Company: AWK
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001410636-25-000022
Chunk: 150

Company: American Water Works Company, Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 150
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 constructs new water and wastewater treatment and delivery facilities to meet new customer growth, and meet new or updated environmental and water quality regulations. The Company’s projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors.

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Presented in the table below is a summary of the Company’s capital expenditures by category:

 For the Years Ended December 31,(In millions)202420232022Transmission and distribution$882 $922 $901 Treatment and pumping305 322 190 Services, meter and fire hydrants805 652 546 General structure and equipment425 333 380 Sources of supply163 88 95 Wastewater276 258 185 Total capital expenditures$2,856 $2,575 $2,297 

In 2024, the Company’s capital expenditures increased $281 million due to an increase across most infrastructure categories.

The Company also grows its business primarily through acquisitions of water and wastewater systems. These acquisitions are generally located in geographic proximity to the Company’s existing Regulated Businesses and support continued geographical diversification and growth of its operations. Generally, acquisitions are funded initially with short-term debt, and later refinanced with long-term financing. During 2024, the Company paid $417 million to fund acquisitions, including deposits for pending acquisitions. The Company closed on 13 acquisitions of various regulated water and wastewater systems during 2024, which added approximately 69,500 water and wastewater customers.

As previously noted, over the next five years the Company expects to invest between $17 billion to $18 billion, with $15.5 billion to $16 billion for infrastructure improvements in the Regulated Businesses, and the Company expects to invest between $40 billion to $42 billion over the next 10 years. In 2025, the Company expects to invest $3.3 billion, consisting of infrastructure improvements and acquisitions in the Regulated Businesses.

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 Years Ended December 31,(In millions)202420232022Proceeds from long-term debt$1,437 $1,264 $822 Repayments of long-term debt(475)(282)(15)Net proceeds from common stock financing— 1,688 — Net short-term borrowings (repayments) with maturities less than three months700 (996)