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Research Alert: Awk Q1: Eps Miss On Higher Opex; Essential Utilities Merger Progresses

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

AWK posted mixed Q1 2026 results, with adjusted EPS of $1.01 vs $1.02 prior year, missing consensus by 7.3%, while operating revenues grew 5.7% to $1.207B due to authorized rate increases and infrastructure surcharges. Operating income rose 5.4% to $391M, despite $44M higher operating expenses from increased production costs and accelerated infrastructure investment programs. The Essential Utilities merger progressed, with first state regulatory approval received in Kentucky, with management expressing encouragement about integration planning. Management maintained 2026 adjusted EPS guidance of $6.02-$6.12 and reiterated long-term EPS and dividend growth targets of 7%-9%. The company has rate cases across five jurisdictions requesting $518M in total annualized revenues and invested $652M in Q1 as part of its $3.7B capital expenditure plan. AWK declared a quarterly dividend of $0.8950 per share, an 8.2% increase, and successfully issued $700M of senior notes due 2036.

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Mineral Resources Posts Higher Fiscal Q3 Production; Lifts Fiscal 2026 Mining Services Output Volume Guidance

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