Edwyn
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | $3,743 | $3,914 | $3,763 | $4,217 | $4,653 |
| Gross Profit | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $1,248 | $1,196 | $1,273 | $1,504 | $1,718 |
| Net Income | $709 | $1,263 | $820 | $944 | $1,051 |
Over the past five years, American Water Works has demonstrated generally steady growth in revenue and operating income even amid some fluctuations. Revenue increased from USD 3,743 million in 2020 to USD 4,653 million in 2024, with notable growth spurts in 2023 and 2024 following a mild decline in 2022. Operating income followed a consistent upward trend, rising from USD 1,248 million in 2020 to USD 1,718 million in 2024, suggesting that the company has been effective in managing its operating expenses as revenue expanded. Although the gross profit figure was consistently reported as zero—likely due to the nature of accounting practices or reporting standards in the water utility industry—it is clear that the core operational profitability improved over the period. The net income figures reveal more volatility. The sharp increase from USD 709 million in 2020 to USD 1,263 million in 2021 represents a near 78% jump, which could have been driven by favorable market conditions or one-off adjustments, as operating income actually fell slightly during the same period. In contrast, net income dipped to USD 820 million in 2022 before recovering to USD 944 million in 2023 and reaching USD 1,051 million in 2024. Such fluctuations may indicate the influence of non-operating items like tax adjustments or changes in interest expenses that impacted final profitability. In the context of the water utility sector—known for its regulatory stability and steady demand—American Water Works appears to be financially healthy and sustainable. Its consistent revenue and operating income growth, coupled with a resilience in net income recovery, suggest that the company is well-positioned within a defensive industry that typically offers reliable long-term performance.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.