American Water Works Company Inc.’s (AWK) strategic investment plans in infrastructure will allow it to provide quality services to its expanding customer base. Given its growth opportunities, AWK makes for a solid investment option in the utility sector.Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) stock a strong investment option at the moment.Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 0.9% in the past 90 days ...

MECHANICSBURG, Pa.--(BUSINESS WIRE)--With a blast of colder weather forecasted for the upcoming week across the region, Pennsylvania American Water reminds customers to take steps now to prevent frozen and damaged pipes, which can lead to costly repairs. “ Preparation and prevention can help avoid frozen pipes that can burst and result in costly household damages,” said Jim Runzer, vice president of operations for Pennsylvania American Water. “ Taking measures now can safeguard your plumbing against the th ...

ST. LOUIS--(BUSINESS WIRE)--With below freezing temperatures and precipitation in the forecast, Missouri American Water is reminding residents and business owners to take steps to prevent frozen water pipes. Following these simple tips can protect plumbing and prevent costly repairs and higher water bills. “Taking preventive steps at the onset of colder temperatures can help to protect our customers from both repair costs and higher water bills this winter,” said Rich Svindland, president of Missouri Ame ...

CHICAGO--(BUSINESS WIRE)--In 2023, Illinois American Water invested $297 million in water and wastewater system infrastructure replacement and enhancements throughout the state. This work included installing new pipes, pumps, hydrants, valves, lift stations, water treatment facilities, storage tanks, new water quality systems and technology. Locally, in the company’s Northern Division, the capital investment in infrastructure reached $32 million in 2023. The Northern Division is comprised of the Chicago ...

MECHANICSBURG, Pa.--(BUSINESS WIRE)--The American Water Charitable Foundation, a 501(c)(3) organization established by American Water, the largest regulated water and wastewater utility company in the U.S., recently announced 8 organizations were awarded a 2023 Workforce Readiness and STEM Education grants, supporting communities served by Pennsylvania American Water. “ Investing in the communities and the people we serve is very important to us at Pennsylvania American Water,” said Justin Ladner, company ...

CAMDEN, N.J.--(BUSINESS WIRE)--The American Water Charitable Foundation, a 501(c)(3) organization established by American Water (NYSE: AWK), the largest regulated water and wastewater utility company in the U.S., announced today a $15,000 donation through the One Water Street Grant Program to the Ronald McDonald House Southern New Jersey (RMHSNJ). Funding will support refurnishing RMHSJ’s Family Room, a “home-away-from-home” for families whose children require life-saving treatments for critical illnesses a ...

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q3 2023 were $1.66, up from $1.63 in Q3 2022, while year-to-date EPS increased to $4.03 from $3.70 in the same period last year [7][22] - The estimated net favorable weather impact year-to-date in 2023 was approximately $0.11 per share compared to $0.06 per share in 2022 [7][23] - The company reaffirmed its 2023 guidance on a weather-normalized basis, indicating strong execution aligned with growth expectations [7] Business Line Data and Key Metrics Changes - The company invested $1.8 billion in capital projects year-to-date, with a total capital investment planned for 2023 of $2.9 billion, including approximately $400 million for acquisitions [8][14] - The new five-year plan anticipates a capital investment of approximately $16 billion to $17 billion, an increase of about $2 billion over the previous plan [14] Market Data and Key Metrics Changes - The company expects 8% to 9% rate-based growth over the next decade, driven by an accelerated capital expenditure plan and a robust regulated acquisition strategy [10][12] - The military services group is expected to contribute to organic revenue growth from the 18 installations currently served [11] Company Strategy and Development Direction - The company is focused on maintaining a long-term target of 7% to 9% EPS and dividend compounded annual growth rates, with 2024 EPS guidance set at $5.10 to $5.20 [9] - A significant emphasis is placed on customer affordability, with a target for residential water bills to remain at 1% or less of median household income [19][20] - The company is advocating for equal access to federal and state funding for PFAS treatment and is focused on regulatory execution [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering consistent earnings and dividend growth over the next five years, despite short-term impacts from higher interest rates [12][13] - The company believes its low-risk capital investment plan and focus on customer affordability will continue to attract investor interest [13][35] Other Important Information - The company completed 14 acquisitions totaling $36 million in the first nine months of 2023, with 32 transactions under agreement totaling $611 million [26] - The total debt-to-capital ratio as of September 30 was 54%, comfortably within the long-term target of less than 60% [33] Q&A Session Summary Question: CapEx revision and bill outlook - Management highlighted a sharpened focus on customer affordability and the importance of maintaining bills at 1% or less of household income while managing capital investments [40][42] Question: Financing plan and operating cash flow - The increase in operating cash flow is attributed to the significant step-up in capital spending, which is expected to drive higher cash flows in the interim years [44][45] Question: Growth triangle and financing plan - Management confirmed that the growth triangle remains unchanged, emphasizing that rate-based growth continues to drive overall growth metrics [47][48] Question: PFAS-related financial liability - Management is actively engaged in ensuring water systems are protected from financial liabilities related to PFAS and is advocating for timely recovery of associated costs [80][82] Question: Equity needs and timing - The company plans to issue approximately $1 billion of equity from 2024 to 2028, with the timing dependent on market conditions [31][84]

2023 Third Quarter Earnings & 2024 Outlook Conference Call Aaron Musgrave Vice President, Investor Relations ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number: 001-34028 Delaware 51-0063696 (State or other jurisdiction of incorporation or organization) (I ...

American Water Works Company, Inc. (NYSE:AWK) Q2 2023 Results Conference Call July 27, 2023 9:00 AM ET Company Participants Aaron Musgrave - VP, IR Susan Hardwick - President, CEO John Griffith - EVP, CFO Cheryl Norton - EVP, COO Conference Call Participants Paul Zimbardo - Bank of America Angie Storozynski - Seaport Gregg Orrill - UBS James Kennedy - Guggenheim Partners Operator Good morning, and welcome to the American Water's Second Quarter 2023 Earnings Conference Call. As a reminder, this call is being ...