Authorized Rate Increases Drive Revenue Growth
Regulated business revenue growth in Q2 FY2026 was driven primarily by $52 million in incremental revenues from authorized general rate increases and infrastructure surcharges, including approved base rate increases in Pennsylvania ($75 million annualized), West Virginia ($20 million), and Maryland ($2 million).
Pending Merger with Essential Utilities Progressing
The proposed stock-for-stock merger with Essential Utilities (0.305 AWK parent shares per Essential share) remains on track to close by Q1 2027, having secured PUC approvals in Kentucky, Ohio, and Virginia while incurring $22 million in cumulative transaction costs through Q2 FY2026.
Capital Plan Execution and System Acquisitions
American Water invested $1.8 billion during the first six months of 2026 toward its $3.7 billion full-year capital plan, which included $346 million for regulated acquisitions—highlighted by the $319 million acquisition of Nexus Regulated Utilities assets adding 47,000 customers.