American Water Works pany(US:AWK) ZACKSยท2025-10-20 14:31Core Insights - American Water Works Company (AWK) announced that its unit, Pennsylvania American Water, received $64.3 million in grants and low-interest loans from PENNVEST for upgrading four water infrastructure projects [1] - In 2024, Pennsylvania American Water invested $675 million in infrastructure upgrades, with $583 million allocated to water systems and $92 million to wastewater infrastructure [2] - The U.S. water and wastewater infrastructure is deteriorating, requiring an estimated $1.25 trillion in investments over the next 20 years to maintain and upgrade systems [3][4] Industry Overview - The U.S. water industry is fragmented, consisting of over 50,000 community water systems and 14,000 wastewater treatment facilities, which poses challenges for small utilities to make necessary investments [5] - Larger water utilities are acquiring smaller utilities to facilitate essential investments in upgrading aging assets [6] Company Strategies - American Water Works completed six acquisitions as of July 31, 2025, with 20 pending acquisitions expected to add 40,650 consumers to its customer base [7] - The company plans to invest between $17 billion and $18 billion from 2025 to 2029 and approximately $40 billion to $42 billion from 2025 to 2034 [7] - California Water Service Group plans to invest $610 million and $760 million in 2025 and 2026, respectively, to strengthen operations [8] - Essential Utilities is pursuing acquisitions and plans to invest $7.8 billion from 2025 to 2029 to improve water and natural gas systems [9] - Middlesex Water Company plans to invest approximately $387 million in its water and wastewater infrastructure over the next three years [10]