American Water Works Company, Inc.'s Stock Analysis

American Water Works Files Rate Request for $169 Million Increase

Pennsylvania-American Water Company, a subsidiary of American Water Works Company, has filed a request with the Pennsylvania Public Utility Commission to adjust its water and wastewater rates, seeking an annual revenue increase of approximately $169 million. This request is based on a proposed return on equity of 10.95% and a capital structure with an equity component of 55.33%. The increase is primarily driven by an estimated $1.2 billion in capital investments planned from June 2025 through mid-2027, which include significant upgrades to water and wastewater systems aimed at enhancing service quality and reliability for over 2.4 million customers in Pennsylvania.

If approved, the proposed rate changes would result in a monthly increase of about $14 for typical residential water customers and around $10 for those on sanitary wastewater systems. Additionally, a new Deduct Adjustment is proposed to reduce summer wastewater charges based on average winter usage, potentially offering savings for customers. The filing also includes a request for a Renter Assistance Pilot Program to aid low-income renters in master-metered buildings. The new rates, pending approval, are expected to take effect in August 2026.

Nov 14, 2025 16:27:48

Virginia American Water Seeks $21.9 Million Rate Increase Approval

Virginia-American Water Company, a subsidiary of American Water Works Company, has filed a request with the Virginia State Corporation Commission to adjust its water and wastewater rates, seeking an annual revenue increase of $21.9 million. This request is based on a proposed return on equity of 10.75% and a capital structure with an equity component of 51.79%. The increase is primarily driven by over $115 million in capital investments aimed at upgrading infrastructure and ensuring compliance with environmental regulations. If approved, the average residential customer's monthly bill would rise by approximately $11.

The interim rates are expected to take effect on May 1, 2026, while the final rates will be determined by the SCC's review process, which allows for customer participation through comments and public hearings. The company has also emphasized its commitment to customer assistance programs, including payment plans and support for income-eligible customers. Virginia American Water's last general rate case was filed in November 2023, and the current filing reflects ongoing efforts to maintain reliable service for its approximately 384,000 customers in Virginia.

Nov 03, 2025 16:42:25

American Water Works Reports Q3 2025 Earnings and Merger Plans

American Water Works Company reported earnings per share of $1.94 for the third quarter of 2025, up from $1.80 in the same quarter of 2024. Year-to-date earnings reached $4.47 per share, compared to $4.17 in 2024. The company affirmed its earnings guidance for 2025, projecting a range of $5.70 to $5.75 per share, which includes an increase in revenues from new rates and acquisitions. Operating revenues increased by $124 million for the quarter, driven by authorized revenue increases, while operating expenses rose due to higher employee costs and technology investments. The company plans to invest approximately $3.2 billion in 2025 to support its capital investment plan.

Additionally, American Water announced a merger agreement with Essential Utilities, expected to close in the first quarter of 2027, which will create a leading regulated water and wastewater utility with a combined market capitalization of around $40 billion. Under the terms of the agreement, Essential shareholders will receive shares of American Water, providing them a premium based on the recent stock prices. This merger aims to enhance the scale and growth potential of both companies, benefiting their stakeholders and expanding their customer base.

Oct 29, 2025 16:37:42

American Water to Merge with Essential Utilities, Inc.

American Water Works Company has entered into a Merger Agreement with Essential Utilities, Inc., which has been unanimously approved by the boards of both companies. Under the terms of the agreement, Essential will merge into a wholly owned subsidiary of American Water, with shareholders of Essential receiving 0.305 shares of American Water Common Stock for each share of Essential Common Stock they own. The agreement also outlines the treatment of Essential's outstanding equity awards, which will be adjusted based on the exchange ratio.

The merger is subject to several customary conditions, including shareholder approvals from both companies, regulatory approvals, and the successful registration of American Water's shares to be issued in the merger. The boards of both companies are required to recommend the merger to their respective shareholders. If the merger is not completed by April 26, 2027, under certain conditions, it may be extended or terminated, with specified termination fees applicable. Following the merger, American Water will retain its name and headquarters in Camden, New Jersey, and will have a board of 15 directors, including representatives from both companies.

Oct 27, 2025 06:26:13

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