American Water Works Reports 11% Revenue Growth to $1.276 Billion in Q2 2025

American Water Works Company, Inc. reported significant financial performance in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved operating revenues of $1.276 billion for the quarter, a 11% increase from $1.149 billion in the same period last year. For the first half of 2025, revenues rose to $2.418 billion, compared to $2.160 billion in the prior year, reflecting a 12% increase. Net income attributable to common shareholders also saw an uptick, reaching $289 million for the quarter and $494 million for the six months, up from $277 million and $462 million, respectively, in 2024. This resulted in diluted earnings per share of $1.48 for the quarter and $2.53 for the half-year, compared to $1.42 and $2.37 in the previous year.

The company noted several strategic developments, including the acquisition of the Audubon Water Company for $7 million, which added approximately 7,600 customers. American Water also entered into a Purchase and Sale Agreement with Nexus Regulated Utilities, LLC, to acquire regulated water and wastewater system assets across multiple states for approximately $315 million, expected to close by August 2026. These acquisitions are part of the company's broader strategy to expand its customer base and enhance its service offerings through capital investments and regulated acquisitions.

Operationally, American Water reported a total of approximately 9,000 new customers added through organic growth in existing systems during the first half of 2025. The company’s total assets increased to $33.913 billion as of June 30, 2025, up from $32.830 billion at the end of 2024. The company’s capital expenditures for the first half of 2025 were approximately $1.281 billion, reflecting ongoing investments in infrastructure improvements and replacements. The company also reported a total of 1,173 million gallons of billed water services for the quarter, although this was a decrease from 1,057 million gallons in the same quarter of 2024.

The filing also highlighted the impact of weather on financial performance, with an estimated net unfavorable impact of $0.06 per share due to wet weather conditions in the second quarter of 2025. Looking ahead, American Water anticipates continued growth through capital investments, with plans to invest approximately $3.3 billion in 2025. The company remains focused on executing its growth strategies while managing operational costs and maintaining compliance with regulatory requirements.