Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 68

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 68
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 successfully execute its business
strategy. If the combined company is not able to achieve its business strategy on a timely basis, or otherwise fails to perform in accordance with the expectations of the parties, the anticipated benefits of the merger may not be realized fully or
at all, and the merger may materially adversely affect the results of operations, financial condition, and prospects of the combined company, and, consequently, the market value of the combined company’s common stock.

The merger will combine companies that are affected by developments in the water and wastewater utility industries and, additionally, with respect to Essential, the natural gas industry, including changes in regulation. Any failure to adapt to changing regulatory environments after the merger could adversely affect the stability of the combined company’s earnings.

Because American Water, Essential, and their respective subsidiaries are significantly regulated in the United States, the two companies have been and will
continue to be affected by legislative, political, and regulatory

42

developments. After the merger, the combined company and/or its subsidiaries will be subject to extensive regulation in the states in which the combined company will operate. The costs and
burdens associated with complying with these regulations may have an adverse effect on the combined company. Moreover, potential legislative, political, or regulatory changes, or other similar changes, may create greater risks to the stability of
the combined company’s revenue, income, and earnings generally.

American Water’s and Essential’s projections and financial forecasts are based on various assumptions that may not prove to be correct.

The projections and financial forecasts set forth in
“Certain Unaudited Prospective Financial Information” beginning on page 75 are based on assumptions of, and information available to, American Water and Essential at the time they were prepared and provided to the American
Water board and the Essential board, respectively, along with their respective financial advisors. American Water and Essential do not know whether such projections, forecasts, and assumptions will prove correct. Any or all of such projections,
forecasts, and assumptions may turn out to be wrong. Such projections and forecasts can be adversely affected by inaccurate assumptions or by known or unknown risks and uncertainties, many of which are beyond American Water’s and
Essential’s control. Many factors discussed in, or in documents incorporated by reference into, this joint proxy statement/prospectus, including the risks outlined in this “Risk Factors” section beginning on page 35 and
the events or circumstances described under “Cautionary Note Regarding Forward-Looking Statements” beginning on page 33, will be important in determining American