American Water Works pany(US:AWK)2025-10-29 20:28Financial Performance - Operating revenues for Q3 2025 reached $1,451 million, a 9.7% increase from $1,323 million in Q3 2024[22] - Net income attributable to common shareholders for Q3 2025 was $379 million, up from $350 million in Q3 2024, representing an 8.3% increase[25] - Operating income for the nine months ended September 30, 2025, was $1,474 million, an increase of 11.8% from $1,318 million in the same period of 2024[22] - Basic earnings per share for Q3 2025 were $1.94, up from $1.80 in Q3 2024, reflecting a 7.8% increase[22] - Total operating revenues for the three months ended September 30, 2025, were $1,451 million, a decrease of 0.2% compared to $1,453 million for the same period in 2024[62] - Total operating revenues for the nine months ended September 30, 2025, were $3,869 million, an increase of 11.3% from $3,483 million for the same period in 2024[66] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $379 million, compared to $350 million for the same period in 2024, reflecting a growth of 8.3%[144] Assets and Liabilities - Total assets as of September 30, 2025, were $34,748 million, compared to $32,830 million as of December 31, 2024, reflecting a 5.8% growth[21] - Long-term debt rose to $13,022 million as of September 30, 2025, up from $12,518 million at the end of 2024, indicating a 4.0% increase[21] - Total current liabilities increased to $3,687 million as of September 30, 2025, compared to $3,150 million at the end of 2024, a rise of 17.0%[21] - The company’s total common shareholders' equity increased to $10,907 million as of September 30, 2025, from $10,332 million at the end of 2024, a growth of 5.5%[21] - Cash and cash equivalents increased to $209 million at the end of Q3 2025, compared to $177 million at the end of Q3 2024[27] - Cash and cash equivalents as of September 30, 2025, totaled $166 million, an increase from $127 million as of September 30, 2024[38] Capital Expenditures and Investments - The company reported capital expenditures of $2,078 million for the nine months ended September 30, 2025, compared to $1,962 million in the same period of 2024[27] - The company plans to invest approximately $3.2 billion in growth strategies in 2025, with $2.2 billion already invested in the first nine months of 2025[185] - The Company closed on ten acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $29 million, adding approximately 11,000 customers[70] - As of September 30, 2025, the company had entered into 24 agreements for pending acquisitions in the Regulated Businesses, totaling $572 million, expected to add approximately 98,000 customers[186] Revenue Increases from Rate Cases - The total general rate case authorizations for 2025 amount to $232 million, with significant contributions from Illinois ($105 million) and Missouri ($63 million) increases[43] - The Illinois subsidiary received a $105 million annualized increase in water and wastewater system revenues effective January 1, 2025, driven by $557 million in capital investments[207] - The Missouri subsidiary's general rate case approved a $63 million annualized increase in revenues, supported by $1.1 billion in capital investments[203] - The California subsidiary filed for a $63 million increase in water and wastewater rates for 2027-2029, driven by $750 million in planned capital investments[210] - The Kentucky subsidiary filed a general rate case requesting approximately $27 million in annualized incremental revenues, based on $212 million in capital investments[211] - The West Virginia subsidiary filed a general rate case requesting approximately $48 million in annualized incremental revenues, based on over $300 million in capital investments[212] Legal and Regulatory Matters - A total of four pending lawsuits have been filed against Mountaineer Gas and WVAWC related to natural gas service loss on November 10, 2023, alleging breach of contract and negligence[111] - The lawsuits seek class-wide damages for loss of use, property damage, and punitive damages, with claims including negligence and nuisance against both companies[112][113] - The Public Service Commission of West Virginia initiated investigations into the incidents, focusing on maintenance practices rather than the causes of the outages[119] - The Company has accrued approximately $16 million of probable loss contingencies related to legal actions[100] Tax Credits and Settlement Payments - The company qualified for $161 million in tax credits from the NJEDA, which will be received over a 10-year period starting from 2019[36] - The company expects to receive final NJEDA approval for the 2024 tax credits in 2026, with the filing currently under review[37] - As of September 30, 2025, Cal Am has received settlement payments totaling $135 million from 3M Company related to PFAS litigation, with plans to seek regulatory approval to benefit customers[142] - The Company anticipates additional settlement payments from defendants during the remainder of 2025[193] Interest and Financing Costs - Interest expense for the three months ended September 30, 2025, was $158 million, compared to $132 million in the same period of 2024, reflecting an increase of 19.7%[173] - The company’s interest expense for the nine months ended September 30, 2025, was $453 million, compared to $387 million in 2024, indicating a rise in financing costs[216] - The company had short-term debt consisting of commercial paper borrowings totaling $1,005 million, with a weighted-average interest rate of approximately 4.26%[91] Other Comprehensive Income - The company’s comprehensive income for the quarter ended September 30, 2025, included a net other comprehensive loss of $1 million[28] - The accumulated other comprehensive loss was $4 million, a decrease from $8 million as of September 30, 2024[76] - The company’s net other comprehensive income (loss) for the nine months ended September 30, 2025, was a loss of $8 million[82]