American Water Works

American Water is an American public utility company that, through its subsidiaries, provides water and wastewater services in the United States.
Its regulated operations provide water and wastewater services to approximately 1,700 communities in 14 states, serving a population of approximately 14 million. The company has 3.4 million customers which includes residential, commercial, fire service and private fire, industrial, government facilities, and other water and wastewater utilities.
The shares are traded on the NYSE under the ticker AWK.
The utility was founded in 1886 as the American Water Works & Guarantee Company. In 1914, American Water Works and Guarantee Company became American Water Works and Electric Company. In 1947 it was reorganized as American Water Works Company, Inc.
Since December 2018, the company has its headquarters in Camden, New Jersey, and has about 6,500 professionals who provide drinking water, wastewater and related services to over 14 million people in 24 U.S. states.
Most of American Water's services are locally managed utility subsidiaries that are regulated by the U.S. state in which each operates. American Water also owns subsidiaries that manage municipal drinking water and wastewater systems under contract and others that supply businesses and residential communities with water management products and services.
In 2003, American Water established the American Water Military Services Group, which partners with the Department of Defense through the Utilities Privatization (UP) Program. Through this program, the company has a 50-year contract to provides water and wastewater utility services at 18 military installations in the U.S.
In October 2021, American Water sold its homeowner services group to the global private equity firm, Apax Partners, for $1.27 billion.
In 2023, American Water published its eighth Sustainability Report, showcasing the company's leadership and achievements in environmental, social, and governance (ESG) principles. By the second quarter of 2024, their capital investment plan reached $3.1 billion, with approximately 43,000 customer connections added through acquisitions and organic growth as of June 30.
In 2024, American Water reported earnings of $5.39 per share, up from $4.90 per share in 2023, and recorded a dividend growth of 8.1% for the year. It allocated $3.3 billion in capital towards addressing aging infrastructure, improving water quality, enhancing resiliency, and completing strategic acquisitions, which led to nearly 90,000 additional customer connections, 69,500 of which were through acquisitions. The company has maintained its long-term EPS and dividend growth targets of 7-9%. Additionally, CEO M. Susan Hardwick will retire on May 14, 2025, and John Griffith, President of American Water, will succeed her.
In May 2022, Pennsylvania American Water, a division of American Water, acquired the wastewater system assets for the City of York for $235.3 million.
Recent significant acquisitions by State:
In October 2024, American Water completed five acquisitions across Illinois, New Jersey, and Virginia, adding approximately 33,400 customer connections. Additionally, the company has agreements in place for 22 acquisitions in eight states—California, Indiana, Illinois, Maryland, Missouri, New Jersey, Pennsylvania, and West Virginia—which are expected to add about 43,400 customer connections upon completion.
The company owns 80 surface water treatment plants, 480 groundwater treatment plants, 175 wastewater treatment plants, 53,500 miles of pipes, 1,100 groundwater wells, 1,700 water and wastewater pumping stations, 1,100 treated water storage facilities, and 73 dams. The company serves 14 million people with regulated operations in 14 states and on 18 military installations. Services provided by American Water's utilities are subject to regulation by multiple state utility commissions or other entities engaged in utility regulation. Federal, state and local governments also regulate environmental, health and safety, and water quality and water accountability matters.
39°56′56″N 75°07′51″W﻿ / ﻿39.948798°N 75.130792°W﻿ / 39.948798; -75.130792