Company: AWK
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001410636-25-000173
Chunk: 147

Company: American Water Works Company, Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 147
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 For the Nine Months Ended September 30,(In millions)20252024Net income$873 $812 Add (less):Depreciation and amortization663 581 Deferred income taxes and amortization of investment tax credits104 84 Other non-cash activities (a)31 28 Changes in assets and liabilities (b)(242)(66)Pension contributions(33)(33)Net cash provided by operating activities$1,396 $1,406 

(a)Includes provision for losses on accounts receivable, pension and non-pension postretirement benefits and other non-cash, net. 

(b)Changes in assets and liabilities include changes to receivables and unbilled revenues, income tax receivable, accounts payable and accrued liabilities, accrued taxes and other assets and liabilities, net.

For the nine months ended September 30, 2025, cash flows provided by operating activities decreased $10 million, primarily due to the CAMT liability included in the Company’s 2024 extension payment in the second quarter of 2025, utilization of income tax receivables in the prior year and higher customer receivables and unbilled revenues in the current period. The decrease was partially offset by an increase in net income and depreciation.

Cash Flows from Investing Activities

Presented in the table below is a summary of the major items affecting the Company’s cash flows from investing activities:

 For the Nine Months Ended September 30,(In millions)20252024Capital expenditures$(2,078)$(1,962)Acquisitions, net of cash acquired(22)(119)Removal costs from property, plant and equipment retirements, net(120)(112)Purchases of available-for-sale fixed-income securities(43)(113)Proceeds from sales and maturities of available-for-sale fixed-income securities84 147 Net cash used in investing activities$(2,179)$(2,159)

For the nine months ended September 30, 2025, cash flows used in investing activities increased $20 million, primarily due to increased payments for capital expenditures partially offset by decreased payments for acquisitions in the current period. The Company currently plans to invest approximately $3.2 billion on growth through capital investment in infrastructure and acquisitions in the Regulated Businesses in 2025. 

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Cash Flows from Financing Activities

Presented in the table below is a summary of the major items affecting the Company’s cash flows from financing activities:

 For the Nine Months Ended September