American Water Works Company, Inc.'s Stock Analysis

American Water Appoints New Independent Director Lisa A. Grow

American Water Works Company has expanded its Board of Directors from nine to ten members with the appointment of Lisa A. Grow as an independent director, effective August 26, 2025. Ms. Grow will serve on the Nominating Committee and the Safety, Environmental, Technology and Operations Committee. Her compensation includes an annual cash retainer of $120,000, plus an award of stock units valued at $175,000 for her initial term, with shares to be distributed within 30 days of the grant.

With nearly 40 years of experience in the utility industry, Ms. Grow has held significant positions, including President and CEO of Idaho Power and IDACORP. She is also involved with various boards, enhancing her expertise in regulatory and operational matters. The board now consists of ten members, with nine being independent, which may influence governance and decision-making within the company.

Aug 27, 2025 16:53:58

American Water Works Engages in Forward Sale Agreements and Debt Offering

On August 7, 2025, American Water Works Company entered into additional forward sale agreements for 1,056,338 shares of its common stock at an initial price of $139.657 per share. The agreements allow for settlement before December 31, 2026, and American Water expects to receive net proceeds of approximately $147.5 million from these agreements, which will be used for general corporate purposes. The company also has the option to settle in cash or shares, depending on market conditions at the time of settlement.

Additionally, on August 6, 2025, American Water Capital Corp. sold $900 million in senior notes due 2055, with net proceeds of approximately $887.2 million intended for lending to American Water and its subsidiaries, repaying commercial paper obligations, and other corporate purposes. The notes are backed by a support agreement from American Water and were registered under the Securities Act. This financing activity may impact the company's capital structure and liquidity.

Aug 08, 2025 13:44:34

American Water Works Announces Forward Sale of 7 Million Shares

American Water Works Company has entered into forward sale agreements with Wells Fargo, JPMorgan Chase, and Mizuho Markets, involving a total of 7,042,254 shares of its common stock. The initial forward sale price is set at $139.657 per share, which may be adjusted based on interest rates and expected dividends. The company anticipates receiving net proceeds of approximately $983.5 million from these agreements, which are intended for general corporate purposes. The agreements allow for physical, cash, or net share settlements, depending on market conditions at the time of settlement.

Additionally, American Water has granted underwriters a 30-day option to purchase up to an extra 1,056,338 shares. The shares involved in the transaction have been registered under the Securities Act of 1933. The forward sale agreements include provisions that allow the forward purchasers to accelerate settlement under certain conditions, such as inability to borrow shares or significant changes in American Water’s financial situation. This transaction could impact the company’s stock price based on the execution and market response to the forward sale agreements.

Aug 06, 2025 13:45:43

Maryland American Water Requests Rate Increase of $3 Million

Maryland-American Water Company, a subsidiary of American Water Works Company, has filed a request with the Maryland Public Service Commission to adjust its water rates, seeking an increase of $3 million in annual revenues. This request is based on a proposed return on equity of 10.64% and reflects approximately $22 million in capital investments made from February 2019 to April 2025. If approved, the new rates are expected to take effect in March 2026.

The proposed rate structure includes a two-tiered pricing model aimed at promoting affordability for lower-usage customers. For instance, residential customers in Bel Air using 2,000 gallons per month would see an increase of about $6, while those using 4,000 gallons would face a $29 increase. The last rate adjustment occurred in 2019, and customers will have opportunities to participate in the review process through public comment and hearings before the final decision is made by the PSC.

Aug 01, 2025 16:34:16

American Water Works Reports Second Quarter Financial Results

American Water Works Company, Inc. reported earnings of $1.48 per share for the second quarter of 2025, an increase from $1.42 per share in the same quarter of 2024. Year-to-date earnings also rose to $2.53 per share from $2.37 per share in 2024. The company has narrowed its earnings per share guidance for 2025 to a range of $5.70 to $5.75, reflecting a weather-normalized basis. The results include a net unfavorable weather impact estimated at $0.06 per share. The company is on track with its $3.3 billion capital investment plan, having invested $1.3 billion through the first half of the year, and it has announced an agreement to acquire Nexus Water Group systems in eight states, adding approximately 87,000 customer connections under agreement.

