American Water Works
| Company type | Public |
|---|---|
| Industry | Utilities (Water and Wastewater) |
| Founded | 1886 |
| Founder | James S. Kuhn, W.S. Kuhn |
| Headquarters | Camden , United States |
Area served | United States (14 states) |
Key people | John C. Griffith (CEO), Cheryl Norton (EVP and COO), David Bowler (CFO) |
| Products | Water and wastewater utility services |
Number of employees | 6,700 (2024) |
| Website | www |
American Water stands as a prominent American public utility enterprise delivering water and wastewater solutions throughout the United States via its various subsidiaries. The company’s regulated services reach nearly 1,700 communities across 14 states, serving about 14 million individuals and managing a customer base of 3.4 million that includes residential, commercial, industrial, governmental, and other utility clients.
Based in Camden, New Jersey, American Water encompasses several divisions such as California American Water, Illinois American Water, and Virginia American Water, among others. In 2024, the company reported revenues amounting to US$4.68 billion, with operating profits of US$1.72 billion and net earnings of US$1.05 billion. Its asset portfolio totals US$32.83 billion while equity stands at US$10.33 billion. The organization employs approximately 6,700 staff members.
Established in 1886 by James S. Kuhn and W.S. Kuhn, American Water’s operational model centers on regulated utility services that provide consistent cash flow and maintain its market presence in the water sector. Its stock is publicly traded on the NYSE under the symbol AWK and is included in both the Dow Jones Utility Average and S&P 500 indices.
The executive team features CEO John C. Griffith, EVP and COO Cheryl Norton, and CFO David Bowler. The company’s strategic management prioritizes operational excellence and sustainable expansion within its core markets, utilizing its broad infrastructure network and subsidiaries to preserve a competitive edge in the utilities industry.
History
Originally founded in 1886 as the American Water Works & Guarantee Company, the firm underwent multiple restructurings before becoming American Water Works Company, Inc. in 1947. Since relocating its headquarters to Camden, New Jersey in December 2018, it has employed roughly 6,500 professionals serving over 14 million customers across 24 states.
American Water primarily operates through state-regulated local utility subsidiaries. It also controls subsidiaries responsible for managing municipal drinking water and wastewater systems under contractual agreements and offers water management products and services to both commercial enterprises and residential communities.
In 2003, the company established the American Water Military Services Group, securing a half-century contract with the Department of Defense to deliver water and wastewater services across 18 military bases nationwide.
In October 2021, American Water sold its homeowner services division to private equity firm Apax Partners for $1.27 billion.
By 2023, the company released its eighth Sustainability Report, emphasizing its leadership in environmental, social, and governance (ESG) efforts. Its capital expenditure plan reached $3.1 billion by mid-2024, supporting the addition of around 43,000 new customer connections through both acquisitions and organic growth.
In 2024, earnings per share increased to $5.39 from $4.90 in the previous year alongside an 8.1% rise in dividends. The company invested $3.3 billion targeting infrastructure renewal, water quality enhancements, resiliency improvements, and strategic acquisitions that expanded its customer base by nearly 90,000 connections—69,500 acquired through purchases. Long-term targets for EPS and dividend growth were reaffirmed at 7-9%. CEO M. Susan Hardwick announced her retirement effective May 14, 2025; President John Griffith will assume leadership.
During Q1 2025, earnings per share climbed to $1.05 from $0.95 year-over-year. The company upheld its full-year EPS forecast between $5.65 and $5.75 while declaring a quarterly dividend of $0.8275 per share—a rise of 8.2%. In February of that year, American Water issued $800 million in senior notes carrying a 5.250% interest rate due in 2035. Quarterly revenue reached $1.14 billion compared to $1.01 billion during the same period last year.
Acquisitions
In May 2022, Pennsylvania American Water, a subsidiary of American Water, purchased the wastewater system assets from the City of York for $235.3 million.
Recent state-level acquisitions include:
- Missouri: 8 acquisitions
- Illinois, New Jersey, West Virginia: 3 acquisitions each
- Iowa, Indiana: 2 acquisitions each
- Pennsylvania, Virginia: 1 acquisition each
By October 2024, American Water finalized five acquisitions spanning Illinois, New Jersey, and Virginia, which contributed roughly 33,400 new customer connections. Additionally, the company has secured agreements for 22 more acquisitions across eight states—California, Indiana, Illinois, Maryland, Missouri, New Jersey, Pennsylvania, and West Virginia—anticipated to bring in approximately 43,400 customer connections once completed.
Utilities
American Water manages an extensive infrastructure portfolio that includes 80 surface water treatment facilities, 480 groundwater treatment plants, and 175 wastewater treatment centers. The company oversees 53,500 miles of pipeline networks, operates 1,100 groundwater wells and 1,700 pumping stations dedicated to water and wastewater services. It also maintains 1,100 treated water storage sites and controls 73 dams. Serving around 14 million customers through regulated operations in 14 states and at 18 military bases, these utilities are governed by various state public utility commissions as well as federal and local environmental and safety regulatory bodies.
2024
- Secured the top position within the Utilities Industry on Forbes America’s Best Large Employers list for 2024
- Placed among the top 10% of America’s Most JUST Companies as ranked by JUST Capital and CNBC
- Honored as a Military Friendly Employer for the year 2024
2023
- Achieved the highest score on the Disability Equality Index® (DEI) for the fifth year in a row
- Ranked #94 on Newsweek’s 2023 list highlighting America’s Most Responsible Companies
- Maintained membership in the Bloomberg Gender Equality Index for the fifth consecutive year
- Awarded the 2023 WaterSense Excellence Award by the U.S. Environmental Protection Agency and positioned 18th on Barron’s list of the 100 Most Sustainable U.S. Companies
Financials
| Year | Regulated Business Revenue (million US$) |
Net Income (million US$) |
Share Price (US$) |
Number of Employees |
|---|---|---|---|---|
| 2020 | 3,255 | 709 | 153.47 | 7,000 |
| 2021 | 3,384 | 1,263 | 188.86 | 6,400 |
| 2022 | 3,505 | 820 | 150.31 | 6,500 |
| 2023 | 3,920 | 944 | 117.75 | 6,500 |