American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.4 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. It also provides water and wastewater services on various military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. In addition, the company operates approximately 80 surface water treatment plants; 480 groundwater treatment plants; 160 wastewater treatment plants; 52,500 miles of transmission, distribution, and collection mains and pipes; 1,100 groundwater wells; 1,700 water and wastewater pumping stations; 1,300 treated water storage facilities; and 76 dams. It serves approximately 14 million people with drinking water, wastewater, and other related services in 24 states. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey.
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Here are 1-2 brief analogies for American Water Works (AWK):
- It's like Duke Energy or NextEra Energy, but for water and wastewater services instead of electricity.
- It's like AT&T or Verizon, but instead of telecommunications, they provide essential water and wastewater services through their own vast infrastructure.
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Regulated Water & Wastewater Utility Services: Provides essential drinking water and wastewater treatment and collection services to residential, commercial, and industrial customers across its regulated service areas.
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Homeowner Service Line Protection: Offers protection plans to homeowners for the repair or replacement of water and sewer lines on their property.
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Military Systems Operations & Maintenance: Manages, operates, and maintains water and wastewater utility systems for U.S. military bases under long-term contracts.
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Contract Water & Wastewater Services: Provides contract operations, maintenance, and management services for water and wastewater facilities to municipal and industrial clients.
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American Water Works (symbol: AWK) primarily sells its services directly to end-users rather than to other companies.
Its major customers fall into the following categories:
- Residential Customers: Individual households and tenants who use water for domestic purposes such as drinking, bathing, cooking, and cleaning. This typically represents the largest segment of their customer base.
- Commercial Customers: Small to medium-sized businesses, offices, retail establishments, restaurants, and other non-industrial enterprises that require water and wastewater services.
- Industrial Customers: Larger businesses and manufacturing facilities that utilize significant quantities of water in their production processes or for their operations.
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John C. Griffith, President and Chief Executive Officer
Mr. Griffith was appointed President and Chief Executive Officer of American Water Works Company, Inc. in May 2025, having served as President since August 2024. Prior to this, he was Executive Vice President and Chief Financial Officer of American Water from 2022. Before joining American Water, Mr. Griffith served as a Managing Director in Bank of America Securities' Mergers & Acquisitions (M&A) group, where he led the M&A practice for regulated utilities and renewable energy. He also held the position of CEO at HighWave Energy, a start-up renewable fuels company, and spent fourteen years with Merrill Lynch & Co., culminating as a Managing Director in M&A.
David Bowler, Executive Vice President and Chief Financial Officer
Mr. Bowler assumed the role of Executive Vice President and Chief Financial Officer for American Water, effective August 1, 2024. Prior to this appointment, he served as the company's Senior Vice President, Deputy Chief Financial Officer, and Treasurer since 2022. In his previous roles, Mr. Bowler was a strategic partner to American Water's Chief Operating Officer and utility operations, focusing on financial planning and regulatory strategy.
Cheryl W. Norton, Executive Vice President and Chief Operating Officer
Ms. Norton is the Executive Vice President and Chief Operating Officer for American Water, overseeing the performance of the company's regulated state subsidiaries, business development, customer service, engineering, health and safety, and environmental and regulatory compliance. She began her career with American Water in 1988 as a microbiology research technician. Her extensive experience within the company includes serving as president of New Jersey American Water, Missouri American Water, and Kentucky American Water. Ms. Norton also previously held the position of Chief Environmental Officer for American Water.
Nicholas Furia, Vice President and Treasurer
Mr. Furia serves as Vice President and Treasurer for American Water, responsible for critical Treasury functions such as Short-Term Financing, Cash Flows, Liquidity, and overall Capital Structure management. He was Assistant Treasurer for American Water starting in 2021 and supported the execution of the company's financing plans. Before this, Mr. Furia was the Director of Acquisitions at American Water, having joined the company in 2014. He possesses nearly 20 years of experience in accounting and finance.
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The key risks to American Water Works (AWK) are primarily centered around its capital-intensive nature, reliance on regulatory approvals, and sensitivity to financing costs.
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Aging Infrastructure and Capital Improvement Financing: American Water Works faces the significant challenge of managing and upgrading its extensive aging infrastructure, which includes a vast network of pipes. The viability of its business heavily depends on continuous and substantial capital expenditures for renewal and replacement projects. Securing adequate funding for these improvements, and avoiding delays in their completion, is critical for maintaining operational efficiency and driving future earnings growth. For example, the American Water Works Association (AWWA) consistently identifies aging water infrastructure and the ability to secure financing for capital improvements as top challenges for North American water systems.
