Company: AWK
Filing Date: 2025-10-27
Form Type: 425
Source: 0001193125-25-250649
Chunk: 176

Company: American Water Works Company, Inc.
Filing Date: 2025-10-27
Form: 425
Chunk 176
---
31% of the combined company on a fully diluted basis. Combination Provides Expansive Benefits to Key Stakeholders

| • |     | Advances shared mission of delivering essential utility services. Providing safe, clean,                                                                                                                                                          
 reliable and affordable water and wastewater services will be of the utmost importance to the combined company. Management will continue to work closely with the EPA and federal, state and local officials to deliver the quality of water that 
 customers have come to expect from American Water and Essential, while also adhering to safety and sustainability best practices.                                                                                                                 |

| • |     | Delivers attractive, long-term capital investment profile with ability to provide increased solutions to water                                                                                               
 and wastewater challenges across an expanded footprint. American Water expects to maintain its long-term rate base growth target of 8-9% upon the closing of the merger, positioning the company to continue 
 to provide high quality service to customers. The combined company will continue to allocate capital to infrastructure renewal, resiliency, water quality, technology and growth projects.                   |

| • |     | Upholds commitments to employees and provides greater long-term opportunities. The combined company unites                                                                                                                                               
 two highly skilled and experienced teams in the regulated utility space, with a greater ability to attract, develop and retain employees and create long-term opportunities for career growth. The combined company does not anticipate material changes 
 to employee compensation or benefits as a result of the transaction. Both companies value their union partnerships, and all union contracts will continue to be honored in accordance with their current terms.                                          |

| • |     | Strengthens commitment to communities, including water affordability. The combined company will remain an                                                                                                                                                 
 active member in the communities it serves, supporting customers and stakeholders with a dedicated workforce and passionate employee base. American Water and Essential each have a strong history of charitable giving, which will remain central to the 
 combined organization. There will be no change in customer rates as a result of the merger, and American Water and Essential will be better able to maintain an average customer water bill that is affordable, supporting the economic prosperity of the 
 more than 2,000 communities in which the combined company will operate.                                                                                                                                                                                   |

Transformative Merger Driven by Compelling Strategic, Customer and Financial Rationale

| • |     | Bolsters significant regulated water and wastewater utility providers. The combined company would have a                                                                                                                              
 water and wastewater rate base of approximately $29.3 billion1 as of the end of 2024, with approximately 4.7 million water/wastewater