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American Water Works Inc's Business Segments
American Water Works Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of Q2 FY2026
Reportable Segments
1
Largest Segment
Regulated Business
Total Revenue
$ 2,705
Regions Reported
-
Revenue Share by Reportable Segment - Q2 FY2026
- Regulated Business46.7%
Revenue by Reportable Segment - Q2 FY2026
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Regulated Business | $ 1,263 | 46.7% |
Revenue by Product & Service Category - Q2 FY2026
- Water Services42.1%
- Wastewater Services4.2%
- Miscellaneous Utility Charge0.4%
Revenue by Product & Service Category - Q2 FY2026
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Water Services | $ 1,138 | 42.1% |
| Wastewater Services | $ 113 | 4.2% |
| Miscellaneous Utility Charge | $ 12 | 0.4% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
Description of American Water Works Inc
American Water Works Company, Inc. is a leading provider of water and wastewater services in the United States. Founded in 1886 and based in Delaware, the company operates primarily through its subsidiaries and has a robust portfolio of utility operations.
Key aspects of its business operations include:
1. Water Supply and Distribution: American Water is responsible for the treatment and distribution of drinking water to residential, commercial, and industrial customers. It ensures that the water meets regulatory standards and is safe for consumption.
2. Wastewater Treatment and Management: The company also provides wastewater services, which include the collection, treatment, and disposal of wastewater to protect public health and the environment.
3. Infrastructure Maintenance and Development: American Water invests in the maintenance and improvement of water and wastewater infrastructure, ensuring the delivery of reliable services. This includes upgrading aging systems and implementing new technologies.
4. Regulated and Non-regulated Operations: While a significant portion of its business is regulated, focusing on utility operations under public oversight, American Water also engages in non-regulated activities such as water and wastewater system operation and maintenance for municipalities and private clients.
5. Environmental Stewardship: The company emphasizes sustainability and environmental protection in its operations, including efforts to reduce water loss and improve energy efficiency.
6. Employee Engagement and Customer Service: With a workforce of approximately 6,400 employees, American Water prioritizes employee training and development, along with delivering high-quality customer service to its millions of customers.
Geographical Reach: American Water serves around 15 million customers across 47 states and one Canadian province, making it the most geographically diverse and largest publicly-traded water utility company in the U.S.
American Water continues to play a crucial role in providing essential services, focusing on innovation and sustainability to enhance the quality and reliability of water services.
Key aspects of its business operations include:
1. Water Supply and Distribution: American Water is responsible for the treatment and distribution of drinking water to residential, commercial, and industrial customers. It ensures that the water meets regulatory standards and is safe for consumption.
2. Wastewater Treatment and Management: The company also provides wastewater services, which include the collection, treatment, and disposal of wastewater to protect public health and the environment.
3. Infrastructure Maintenance and Development: American Water invests in the maintenance and improvement of water and wastewater infrastructure, ensuring the delivery of reliable services. This includes upgrading aging systems and implementing new technologies.
4. Regulated and Non-regulated Operations: While a significant portion of its business is regulated, focusing on utility operations under public oversight, American Water also engages in non-regulated activities such as water and wastewater system operation and maintenance for municipalities and private clients.
5. Environmental Stewardship: The company emphasizes sustainability and environmental protection in its operations, including efforts to reduce water loss and improve energy efficiency.
6. Employee Engagement and Customer Service: With a workforce of approximately 6,400 employees, American Water prioritizes employee training and development, along with delivering high-quality customer service to its millions of customers.
Geographical Reach: American Water serves around 15 million customers across 47 states and one Canadian province, making it the most geographically diverse and largest publicly-traded water utility company in the U.S.
American Water continues to play a crucial role in providing essential services, focusing on innovation and sustainability to enhance the quality and reliability of water services.
American Water Works Company Inc. as a leading publicly-traded water and wastewater utility provider in the United States, operates its business through two primary segments: Regulated Businesses and Market-Based Operations. Below is a comprehensive overview of these segments, the products and services they encompass, and the companys operational strategies.
Overview of Operating Segments
1. Regulated Businesses Segment
The Regulated Businesses segment is the cornerstone of American Water Works Company’s operations. It comprises subsidiaries that provide essential water and wastewater utility services, catering to a diverse customer base that includes residential, commercial, industrial, and public authority customers.
Key Features:
- Economic Regulation: The services provided by this segment are typically subject to state-level regulation by Public Utility Commissions (PUCs). This oversight ensures compliance with established rates and service standards, providing stability and reliability to both the company and its customers.
- Water Quality and Environmental Compliance: Additionally, both federal and state governments impose regulations concerning environmental protection, health and safety, and water quality. This ensures that the services offered are not only safe but also sustainable.
Services Offered:
- Water Utility Services: These include the sourcing, treatment, and distribution of potable water to residential and commercial customers, ensuring a reliable and safe supply for everyday needs.
- Wastewater Utility Services: Comprehensive wastewater collection, treatment, and disposal services that conform to state and federal environmental regulations are also provided, ensuring the safe management of wastewater.
- Sale for Resale: The company also engages in the sale of water to other utilities, which helps diversify its revenue streams and provides additional resources for infrastructure improvements.
Market-Based Operations Segment
The Market-Based Operations segment focuses on providing specialized services that are not bound by state economic regulations, allowing the company to offer more customized solutions to specific market segments.
Key Features:
- Flexibility in Operations: These services are characterized by flexibility in pricing and operational methodologies, making them suitable for various types of customers who do not require substantial infrastructure investment.
