American Water Works Reports $5.39 EPS and $4.684 Billion in Revenue for 2024

American Water Works Company, Inc. reported diluted earnings per share of $5.39 for the year ended December 31, 2024, up from $4.90 in 2023 and $4.51 in 2022. The increase is attributed primarily to new rates implemented following capital investments and acquisitions. The company's total operating revenues reached $4.684 billion in 2024, compared to $4.234 billion in 2023 and $3.792 billion in 2022. This growth reflects both rate adjustments and increased customer counts resulting from acquisitions and organic growth.

Significant changes compared to the previous year include a $376 million increase in Regulated Businesses operating revenues, driven by rate increases ($288 million), acquisitions and organic growth ($41 million), changes in customer demand ($26 million), and reduced amortization of excess accumulated deferred income taxes ($17 million). The company invested $3.3 billion in its Regulated Businesses in 2024, allocating $2.8 billion to infrastructure improvements and $417 million to acquisitions that added approximately 69,500 customers. The company also reported an OSHA Recordable Incident Rate of 0.40 in 2024, a 54% decrease from 2023.

Strategic developments included acquisitions of wastewater systems in Pennsylvania and Illinois, adding approximately 41,000 customer connections. The company also plans to invest between $17 billion and $18 billion over the next five years and $40 billion to $42 billion over the next ten years in capital improvements and acquisitions. The company is actively advocating for federal legislation to establish a permanent low-to-moderate income water assistance program and liability exemptions for PFAS contamination. The company also noted the implementation of new EPA regulations for PFAS, estimating $1 billion in capital expenditures and $50 million in annual operating expenses for compliance.

Operational developments included serving 3.5 million active customers across its water and wastewater networks in 14 states. The company's customer base consists primarily of residential customers (55% of water service revenue in 2024), followed by commercial, fire service, industrial, and public/other customers. The company's water supply sources are diverse, with surface water, groundwater, and purchased water contributing to its overall supply. The company employs approximately 6,700 professionals and experienced a 10.5% annualized employee turnover rate in 2024.

The company anticipates continued growth through capital investments and acquisitions, but acknowledges significant risks related to regulation, weather events, aging infrastructure, cybersecurity, and competition. The company also highlighted pending legal proceedings, including a condemnation lawsuit in California and several class action lawsuits related to a cybersecurity incident. The company's outlook includes plans for substantial capital expenditures and continued efforts to mitigate regulatory lag and improve operational efficiency. The company's CEO, Susan Hardwick, announced her retirement, effective after the 2025 Annual Meeting of Shareholders, with John C. Griffith succeeding her as President and CEO.