Company: AWK
Filing Date: 2025-10-27
Form Type: 425
Source: 0001193125-25-250649
Chunk: 197

Company: American Water Works Company, Inc.
Filing Date: 2025-10-27
Form: 425
Chunk 197
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6.0% 2.9% 5.0% 3.4%

Continuing Commitment to a Strong Balance Sheet & Credit Ratings The combination creates a stronger, more resilient utility with improved credit quality, balanced capital structure, and stable cash flow to support long-term growth and reliable service Credit Strength and Benefits S&P / MOODY’S RATINGS • All-stock transaction; no debt issuance related to the transaction A / Baa1 • Credit profile comfortably within current A/Baa1 ratings bands for S&P and Moody’s, respectively AMERICAN WATER • Regulated, essential water/wastewater asset class combined with robust risk management underpin a strong financial profile and low business risk • Preserved diversification across service territories: A- / Baa2 − Spreads exposure across distinct regulators while ESSENTIAL increasing presence in Pennsylvania − Broadens customer and revenue base 14

Path to Close Approvals and Timeline Q4 2025 – Q1 2026 Q1 2026 Q3 2026 – Q1 2027 Q1 2027 File Regulatory Special Shareholder Transaction Close Obtain Regulatory Approvals Transaction expected to close by end of Approvals from state regulators include PA, Applications Meetings Q1 2027 NJ, TX and VA, among others Required approvals include Hart- Required special AWK and Scott-Rodino and certain public WTRG shareholders meetings utility commissions are held 15

Key Takeaways Merger Unlocks Compelling Growth and Value Potential for Both Companies Results in a Leading U.S. Presents Inorganic & Organic Water & Wastewater Utility Growth Opportunities Solidifies position as a premier public water & Retains American Water’s 7% - 9% long- Unites two wastewater utility with an expanded footprint term EPS and dividend per share growth industry leaders across 17 states and on 18 military installations, rate targets, driven by both strategic 4.7M water & wastewater connections, and acquisitions and core business expansion with a shared increased ability to help solve water & wastewater mission challenges across the United States to deliver safe, clean, reliable, and Enhances Financial Strength, Strengthens Platform for affordable water and Expands Low Risk Foundation Superior Customer Experience wastewater services, while elevating Highly stable and supportive cash flows and Leverages operational and financial customer experience strengthened balance sheet form expertise and efficiencies from foundation for continued infrastructure complementary platforms to drive high through operational quality, affordable service investments excellence 16