American Water Works (AWK) FY2025 10-K Annual Report

Filed: Feb 18, 2026
Utilities
Water SupplySEC EDGAR

American Water Works (AWK) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 18, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

American Water Works FY2025 10-K Analysis

Business Overview

  • Core business model: Water and wastewater utility services
  • No new products, services, or segments introduced or emphasized this year
  • Emphasis on corporate governance with updates in Code of Ethics and Insider Trading Policy posted on company website
  • Proxy Statement incorporation for executive compensation, ownership, and independence matters
  • No notable operational metrics or strategic shifts disclosed in this filing year

Management Discussion & Analysis

  • Revenue $4,723M in 2025, up $427M (10%) YoY primarily from $406M rate increases and $49M acquisitions/organic growth
  • Operating margin ~24.1% (Net income $1,137M / Revenue $4,723M) vs ~24.8% in 2024 (1,065/4,296)
  • Best segment: Regulated Businesses Water services revenue $4,233M in 2025, up $360M (9.3%) YoY; Worst segment: Other segment net loss $26M vs $14M
  • Operating & maintenance expense $1,642M up $125M; Depreciation $883M up $111M; Interest expense rose $34M; Capital investment driving rate base growth
  • Management notes new tax legislation (OBBB Act) no material impact; regulatory changes in CA, VA, IN, MO may affect future rate cases and infrastructure recovery

Risk Factors

  • Regulatory risk: Conflicting interpretations under 2009 Carmel River diversion Order by MPWMD and SWRCB risk fines and penalties for Cal Am
  • Geopolitical/macroeconomic threat: MPWMD lawsuit seeks eminent domain of Monterey system assets serving ~40,000 customers, $448.8 million offer rejected
  • Operational/supply chain vulnerability: Delays and permit challenges for Water Supply Project desalination plant may threaten commissioning by late 2029
  • Competitive/market disruption risk: MPWMD pursuing acquisition of Cal Am’s Monterey system assets, projecting reduced revenue requirements and water bills
  • Financial risk: Cal Am has $324 million cumulative Water Supply Project costs, uncertain cost recovery under CPUC decisions

American Water Works FY2025 Key Financial Metrics
XBRL

Revenue

$5.1B

+10.1% YoY

Net Income

$1.1B

+5.7% YoY

Operating Margin

36.7%

-23bp YoY

Net Margin

21.7%

-89bp YoY

ROE

10.3%

+8bp YoY

Total Assets

$35.4B

+8.0% YoY

EPS (Diluted)

$5.69

+5.6% YoY

Operating Cash Flow

$2.1B

+0.7% YoY

Source: XBRL data from American Water Works FY2025 10-K filing on SEC EDGAR. All figures in USD.

Get deeper insights on American Water Works

Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.