks and what to watch

- Reported facts: The filing's headline P&L lines moved in authorized directions on both windows. Net Income (Loss) Attributable to Parent for the three-month reporting period was $315,000,000 USD, higher than the prior-year comparative of $289,000,000 USD, and the six-month year-to-date figure was $511,000,000 USD, higher than the prior-year six-month comparative of $494,000,000 USD. Revenue from Contract with Customer, Excluding Assessed Tax was $1,350,000,000 USD for the three-month reporting period versus $1,272,000,000 USD for the prior period, and $2,553,000,000 USD for the six-month year-to-date period versus $2,406,000,000 USD for the prior six-months.

Both quarter and half-year periods therefore register top-line growth alongside the authorized bottom-line growth. - Management explanations: The unaudited statements discuss the read together with the most recent annual report and reiterate that interim results are not necessarily indicative of full-year results because of the seasonality of the company's operations. The cited note on significant accounting policies confirms that one newly adopted standard — clarifying induced-conversion treatment for certain convertible debt settlements — was applied prospectively and did not have an impact on the Consolidated Financial Statements, and that other recently issued standards not yet adopted were determined not applicable or are still pending review.

- Analyst inference: Because the year-over-year direction is authorized for both revenue and net income on both windows, the filing's own record is internally consistent — the authorized transitions sit at profit-to-profit on both views. Readers can place this alongside prior similarly-authorized reports such as Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing and Lizely Finance Earnings Analysis — ANI Pharmaceuticals Interim Filing: Profit-to-Profit Growth on Both Windows to gauge how routine this dual-window improvement pattern is across recent filings.

- Counter-evidence: The filing asserts growth in authorized directions, but the underlying data is limited to revenue and net income on the two report windows. No authorized year-over-year direction is supplied here for operating income, cash flow categories, capex, or dividend payments, so any read on those drivers rests outside the reported set. Consensus framing, peer comps, or industry benchmarks are not part of the filing evidence.

- Unknowns: The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension.

Readers looking for rate-case, weather, customer-growth, or financing-cost colour have to wait for the fuller disclosure in the next 10-Q or annual report. - Metrics to watch next period: the next interim filing should confirm whether the half-year revenue line of $2,553,000,000 USD carries into a comparable full-year run-rate, whether the quarter revenue print of $1,350,000,000 USD sustains once seasonality normalizes, and whether net income at $315,000,000 USD and $511,000,000 USD remains inside the authorized direction once additional periods are stacked.

Also worth tracking: the impact, if any, of the recently issued but not-yet-adopted accounting standards flagged in the cited note, and any movement in capital structure that the next filing's capitalization footnote may reveal.