American Water's Q4 2024: Unpacking Contradictions in PFAS Strategy, Earnings Growth, and Business Development

These are the key contradictions discussed in American Water's latest 2024Q4 earnings call, specifically including: PFOS/PFAS Strategy and Capital Investment Plans, Earnings Growth Expectations, PFAS Investment Strategy, and Business Development Capabilities.



Succession Plan and Leadership Transition:
- American Water announced the retirement of its CEO, Susan Hardwick, effective May 14, 2025, with John Griffith stepping into the role.
- The transition is part of a long-term succession plan, marking a strategic move to maintain the company's leadership and continuity.

Financial Performance and EPS Growth:
- Earnings were $5.39 per share for the year, with an 8% EPS growth, including $0.12 per share from favorable weather and $0.09 per share from incremental interest income.
- The growth was driven by successful rate cases, acquisitions, and strong execution of the company's strategic plan.

Investment in Infrastructure and Acquisitions:
- The company invested over $3 billion in infrastructure and acquisitions in 2024, acquiring nearly 70,000 new customers.
- This substantial capital investment was aimed at providing safe, clean, and reliable water services and supporting long-term growth and sustainability.

Regulatory Environment and Rate Cases:
- American Water successfully completed seven general rate cases in 2024, securing incremental revenues in Illinois, California, and Kentucky.
- The regulatory outcomes supported the company's efforts to invest in necessary infrastructure and maintain service quality to a growing customer base.