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Regulatory Risks and Rate Hike Approvals: As a regulated utility, American Water Works' operations are subject to extensive economic oversight by state Public Utility Commissions (PUCs) and other regulatory bodies. These agencies significantly influence the company's business, financial condition, and cash flows. A primary risk is regulatory pushback on rate hike proposals, which are essential for recovering costs, funding infrastructure investments, and ensuring profitability. Regulators often prioritize customer affordability, potentially trimming requested rate increases significantly. For instance, a 22.5% rate hike request in West Virginia was cut to 8%. Delays or rejections in multi-state regulatory approvals for acquisitions can also impede growth.
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Debt, Financing, and Interest Rate Changes: American Water Works relies on long-term debt to finance its capital investments and growth strategies, including acquisitions. This exposes the company to risks associated with debt and financing, particularly changes in interest rates, which can intensify as new debt is added. The company has significant debt maturities scheduled in the coming years (e.g., $637 million in 2025, $1,478 million in 2026, and $686 million in 2027), and there is no guarantee it will be able to access debt or equity capital markets on favorable terms for repayment or refinancing. Rising interest rates could also squeeze profit margins, especially if regulatory approvals for rate increases are curtailed.
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Addressable Markets for American Water Works (AWK)
American Water Works (AWK) primarily operates in the United States, providing regulated and market-based water and wastewater services to residential, commercial, industrial, and municipal customers, including military installations.
Main Products and Services:
- Regulated water and wastewater services
- Market-based water services (to military installations, municipalities, and industrial customers)
Addressable Market Sizes (Region: U.S.):
The addressable market for American Water Works' main products and services can be primarily identified within the broader U.S. water and wastewater treatment and infrastructure sectors.
U.S. Water and Wastewater Treatment Market:
The U.S. water and wastewater treatment market was valued at approximately USD 121.85 billion in 2024. This market is projected to grow, reaching an estimated value of around USD 238.36 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 6.94% from 2025 to 2034.
Another estimate indicates the U.S. water and wastewater treatment market size was USD 64.27 billion in 2024 and is predicted to increase to approximately USD 123.76 billion by 2034, with a CAGR of 6.80% from 2025 to 2034.
The U.S. water and wastewater treatment market size is also projected to reach an estimated value of USD 314.96 billion by 2032.
U.S. Water Infrastructure and Management Market:
The U.S. water infrastructure and management market size was USD 120.2 billion in 2024. It is expected to reach USD 179.6 billion by 2032, growing at a CAGR of 5.3% during the forecast period of 2025–2032.
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American Water Works (AWK) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
- Authorized Rate Increases: The company consistently secures authorized revenue increases from completed general rate cases and infrastructure proceedings across its regulated businesses. These rate adjustments are crucial for recovering capital and acquisition investments, directly boosting top-line growth.
- Significant Capital Investments in Infrastructure: American Water Works has a robust capital investment program aimed at modernizing and improving its water and wastewater infrastructure. The company plans to invest approximately $3.2 billion in 2025 and $19-20 billion during 2026-2030, which drives rate base growth and supports future rate increases.
- Strategic Acquisitions and Organic Customer Growth: Acquisitions of new water and wastewater systems, alongside organic customer growth within existing service areas, are expected to contribute to revenue expansion. The company's strategic focus on these acquisitions helps expand its customer base and geographic footprint.
- Strong Regulatory and Operational Execution: Effective navigation of regulatory processes and strong operational execution are fundamental to American Water Works' ability to secure timely rate case approvals and efficiently integrate acquired assets. This operational strength supports the realization of planned revenue growth from investments and acquisitions.
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Share Repurchases
- As of December 31, 2024, American Water Works had 5.1 million shares available under an anti-dilutive stock repurchase program authorized in February 2015 for up to 10 million shares.
- The company did not report net total equity repurchases for 2022 and 2024.
Share Issuance
- In 2023, American Water Works had a net total equity issuance of $1.688 billion.
- In August 2025, the company entered into equity forward sale agreements, expecting to draw down total net proceeds of approximately $1.15 billion in mid-2026.
- The company anticipates issuing $1 billion in equity in 2026 and $1.5 billion in 2029 to fund growth and maintain financial stability.
Outbound Investments
- In 2023, American Water Works completed 23 acquisitions across eight states.
- In 2024, the company completed 13 acquisitions, adding 69,500 customer connections, and a total of 90,000 customers including organic growth.
- As of July 30, 2025, the company had agreements to acquire Nexus Water Group systems in eight states, representing approximately 87,000 customer connections, for a total of $315 million, with a planned closing by August 2026.
Capital Expenditures
- American Water Works invested $2.7 billion in capital in 2023, primarily for infrastructure renewal in regulated operations, and $2.856 billion in 2024.
- The company plans to invest approximately $3.2 billion in 2025, with $2.2 billion invested during the first nine months of the year.
- AWK projects capital investments of $17 billion to $18 billion for the 2025-2029 period, focusing on infrastructure renewal, water quality improvements (including an estimated $1 billion for PFAS compliance), and system resiliency.
