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American Water Works Company, Inc. (AWK) is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States. The company primarily owns regulated utilities that provide water and wastewater services to a variety of customers, including residential, commercial, industrial, public authority, fire service, and sale for resale customers, collectively known as the "Regulated Businesses" . These services are offered across 14 states, with the Regulated Businesses segment being the largest part of the company's operations . Additionally, American Water operates businesses that provide water and wastewater services to the U.S. government on military installations and municipalities, which are not regulated by state public utility commissions (PUCs) .
- Regulated Businesses - Provides water and wastewater services to residential, commercial, industrial, public authority, fire service, and sale for resale customers across 14 states.
- Unregulated Operations - Offers water and wastewater services to the U.S. government on military installations and municipalities, operating outside the economic regulation of state public utility commissions.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
M. Susan Hardwick ExecutiveBoard | Chief Executive Officer (CEO) | Board Member at New Jersey Resources Corporation; Board Member of NAWC | CEO since February 2022, previously CFO and Interim CEO. Extensive experience in finance and leadership roles at Vectren Corporation and Arthur Andersen & Co.. | February 2, 2022 |
Cheryl Norton Executive | Executive Vice President and COO | Board Member at Water Research Foundation | COO since March 2021, with over 35 years at AWK. Previously President of multiple subsidiaries and Chief Environmental Officer. Focus on operational excellence and environmental stewardship. | March 2021 |
David Bowler Executive | Executive Vice President and CFO | None | CFO since August 2024, previously Deputy CFO and Treasurer at AWK. Expertise in financial management and capital markets. | August 1, 2024 |
John C. Griffith Executive | Executive Vice President and CFO | None | CFO since May 2022, previously Managing Director at Bank of America Securities and CEO of HighWave Energy. Expertise in mergers, acquisitions, and financial strategy. | May 16, 2022 |
Stacy A. Mitchell Executive | Executive Vice President and General Counsel | Council Treasurer for AWWA Water Utility Council | General Counsel since June 2024, previously Deputy General Counsel. Extensive experience in regulatory and legal strategy, including roles at SJI Utilities and private practice. | June 5, 2024 |
Jeffrey N. Edwards Board | Independent Director | Board Member at AAR Corp. and Raymond James Financial | Director since 2018. Former Vice Chairman and CFO at Merrill Lynch, with expertise in capital markets and financial strategy. | 2018 |
Julia L. Johnson Board | Independent Director | Board Member at MasTec, Inc. | Director since 2008. President of Net Communications, LLC, with expertise in regulatory policy and governance. | 2008 |
Karl F. Kurz Board | Board Chair | Board Member at Royal Helium Ltd., Devon Energy Corporation, Texas Pacific Land Corporation | Board Chair since 2018, director since 2015. Extensive experience in oil and gas industry and capital markets. | 2015 (Director) |
Kimberly J. Harris Board | Independent Director | Board Member at U.S. Bancorp and Ameren Corp. | Director since 2019. Former CEO of Puget Energy, with expertise in utility operations, regulatory policy, and governance. | 2019 |
Laurie P. Havanec Board | Independent Director | EVP and Chief People Officer at CVS Health Corporation | Director since December 2022. Extensive HR leadership experience, including roles at Otis Worldwide and United Technologies Corporation. | December 7, 2022 |
Martha Clark Goss Board | Independent Director | Board Member at Neuberger Berman Mutual Funds; Board Member at Museum for American Finance | Director since 2003. Extensive experience in finance, risk management, and governance, including roles at Prudential and various public companies. | 2003 |
Michael L. Marberry Board | Independent Director | Board Member at AdvanSix Inc. | Director since December 2022. Former CEO of J.M. Huber Corporation, recognized for sustainability leadership and corporate governance expertise. | December 7, 2022 |
Patricia L. Kampling Board | Independent Director | Board Member at Xcel Energy Inc.; Trustee at The Nature Conservancy (Wisconsin chapter) | Director since 2019. Former CEO of Alliant Energy, with expertise in utility operations, ESG, and workforce development. | 2019 |
Stuart M. McGuigan Board | Independent Director | Board Member at Enhabit, Inc. | Director since October 2024. Former CIO at U.S. Department of State and Johnson & Johnson, with expertise in IT strategy, cybersecurity, and innovation. | October 29, 2024 |
- Does the commentary about potentially shifting capital expenditures around also apply to your interest in mergers and acquisitions in Pennsylvania, given the long and arduous road with legislative changes at the commission?
