American Water Works pany(AWK) - 2024 Q4 - Annual Results

Financial Performance - American Water reported Q4 2024 earnings of $1.22 per share, up from $0.88 per share in Q4 2023, and full-year earnings of $5.39 per share compared to $4.90 per share in 2023, reflecting an 8.6% year-over-year increase when excluding certain interest income[3][6] - Operating revenues increased by $132 million and $376 million for Q4 and full-year 2024, respectively, primarily due to authorized revenue increases from completed general rate cases[10] - The Regulated Businesses' net income for Q4 2024 was $250 million, compared to $188 million in Q4 2023, and full-year net income was $1.1 billion, up from $971 million in 2023[9] - Net income attributable to common shareholders for Q4 2024 was $239 million, a 39.9% increase from $171 million in Q4 2023[29] - Basic earnings per share for Q4 2024 were $1.22, compared to $0.88 in Q4 2023, reflecting a 38.6% increase[29] - The company reported a total operating income of $400 million for Q4 2024, up 33.8% from $299 million in Q4 2023[29] Revenue and Investment - The company invested $3.3 billion in capital in 2024, focusing on infrastructure renewal and completing 13 acquisitions that added nearly 70,000 customers, achieving a 2% annual growth target[4][8] - The company has been authorized additional annualized revenues of approximately $389 million from general rate cases, with $283 million effective in 2024 and $106 million effective in 2025[11] - Operating revenues for Q4 2024 were $1,201 million, up 16.4% from $1,032 million in Q4 2023[29] Expenses and Liabilities - Operating expenses increased by $30 million and $169 million for Q4 and full-year 2024, respectively, primarily due to higher employee-related costs and increased production costs[12] - Total operating expenses for Q4 2024 were $801 million, an increase of 9.3% from $733 million in Q4 2023[29] - Current liabilities increased significantly to $3,150 million in December 2024, up from $2,151 million in December 2023, marking an increase of 46.4%[31] - Long-term debt rose to $12,518 million in December 2024, compared to $11,715 million in December 2023, reflecting an increase of 6.9%[31] Shareholder Returns - American Water delivered an 8.1% dividend growth for the year, with a quarterly cash dividend of $0.7650 per share declared for March 2025[14] - The company affirmed its 2025 EPS guidance range of $5.65 to $5.75, which includes approximately $0.10 per share of incremental interest income[6] - American Water's long-term financial targets include an EPS and dividend growth rate of 7-9%[6] Leadership and Strategy - CEO M. Susan Hardwick will retire on May 14, 2025, with John Griffith set to succeed her, continuing the company's leadership in the water utility sector[15][17] - The company anticipates continued growth through strategic acquisitions and capital expenditures, although specific projections were not detailed[25] - The company is focused on enhancing its infrastructure and technology to improve operational efficiency and service delivery[25] Asset and Equity Growth - Property, plant, and equipment increased to $35,059 million as of December 31, 2024, from $32,189 million a year earlier[30] - Total assets rose to $32,830 million as of December 31, 2024, compared to $30,298 million as of December 31, 2023[30] - Total common shareholders' equity increased to $10,332 million in December 2024, up from $9,797 million in December 2023, representing a growth of 5.5%[31] - Retained earnings increased to $2,112 million in December 2024, up from $1,659 million in December 2023, showing a growth of 27.2%[31] - Total capitalization grew to $22,853 million in December 2024, compared to $21,515 million in December 2023, indicating a rise of 6.2%[31] Regulatory and Construction Contributions - Accrued taxes rose to $156 million in December 2024, compared to $67 million in December 2023, which is an increase of 132.8%[31] - Advances for construction increased to $383 million in December 2024, compared to $352 million in December 2023, reflecting an increase of 8.8%[31] - Contributions in aid of construction rose to $1,577 million in December 2024, up from $1,551 million in December 2023, indicating an increase of 1.7%[31] - Regulatory liabilities decreased slightly to $1,416 million in December 2024 from $1,481 million in December 2023, a decline of 4.4%[31]