American Water Works Company, Inc. (AWK)

The most impactful event for American Water Works' stock was the announcement of its merger with Essential Utilities on October 27, 2025. This all-stock, tax-free transaction is valued at approximately $63 billion in enterprise value and is expected to close by the end of the first quarter of 2027, pending regulatory and shareholder approvals. The merger is anticipated to be accretive to American Water's earnings per share (EPS) in the first year following the close and is expected to help maintain the company's long-term EPS and dividend growth targets of 7-9%. Over the past six months, AWK's stock price has seen a 4.22% increase. The company also reported its Q2 2025 earnings, with revenue surpassing expectations but a slight miss on EPS, which was followed by a modest uptick in the stock price.

Demand for American Water Works' products and services exhibits clear seasonality. Water usage is typically lowest during the winter months and highest during the summer months due to increased outdoor water use during hotter days. Additionally, there are diurnal peaks in demand, usually occurring in the morning and early evening periods.

American Water Works Co., Inc. is the largest publicly traded water and wastewater utility company in the United States, operating primarily within the Utilities sector and the Water Supply industry. The company's core business involves the ownership and operation of utilities that provide water and wastewater services to a diverse customer base. It provides water distribution and treatment through an extensive network of treatment plants and pipelines. It offers wastewater services, including collection, treatment, and safe disposal, while adhering to environmental compliance. The company partners with the U.S. Department of Defense to provide water and wastewater services to military installations under long-term contracts. It offers protection programs for homeowners, covering repairs for water and sewer lines, plumbing, and electrical systems. It provides water and wastewater services to municipalities and industrial clients through long-term contracts. The company operates approximately 80 surface water treatment plants, 520 groundwater treatment plants, 190 wastewater treatment plants, and maintains 54,500 miles of transmission, distribution, and collection mains and pipes.

American Water Works provides water and wastewater services in 14 states, serving approximately 3.5 million active customers and a population of about 14 million people. On October 27, 2025, the company announced an all-stock merger agreement with Essential Utilities, Inc. Upon completion of this merger, the combined company will expand its geographic footprint to 17 states, serving approximately 4.7 million water and wastewater connections, including new service areas in Texas, North Carolina, and Ohio, while strengthening its presence in existing states like New Jersey, Pennsylvania, and Illinois.

American Water Works has maintained a positive brand reputation, particularly in its commitment to environmental, social, and governance (ESG) principles. The company issued its 2023 Sustainability Report in July 2024, highlighting its leadership and performance in these areas. American Water has received numerous awards and recognitions, including being named on Newsweek's lists of America's Most Responsible Companies 2023 and America's Most Trustworthy Companies 2023. It was also recognized on USA Today's America's Climate Leaders and Forbes Net-Zero Leaders 2023 lists, and included in Barron's 100 Most Sustainable Companies 2023 List for the sixth consecutive year.

American Water Works has a significant institutional ownership, with major institutional shareholders including Vanguard Group Inc., BlackRock, Inc., State Street Corp, Aristotle Capital Management, LLC, Geode Capital Management, Llc, Amundi, and Price T Rowe Associates Inc /md/. Individual insider ownership in American Water Works is noted to be under 1% of the company's shares.