After a muted 2024, cloudy outlook for regulated utility M&A in 2025. The U.S. water M&A market continued its downward trajectory in 2024, marking the third consecutive year of declining transaction volume. This past year saw only 147,005 connections transferred and the lowest deal flow since 2018. High interest rates and regulatory/public friction—exemplified by Eversource Energy’s legal challenges in Connecticut—further constrained deal activity. In parallel, Central States Water Resources, the most active investor-owned utility (IOU), has slowed its acquisitive pace. While Q4 saw a modest uptick in approved deals (27), the longer-term trend shows a cooling market, especially given the pending 95 applications representing a 20.8% drop from this time last year.
Shift in deal flows reflected in the composition of transactions. In 2024, 79% of deals targeted small or very small systems, further signaling a market preference for less contentious and incremental growth targets over politicized, large-scale acquisitions. Zero very large systems have changed hands since Liberty Utilities’ 2021 purchase of American Water’s New York operations. The demand for wastewater assets increased, with wastewater system acquisitions accounting for half of all Q4 transactions, the highest proportion in any quarter of the year.
This quarterly analysis highlights key trends, transactions, and competitive shifts in the U.S. private water market. Bluefield’s team of water experts tracks mergers and acquisitions (M&A); service contract awards; and federal, state, and local policy developments on an ongoing basis to provide the most reliable and up-to-date insights for clients addressing opportunities in water.
