• It's like **Dominion Energy** or **Edison International**, but for water and wastewater instead of electricity or natural gas.
• Think of it like **AT&T** or **Verizon**, but they deliver water and wastewater services through pipes and treatment plants instead of internet and phone lines.

• Water Services: Providing potable drinking water to residential, commercial, industrial, fire service, public authority, and other utility customers.
• Wastewater Services: Collecting and treating wastewater for residential, commercial, industrial, public authority, and other utility customers.
• Contract Operations and Management: Operating and managing water and wastewater facilities under contract for municipal customers and on military installations.

American Water Works (AWK) primarily serves the following categories of customers:

• Residential customers: Individuals and households, representing a significant portion of their 3.4 million active customers.
• Commercial customers: Businesses including food and beverage providers, commercial property developers and proprietors, and energy suppliers.
• Public authorities: This category encompasses government buildings and other public sector facilities such as schools, universities, and military installations.

John C. Griffith, President and Chief Executive Officer

John C. Griffith was appointed President of American Water in August 2024 and became Chief Executive Officer in May 2025. Prior to these roles, he served as Executive Vice President and Chief Financial Officer of American Water from May 2022 to July 2024. Before joining American Water, Mr. Griffith was a Managing Director in Bank of America Securities' Global Regulated Utilities and Renewable Energy group from 2014 to 2022. From 2008 to 2014, he served as CEO of HighWave Energy, a start-up renewable fuels company. He also spent fourteen years with Merrill Lynch & Co., where he culminated as a Managing Director in M&A.

David Bowler, Executive Vice President and Chief Financial Officer

David Bowler was appointed Executive Vice President and Chief Financial Officer of American Water, effective August 1, 2024. Before this appointment, he held the position of Senior Vice President, Deputy Chief Financial Officer, and Treasurer at American Water since 2022. Mr. Bowler joined American Water in 2020 as Senior Vice President of Planning, Regulatory and Financial Services. His previous experience includes serving as Director of Finance and Accounting at CenterPoint Energy, Inc., and as Vice President, Controller, and Assistant Treasurer at Vectren Corporation.

Cheryl Norton, Executive Vice President and Chief Operating Officer

Cheryl Norton serves as Executive Vice President and Chief Operating Officer for American Water, a role she assumed effective March 1, 2021. She is responsible for the performance of American Water's regulated states, business development, customer service, and systemwide engineering, health and safety, and environmental and regulatory compliance. In December 2019, she was also named American Water's Chief Environmental Officer. Her career with American Water began in 1988 as a microbiology research technician. She has held various leadership positions within the company, including President of New Jersey American Water, Senior Vice President of the Eastern Division, President of Missouri American Water, President of Kentucky American Water, and Vice President of Operations for Illinois American Water.

Stacy A. Mitchell, Executive Vice President and General Counsel

Stacy A. Mitchell was named Executive Vice President and General Counsel of American Water on June 5, 2024, succeeding James H. Gallegos upon his retirement. In this capacity, she serves as the company's chief legal officer, overseeing corporate governance and all aspects of legal affairs. Ms. Mitchell previously held the role of Senior Vice President and Deputy General Counsel at American Water, where she led the company's regulatory strategy. Before joining American Water in 2019, she was Vice President, Rates and Regulatory Affairs for SJI Utilities and its subsidiary, South Jersey Gas. She also worked in private practice, providing litigation, regulatory, and environmental counsel, and has over 25 years of legal and regulatory experience.

Deborah A. Degillio, Chief Technology and Information Officer

Deborah A. Degillio was named Chief Technology and Information Officer for American Water, effective January 13, 2025. In this role, she brings her deep knowledge of customer service processes to the IT domain. Prior to this, Ms. Degillio was the President of American Water Enterprises, a market-based subsidiary of American Water. She has held various high-level finance roles within American Water, including Vice President and Treasurer, focusing on financial forecasting, analysis, business planning, and enterprise risk management. Ms. Degillio also serves as President & Director at Environmental Management Corp.

