Summary
American Water Works Company, Inc. (AWK) presented its 2020 annual report, highlighting its position as the largest publicly traded water and wastewater utility in the United States, serving over 15 million people across 46 states. The company's primary operations are within its Regulated Businesses segment, which accounted for 86% of total operating revenues in 2020. This segment focuses on providing water and wastewater services across more than 1,700 communities in 16 states, operating under stringent regulations from Public Utility Commissions (PUCs). AWK detailed significant capital investment plans, projecting $22 billion to $25 billion over the next decade for infrastructure improvements, including pipe replacement and facility upgrades. The company also operates Market-Based Businesses, contributing 14% of revenues, which provide services like homeowner warranties and military installation utilities, operating outside PUC economic regulation. The report also noted the pending sale of its New York subsidiary and discussed various regulatory and environmental compliance efforts, including investments in resiliency and water quality monitoring.
Financial Highlights
50 data points| Revenue | $3.74B |
| Operating Expenses | $2.53B |
| Operating Income | $1.25B |
| Net Income | $709.00M |
| EPS (Basic) | $3.91 |
| EPS (Diluted) | $3.91 |
| Shares Outstanding (Basic) | 181.00M |
| Shares Outstanding (Diluted) | 182.00M |
Key Highlights
- 1American Water is the largest publicly traded water and wastewater utility in the US, serving over 15 million people in 46 states.
- 2The Regulated Businesses segment represents the core of the company's operations, accounting for 86% of total operating revenues in 2020.
- 3The company plans significant capital investments of $22-$25 billion over the next 10 years, primarily for infrastructure improvements and replacements.
- 4Market-Based Businesses contribute 14% of revenues, offering services like homeowner warranties and military installation utilities.
- 5AWK is undertaking the sale of its New York subsidiary to Liberty Utilities Co. for approximately $608 million, subject to regulatory approvals.
- 6The company emphasizes environmental stewardship, water efficiency, and resiliency as key strategic priorities.
- 7Despite the COVID-19 pandemic, AWK reported increased diluted earnings per share in 2020 compared to 2019, driven by infrastructure investments and regulatory approvals.