American Water Works Company, Inc.

Company facts

Industry

Water Supply

Headquarters

Camden, New Jersey

Most recent report

8-K, filed Nov 5, 2026

Incorporated

Delaware

Filings on record

1,001+ filings

On EDGAR

CIK 1410636

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 5 of 13 sections worth reading, with 2 positive, 16 notable, and 4 negative flags.

• Financial Statements (Item 1)

  Dense with M&A, rate cases, litigation, and financing details that affect valuation.
  Positive

  • Closed $319M Nexus acquisition adding ~47,000 customer connections to regulated businesses.
  • Received full $795M payment on HOS seller note on Feb 13, 2026, eliminating a large receivable.
  Notable

  • Proposed merger with Essential Utilities expected to close by end of Q1 2027; $15M merger costs incurred.
  • Physically settled 3.4M shares via forward sale agreements, raising $476M in equity in June 2026.
  • Reversed $200M CAMT credit carryforward and recorded $50M additional uncertain tax liabilities in 2026.
  • PFAS MDL settlements: $235M received net of fees; $108M held in escrow pending PUC approvals.
  Negative

  • Illinois rate case proposed order recommends 9.67% ROE vs 10.75% requested and denies second-step increase.
  • Mountaineer Gas class actions: proposed $9M settlement for WVAWC, mostly covered by insurance.
  • California Water Supply Project cost estimate updated to $825M plus AFUDC, up from $279M approved in 2018.
  • MPWMD filed eminent domain lawsuit to condemn California subsidiary's Monterey system assets.

• Management's Discussion (Item 2)

  Dense MD&A with rate cases, merger costs, PFAS settlements, CAMT reversal, and debt activity.
  Notable

  • Capital investment of $2.8 billion in first nine months of 2026; $3.7 billion planned for full year.
  • Acquisitions added 81,000 customers; $319 million cash for Nexus, $46 million stock for Gordon's Corner.
  • Merger-related costs for Essential deal: $6 million in Q3 2026, $15 million YTD, $28 million total incurred.
  • PFAS MDL settlements: $149 million in four new preliminary approvals; $235 million received net of fees.
  • CAMT credit carryforward of $200 million reversed; $50 million additional uncertain tax liabilities recognized.
  • Forward sale agreements: 4,694,836 shares remain unsettled; $476 million received from settling 3.4M shares.

• Legal Proceedings (Item 1)

  Multiple active legal proceedings with quantified settlement payments and cost estimates.
  Notable

  • Joint complaint filed against Cal Am seeking stop to desalination activities and sanctions.
  • Proposed class action settlement for Mountaineer Gas filed; motion for preliminary approval pending.
  • East Stroudsburg class certification denied; plaintiffs appealed both orders.
  • Four additional MDL settlements preliminarily approved for ~$149M; final hearing Jan 2027.

• Other Information (Item 5)

  Compensation cap removal is a material governance change with potential payout implications.
  Notable

  • Removed $3M per-participant annual payout cap on APP, effective Jan 1, 2027.

• Exhibits (Item 6)

  Contains a merger agreement with Essential Utilities, filed Oct 27, 2025.
  Notable

  • Amendment 2026-1 to Annual Performance Plan, effective January 1, 2027, filed herewith.

What changed: Sep 2026 vs. Jun 2026

About 7% of AWK's Sep 2026 10-Q is new information. 33 paragraphs were added, 152 changed, and 37 removed. Below are the most important lines SECSift identified.

• Item 1 88
• Item 2 53
• Item 5 4
• Item 6 4
• Item 4 3