On November 1, 2023, American Water Works Co Inc (AWK, Financial) released its earnings report for the quarter ended September 30, 2023. The company reported earnings per share of $1.66 for the quarter, an increase from $1.63 per share for the same quarter in 2022. Year-to-date earnings per share for 2023 stood at $4.03, up from $3.70 in the same period in 2022.
Financial Performance and Challenges
The increase in earnings was primarily driven by the implementation of new rates in the Regulated Businesses for the recovery of capital and acquisition investments. However, this was offset somewhat by increased production costs, including inflationary pressures since mid-2022, and higher pension costs. Approximately 75% of the estimated impact of increased production costs are reflected in higher revenues in 2023 from recently completed rate cases.
Investments and Acquisitions
The company made investments of $1.8 billion in the first nine months of 2023, including $1.77 billion for infrastructure improvements and replacements in the Regulated Businesses. The company plans to invest a total of approximately $2.9 billion across its footprint in 2023, including approximately $0.4 billion for acquisitions. As of September 30, 2023, the company had $611 million of acquisitions under agreement.
Regulated Businesses Performance
In the third quarter of 2023, the Regulated Businesses’ net income was $331 million, compared to $302 million for the same period in 2022. For the first nine months of 2023, the Regulated Businesses’ net income was $783 million, compared to $681 million for the same period in 2022. Operating revenues increased $92 million and $314 million for the three and nine months ended September 30, 2023, respectively, as compared to the same periods in 2022.
Dividends and Future Guidance
On October 31, 2023, the company’s Board of Directors declared a quarterly cash dividend payment of $0.7075 per share of common stock, payable on December 1, 2023, to shareholders of record as of November 14, 2023. The company affirms its 2023 earnings per share guidance range of $4.72 to $4.82, on a weather-normalized basis.
Explore the complete 8-K earnings release (here) from American Water Works Co Inc for further details.
