American Water Works Company, Inc.

“American Water is the largest and most geographically diverse, publicly-traded water and wastewater utility company in the United States, as measured by both operating revenues and population served.”

“American Water is the largest and most geographically diverse, publicly-traded water and wastewater utility company in the United States, as measured by both operating revenues and population served.”

“The Company’s utilities operate in 14 states in the United States, with 3.6 million active customers in its water and wastewater networks.”

“Residential$2,557 54 %$2,349 55 %$2,143 55 %”

“ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers”

“Regulated Businesses70%23%7%”

“The Company also operates other businesses that provide water and wastewater services to the U.S. government on military installations”

“Total—Top Five States (b) 3,302 385 51 3,738 79.1 %”

“Operating revenues for the Regulated Businesses were $4,723 million for 2025, $4,296 million for 2024 and $3,920 million for 2023”

“Residential$2,557 $2,349 $2,143 Commercial981 885 798 Fire service189 164 158 Industrial195 184 167”

“Essential's shareholders will receive 0.305 shares of parent company common stock in exchange for each share of Essential common stock”

“Essential’s shareholders will receive 0.305 shares of parent company common stock in exchange for each share of Essential common stock”

“The aggregate purchase price to be paid by the Company will be approximately $315 million in cash”

“the Company had entered into 20 agreements with a total aggregate purchase price of $582 million for pending acquisitions in the Regulated Businesses to add approximately 104,300 additional customers.”

“the merger agreement with Essential Utilities, Inc. (“Essential”) and the proposed acquisition of systems owned indirectly by Nexus Water Group, Inc.”

“The Company expects to invest between $19 billion to $20 billion over the next five years, and between $46 billion to $48 billion over the next 10 years, including $3.7 billion in 2026.”

“The Water Supply Project includes the construction of a desalination plant, to be owned by Cal Am, and the construction of wells that would supply water to the desalination plant.”

“partially offset by an estimated $36 million decrease in 2025, due to warmer, drier weather compared to normal in 2024”

“risks and uncertainties following the completion of the sale of the Company’s Homeowner Services Group (“HOS”)”

“Customer growth in the Company’s Regulated Businesses is primarily from (i) adding new customers to its customer base through acquisitions of water and/or wastewater utility systems”

“In 2025, as compared to 2024, production costs increased $25 million primarily from higher purchased power costs and higher purchased water costs and usage.”

“the February 2, 2024 amendment to the HOS secured seller promissory note, which increased the aggregate principal amount from $720 million to $795 million and increased the interest rate from 7.00% per year to 10.00% per year”

“The Company's revolving credit facility provides $2.75 billion in aggregate total commitments from a diversified group of financial institutions.”

“These results were driven primarily by the implementation of new rates in the Regulated Businesses from capital and acquisition investments. Results also reflect increased production and employee-related costs, increased depreciation and higher financing costs”

“Our Regulated Businesses are subject to regulation by PUCs and other regulatory agencies, which affects our business, financial condition, results of operations and cash flows, and may be subject to fines, penalties and other sanctions for an inability to meet these regulatory requirements.”

“Our operations and the water we supply are subject to environmental, water quality and health and safety laws and regulations, including contaminants of emerging concern, compliance with which could impact our operating costs and capital expenditures”

“contaminants of emerging concern (including without limitation per- and polyfluoroalkyl substances (collectively, “PFAS”))”

“exposure or infiltration of the Company’s technology and critical infrastructure systems, including the disclosure of sensitive, personal or confidential information contained therein, through physical or cyber attacks”

“The proposed merger is subject to various closing conditions, including the receipt of consents and approvals from various governmental and regulatory entities and third parties, and a failure to obtain all such consents or approvals or to satisfy such other closing conditions could prevent or delay the completion of the proposed merger”

“The conditional exchange feature of the 3.625% Exchangeable Senior Notes due 2026 (the “Exchangeable Notes”), if triggered, may adversely affect our liquidity and financial condition and may dilute the ownership interest of our shareholders”

“The current regulatory rate setting process may result in a significant delay, also known as “regulatory lag,” from the time that we invest in infrastructure improvements, incur increased operating expenses, incur increased cost of capital or experience declining water usage”

“we could be subject to claims for damages arising from government enforcement actions or toxic tort or other lawsuits, including class action lawsuits brought by affected parties, arising out of an interruption of service or human exposure to hazardous substances in our drinking water and water supplies.”

“Limitations or restrictions on water supplies may adversely affect our access to sources of water, our ability to supply water to customers and, together with climate variability, severe weather, natural disasters and seasonality, may cause service disruptions, reduced demand or increased costs.”

“Our indebtedness could adversely affect our business and limit our ability to plan for or respond to changes in our business, and we may be unable to generate sufficient cash flows to satisfy our liquidity needs.”

“Our Regulated Businesses require significant capital expenditures and may suffer if we fail to secure appropriate funding or experience increases in short- and long-term interest rates or delays in completing major capital expenditure projects.”

“Aging infrastructure may lead to service disruptions, property damage and increased capital expenditures and O&M expenses and other costs, all of which could negatively impact our financial results.”

“We face technology, cybersecurity and data privacy risks, including failures, cyber attacks, unauthorized access and evolving privacy requirements, any of which may result in operational disruption, regulatory actions or reputational harm.”

“Disruptions in our supply chain related to goods, such as pipe, chemicals, power and other fuel, equipment, water and other raw materials and services, could adversely impact our operations and our ability to serve our customers, as well as our financial results.”

“An important part of our growth strategy is the acquisition of water and wastewater systems, which involves risks, including competition for acquisition opportunities from other regulated utilities, governmental entities and other buyers”

“We have a significant amount of goodwill and other assets measured and recorded at fair value on a recurring basis, and we may be required to record impairments or changes in fair value to these assets”

“Parent company provides performance guarantees with respect to certain of the obligations of our Other businesses (primarily MSG), including financial guarantees or deposits, which may adversely affect parent company if the guarantees are successfully enforced.”