AWK · 10-K filed 18 Feb 2026 · year to 31 Dec 2025

American Water Works

31 named things its latest annual report says its results depend on, each in the company's own words. 15 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Customers

U.S. government (Military Services Group contracts)

earns from · approximately $7.4 billionnamed as a risk

MSG’s backlog of revenue associated with its contracts with the U.S. government is approximately $7.4 billion, with an average remaining contract term of 37 years.Business (Item 1)

Also named by ADI, AIR, APH, ASTS, ATI, AVAV, BA, BWXT and 46 more

Suppliers

Mutual insurance companies (utility industry)

depends onnamed as a risk

In addition, we maintain a substantial portion of our liability and property insurance coverage through a small number of mutual insurance companies that specialize in providing coverage to the utility industry.Risk factors (Item 1A)

Partners and platforms

Revolving credit facility and commercial paper program

depends on · $2.75 billion revolving credit facility, a $2.60 billion commercial paper programnamed as a risk

In addition to cash from operations, during 2025, we relied on a $2.75 billion revolving credit facility, a $2.60 billion commercial paper program, and the debt capital markets, to satisfy our liquidity needs.Risk factors (Item 1A)

Other companies

Essential Utilities, Inc.

$835 millionnamed as a risk

Under the Essential Merger Agreement, in the event the Essential Merger Agreement is terminated to accept a superior proposal, or under certain other circumstances, we would be required to pay a termination fee of $835 million to Essential in the case of a termination of the Essential Merger Agreement by us, and Essential would be required to pay a termination fee of $370 million to us in the case of a termination of the Essential Merger Agreement by Essential.Risk factors (Item 1A)

Monterey Peninsula Water Management District (MPWMD)

named as a risk

For example, in December 2023, the MPWMD filed eminent domain litigation against Cal Am in Monterey County Superior Court with respect to the Monterey system assets and the case is pending.Risk factors (Item 1A)

Competitors

American States Water Company

competes with

MSG faces competition primarily from American States Water Company.Business (Item 1)

California Water Service Group

competes with

When pursuing acquisitions, the Company’s largest investor-owned competitors, based on a comparison of operating revenues and population served, include Essential, American States Water Company and California Water Service Group.Business (Item 1)

Places

California

concentrated in · $370 million; 7.8%

Presented in the table below is a geographic summary of the Regulated Businesses’ operating revenues and the number of customers the Company serves, by type of service, for and as of the year ended December 31, 2025:Business (Item 1)

Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more

Pennsylvania

concentrated in · $1,140 million; 24.1%

Also named by CNX, DTM, EQT, FE, GMED, NFG, PEG, PPL and 6 more

Illinois

concentrated in · $548 million; 11.6%

Also named by AEE, ALL, CASY, CINF, DRVN, FPI, NNN, NRP and 4 more

New Jersey

concentrated in · $1,105 million; 23.4%

Also named by AXP, COO, FE, MUSA, NLY, PEG

Missouri

concentrated in · $575 million; 12.2%

Also named by AEE, CASY, EVRG

Carmel River

depends onnamed as a risk

For example, in our Monterey County, California operations, we are seeking to augment our sources of water supply, principally to comply with the cease and desist orders issued by the SWRCB in July 1995 and October 2009 (the “1995 Order,” the “2009 Order” and, as amended in July 2016, the “2016 Order” and, collectively, the “Orders”) that require Cal Am to significantly decrease its diversions from the Carmel River.Risk factors (Item 1A)

Hazards

Dams

75 damsnamed as a risk

The properties of our Regulated Businesses segment include 75 dams, the majority of which are earthen dams.Risk factors (Item 1A)

Drought

operates innamed as a risk

Seasonal and other drought conditions that may impact our water services are possible across all of our service areas.Risk factors (Item 1A)

Also named by AESI, AM, BF/B, BMI, CEG, EOG, ES, FPI and 8 more

California wildfires

operates innamed as a risk

In California, lawsuits have been filed in connection with large-scale natural events such as wildfires.Risk factors (Item 1A)

Also named by C, CEG, IONS, RHI, SNPS, SRE, TRV

Commodities and inputs

Purchased water

depends on · 7%

The Company is dependent on defined sources of water supply and obtains its water supply from surface water sources such as reservoirs, lakes, rivers and streams; from groundwater sources, such as wells and aquifers; and water purchased from third-party water suppliers.Business (Item 1)

