American Water Works Company, Inc.
- Open
- 139.76
- Day high
- 141.19
- Day low
- 139.70
- Prev close
- 139.49
- Volume
- 83K
- Mkt cap
- $28.0B
- P/E (TTM)
- 24.3
- EPS (TTM)
- $5.78
- P/B
- 2.4
- P/S
- 5.3
- Yield
- 2.45%
- Per share
- $3.45
American Water Works Company, Inc. (AWK) is a Utilities company listed on NYSE. The stock is down 2% over the past year. Drillr has 1 published research article covering AWK.
American Water Works Company, Inc. (AWK) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AWK earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $1.53 | $1.61 | +5.2% | $1.4B | +2.2% |
| Apr 30, 2026 | $1.10 | $1.01 | -8.2% | $1.2B | +3.1% |
| Feb 18, 2026 | $1.28 | $1.24 | -3.1% | $1.3B | -1.3% |
| Oct 29, 2025 | $1.88 | $1.94 | +3.2% | $1.5B | +9.4% |
| Jul 30, 2025 | $1.52 | $1.48 | -2.6% | $1.3B | +4.8% |
| Apr 30, 2025 | $1.06 | $1.05 | -0.9% | $1.1B | +4.5% |
| Feb 19, 2025 | $1.13 | $1.22 | +8.0% | $1.2B | +8.1% |
| Jul 31, 2024 | $1.46 | $1.40 | -4.1% | $1.1B | +4.1% |
| May 1, 2024 | $0.98 | $0.93 | -5.1% | $1.0B | +5.1% |
| Feb 14, 2024 | $0.83 | $0.92 | +10.8% | $1.0B | +1.2% |
| Nov 1, 2023 | $1.65 | $1.70 | +3.0% | $1.2B | +2.6% |
| Jul 26, 2023 | $1.31 | $1.47 | +12.2% | $1.1B | -4.2% |
AWK insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 13, 2026 | MCGUIGAN STUART Mdirector | Grant | 1,374 | — |
| May 13, 2026 | KAMPLING PATRICIA Ldirector | Grant | 1,374 | — |
| May 13, 2026 | Marberry Michaeldirector | Grant | 1,374 | — |
| May 13, 2026 | Edwards Jeffrey Ndirector | Grant | 1,374 | — |
| May 13, 2026 | Havanec Laurie P.director | Grant | 1,374 | — |
| May 13, 2026 | Nathoo Raffiqdirector | Grant | 1,374 | — |
| May 13, 2026 | Kurz Karl Fdirector | Grant | 2,159 | — |
| May 13, 2026 | JOHNSON JULIA Ldirector | Grant | 1,374 | — |
| May 13, 2026 | Grow Lisa Adirector | Grant | 1,374 | — |
| Feb 18, 2026 | Mitchell Stacy A.officer: EVP and General Counsel | Grant | 1,060 | — |
| Feb 18, 2026 | Norton Cherylofficer: EVP and COO | Tax | 2,910 | $133.51 |
| Feb 18, 2026 | Bowler Davidofficer: EVP and CFO | Grant | 3,711 | — |
| Feb 18, 2026 | Norton Cherylofficer: EVP and COO | Grant | 4,258 | — |
| Feb 18, 2026 | Mitchell Stacy A.officer: EVP and General Counsel | Tax | 524 | $133.51 |
| Feb 18, 2026 | Duffy Maureenofficer: EVP, Comms & External Affairs | Tax | 932 | $133.51 |
Source: AWK SEC Form 4 filings, latest May 13, 2026. For informational purposes only — not investment advice.
See the full AWK insider & 13F page →American Water Works Company, Inc. company profile
Overview
American Water Works Company, Inc. (NYSE:AWK) is the largest publicly traded water and wastewater utility company in the United States. Founded in 1886, the company has grown through acquisitions and organic expansion to become a dominant force in the regulated water utility sector. Headquartered in Camden, New Jersey, American Water has evolved from a regional water provider into a national utility serving approximately 14 million people across 24 states. The company went public in 2008 and has since maintained a strategy focused on regulated water and wastewater services, infrastructure investment, and strategic acquisitions of municipal water systems.
Business
American Water Works operates primarily in the regulated water utility industry, providing essential water and wastewater services to residential, commercial, industrial, and municipal customers. The water utility industry is heavily regulated at the state level, with utilities required to obtain approval from public utility commissions for rate increases and major capital expenditures. The company's core business revolves around water treatment and distribution and wastewater collection and treatment. This involves taking raw water from sources like rivers, lakes, and groundwater wells, treating it to meet federal drinking water standards, and delivering it through an extensive network of pipes to customers' homes and businesses. On the wastewater side, the company collects used water through sewer systems, treats it at wastewater treatment facilities to remove contaminants, and safely returns it to the environment. American Water's infrastructure is extensive, operating approximately 80 surface water treatment plants that process water from rivers and lakes, 480 groundwater treatment plants that handle well water, and 160 wastewater treatment plants. The company maintains over 52,500 miles of transmission and distribution pipes - enough to circle the Earth more than twice - along with 1,100 groundwater wells, 1,700 pumping stations, and 1,300 water storage facilities. The company operates through two main business segments: • Regulated Businesses (approximately 95% of revenue): Provides water and wastewater services to approximately 3.4 million active customers across 14 states under state utility commission regulation. This segment generates revenue through regulated rates approved by state commissions. • Market-Based Businesses (approximately 5% of revenue): Includes military services contracts and other non-regulated operations, primarily serving military installations and providing contract operations for municipal customers.