Products and Services Included:
- Military Services Group:
- American Water’s Military Services Group manages 50-year contracts with the U.S. Department of Defense, focusing on the operation and maintenance of water and wastewater systems at military bases.
- The contracts include provisions for price redetermination to align fees with operational costs and market changes, safeguarding both the company’s financial interests and service quality.
- Homeowner Services Group:
- This division provides homeowners and smaller commercial clients with protection against the costs associated with repairing broken or leaking water pipes, blocked sewer pipes, and electrical line failures through the Service Line Protection Program.
- A noteworthy component of this group is the LineSaver™ program, where the company collaborates with municipalities to offer protection plans, effectively reaching approximately 1.4 million contracts across 43 states and the District of Columbia.
- Contract Operations Group:
- Through this group, American Water engages in a range of public/private partnerships under contracts that cover operations and maintenance (O&M), as well as Design, Build and Operate (DBO) and Design, Build, Finance, Operate and Maintain (DBFOM) initiatives.
- The group manages around 70 contracts across the U.S. and Canada, with project durations ranging from one to 30 years. These contracts typically involve delivering services for a fee, rather than extensive capital investments, providing operational agility and responsiveness to client needs.
Historical Context and Changes
In November 2014, American Water Works sold its Class B Biosolids line of business through the divestiture of its subsidiary, Terratec Environmental Ltd. This particular business focused on biosolids management, transport, and disposal services primarily for municipal and industrial clients in Canada. The results of this subsidiary are classified as discontinued operations and are omitted from current financial reporting.
Conclusion
American Water Works Company Inc. distinctly operates through its Regulated Businesses and Market-Based Operations segments, providing a vast assortment of water and wastewater utility services. These services are tailored to meet the rigorous demands of regulatory compliance while also addressing unique customer needs through flexible and innovative service offerings. The companys continuous focus on quality, safety, and sustainability positions it well within the water utility sector, adapting to both regulatory frameworks and market opportunities.
Overview of Operating Segments
1. Regulated Businesses Segment
The Regulated Businesses segment is the cornerstone of American Water Works Company’s operations. It comprises subsidiaries that provide essential water and wastewater utility services, catering to a diverse customer base that includes residential, commercial, industrial, and public authority customers.
Key Features:
- Economic Regulation: The services provided by this segment are typically subject to state-level regulation by Public Utility Commissions (PUCs). This oversight ensures compliance with established rates and service standards, providing stability and reliability to both the company and its customers.
- Water Quality and Environmental Compliance: Additionally, both federal and state governments impose regulations concerning environmental protection, health and safety, and water quality. This ensures that the services offered are not only safe but also sustainable.
Services Offered:
- Water Utility Services: These include the sourcing, treatment, and distribution of potable water to residential and commercial customers, ensuring a reliable and safe supply for everyday needs.
- Wastewater Utility Services: Comprehensive wastewater collection, treatment, and disposal services that conform to state and federal environmental regulations are also provided, ensuring the safe management of wastewater.
- Sale for Resale: The company also engages in the sale of water to other utilities, which helps diversify its revenue streams and provides additional resources for infrastructure improvements.
Market-Based Operations Segment
The Market-Based Operations segment focuses on providing specialized services that are not bound by state economic regulations, allowing the company to offer more customized solutions to specific market segments.
Key Features:
- Flexibility in Operations: These services are characterized by flexibility in pricing and operational methodologies, making them suitable for various types of customers who do not require substantial infrastructure investment.
Products and Services Included:
- Military Services Group:
- American Water’s Military Services Group manages 50-year contracts with the U.S. Department of Defense, focusing on the operation and maintenance of water and wastewater systems at military bases.
- The contracts include provisions for price redetermination to align fees with operational costs and market changes, safeguarding both the company’s financial interests and service quality.
- Homeowner Services Group:
- This division provides homeowners and smaller commercial clients with protection against the costs associated with repairing broken or leaking water pipes, blocked sewer pipes, and electrical line failures through the Service Line Protection Program.
- A noteworthy component of this group is the LineSaver™ program, where the company collaborates with municipalities to offer protection plans, effectively reaching approximately 1.4 million contracts across 43 states and the District of Columbia.
- Contract Operations Group:
- Through this group, American Water engages in a range of public/private partnerships under contracts that cover operations and maintenance (O&M), as well as Design, Build and Operate (DBO) and Design, Build, Finance, Operate and Maintain (DBFOM) initiatives.
- The group manages around 70 contracts across the U.S. and Canada, with project durations ranging from one to 30 years. These contracts typically involve delivering services for a fee, rather than extensive capital investments, providing operational agility and responsiveness to client needs.
Historical Context and Changes
In November 2014, American Water Works sold its Class B Biosolids line of business through the divestiture of its subsidiary, Terratec Environmental Ltd. This particular business focused on biosolids management, transport, and disposal services primarily for municipal and industrial clients in Canada. The results of this subsidiary are classified as discontinued operations and are omitted from current financial reporting.
Conclusion
American Water Works Company Inc. distinctly operates through its Regulated Businesses and Market-Based Operations segments, providing a vast assortment of water and wastewater utility services. These services are tailored to meet the rigorous demands of regulatory compliance while also addressing unique customer needs through flexible and innovative service offerings. The companys continuous focus on quality, safety, and sustainability positions it well within the water utility sector, adapting to both regulatory frameworks and market opportunities.