For the Regulated Businesses, net income increased to $288 million in the second quarter of 2025, up from $274 million in 2024. Operating revenues also saw a significant rise, attributed to approved revenue increases from general rate cases and infrastructure investments. The company authorized additional annualized revenues of $270 million since January 1, 2025. However, operating expenses increased due to higher employee-related costs and technology expenses. On July 30, 2025, the Board of Directors declared a quarterly cash dividend of $0.8275 per share, payable on September 3, 2025, to shareholders of record as of August 12, 2025.

Jul 30, 2025 16:33:18

California American Water Seeks Rate Increase for Infrastructure Upgrades

California American Water has submitted a request to the California Public Utilities Commission for new rates that reflect approximately $750 million in investments for water and wastewater system improvements planned from 2025 through 2028. The proposed upgrades include new water treatment plants, replacement of aging pipelines, and enhancements to storage tanks and pumping stations. If approved, the changes could result in a monthly water bill adjustment for average residential customers ranging from a decrease of about $3 to an increase of $17, starting in January 2027.

The company also aims to expand its Customer Assistance Program, which currently offers discounts to qualifying customers, and includes various support services such as conservation programs and payment plans. The proposal will undergo an 18-month review process by the CPUC, allowing for customer feedback through public hearings and written comments. Customers will be notified of any approved rate changes through mail and the company's website.

Jul 01, 2025 16:43:11

American Water Appoints Raffiq Nathoo to Board of Directors

American Water Works Company, Inc. has appointed Raffiq Nathoo as an independent member of its board of directors, effective immediately. Nathoo brings over 30 years of experience in international financial and capital markets, particularly in the energy, power, and utilities sectors. His previous roles include Managing Partner at TX3 Sage Rock and Senior Managing Director at Blackstone, where he led the firm's advisory practice globally in these sectors. Nathoo also serves on the Board of Directors of Cabot Corporation and has an MBA from Harvard University.

With this appointment, American Water's board now consists of nine members. The company is the largest regulated water and wastewater utility provider in the U.S., serving over 14 million people across 14 states and 18 military installations. American Water emphasizes its commitment to providing safe and reliable water and wastewater services, leveraging the expertise of its 6,700 professionals to benefit customers and stakeholders.

Jun 09, 2025 16:49:32

Iowa American Water Receives Rate Increase Approval from IUC

The Iowa Utilities Commission has approved new water and wastewater rates for Iowa American Water, following a rate request filed on May 1, 2024. This decision is primarily due to over $157 million in infrastructure investments made by the company since its last rate filing. The new rates will be implemented after Iowa American Water prepares and files them in accordance with the IUC's order, with interim rates having already taken effect on May 11, 2024.

Iowa American Water, a subsidiary of American Water, serves approximately 227,000 people in Iowa. The company emphasizes its commitment to providing safe and reliable services while ensuring compliance with state and federal regulations. Customers will be informed of the new rates through their bills and can find additional details on the company's website and the Iowa Utilities Commission's site.

May 22, 2025 16:41:18

American Water to Acquire Nexus Water Group Systems for $315 Million

American Water Works Company, Inc. has announced an agreement to purchase multiple water and wastewater systems from Nexus Regulated Utilities, LLC for approximately $315 million. This acquisition will add nearly 47,000 customer connections across eight states, including Illinois, Indiana, Kentucky, Maryland, New Jersey, Pennsylvania, Tennessee, and Virginia, enhancing American Water's existing operations in those regions. The transaction is subject to regulatory approval and is expected to be completed by or before August 2026.

The acquisition aligns with American Water's growth strategy and aims to provide reliable water and wastewater services to new customers. The company has committed to offering employment to around 70 employees from Nexus Water Group affiliates, ensuring a seamless transition for customers. The completion of the deal will depend on regulatory approvals and other customary conditions, with the companies working together to facilitate the integration process.

May 19, 2025 16:20:38

Kentucky American Water Seeks $26.9 Million Rate Increase

Kentucky American Water has filed a request with the Kentucky Public Service Commission for new rates, driven by over $212 million in system investments. The company aims to replace aging infrastructure and enhance service quality for its customers in 13 counties, serving more than half a million people. The proposed annual revenue increase is approximately $26.9 million, which is subject to public review and approval by the PSC, with a final decision expected within 10 months of the filing.

If approved, the average residential customer's water bill would increase by about $9 per month. The proposed rates are currently a request and may take effect on an interim basis approximately seven months after the filing. Customers will be notified of any approved rates through mail and the company's website. Kentucky American Water also offers various bill payment assistance programs for eligible customers.

May 16, 2025 16:23:57