American Water Works pany(US:AWK)2025-04-30 20:26Financial Performance - Operating revenues for Q1 2025 increased to $1,142 million, up 12.9% from $1,011 million in Q1 2024[21] - Net income attributable to common shareholders for Q1 2025 was $205 million, representing a 10.8% increase from $185 million in Q1 2024[23] - Basic and diluted earnings per share for Q1 2025 were both $1.05, compared to $0.95 in Q1 2024, reflecting a 10.5% increase[21] - Comprehensive income attributable to common shareholders for Q1 2025 was $195 million, down from $203 million in Q1 2024, a decrease of 3.9%[23] - For the three months ended March 31, 2025, net income attributable to common shareholders was $205 million, compared to $185 million in 2024[125] Assets and Liabilities - Total assets as of March 31, 2025, were $33,156 million, up from $32,830 million as of December 31, 2024[20] - Long-term debt increased to $13,318 million as of March 31, 2025, compared to $12,518 million at the end of 2024, marking an increase of 6.4%[20] - Total current liabilities decreased to $2,447 million from $3,150 million at the end of 2024, a reduction of 22.3%[20] - Cash and cash equivalents increased to $157 million as of March 31, 2025, compared to $626 million at the end of Q1 2024[25] - Cash and cash equivalents decreased from $584 million in Q1 2024 to $114 million in Q1 2025, while restricted funds decreased from $42 million to $18 million[35] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were $548 million, down from $609 million in Q1 2024, a decrease of 10.0%[25] - The Company plans to invest approximately $3.3 billion in growth strategies in 2025, with $518 million already invested in the first three months of 2025[158] - The Company reported a capital investment of $515 million in the Regulated Businesses for infrastructure improvements and replacements during the first quarter of 2025[160] Revenue Growth and Rate Cases - The Company expects a total of $138 million in annualized incremental revenues from general rate case authorizations effective in 2025, including $105 million from Illinois and $17 million from California[40][44] - The Virginia subsidiary's general rate case approved a $15 million annualized increase in water and wastewater revenues, driven by over $110 million in capital investments[41] - The Tennessee subsidiary received approval for a $1 million increase in annualized revenues, based on $173 million in capital investments[42] - The Missouri subsidiary's general rate case requests approximately $107 million in annualized incremental revenues, driven by $1.1 billion in capital investments[47] - The Company anticipates $23 million in annualized incremental revenues from infrastructure surcharge authorizations effective in 2025[49] Cash Flow and Financing - The Company reported net cash provided by operating activities of $331 million for Q1 2025, compared to $382 million in Q1 2024[25] - Proceeds from long-term debt for the three months ended March 31, 2025, were $810 million, a decrease from $1.391 billion in the same period of 2024[207][208] - The Company made sinking fund payments or repaid $531 million in aggregate principal amount of outstanding long-term debt during the three months ended March 31, 2025, with a weighted average interest rate of 3.41%[66] Legal and Regulatory Matters - The Company recorded a charge to earnings of $5.0 million related to a class action settlement, with an estimated maximum liability of $5 million[88] - As of March 31, 2025, the Company has accrued approximately $17 million of probable loss contingencies related to legal actions[83] - TAWC is currently engaged in a class action lawsuit with Tennessee Plaintiffs, with breach of contract claims pending[91] - The Public Service Commission of West Virginia initiated a general investigation into the water main break and natural gas outages, focusing on maintenance practices of both WVAWC and Mountaineer Gas[103] Miscellaneous - The Company is evaluating the impact of new accounting standards on its consolidated financial statements, including income tax disclosures and income statement disaggregation[32] - The effective income tax rate for the three months ended March 31, 2025, was 24.1%, an increase from 23.6% in the same period of 2024[79] - The Company has a CAMT credit carryforward of $132 million as of March 31, 2025, due to the Inflation Reduction Act of 2022[80] - The Company believes that the claims against WVAWC in the class action lawsuits are without merit and continues to defend itself vigorously[105]