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| 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 Company, Inc. has exhibited overall revenue growth, rising from $3.74 billion in 2020 to $4.65 billion in 2024. Although there was a slight dip in revenue in 2022 (a decline of about 3.8% from 2021), the steady upward trend is clear when considering the subsequent increases of approximately 12% in 2023 and 10% in 2024. Operating income shows a similar pattern: after a modest decline from $1.25 billion in 2020 to $1.20 billion in 2021, there was a rebound to $1.27 billion in 2022, followed by significant improvements, reaching $1.50 billion in 2023 and $1.72 billion in 2024. These movements indicate the company’s ability to enhance operational efficiency and leverage economies of scale, which is typical in the capital-intensive utility industry. On the profitability front, net income experienced notable volatility. A dramatic jump from $709 million in 2020 to $1,263 million in 2021 (a surge of nearly 78%) stands out, potentially driven by favorable market conditions or one-time operational adjustments. This was followed by a decline in 2022—about a 35% drop from 2021—before recovering steadily in 2023 and 2024. Such swings underscore the impact of both recurring operational factors and possible non-recurring items in a highly regulated sector. Overall, the data suggest that American Water Works maintains robust financial health with sustainable revenue and operating income growth, even though net income volatility indicates the need for close monitoring of profit drivers.
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.