0001410636-26-000034
SEC filingAmerican Water Works Company, Inc. (AWK) reported strong financial results for fiscal year 2025, ending December 31, 2025. The company generated $5.14 billion in operating revenues, resulting in operating income of $1.88 billion and net income attributable to common shareholders of $1.11 billion. Earnings per share were $6.00 on both a basic and diluted basis. The company maintained robust cash generation, with net cash provided by operating activities of $2.06 billion, though this was offset by significant capital expenditures of $3.13 billion, leading to net cash used in investing activities of $3.31 billion. The balance sheet shows total assets of $35.44 billion, with substantial property, plant and equipment (net of $30.58 billion) supporting its regulated water utility operations. Total common shareholders' equity stood at $10.84 billion, while long-term debt was $12.78 billion. The company paid $633 million in dividends during the year. These results demonstrate the company's stable revenue base and continued investment in infrastructure, characteristic of its regulated utility business model.
American Water Works Company, Inc. delivered solid financial performance for fiscal year 2025. The company reported operating revenues of $5.14 billion, operating income of $1.88 billion, and net income attributable to common shareholders of $1.11 billion. Earnings per share were $6.00 on both basic and diluted bases, with weighted average shares outstanding of 195 million. The company's operating margin was 36.6%, calculated from operating income of $1.88 billion divided by operating revenues of $5.14 billion. Total operating expenses were $3.26 billion, consisting of operation and maintenance ($2.02 billion), depreciation and amortization ($894 million), and general taxes ($348 million). Other income (expense) totaled negative $457 million, primarily due to interest expense of $615 million, partially offset by interest income of $90 million and other net income of $52 million. The provision for income taxes was $311 million.
The company's revenue of $5.14 billion represents its core regulated water utility operations. The document does not provide segment breakdowns, geographic mix, or specific growth drivers beyond the aggregate operating revenue figure. As a regulated utility, revenue is typically driven by rate base investments, customer growth, and approved rate increases from regulatory commissions. The absence of segment data in the provided financial statements suggests the company may report as a single operating segment or that segment details are not included in the extracted XBRL data.
American Water Works achieved an operating margin of 36.6% for FY 2025, calculated from operating income of $1.88 billion divided by operating revenues of $5.14 billion. The company's cost structure shows operation and maintenance expenses of $2.02 billion (39.3% of revenue), depreciation and amortization of $894 million (17.4% of revenue), and general taxes of $348 million (6.8% of revenue). The net income margin was 21.6%, calculated from net income attributable to common shareholders of $1.11 billion divided by operating revenues of $5.14 billion. Interest expense of $615 million represents a significant cost, though partially offset by interest income of $90 million.
The company generated strong operating cash flow of $2.06 billion, driven by net income of $1.11 billion and adjustments including depreciation and amortization of $894 million. However, significant capital expenditures of $3.13 billion resulted in net cash used in investing activities of $3.31 billion. Financing activities provided $1.25 billion, primarily from proceeds from long-term debt ($1.78 billion) and net short-term borrowings ($709 million), offset by long-term debt repayments ($664 million) and dividends paid ($633 million). The balance sheet shows total assets of $35.44 billion, with property, plant and equipment (net) comprising $30.58 billion. Total common shareholders' equity was $10.84 billion, while long-term debt stood at $12.78 billion. Current assets totaled $2.19 billion against current liabilities of $4.75 billion. Cash and cash equivalents were $98 million with restricted funds of $21 million.
The provided financial data does not include management guidance, strategic priorities, or specific risk factors from the filing's narrative sections. As a regulated water utility, the company's outlook would typically depend on regulatory approvals for rate increases, continued infrastructure investment, and execution of capital expenditure plans. The significant capital expenditures of $3.13 billion suggest ongoing investment in water infrastructure, which should support future rate base growth. The company's dividend payment of $633 million indicates a commitment to returning capital to shareholders. Risk factors common to regulated utilities include regulatory changes, environmental compliance costs, and weather-related impacts on water demand.