American Water is the largest regulated water utility in the US, delivering drinking water and wastewater services to 14 million people across 24 states—think of it as the toll road for your tap.
Money comes from regulated rate bases, with annual revenue of USD 5.14B and net income of USD 1.11B in 2025. Gross margins hover around 47%, and the recurring, monopoly-like cash flow is steady, though capital-heavy.
Regulated water utilities enjoy exclusive service territories, making it nearly impossible for competitors like Essential Utilities or SJW Group to enter. The moat is solid because state regulators approve rates and returns, and customers can't route around th
Buy (sector percentile 75) — value C-, growth B, profitability A-, momentum B+, revisions B. Updated daily, sector-relative, identical for every user.
