American Water is the largest and most geographically diverse, publicly-traded water and wastewater utility company in the United States. The Company employs approximately 6,500 professionals who provide drinking water, wastewater and other related services to over 14 million people in 24 states. The Company conducts the majority of its business through regulated utilities that provide water and wastewater services. The Company also operates other businesses that provide water and wastewater services to the U.S. government on military installations, as well as municipalities.

• Employees: 6,500 (as of December 31, 2023)
• Geographic Footprint: 24 states in the United States
• Headquarters: Camden, NJ
• Founded: 1886
• Number of locations/facilities: Operates in approximately 1,700 communities
• Revenue: $4.234 billion (FY2023)
• Market Capitalization: $24.527 billion (as of June 30, 2023)
• Key Subsidiaries/Brands: American Water Works Service Company, Inc.

• CEO: M. Susan Hardwick
• CFO: John C. Griffith
• Executive Vice President and General Counsel: James H. Gallegos
• Executive Vice President and Chief Operating Officer: Cheryl Norton

M. Susan Hardwick has served as President and Chief Executive Officer of the Company since February 2, 2022. John C. Griffith joined the Company on May 16, 2022 as its Executive Vice President and Chief Financial Officer. James H. Gallegos joined the Company on April 1, 2022 as its Executive Vice President and General Counsel. Cheryl Norton has been serving as the Company's Executive Vice President and Chief Operating Officer since March 2021.

• Annual Revenue: $4.234 billion (FY2023)
• Net Income: $944 million (FY2023)
• Market Cap: $24.527 billion (as of June 30, 2023)
• Total Assets: $30.298 billion (as of December 31, 2023)
• Number of Employees: 6,500 (as of December 31, 2023)
• Key Financial Highlights:
  • Diluted earnings per share (GAAP) was $4.90 for FY2023, an increase of $0.39 from FY2022.
  • Operating revenues increased by $415 million in FY2023 compared to FY2022.
  • Capital expenditures were $2.7 billion in FY2023.

The Company provides drinking water, wastewater, and other related services. Key offerings include:

• Water Services: Water treatment, storage, and distribution to residential, commercial, industrial, and public authority customers.
• Wastewater Services: Collection, treatment, and disposal of wastewater.
• Military Services Group (MSG): Water and wastewater services on military installations.
• Contract Services Group (CSG): Operation and management of water and wastewater facilities for municipal customers.

The Company operates primarily through the Regulated Businesses segment, which includes the ownership of utilities that provide water and wastewater services. Other includes the MSG and CSG businesses, as well as corporate costs not allocated to the Regulated Businesses. Operating revenues for the Regulated Businesses were $3.920 billion for 2023, accounting for 93% of the Company's total operating revenues. Other operating revenues were $314 million for 2023, accounting for 7% of the Company's total operating revenues.

The Company's growth strategy is focused on pursuing acquisitions of water and/or wastewater systems in geographic proximity to its existing operations, as well as continued capital investment in infrastructure. Key strategic initiatives include:

• Expanding its regulated footprint geographically.
• Prioritizing capital investment needs.
• Enhancing operational efficiencies.
• Improving customer affordability.
• Investing in technology and innovation.
• Focusing on environmental sustainability.

The Company operates in the U.S. water and wastewater industries, which are characterized by a mix of investor-owned and municipal systems. Key market trends include:

• Increasingly stringent environmental, health and safety, cybersecurity and water quality regulations.
• Significant capital investment needs for infrastructure.
• Financial challenges for municipalities.
• Industry legislation supporting private sector investment.

The Company's largest investor-owned competitors include Essential Utilities, Inc., American States Water Company and California Water Service Group.

• Regulatory Risks: The Company's operations are subject to extensive regulation by state PUCs, which can significantly affect rates, cost recovery, and returns on investment.
• Water Supply Risks: Limitations on the availability of water supplies or restrictions on its use may adversely affect the Company's ability to meet customer demands.
• Environmental Risks: The Company is subject to extensive environmental, water quality, and health and safety laws and regulations, compliance with which could impact both operating costs and capital expenditures.
• Cybersecurity Risks: The Company may face physical and cyber attacks that could disrupt operations, damage property, and lead to loss of sensitive information.
• Financial Risks: The Company's indebtedness could adversely affect its business and limit its ability to plan for or respond to changes in its business.