American Water Works Company, Inc.

American Water Works Company, Inc. is a U.S. water and wastewater utility holding company with roots dating back to 1886. It owns and operates regulated utilities that provide drinking water, wastewater, and related services to about 14 million people across 24 states, making it the largest publicly traded water and wastewater utility in the United States by operating revenue and population served. The company also serves the U.S. government on military installations and municipalities through non-regulated businesses. Its model is built around local utility franchises, state-regulated rates, and long-lived infrastructure that requires ongoing capital investment and regulatory approval.

54,1 %

21,7 %

+10,1 %

0.46

0.46

— American Water Works Company, Inc.
%
Regulated water services70% Retail water delivery to residential, commercial, industrial, public authority and fire service customers through regulated local utilities.
Regulated wastewater services20% Wastewater collection, treatment and related utility services provided under state-regulated franchises.
Bulk and resale water services5% Water sales and wastewater treatment provided to other utilities, community systems and bulk-contract customers.
Military and municipal services5% Non-regulated water and wastewater operations for U.S. government installations and municipalities.

American Water serves a broad mix of end users, but residential customers are the core of the business across its...

  • Residential customersprimary

    Households buying regulated water and wastewater service for everyday essential use; this is the largest customer base and the main source of recurring utility demand.

  • Commercial customerssecondary

    Businesses such as food and beverage providers, property developers and energy suppliers that buy reliable utility service to support operations and site development.

  • Industrial customerssecondary

    Large manufacturers, mining and production operations that require dependable water supply and wastewater handling for process needs.

  • Public authorities and institutionssecondary

    Government buildings, schools and universities that purchase utility service for public facilities and campuses.

  • Fire service and bulk contract customerssecondary

    Fire hydrant and private fire protection users, plus other utilities and community systems buying water or wastewater treatment under bulk arrangements.

American Water’s business is overwhelmingly U.S.-based, with regulated utilities operating in 14 states and a customer...

  • •Operations are concentrated in the United States and regulated by state utility commissions
  • •Regulated utilities operate in 14 states, while the customer footprint spans 24 states
  • •Service areas are local franchises, so growth depends on state approvals and acquisitions
  • •Non-regulated work includes U.S. military installations and municipal systems
  • •Geography affects exposure to weather, drought, population growth and state rate decisions

American Water’s strategy is centered on growing through regulated capital investment, regulated acquisitions and...

01
Capital investment in regulated infrastructureshort-term

Rate-regulated capital spending is the main engine for earnings growth and service reliability.

02
Regulated acquisitionsmedium-term

Acquisitions expand the customer base and service footprint while fitting the utility franchise model.

03
Affordability and rate design reformmedium-term

Keeping service affordable reduces political and regulatory friction and supports customer retention.

04
Water quality and technology modernizationlong-term

Treatment upgrades and digital systems are needed to meet environmental standards and improve operating efficiency.

The company operates in a heavily regulated environment, so rate outcomes, compliance obligations and regulatory...

high

Regulatory rate and compliance risk

Revenue and returns depend on state PUC approvals, allowed rates and compliance with utility rules.

Scope
Regulated Businesses
Materiality
high
high

Infrastructure failure and asset integrity risk

The business relies on extensive pipes, mains, reservoirs and dams that can fail and require costly repair or replacement.

Scope
Water and wastewater network assets
Materiality
high
high

Cybersecurity and data privacy risk

Operational technology and customer systems are exposed to cyberattacks and unauthorized access.

Scope
Service Company and utility operations
Materiality
high
medium

Supply chain and input cost risk

Chemicals, pipe, valves, equipment, power and fuel are essential inputs and shortages or inflation can impair service and margins.

Scope
Operations and capital projects
Materiality
medium
medium

Acquisition competition risk

Growth depends partly on buying systems, but other utilities, municipalities and infrastructure funds compete for the same assets.

Scope
M&A pipeline
Materiality
medium
Over-time revenue recognition and unbilled revenue
Affects quarterly revenue, receivables and comparability across periods
Goodwill impairment testing
Can create large non-cash charges if assumptions weaken
Fair value measurements
Can introduce volatility in reported earnings and balance sheet values
Regulatory accounting estimates
Can shift income recognition and asset recovery across periods

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: 11/08/2026