American Water Works Company, Inc.
American Water Works Company, Inc. is the largest publicly traded U.S. water utility.
It provides water and wastewater services to millions of customers nationwide.
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Performance
In 2024, American Water Works Company, Inc. delivered robust financial results, with revenue rising 10.6% year-over-year to $4.68 billion and net income increasing 11.3% to $1.05 billion. Earnings per share reached $5.39, up from $4.90 in 2023. The company invested $3.3 billion in infrastructure and completed 13 acquisitions, adding nearly 70,000 customer connections, while maintaining its long-term earnings and dividend growth targets of 7–9%.
Quality of Earnings
The company demonstrates strong adherence to General Accounting Principles, with financial reports that conform to GAAP, are decision-useful, sustainable, and offer returns exceeding the cost of capital. There have been no recent changes to accounting policies, and all required financial reports are submitted on time. Revenue quality is also robust, marked by high predictability—with a substantial portion of clients returning year after year—strong profitability with gross margins exceeding 70%, diversified income sources with no client accounting for more than 15% of revenue, and clear growth in both revenue and net income. Additionally, there are no significant financial report warning signs: earnings contain minimal accrual components, do not narrowly beat benchmarks in a suspicious pattern, and revenue is not recognized prematurely. Expenses are not misrepresented, audit opinions are unqualified, goodwill is properly assessed, and the company does not rely on aggressive accounting tactics such as related-party transactions or off-balance-sheet debt. Operating ccash flows align with net income, earnings are recurring and persistent, and there is no history of restatements or enforcement actions, reinforcing the reliability and quality of the company’s financial reporting.
Company Summary
American Water Works Company, Inc. is the largest regulated water and wastewater utility in the United States, providing services to over 14 million people across 14 states and 18 military installations through its subsidiaries.
