Solid Financial Performance: American Water reported earnings of $1.48 per share for the second quarter of 2025, a $0.06 increase year-over-year from $1.42. Year-to-date earnings were $2.53 per share, up $0.16 from $2.37 in the prior year, representing a 6.74% year-over-year growth rate. The company expects to achieve the top half of its initial EPS guidance for 2025, now narrowed to $5.70 to $5.75.

Impact of Weather and Operating Costs: The unfavorable weather conditions in 2025 affected earnings by an estimated $0.06 per share due to wet weather impacting customer usage. Additionally, operating and maintenance costs increased by $0.17 per share primarily due to employee-related expenses and technology costs, which may pressure margins moving forward.

Regulatory Success and Rate Increases: The company successfully implemented new rates in multiple states and received approvals for rate increases totaling $13 million in Iowa based on ROE of 9.6%, and $1.5 million in Hawaii at 9.75%. This regulatory success enhances their revenue base and supports continued investment in infrastructure.