American Water Works Reports Revenue Growth to $1.142 Billion in Q1 2025

American Water Works Company, Inc. reported a significant increase in financial performance for the first quarter of 2025, with operating revenues reaching $1.142 billion, up from $1.011 billion in the same period last year. The company's net income attributable to common shareholders also rose to $205 million, compared to $185 million in the prior year, resulting in diluted earnings per share of $1.05, an increase of $0.10. This growth was primarily driven by new rate implementations in the Regulated Businesses segment, which allowed for the recovery of capital and acquisition investments, despite increased operating costs and higher depreciation and financing expenses.

The company experienced notable changes in its operational metrics, including a $121 million increase in operating revenues, largely attributed to authorized rate increases and organic growth in existing systems. The Regulated Businesses segment alone saw revenues rise to $1.049 billion, up from $928 million, with residential water service revenues increasing to $560 million from $504 million. Additionally, American Water added approximately 4,000 new customers through organic growth and completed an acquisition that added around 300 customers.

Strategically, American Water has continued to focus on capital investment and acquisitions to drive growth. In the first quarter of 2025, the company invested $518 million in its Regulated Businesses, with $515 million allocated for infrastructure improvements and replacements. The company has also entered into agreements for pending acquisitions totaling $123 million, which are expected to add approximately 29,000 customers. In April 2025, American Water completed two additional acquisitions for a total of $6 million, adding 1,850 water customers.

Operationally, American Water's total assets increased to $33.156 billion as of March 31, 2025, compared to $32.830 billion at the end of 2024. The company reported a total employee headcount of 7,000, reflecting its commitment to maintaining a skilled workforce to support its growth initiatives. The company’s liquidity position remains strong, with available liquidity of $1.780 billion, including cash and cash equivalents of $114 million and $1.666 billion available under its revolving credit facility.

Looking ahead, American Water anticipates continued growth through its capital investment strategy, with plans to invest approximately $3.3 billion in 2025. The company is also focused on regulatory matters, including general rate cases and infrastructure surcharge filings, which are expected to further enhance its revenue base. The company remains committed to providing safe, clean, and reliable water and wastewater services while navigating the challenges of regulatory compliance and market conditions.