Key Risks to American Water Works (AWK)

1. Regulatory and Rate Case Risk: As a highly regulated utility, American Water Works' business operations, financial condition, and cash flows are significantly influenced by state public utility commissions (PUCs) and other regulatory agencies. The company's ability to secure timely approvals for rate increases, which are crucial for recovering operational costs and funding essential capital expenditures, is a persistent risk. Delays or denials of these rate cases can pressure earnings. Furthermore, growth through acquisitions, a key component of the company's strategy, is also subject to regulatory approvals, and competition for these opportunities could hinder expansion.

2. Aging Infrastructure and High Capital Expenditure Requirements: American Water Works operates an extensive network of aging infrastructure, including thousands of miles of pipes, numerous treatment plants, and pumping stations, many of which require continuous maintenance, upgrades, and replacement. The need for significant and ongoing capital expenditures (CapEx) to maintain this vast system and comply with evolving environmental mandates (such as those for lead service line replacement and PFAS remediation) is substantial. The company's ability to secure appropriate funding for these investments and execute major projects without delays is critical to its operational efficiency and future earnings growth.

3. Debt Levels and Financing Costs: The considerable capital investment required for infrastructure maintenance and upgrades often necessitates American Water Works to carry significant levels of debt. This reliance on debt financing, combined with potentially negative free cash flow, exposes the company to risks associated with rising interest rates and the challenge of refinancing existing debt on favorable terms. Increased financing costs can impact profitability and limit the company's financial flexibility to pursue growth initiatives or manage other operational challenges.

The addressable market for American Water Works Company, Inc. (AWK) main products and services is primarily the U.S. water utilities industry.

The U.S. water utilities industry recorded revenues of $563.7 billion in 2024, growing at a compound annual growth rate (CAGR) of 7.4% between 2019 and 2024. This market is segmented into agriculture, domestic, and industrial consumption. In 2024, the U.S. represented 89.0% of the North American water utilities industry.

Additionally, the U.S. water and wastewater treatment market, a component of the broader water utilities sector, was approximately $64.27 billion in 2024 and is projected to reach about $123.76 billion by 2034, with a CAGR of 6.80% from 2025 to 2034. Another estimate places the U.S. water and wastewater treatment market size at $121.85 billion in 2024, expanding to approximately $238.36 billion by 2034 at a CAGR of 6.94% from 2025 to 2034. A separate projection suggests this market could reach $314.96 billion by 2032.

American Water Works is the largest publicly traded water and wastewater utility in the U.S., serving approximately 14 million people across 24 states. Their regulated water and wastewater services accounted for 93% of their FY 2023 revenue. The company also provides water and wastewater services on various military installations and undertakes contracts with municipal customers.

1. Rate Increases through Regulatory Approvals: American Water Works consistently derives revenue growth from authorized rate increases resulting from general rate cases and infrastructure proceedings across its service states. These regulatory approvals allow the company to recover incremental capital and acquisition investments. For example, West Virginia American Water recently received approval for new water and wastewater rates, authorizing an annualized revenue increase of $20.5 million, effective March 1, 2026. Similarly, Iowa saw an annualized revenue increase of $13 million approved, and Hawaii an increase of $1.5 million.
2. Significant Capital Investments in Infrastructure: The company plans substantial capital investments to improve and modernize its water and wastewater infrastructure. These investments, such as pipe replacement, treatment facility upgrades, PFAS remediation, lead service line removal, and smart metering technology, lead to a growing regulated rate base. This expanding rate base is a fundamental driver for justifying and securing future rate increases, with the company expecting 8%-9% long-term regulated rate base growth. American Water plans to invest approximately $3.7 billion in 2026 alone.
3. Strategic Acquisitions and Organic Customer Growth: American Water Works continues to expand its customer base through both strategic acquisitions of smaller water and wastewater systems and organic customer growth within its existing service areas. In 2025, the company completed 18 acquisitions across seven states. The company also has 104,000 customer connections under agreement totaling $582 million in deals.