- With the Pennsylvania PUC's unprecedented ROE finding of 9.45% being significantly lower than your requested 10.95%, how will this impact your future capital investments and allocation of capital among your various states?
- Regarding the Butler Area Sewer Authority acquisition, which is approved but under appeal, how is the delay affecting your growth strategy in Pennsylvania, and what contingency plans do you have if the court decision is unfavorable?
- Can you elaborate on the water quality issues raised by the Pennsylvania commission and how you are addressing customer concerns about aesthetic disturbances associated with system improvements in the Northeast service area?
- In the Kentucky rate case, you've mentioned a significant mathematical error affecting your authorized revenues; could you provide more details on this error and its potential impact on your financial results once corrected?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company's largest investor-owned competitors, based on a comparison of operating revenues and population served, include this competitor when pursuing acquisitions. | |
The company's largest investor-owned competitors, based on a comparison of operating revenues and population served, include this competitor when pursuing acquisitions. | |
The company's largest investor-owned competitors, based on a comparison of operating revenues and population served, include this competitor when pursuing acquisitions. | |
From time to time, the company faces competition from infrastructure funds, multi-utility companies and others, such as this competitor. | |
From time to time, the company faces competition from infrastructure funds, multi-utility companies and others, such as this competitor. | |
SouthWest Water Company | From time to time, the company faces competition from infrastructure funds, multi-utility companies and others, such as this competitor. |
Corix Infrastructure, Inc. | From time to time, the company faces competition from infrastructure funds, multi-utility companies and others, such as this competitor. |
Veolia Environnement S.A. | MSG faces competition from a number of service providers, including this competitor. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Butler Area Sewer Authority | 2024 | Pennsylvania-American Water Company acquired this system for $230 million in cash, serving approximately 15,000 customer connections across multiple townships; the deal was approved by the PaPUC and completed on October 29, 2024. |
Four Regulated Water and Wastewater Systems | 2024 | The acquisition was executed for an aggregate purchase price of $33 million and added roughly 7,400 water and wastewater customers, with the assets (principally utility plant) accounted for as business combinations and preliminary purchase price allocation pending completion. |
Granite City Wastewater Treatment Plant | 2024 | Illinois-American Water Company acquired the treatment plant for $86 million, adding about 26,000 wastewater customers while assuming $5 million in liabilities against $91 million of assets; the deal received regulatory approval from the Illinois Commerce Commission and closed on March 11, 2024. |
Egg Harbor City | 2023 | The New Jersey subsidiary acquired Egg Harbor City’s water and wastewater assets for $22 million (with a $2 million deposit) to serve a combined 3,000 customers, with the transaction closing on June 1, 2023 and accounted for as a business combination. |
14 Regulated Water and Wastewater Systems | 2022 | Acquired for an aggregate purchase price of $73 million, these systems—primarily consisting of utility plant—were partly accounted for as business combinations and contributed to expanding the company's Regulated Businesses segment. |
8 Regulated Water and Wastewater Systems | 2022 | The company acquired these systems for a total of $25 million, with assets consisting principally of utility plant; the pro forma impact on the Consolidated Statements of Operations was not material. |
York City Sewer Authority and City of York Wastewater System | 2022 | The acquisition, finalized for $235 million (plus an additional revenue adjustment component and a $20 million deposit), expanded regulated operations to serve over 45,000 customers and received PaPUC approval before closing on May 27, 2022; it was structured and accounted for as a business combination. |
4 Regulated Water and Wastewater Systems | 2022 | Completed during the three months ended March 31, 2022, this acquisition was executed for an aggregate purchase price of $5 million, with assets acquired consisting principally of utility plant. |
Recent developments and announcements about AWK.
Earnings
New Earnings (Q4 2024)
·Feb 20, 2025, 6:03 PMView full earnings summary →American Water expects 7-9% EPS growth for Q4 2024—excluding a one-time $0.10 item—and plans a $1B capital spend on PFOS/PFAS projects. CA’s partial decoupling poses revenue risk, and equity financing may dilute shares more than anticipated. Rehearing outcome is key.
8-K Filings
8-K Filing
·Feb 24, 2025, 12:31 PMLeadership ChangesView full 8-K filing →On Feb 28, 2025, the Executive Development & Compensation Committee approved a severance deal for EVP/CHRO Melanie M. Kennedy. The agreement provides for 12 months’ cash severance (base ~$487,953), a prorated bonus through Mar 1, 2025, a $300,000 supplement and COBRA coverage.