American Water Works Company, Inc. reported significant financial performance improvements for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, operating revenues reached $1,323 million, a 13.4% increase from $1,167 million in Q3 2023. For the nine months ended September 30, 2024, total operating revenues were $3,483 million, up from $3,202 million in the prior year, reflecting a 8.8% growth.
The increase in revenues was primarily driven by authorized rate increases across various subsidiaries, contributing $83 million in Q3 and $183 million year-to-date. Additionally, the company benefited from organic growth and acquisitions, which added approximately 33,400 customers. Notably, the Regulated Businesses segment generated $1,219 million in Q3 2024, compared to $1,095 million in the same quarter of 2023.
Operating expenses also rose, totaling $780 million for Q3 2024, up from $689 million in Q3 2023, and $2,165 million for the nine months ended September 30, 2024, compared to $1,997 million in the same period last year. The increase in expenses was attributed to higher production costs, employee-related costs, and depreciation due to additional utility plant investments.
Net income attributable to common shareholders for Q3 2024 was $350 million, an increase from $323 million in Q3 2023. For the nine months ended September 30, 2024, net income rose to $812 million from $773 million in the previous year. Basic and diluted earnings per share for Q3 2024 were $1.80, up from $1.66 in Q3 2023, while year-to-date figures showed an increase to $4.17 from $4.03.
Strategically, American Water has been active in acquisitions, including the purchase of a wastewater treatment plant for $86 million, which added approximately 26,000 customers. The company also closed four additional acquisitions totaling $33 million during the nine months ended September 30, 2024. However, a pending acquisition of Towamencin Township's wastewater system was terminated without penalty.
The company’s total assets increased to $31,790 million as of September 30, 2024, compared to $30,298 million at the end of 2023. Total common shareholders' equity rose to $10,362 million from $9,797 million during the same period. American Water's liquidity position remains strong, with available liquidity of $2,587 million as of September 30, 2024, down from $2,825 million at the end of 2023, primarily due to a decrease in cash and cash equivalents.
Overall, American Water's financial results reflect a robust performance driven by strategic rate increases, acquisitions, and organic growth, despite rising operational costs.
About American Water Works Company, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.