American States Water Company Announces Third Quarter 2025 Results
SAN DIMAS, Calif.--( BUSINESS WIRE)--American States Water Company (NYSE: AWR) today reported basic and fully diluted earnings per share of $1.06 for the quarter ended September 30, 2025, as compared to basic and fully diluted earnings per share of $0.95 for the quarter ended September 30, 2024, an increase of $0.11 per share, primarily generated from higher construction activities that resulted in higher earnings at the contracted services segment, and higher earnings at the water and electric utility segments resulting from the implementation of new customer rates.
Third Quarter 2025 Results
The table below sets forth a comparison of the third quarter 2025 diluted earnings per share contribution recorded by business segment and for the parent company compared with amounts recorded during the same period in 2024.
Diluted Earnings per Share
Three Months Ended
9/30/2025
9/30/2024
CHANGE
Water
$
0.86
$
0.84
$
0.02
Electric
0.04
0.02
0.02
Contracted services
0.19
0.11
0.08
AWR (parent)
(0.03
)
(0.02
)
(0.01
)
Consolidated diluted earnings per share, as recorded (GAAP)
$
1.06
$
0.95
$
0.11
Water Segment:
For the three months ended September 30, 2025, recorded diluted earnings from the water utility segment were $0.86 per share, as compared to $0.84 per share for the same period in 2024, an increase of $0.02 per share. The discussion below presents the major variances in earnings for the two periods.
Electric Segment:
Diluted earnings from the electric utility segment increased $0.02 per share for the three months ended September 30, 2025 as compared to the same period in 2024 largely resulting from an increase in revenues from new rates implemented in 2025 as a result of receiving a final decision from the CPUC in connection with Bear Valley Electric Service, Inc.’s (BVES’s) general rate case proceeding that set new rates for 2023 - 2026 (retroactive to January 1, 2023), as compared to 2022 rates used to record revenues during the same period of 2024.
The new rates resulted in an increase in electric revenues that supports, among other things, the growth in rate base and higher operating costs related to BVES’s wildfire mitigation plans that were previously not included in customer rates and not expensed during the third quarter of 2024 because they were being tracked in memorandum accounts. Therefore, the increase in revenues was partially offset by overall increases in operating expenses due, in large part, to higher expenses recorded in connection with BVES’s vegetation management and other wildfire mitigation activities, as well as an increase in outside services related to various regulatory filings, partially offset by a decrease in interest expense (net of interest income).
Contracted Services Segment:
Diluted earnings from the contracted services segment increased $0.08 per share for the third quarter of 2025 when compared to the same period in 2024 largely resulting from an increase in (i) construction activities, from timing of when work is performed, (ii) management fee revenues resulting from the resolution of various economic price adjustments, and (iii) lower interest expense from lower borrowing levels; partially offset by higher overall operating expenses (excluding construction expenses). The contracted services segment is expected to contribute $0.59 to $0.63 per share for the full 2025 year.
AWR (Parent):
For the three months ended September 30, 2025, diluted losses from AWR (parent) increased by $0.01 per share when compared to the same period in 2024 due largely to an increase in interest expense resulting from higher borrowing levels under AWR’s credit facility.
Year-to-Date (YTD) 2025 Results
The table below sets forth a comparison of the YTD diluted earnings per share contribution by business segment and for the parent company.
Diluted Earnings per Share
Nine Months Ended
9/30/2025
9/30/2024
CHANGE
Water
$
2.11
$
1.99
$
0.12
Electric
0.14
0.07
0.07
Contracted services
0.45
0.44
0.01
AWR (parent)
(0.06
)
(0.07
)
0.01
Consolidated diluted earnings per share, as recorded (GAAP)
$
2.63
$
2.42
$
0.21
Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
For the nine months ended September 30, 2025, AWR’s recorded consolidated diluted earnings were $2.63 per share, as compared to $2.42 per share recorded for the same period in 2024, an increase of $0.21 per share, primarily generated from higher earnings at the water and electric utility segments resulting largely from the implementation of new customer rates. AWR’s consolidated diluted earnings for the nine months ended September 30, 2025 were negatively impacted by approximately $0.08 per share due to the continued dilutive effects from the issuance of equity under AWR’s ATM offering program.
For more details on the YTD results, please refer to the company’s Form 10-Q filed with the Securities and Exchange Commission (SEC).
Expansion of GSWC’s Water Operations
In 2014, the CPUC issued a final decision granting GSWC the authority to provide water utility services to a new area to be developed near Sacramento called Sutter Pointe, in Sutter County, California. Specific plans for the new development have been approved by Sutter County that will allow for the construction of 17,500 total dwelling units at full buildout, which is currently expected to occur over the next 20 or more years. Among other things, the final decision in 2014 ordered GSWC to file a separate application before the commencement of any construction in order to establish initial water service rates. The first phase of the new development has begun and is expected to occur over the next five years, and will serve up to 3,800 customer connections. Accordingly, in August 2024, GSWC filed an application prior to the start of construction. In October 2025, the CPUC issued a final decision authorizing initial water service rates covering the new development for the years 2026 through 2028.
