Erick Burgueño Salas
Research expert covering climate change and the water industry
American Water was founded in 1886 as the American Water Works & Guarantee Company in Camden, New Jersey. Since then, it has gone on to become the largest publicly traded water and wastewater utility company in the United States. Based on a market value of almost 30 billion U.S. dollars, American Water was also among the world’s biggest diversified utilities as of May 2023.
Similarly, the 2023 financial year saw American Water’s total assets increase by nine percent to a high of 30.3 billion U.S. dollars. American Water invests billions of dollars every year to maintain its assets. Investments include replacing aging infrastructures, upgrading existing facilities or constructing new ones, ensuring fire protection, and complying with water quality standards. In 2023, American Water’s capital expenditure totaled 2.6 billion U.S. dollars, of which 922 million U.S. dollars went toward transmission and distribution.
American Water’s services
American Water provides vital water and wastewater services to around 3.5 million customers across 24 U.S. states, the majority of which are in Pennsylvania and New Jersey. In terms of sources, almost 70 percent of American Water’s water supply comes from surface water, although this varies from state to state. The company’s services are generally regulated by the U.S. state in which it operates, under locally managed subsidiaries. American Water’s largest business segment is its residential water service segment, followed by its commercial segment.American Water’s financial figures
American Water’s operating revenue stood at some 4.2 billion U.S. dollars for the year ended December 31, 2023. This was an increase of 11.7 percent compared with 2022, a year in which American Water's revenue was impacted by the sale of the company's New York subsidiary. Meanwhile, American Water's net income reached a decade-record of 1.5 billion U.S. dollars in 2023.Similarly, the 2023 financial year saw American Water’s total assets increase by nine percent to a high of 30.3 billion U.S. dollars. American Water invests billions of dollars every year to maintain its assets. Investments include replacing aging infrastructures, upgrading existing facilities or constructing new ones, ensuring fire protection, and complying with water quality standards. In 2023, American Water’s capital expenditure totaled 2.6 billion U.S. dollars, of which 922 million U.S. dollars went toward transmission and distribution.
