Company: AWK
Filing Date: 2025-10-27
Form Type: 425
Source: 0001193125-25-250649
Chunk: 195

Company: American Water Works Company, Inc.
Filing Date: 2025-10-27
Form: 425
Chunk 195
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.8M gas connections with 95% in PA and 5% in KY.

Delivers Expansive Benefits to Key Stakeholders Continuing superior customer Increased career growth service at affordable rates opportunity for employees • Combined infrastructure and • Strengthens position as a top employer operational efficiencies of choice; Recognized on the Forbes America’s Best Employers for Company • Maintain focus on delivering Culture 2025 list dependable water and wastewater services • Attracting top talent through reputation • Commitment to affordable customer and expanded opportunities rates with strong leverage to manage • Broader career advancement prospects supply chain costs for customers’ across the organization benefit Support communities through Value creation unified services for shareholders • Sustained investment in philanthropic • Enhanced stake in a larger regulated initiatives utility platform • Expanded presence in overlapping and • Access to broader geographic and new service territories regulatory exposure • Coordinated services for local employees • Participation in long-term value to efficiently meet local needs creation 11

Capital Investments to Drive Rate Base Growth COMBINED RATE BASE 5-YEAR COMBINED CAPITAL INVESTMENT PLAN American Water American Water Essential Utilities Essential Utilities • The combined company’s 2024 – 2029E CAGR: 8% - 9% enhanced scale will support 31% $53 continued investment in critical infrastructure, $18 1 $34 $28B enabling the company to continue to provide superior $11 customer service at 69% $36 $22 affordable rates 2024 2029E Focus Areas of Investment Infrastructure Water Quality, Resiliency Operational Efficiency, Renewal including PFAS Technological Innovation Accounts for additional replacement of Treatment plant and system upgrades Treatment plant hardening for Infrastructure advancements to drive mains, hydrants, services (lead service including lead pipe replacement and resiliency, including for weather streamlined operations and long-term lines), meters, and gas pipelines PFAS mitigation variability performance improvements Note: Dollars shown in billions. 12 1. From 2025E – 2029E.

Delivering Top Quartile Total Shareholder Return Pro Forma EPS and Dividend Outlook Highly Durable, Low Risk Capital Investment Plan • Transaction EPS accretive in first year after transaction close • Decades of pipe replacement needed in aging water systems • March 2025 ASCE Infrastructure Report Card graded U.S. Drinking • Expect to maintain American Water’s 7% - 9% long-term EPS and DPS Water and Wastewater systems as a C– and D+, respectively growth targets • Significant water quality and resiliency investments needed, including