10-QPeriod: Q1 FY2025

American Water Works Company, Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 30, 2025For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) reported a solid first quarter for 2025, demonstrating continued growth and operational strength. Diluted earnings per share increased to $1.05, up from $0.95 in the prior year's first quarter, driven by rate increases in regulated operations and successful capital investments. The company maintained its focus on infrastructure improvements, investing significantly in its network to ensure reliable water and wastewater services. AWK's financial position remains robust, with total assets growing to $33.16 billion. The company also successfully managed its debt, issuing new senior notes while repaying existing obligations. Looking ahead, AWK plans substantial capital investments for 2025, underscoring its commitment to organic growth and strategic acquisitions. While facing some regulatory and legal matters, the company appears to be navigating these challenges effectively, maintaining a stable outlook for investors.

Financial Highlights

47 data points
Beta

Revenue

$1.13B

Net Income

$205.00M

18.1% Net Margin

EPS (Diluted)

$1.05

Total Assets

$33.16B

Cash & Equivalents

$114.00M

Free Cash Flow

-$217.00M

Financial Statements
Beta
Revenue$1.13B
Operating Expenses$771.00M
Operating Income$371.00M
Net Income$205.00M
EPS (Basic)$1.05
EPS (Diluted)$1.05
Shares Outstanding (Basic)195.00M
Shares Outstanding (Diluted)195.00M

Key Highlights

  • 1Diluted earnings per share (EPS) increased to $1.05 for Q1 2025, up from $0.95 in Q1 2024, indicating improved profitability.
  • 2Operating revenues grew to $1.14 billion for Q1 2025, an increase from $1.01 billion in the same period last year, driven by authorized rate increases and acquisitions.
  • 3Capital expenditures for the first three months of 2025 totaled $548 million, primarily directed towards infrastructure improvements in regulated businesses, reflecting ongoing investment in the core operations.
  • 4Long-term debt increased to $13.32 billion from $12.52 billion, largely due to the issuance of $800 million in senior notes, while short-term debt also saw an increase.
  • 5The company plans to invest approximately $3.3 billion in growth strategies in 2025, including infrastructure, acquisitions, and organic growth.
  • 6Total assets grew to $33.16 billion as of March 31, 2025, from $32.83 billion as of December 31, 2024, demonstrating a growing asset base.
  • 7The company declared a quarterly cash dividend of $0.8275 per share, payable in June 2025, signaling continued commitment to returning value to shareholders.

Frequently Asked Questions

The increase in diluted earnings per share to $1.05 in the first quarter of 2025 was primarily driven by the implementation of new rates in the Regulated Businesses. These rate increases were authorized to recover capital and acquisition investments, reflecting the company's ongoing efforts to reinvest in its infrastructure and expand its services.

American Water plans to invest approximately $3.3 billion in 2025. This is being funded through a combination of cash flows from operations, debt issuances (including recent senior notes and commercial paper), and equity. The company also has a significant revolving credit facility available for liquidity support.

American Water is involved in several legal and regulatory matters, including general rate case filings in various states, a class-action lawsuit in West Virginia related to a main break (with a settlement in principle reached), and ongoing litigation in California concerning a water supply project. While the company believes it has strong defenses in these matters, the outcomes could potentially impact financial results, though they are not currently expected to have a material adverse effect.

American Water continues to pursue growth through both regulated acquisitions and organic expansion. As of March 31, 2025, the company had agreements for pending acquisitions expected to add approximately 29,000 customers. Management plans to invest substantially in these growth strategies throughout 2025.