Summary
American Water Works Company, Inc. (AWK) operates as the largest investor-owned water and wastewater utility in the United States, serving approximately 15 million people across 47 states and Canada. The company's core business, "Regulated Businesses," accounted for approximately 87% of its operating revenues in 2016, providing essential water and wastewater services under state regulatory commission oversight. The remaining 13% comes from its "Market-Based Businesses," which include military services, homeowner services, contract operations, and services for the oil and gas industry. In 2016, AWK demonstrated solid performance, with operating revenues growing by 4.5% to $3.3 billion. The company highlighted investments in infrastructure improvements and strategic acquisitions as key drivers of growth. Despite a significant charge related to the Freedom Industries chemical spill in West Virginia, adjusted diluted earnings per share saw an increase, driven by strong performance in its regulated operations. AWK continues to focus on customer satisfaction, safety, employee development, and efficient operations to maintain its leading market position and deliver value to shareholders.
Financial Highlights
49 data points| Operating Expenses | $2.22B |
| Operating Income | $1.08B |
| Net Income | $468.00M |
| EPS (Basic) | $2.63 |
| EPS (Diluted) | $2.62 |
| Shares Outstanding (Basic) | 178.00M |
| Shares Outstanding (Diluted) | 179.00M |
Key Highlights
- 1American Water is the largest investor-owned water and wastewater utility in the U.S., serving approximately 15 million people.
- 2Regulated Businesses generated 87% of operating revenues ($2.87 billion) in 2016, reflecting a 4.7% increase year-over-year.
- 3Market-Based Businesses contributed 13% of operating revenues ($451 million) in 2016, showing growth driven by acquisitions and segment expansion.
- 4The company invested $1.3 billion in capital improvements in 2016, primarily in its Regulated Businesses segment, to enhance infrastructure.
- 5AWK reported a charge of $65 million (after-tax impact of $39 million or $0.22 per diluted share) related to the Freedom Industries chemical spill settlement.
- 6Excluding the chemical spill settlement charge, adjusted diluted earnings per share increased by approximately 7.6% due to strong regulated business growth.
- 7The company maintained a strong focus on customer satisfaction, achieving top-quartile ratings among industry peers for both satisfaction and service quality.
- 8AWK is planning significant capital investments of $6.7 to $7.3 billion over the next five years to support infrastructure improvements and growth through acquisitions.