Also named by WTRG

Granular activated carbon

depends on · more than 50 of the Company’s treatment sites across 10 states

The Company has entered into a nine-year exclusive contract with a third-party vendor to supply granular activated carbon, equipment and reactivation services to more than 50 of the Company’s treatment sites across 10 states through 2033.Business (Item 1)

Chemicals and electricity

exposed to its pricenamed as a risk

The Company’s risks associated with price increases for chemicals, electricity and other commodities are reduced through contractual arrangements and the expected ability to recover price increases through rates, in the next general rate case proceeding or other regulatory mechanism, as authorized by each regulatory jurisdiction.Market risk (Item 7A)

Pipe

depends onnamed as a risk

These items include but are not limited to contracted services, chemicals, pipe, valves, hydrants, fittings, equipment (including personal protective equipment), water, and power and other fuel.Risk factors (Item 1A)

Regulators

Pennsylvania Public Utility Commission

subject tonamed as a risk

Among other closing conditions, completion of the proposed Essential merger is conditioned upon the receipt of such required consents, orders and approvals from various governmental and regulatory entities and other third parties, including PUCs in certain states in which either or both companies operate, including without limitation the Pennsylvania Public Utility Commission.Risk factors (Item 1A)

Also named by EXC, NFG, PPL, RRC, UGI, WTRG

State public utility commissions (PUCs)

subject tonamed as a risk

Our ability to successfully implement our business plan and strategy depends on the rates authorized by the various PUCs.Risk factors (Item 1A)

Also named by LUMN, PRIM, VZ

Laws and programs

Safe Drinking Water Act

subject to · approximately $4.1 billionnamed as a risk

The Company estimates that it will make capital expenditures of approximately $4.1 billion over the next five years, and approximately $788 million in 2026, to address water quality issues; most of which are focused on compliance with environmental laws and regulations.Business (Item 1)

Also named by KGS, WTRG, WTS, XYL

Utilities Privatization Program

earns from · 18 military installationsnamed as a risk

MSG operates on 18 military installations under 50-year contracts with the U.S. government as part of its Utilities Privatization Program.Business (Item 1)

EPA National Primary Drinking Water Regulation for PFAS

subject to · approximately $2 billionnamed as a risk

The Company currently estimates an investment of approximately $2 billion of capital expenditures to install additional treatment facilities in order to comply with the NPDWR for PFAS as proposed.Business (Item 1)

Lead and Copper Rule Improvements (LCRI)

subject to · approximately $1.5 billionnamed as a risk

The Company estimates an investment of approximately $1.5 billion of capital expenditures between 2026 and 2030 related to complying with the LCRI.Business (Item 1)

Infrastructure Investment and Jobs Act

up to $15 billion

The Infrastructure Investment and Jobs Act was signed into law in November 2021 and provides for up to $15 billion for lead service line replacement through drinking water state revolving funds.Business (Item 1)

Also named by APG, CTOS, HASI, J, MLM, MTZ, NWPX, OGE and 3 more

CERCLA

subject tonamed as a risk

In September 2025, the EPA reaffirmed this enforcement approach, explaining that, while it intends to focus CERCLA enforcement activities on entities that significantly contributed to PFAS releases and generally does not plan to pursue actions against passive receivers, its enforcement discretion does not alter CERCLA’s underlying liability framework or restrict private party claims, and therefore the extent to which we may be subject to future CERCLA liability for PFAS-related claims remains uncertain.Risk factors (Item 1A)

Also named by AA, AAOI, ALB, AN, APD, APLD, ATI, BMY and 27 more

Hart-Scott-Rodino Antitrust Improvements Act

subject tonamed as a risk

The proposed merger is also subject to review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and the expiration or earlier termination of the waiting period (and any extension of the waiting period) applicable to the proposed merger is a condition to closing the proposed merger.Risk factors (Item 1A)

Also named by BEN, BLK, CPRT, CTAS, FSK, KVUE, NXST, SWKS and 2 more

Clean Water Act NPDES permit program

subject tonamed as a risk

Discharges that fail to comply with the limits specified under NPDES permits can lead to the imposition of fines and penalties, and persistent non-compliance could lead to significant fines and penalties and other compliance costs.Business (Item 1)

Monterey Peninsula Water Supply Project

named as a risk

The Water Supply Project is intended, among other things, to fulfill obligations of Cal Am to eliminate unauthorized diversions from the Carmel River as required under orders of the California State Water Resources Control Board (the “SWRCB”).Business (Item 1)