Summary
American Water Works Company, Inc. (AWK) reported strong performance in its 2019 10-K filing, demonstrating continued growth and stability as the largest publicly traded water and wastewater utility in the United States. The company's operations are primarily driven by its Regulated Businesses, which serve approximately 15 million people across 46 states and generate the vast majority of its revenue. AWK has a consistent strategy of investing in infrastructure improvements, evidenced by planned capital expenditures exceeding $8 billion over the next five years, aimed at modernizing aging systems and enhancing service reliability. The company also highlighted growth in its Market-Based Businesses, which offer complementary services. Despite a challenging regulatory environment and the inherent risks of utility operations, AWK's diversified geographic footprint, strong regulatory relationships, and commitment to operational excellence position it well for continued success. Investors can look to AWK's significant ongoing capital investments as a driver for future rate base growth and stable, predictable earnings, supported by a growing dividend history and a focus on environmental, social, and governance (ESG) principles.
Financial Highlights
51 data points| Revenue | $3.59B |
| Operating Expenses | $2.40B |
| Operating Income | $1.21B |
| Net Income | $621.00M |
| EPS (Basic) | $3.44 |
| EPS (Diluted) | $3.43 |
| Shares Outstanding (Basic) | 181.00M |
| Shares Outstanding (Diluted) | 181.00M |
Key Highlights
- 1American Water is the largest U.S. water and wastewater utility by revenue and population served, operating primarily through its Regulated Businesses across 16 states.
- 2The company plans significant capital investments of $8.2 billion over the next five years and $18-$19 billion over the next 10 years for infrastructure improvements.
- 3Operating revenues for the Regulated Businesses were $3.1 billion in 2019, a slight increase from 2018, driven by rate increases and acquisitions.
- 4Market-Based Businesses contributed $539 million in operating revenues in 2019, showing growth driven by acquisitions and new contracts.
- 5The company's commitment to sustainability and ESG principles is demonstrated through initiatives like GHG emission reductions and various index inclusions.
- 6AWK is actively managing its capital structure, with long-term debt and redeemable preferred stock representing 55.6% of its capitalization as of December 31, 2019.
- 7The company is in the process of selling its New York subsidiary to Liberty Utilities Co. for approximately $608 million, with an estimated completion by early 2021.