Company: AWK
Filing Date: 2025-10-27
Form Type: 425
Source: 0001193125-25-250649
Chunk: 177

Company: American Water Works Company, Inc.
Filing Date: 2025-10-27
Form: 425
Chunk 177
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 connections across 17 states and on 18 military                                                 
 installations. With a larger footprint and customer base as well as increased geographic diversity, the combined company will be well positioned to deliver operational leverage, better customer service and broader customer reach. |

| 1 | Excludes gas rate base of $4.2bn and includes Net Utility Plant not yet included in rate base, pending rate 
 case filings/outcomes.                                                                                      |

| • |     | Supports long-term EPS and DPS growth of 7-9% for combined company.                                                                                                                                                                            
 The transaction is expected to be accretive to American Water’s earnings per share in the first year following close, and the combined company expects to maintain American Water’s 7-9% earnings                                              
 per share and dividend growth targets post close. Subject to market conditions and board approval, the parties expect the combined company to adopt American Water’s current dividend policy and payout target range. Both companies expect to 
 maintain their existing dividend policies until the transaction is completed.                                                                                                                                                                  |

| • |     | Creates a more resilient utility with improved credit quality and a strong balance sheet. The credit                                                                                                         
 profile and metrics of the combined company are expected to remain strong, benefiting from diversified service territories and regulatory exposure, and a broader customer and revenue base. As a large-cap, 
 regulated utility, the combined company will continue to have ready access to the equity capital markets. There is no debt issuance related to the transaction.                                              |

| • |     | Includes an industry leading natural gas (LDC) utility that provides optionality to the combined company.                                                                                                                                               
 Peoples Natural Gas is growing its rate base at a rate that exceeds 10% annually. In the five years since Essential has owned the company, it has doubled its rate base and substantially improved its risk profile. The Peoples regulated subsidiaries 
 provided natural gas services to approximately 705,000 customers in western Pennsylvania and an additional approximately 41,000 in Kentucky as of the end of 2024.                                                                                      |

Leadership, Board of Directors, Headquarters, Combined Company Name Upon closing of the transaction, Mr. Griffith will serve as President and Chief Executive Officer of the combined company, and Mr. Franklin will serve as Executive Vice Chair of the board of directors of the combined company. Mr. Franklin will also serve as executive sponsor of the integration task force. David Bowler, American Water Executive Vice President and CFO, will serve as Executive Vice President and Chief Financial Officer, and all existing executive team members of American Water who report