Revenue model
American Water Works generates revenue primarily through regulated utility rates approved by state public utility commissions. Customers pay monthly bills for water and wastewater services based on consumption and fixed service charges. The regulated utility model provides predictable revenue streams, as rate increases are typically granted to recover capital investments and operating costs, plus an allowed return on invested capital. The company's paying customers include residential homeowners and renters, commercial businesses (restaurants, hotels, office buildings), industrial facilities (manufacturing plants, mining operations), government entities (schools, military bases, municipal buildings), and other utilities. Rate structures typically include both fixed monthly service charges and variable charges based on water consumption measured in gallons or cubic feet. Revenue growth drivers include authorized rate increases from state regulators to recover infrastructure investments, customer growth through acquisitions of municipal water systems and organic expansion in growing communities, and infrastructure surcharges that allow recovery of specific capital investments between rate cases. Several factors influence the company's profit margins. Positive margin factors include the regulated utility model that generally allows recovery of prudent costs plus a reasonable return, economies of scale from serving larger customer bases, and the essential nature of water services that provides stable demand. Margin pressures come from rising costs for chemicals, energy, and labor that may not be immediately recoverable in rates, increased environmental compliance costs (particularly for PFAS and lead service line replacement), aging infrastructure requiring higher maintenance spending, and regulatory lag between incurring costs and receiving rate relief. The company also faces pressure to keep rates affordable for low-income customers while maintaining necessary infrastructure investments.
Competitive moat
American Water Works possesses a strong economic moat built on several defensive characteristics typical of regulated utilities. The company benefits from natural monopoly status in its service territories - it would be economically inefficient and practically impossible for competitors to build duplicate water infrastructure in areas where American Water already operates. This creates high barriers to entry and provides pricing power within regulatory constraints. The regulatory framework provides both protection and limitations. State utility commissions generally allow utilities to recover prudent investments and earn reasonable returns, providing visibility into future cash flows. However, this same regulation limits pricing flexibility and requires lengthy approval processes for rate increases. American Water's scale advantages strengthen its competitive position. As the largest water utility in the U.S., the company can spread fixed costs across a larger customer base, invest in advanced treatment technologies, and maintain specialized expertise in areas like regulatory affairs and environmental compliance. This scale makes it an attractive consolidator of smaller municipal water systems that lack resources for major infrastructure upgrades. The company's moat faces some challenges. Regulatory risk remains significant, as unfavorable rate case outcomes can impact returns, evidenced by the lower-than-expected return on equity granted in Pennsylvania. Environmental compliance costs continue rising, particularly for PFAS treatment and lead service line replacement, requiring substantial capital investments that may face regulatory scrutiny. Additionally, some municipalities may choose to operate their own systems rather than sell to private utilities, limiting acquisition opportunities. Despite these challenges, the essential nature of water services and high switching costs for customers provide durable competitive advantages.
Risks & safety
American Water Works presents a moderate margin of safety with solid financial fundamentals but elevated capital intensity and debt levels typical of utilities. • Liquidity and Solvency: Current ratio of 0.49 indicates tight short-term liquidity, though this is common for utilities with predictable cash flows. The company maintains access to credit facilities and capital markets. Debt-to-equity ratio of 1.38 is within acceptable utility ranges but requires careful monitoring. • Cash Flow Dynamics: Operating cash flow of $331 million in Q1 2025 covers dividend payments, but free cash flow of negative $217 million reflects heavy capital investment program. The company expects to invest $3.3 billion in 2025, requiring external financing. • Valuation Metrics: Trading at 35.1x P/E ratio appears elevated for a utility, though this reflects growth expectations. EV/EBITDA of 17.1x is reasonable for a growing utility. Graham number of $35.75 suggests potential overvaluation at current levels. • Debt Considerations: Total debt of approximately $15 billion requires ongoing refinancing and additional borrowing to fund capital programs. Interest coverage appears adequate based on EBITDA levels. • Regulatory Dependency: Future cash flows depend heavily on continued favorable regulatory treatment and timely rate relief to recover capital investments.
Recent development
Over the past few years, American Water Works has executed a strategic transformation focused on aggressive infrastructure investment and systematic consolidation of the fragmented U.S. water utility sector. The company has significantly increased its capital investment program, rising from $2.5 billion in 2022 to $3.3 billion in both 2024 and planned for 2025, with total investments of $17-18 billion planned through 2029. A major strategic focus has been environmental compliance, particularly addressing PFAS (per- and polyfluoroalkyl substances) contamination and lead service line replacement. The company estimates approximately $1 billion in PFAS-related capital investments will be needed and has been proactively investing in treatment technologies ahead of final EPA regulations. This positions American Water as a leader in addressing emerging water quality challenges. The company has pursued an aggressive acquisition strategy, adding nearly 70,000 customer connections in 2024 alone through strategic purchases of municipal water systems. Notable acquisitions include the $230 million Butler Area Sewer Authority acquisition and multiple smaller systems across their 14-state footprint. The acquisition pipeline has expanded to over 1.5 million potential customer connections, representing significant growth opportunities. Leadership transition has been carefully managed, with CEO Susan Hardwick retiring in May 2025 and being succeeded by John Griffith in a planned succession. The company has also strengthened its management team with key appointments including David Bowler as CFO and expanded roles for other executives. American Water has maintained focus on customer affordability while investing heavily in infrastructure, proposing income-based discount programs and advocating for federal low-income water assistance programs. The company has also set ambitious environmental goals, targeting 50% reduction in greenhouse gas emissions by 2035 and net-zero emissions by 2050.
AWK company profile · for informational purposes only — not investment advice.
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