American Water Works Company, Inc.

Business focus

• Largest publicly traded U.S. water and wastewater utility.
• Primarily operates regulated utilities that provide water and wastewater services to residential, commercial, industrial, public authorities, fire service, and wholesale customers.
• Regulated businesses operate in 24 states, serving about 14 million people with roughly 3.6 million active customers across water and wastewater networks.
• Other businesses include the Military Services Group (MSG), which provides water and wastewater services to U.S. military installations, and other non‑regulated activities.

Employees and people served

• Approximately 7,000 employees (professionals) as of 2025.
• About 14 million people served across the Regulated Businesses.
• 3.6 million active Regulated water and wastewater customers (year-end 2025).
• Customer mix by service in Regulated Businesses: about 91% water and 9% wastewater.

Revenue

• Regulated Businesses operating revenues:
  • 2025: $4,723 million
  • 2024: $4,296 million
  • 2023: $3,920 million
• Regulated Businesses accounted for about 92% of total operating revenues in these periods.
• Other (non‑regulated) operating revenues:
  • 2025: $417 million
  • 2024: $388 million
  • 2023: $314 million
• Total operating revenues (Regulated + Other) for 2025: approximately $5,140 million.

Regulated revenue by class of customer (2025)

• Water:
  • Residential: $2,557m (54%)
  • Commercial: $981m (21%)
  • Fire service: $189m (4%)
  • Industrial: $195m (4%)
  • Public and other water: $311m (7%)
• Wastewater: $422m (9%)
• Other: $68m (1%)
• Total Regulated Revenue: $4,723m

Customers and geography

• Regulated customers (2025):
  • Water customers: Residential 2,942k; Commercial 224k; Fire service 55k; Industrial 4k; Public and other 17k; Total water customers 3,242k.
  • Wastewater customers: Residential 307k; Commercial 21k; Public and other 2k; Total wastewater customers 330k.
  • Overall Regulated Customers: 3,572k (3.572 million).
• Top five states by Regulated operating revenue (2025):
  • Pennsylvania: Water $931m; Wastewater $195m; Other $14m; Total $1,140m (24.1%); Water customers 697k; Wastewater 117k; Total 814k.
  • New Jersey: Water $1,024m; Wastewater $67m; Other $14m; Total $1,105m (23.4%); Water customers 680k; Wastewater 70k; Total 750k.
  • Missouri: Water $548m; Wastewater $23m; Other $4m; Total $575m (12.2%); Water customers 486k; Wastewater 24k; Total 510k.
  • Illinois: Water $435m; Wastewater $95m; Other $18m; Total $548m (11.6%); Water customers 299k; Wastewater 77k; Total 376k.
  • California: Water $364m; Wastewater $5m; Other $1m; Total $370m (7.8%); Water customers 193k; Wastewater 3k; Total 196k.
• Combined revenue for Top Five States: $3,738 million; Other states: $985 million; Total Regulated Revenues: $4,723 million.

Capital investment and operations

• Plans to invest $46 billion to $48 billion over the next 10 years for capital improvements to water and wastewater infrastructure, focused on pipe replacement and aging facility upgrades.
• Increasing pipe renewal rate, moving from a 250‑year cycle in 2009 toward better than a 100‑year replacement rate within the next decade.
• From 2026 to 2030, capital investments in above‑ground facilities (treatment plants, storage tanks, etc.) are expected to rise to address infrastructure renewal, resiliency, water quality, efficiency, and compliance.
• Emphasizes resiliency investments to address climate and weather variability.

Regulation and rate making

• Operations are regulated by state public utility commissions (PUCs).
• PUC processes can affect timing and magnitude of rate increases and cost recovery.
• The company uses mechanisms to reduce regulatory lag, including cost recovery surcharges, test years, AFUDC, revenue stability mechanisms, and consolidated tariffs.

Military Services Group (MSG)

• Operates on 18 U.S. military installations under 50‑year Utilities Privatization Program contracts.
• MSG backlog (revenue under U.S. government contracts) is approximately $7.4 billion, with an average remaining contract term of about 37 years.
• MSG contracts are subject to price redetermination or annual adjustments and can be terminated for convenience by the U.S. government.

Leadership and governance

• Sustainability governance includes oversight by the Board’s Safety, Environmental, Technology and Operations Committee (SETO), with interaction from Audit, Finance and Risk Committee and others.
• Executive leadership and governance emphasize safety, environmental performance, regulatory compliance, and stakeholder engagement.

Merger update (Essential Merger)

• On October 26, 2025, the company entered into an Agreement and Plan of Merger with Essential Utilities, Inc.
• Merger structure: stock‑for‑stock; Essential shareholders receive 0.305 shares of the parent company for each Essential share.
• Upon completion, Essential would become a wholly owned subsidiary; the combined entity would retain the parent company name and Camden, New Jersey headquarters.
• Expected closing is by the end of the first quarter of 2027, subject to customary conditions and regulatory approvals, including HSR review and various state PUC consents.
• The transaction carries potential integration, regulatory, termination fee, and ownership‑structure risks.

Risk exposures

• Key risk themes include regulatory lag, capital intensity, weather and climate variability, water supply constraints, environmental and health regulations (including PFAS-related rules), cybersecurity and data privacy, and potential litigation related to infrastructure and service disruptions.
• Insurance policies include deductibles and exclusions; some losses may be uninsured or underinsured.
• A substantial portion of the workforce is represented by unions, with ongoing contract negotiations.

Sustainability and affordability

• Targets average residential bills at or below 1% of median household income.
• Supports customer affordability programs and reforms in rate design.

Executive officers (as of Feb 18, 2026)

• Named executive officers include the President & CEO, Chief Financial Officer, Executive Vice President — Communications, General Counsel, Chief Operating Officer, and Executive Vice President & Chief Human Resources Officer.

Summary takeaway

American Water is a large, diversified U.S. water and wastewater operator with a heavy emphasis on regulated service across many states, substantial capital investment plans, and a growing MSG business serving U.S. government needs. The company reported Regulated Revenues of $4.723 billion and Other operating revenues of $417 million for 2025, serves roughly 3.6 million active Regulated customers, employs about 7,000 people, and is pursuing a major merger with Essential Utilities with expected closing in early 2027, subject to regulatory approvals and customary closing conditions.