American Water Works Company, Inc. (NYSE: AWK)

American Water Works Company, Inc. is the largest publicly traded water and wastewater utility company in the United States by operating revenues and population served. The company provides drinking water, wastewater, and related services to approximately 14 million people across 24 states through its regulated utility operations. It also serves the U. S. government on military installations and municipalities through non-regulated businesses.

American Water generates revenue primarily from regulated water and wastewater services delivered to residential, commercial, industrial, public authority, fire service, and resale customers. Additional revenue comes from long-term contracts with the U. S. government for water and wastewater services on military bases and municipal facility management agreements. Regulated operations accounted for 92% of total operating revenues in 2025, while other businesses contributed the remaining 8%.

The company operates through the following segments: Regulated Businesses and Other.

• Regulated Businesses: This segment provides drinking water and wastewater services through owned utilities in 14 states. It serves 3.6 million active customers with water and wastewater networks. Operating revenues for this segment were $4,723 million in 2025, representing 92% of total company revenues. Services are subject to regulation by state public utility commissions and include metered billing for most residential customers. The segment includes water supply from surface and groundwater sources, treatment, distribution, and wastewater collection and treatment.

• Other: This segment includes the Military Services Group, which operates water and wastewater systems on 18 military installations under 50-year contracts with the U. S. government. It also includes a municipal customer contract for facility operations and management. Additional components are corporate costs not allocated to regulated businesses, interest income, and inter-segment eliminations. Operating revenues for this segment were $417 million in 2025, or 8% of total revenues. The Military Services Group has a contract revenue backlog of approximately $7.4 billion with an average remaining term of 37 years.

American Water holds a leading position in the U. S. water utility industry as the largest investor-owned water and wastewater service provider. It faces limited direct competition in its service areas due to franchises and high barriers to entry from infrastructure costs. Key competitors in potential acquisition markets include Essential Utilities, American States Water Company, and California Water Service Group. The company’s scale, regulatory expertise, and long-term infrastructure planning provide competitive advantages.

American Water serves a diverse customer base including residential households, apartment complexes, commercial businesses, industrial facilities, public authorities such as schools and government buildings, and fire service customers. It also provides bulk water and wastewater services to other utilities and community systems. Specific customer types include food and beverage providers, energy suppliers, manufacturers, and mining operations. The company does not disclose individual customer names in its regulatory filings.