How does American Water Works Company (AWK) make money?

American Water Works Company (AWK) generates revenue primarily from Regulated Business, which accounted for 100% of total revenue in TTM through Q2 2026. The company reported $5.28B in revenue and converted 21.3% of it into net profit, equivalent to roughly $1.13B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of American Water Works Company (AWK)?

American Water Works Company (AWK) reported a gross profit margin of 44.4% in TTM through Q2 2026, equivalent to $2.35B in gross profit on $5.28B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of American Water Works Company (AWK)?

American Water Works Company (AWK) reported an operating profit margin of 36.9% in TTM through Q2 2026, equivalent to $1.95B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of American Water Works Company (AWK)?

American Water Works Company (AWK) reported a net profit margin of 21.3% in TTM through Q2 2026, equivalent to $1.13B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is American Water Works Company (AWK) profitable?

Yes. American Water Works Company (AWK) reported $1.13B in net income for TTM through Q2 2026, with a net profit margin of 21.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does American Water Works Company (AWK) spend on capital expenditures?

American Water Works Company (AWK) spent $3.36B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 63.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does American Water Works Company (AWK) generate?

American Water Works Company (AWK) generated -$1.03B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of -19.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of American Water Works Company (AWK)?

American Water Works Company (AWK) had an effective tax rate of 21.7% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

Where does American Water Works Company (AWK) generate most of its revenue?

ILLINOIS is the largest geographic market for American Water Works Company (AWK), accounting for 28% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How American Water Works Company Makes Money: 2026 Visual Revenue Map

American Water Works Company (AWK) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

American Water Works Company (AWK) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for American Water Works Company (AWK), TTM through Q2 2026
Region	Revenue (USD)	% of total
ILLINOIS	$105M	28%
PENNSYLVANIA	$75M	20%
MISSOURI	$63M	16.8%
CALIFORNIA	$45M	12%
WEST VIRGINIA	$40M	10.7%
INDIANA	$17M	4.5%
VIRGINIA	$15M	4%
IOWA	$13M	3.5%
Other regions	$2M	0.5%
Total	$375M	100%

ILLINOIS
PENNSYLVANIA
MISSOURI
CALIFORNIA
WEST VIRGINIA
INDIANA
VIRGINIA
IOWA
Other regions
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, American Water Works Company (AWK) generated 28% of revenue from ILLINOIS, followed by PENNSYLVANIA (20%) and MISSOURI (16.8%).

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