[144] Moody's Corporation SEC Filing

Rhea-AI Filing Summary

American Water Works (AWK) Q2-25 10-Q highlights

Operating revenue climbed 11% YoY to $1.28 bn (H1 +12% to $2.42 bn) on newly implemented rate cases and modest customer growth. Operating income rose 9% to $489 m, but margin slipped 80 bp to 38.3%. Net income improved 4% to $289 m and diluted EPS hit $1.48 (H1 $2.53, +7%).

Cash from operations declined 13% to $632 m, pressured by higher receivables and working-capital swings, while capex remained heavy at $1.28 bn for network modernisation. Long-term debt fell $240 m to $12.28 bn, yet short-term borrowings rose $710 m, leaving total debt at $14.99 bn; equity increased to $10.68 bn.

Regulation & growth: 2025 general rate authorisations add $232 m in annualised revenue across IL, MO, IA, VA, IN, TN & HI; approved infrastructure surcharges add $38 m. Pending filings in KY ($27 m), WV ($48 m) and a multiyear CA request ($63 m in 2027 with potential $111 m thru 2029) could further expand the rate base. First-half interest income of $44 m from the $795 m 10% secured seller note (HOS sale) supports liquidity.

No new material litigation or risk factors were disclosed; management continues to target ~$3 bn annual capex and disciplined regulatory execution to drive long-term earnings and dividend growth.

Positive

• Revenue up 11% YoY to $1.28 bn with EPS +4%, demonstrating effective rate case execution.
• $232 m in approved 2025 general rate increases plus $38 m in infrastructure surcharges enhance future cash flows.
• Long-term debt decreased $240 m, marginally strengthening balance-sheet flexibility.
• High-yield secured seller note generated $44 m interest in H1-25, boosting non-regulated income.

Negative

• Operating cash flow fell 13% to $632 m, driven by working-capital drag.
• Short-term debt ballooned $710 m, raising refinancing exposure amid elevated rates.
• Operating margin compressed 80 bp due to higher O&M and depreciation.
• Pending KY, WV and CA cases introduce regulatory timing risk; adverse outcomes could pressure returns.

Insights

Utility Equity Analyst

TL;DR – Solid top-line growth from rate relief; cash flow softer and short-term debt up, but long-term thesis intact.

Revenue and EPS rose in line with expectations, supported by $232 m of 2025 rate relief. Although O&M inflation compressed operating margin slightly, AWK still posted a healthy 38% margin. Lower operating cash flow and a shift to short-term paper merit monitoring but total leverage is stable (≈53% debt). With heavy capex continuing, timely recovery via pending KY, WV and CA filings is critical. Dividend capacity appears safe given 47% equity ratio and seller-note interest income.

Regulated-Utility Industry Specialist

TL;DR – Regulatory momentum strong; future earnings visibility improving despite working-capital headwinds.

Multiple state commissions approved constructive ROEs (9.6-9.84%) and equity layers ≈50%, underpinning future returns. Infrastructure surcharges now generate $38 m annually, limiting regulatory lag. The forthcoming CA decoupling proposal and new cost-of-capital filing could materially derisk sales variability beyond 2026. Short-term liquidity is ample, but continued reliance on revolver/CP adds rate-reset risk in a higher-for-longer environment.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

Filer CIK
Filer CCC
Is this a LIVE or TEST Filing?	LIVE TEST
Submission Contact Information
Name
Phone
E-Mail Address

144: Issuer Information

Name of Issuer

SEC File Number

Address of Issuer

Phone

Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

Relationship to Issuer

144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Fidelity Brokerage Services LLC 900 Salem Street Smithfield RI 02917	2121	1083951.39	179400000	07/30/2025	NYSE

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	03/01/2017	Restricted Stock Vesting	Issuer			1	03/01/2017	Compensation
Common	03/01/2019	Restricted Stock Vesting	Issuer			711	03/01/2019	Compensation
Common	03/01/2021	Restricted Stock Vesting	Issuer			1409	03/01/2021	Compensation

* If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid.

Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.

144: Securities Sold During The Past 3 Months

Nothing to Report

144: Remarks and Signature

Remarks

Date of Notice

ATTENTION:

The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date.

Signature

ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)

FAQ

How did AWK's Q2 2025 revenue and EPS compare to last year?

Q2 revenue rose 11% to $1.28 bn and diluted EPS increased to $1.48 from $1.42.

What is driving American Water's future revenue growth?

Newly approved rate cases add $232 m in annualised revenue, with additional filings pending in CA, KY and WV.

How leveraged is AWK after Q2 2025?

Total debt is $14.99 bn; equity is $10.68 bn, resulting in roughly a 53/47 debt-to-equity mix.

Why did operating cash flow decline in the first half of 2025?

Higher receivables, lower tax refunds and other working-capital movements reduced cash from operations by $95 m YoY.

What return on equity did recent rate cases grant?

Approved ROEs ranged from 9.60% (IA) to 9.84% (IL), supporting earnings stability.

How much capex did AWK invest during H1 2025?

The company invested $1.28 bn, consistent with its multi-year infrastructure plan.