Dividends
On October 28, 2025, AWR’s Board of Directors approved a fourth quarter dividend of $0.5040 per share on AWR’s Common Shares. Dividends on the Common Shares will be paid on December 2, 2025 to shareholders of record at the close of business on November 14, 2025. AWR has paid common dividends every year since 1931, and has increased the dividends received by shareholders each calendar year for 71 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result. AWR has grown its quarterly dividend rate at a compound annual growth rate (CAGR) of 8.5% over the last five years since the fourth quarter of 2020, and has achieved a 10-year CAGR of 8.3% in its calendar year dividend payments through 2025. AWR’s current policy is to achieve a CAGR in the dividend of more than 7% over the long-term.
Non-GAAP Financial Measures
This press release includes a discussion on AWR’s operations in terms of diluted earnings per share by business segment, which is each business segment’s earnings divided by the company’s weighted average number of diluted common shares. This measure by business segment is derived from consolidated financial information but is not presented in our financial statements that are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. This item constitutes a “non-GAAP financial measure” under SEC rules, which supplements our GAAP disclosures but should not be considered as an alternative to the respective GAAP measure. Furthermore, this non-GAAP financial measure may not be comparable to similarly titled non-GAAP financial measures of other registrants.
The company uses earnings per share by business segment as an important measure in evaluating its operating results and believes this measure is a useful internal benchmark in evaluating the performance of its operating segments. The company reviews this measurement regularly and compares it to historical periods and to the operating budget. The company has provided the computations and reconciliations of diluted earnings per share from the measure of net income (loss) by business segment and for the parent company to AWR’s consolidated fully diluted earnings per share in this press release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “may,” “should” and similar phrases and expressions, and variations or negatives of these words. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors, including those described in greater detail in the company’s filings with the SEC, particularly those described in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are encouraged to review the company’s filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this press release and except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statement.
Conference Call
Robert Sprowls, president and chief executive officer, and Eva Tang, senior vice president and chief financial officer, will host a conference call to discuss these results at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) on Thursday, November 6. There will be a question and answer session as part of the call. Interested parties can listen to the live conference call and view accompanying slides on the internet at www.aswater.com. The call will be archived on the website and available for replay beginning November 6, 2025 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) through November 13, 2025.
About American States Water Company
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 265,000 customer connections located within more than 80 communities in Northern, Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity to approximately 25,000 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water distribution, wastewater collection, and treatment facilities located on twelve military bases throughout the country under 50-year privatization contracts with the U.S. government and one military base under a 15-year contract.
American States Water Company
Consolidated
Comparative Condensed Balance Sheets (Unaudited)
(in thousands)
September 30, 2025
December 31, 2024
Assets
Net Property, Plant and Equipment
$
2,240,869
$
2,099,625
Other Property and Investments
55,737
50,418
Current Assets
250,781
233,346
Other Assets
107,886
116,820
Total Assets
$
2,655,273
$
2,500,209
Capitalization and Liabilities
Capitalization
$
1,799,570
$
1,560,433
Current Liabilities
197,475
285,525
Other Credits
658,228
654,251
Total Capitalization and Liabilities
$
2,655,273
$
2,500,209
Condensed Statements of Income (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, except per share amounts)
2025
2024
2025
2024
Operating Revenues
Water
$
132,323
$
124,043
$
354,023
$
324,732
Electric
13,332
9,040
41,262
29,948
Contracted services
37,061
28,699
98,510
97,681
Total operating revenues
182,716
161,782
493,795
452,361
Operating Expenses
Water purchased
27,745
24,059
67,964
55,788
Power purchased for pumping
4,454
4,996
11,157
11,349
Groundwater production assessment
6,972
6,971
18,776
17,643
Power purchased for resale
3,288
2,467
12,822
8,302
Supply cost balancing accounts
(367
)
(381
)
(2,219
)
2,447
Other operation
11,782
11,021
34,582
31,377
Administrative and general
25,413
24,200
77,510
73,034
Depreciation and amortization
11,934
10,849
35,197
32,341
Maintenance
5,481
3,719
15,757
10,479
Property and other taxes
7,771
7,063
21,678
20,162
ASUS construction
16,510
11,750
42,333
43,649
Total operating expenses
120,983
106,714
335,557
306,571
Operating income
61,733
55,068
158,238
145,790
Other Income and Expenses
Interest expense
(11,711
)
(13,225
)
(35,901
)
(39,217
)
Interest income
1,064
1,739
4,575
5,902
Other, net
3,006
2,308
6,411
6,169
Total other income and (expenses), net
(7,641
)
(9,178
)
(24,915
)
(27,146
)
Income Before Income Tax Expense
54,092
45,890
133,323
118,644
Income tax expense
12,925
10,056
31,622
27,811
Net Income
$
41,167
$
35,834
$
101,701
$
90,833
Weighted average shares outstanding
38,567
37,564
38,444
37,302
Basic earnings per Common Share
$
1.06
$
0.95
$
2.64
$
2.43
Weighted average diluted shares
38,702
37,683
38,569
37,409
Fully diluted earnings per Common Share
$
1.06
$
0.95
$
2.63
$
2.42
Dividends paid per Common Share
$
0.5040
$
0.4655
$
1.4350
$
1.3255
Computation and Reconciliation of Non-GAAP Financial Measure (Unaudited)
Below are the computation and reconciliation of diluted earnings per share from the measure of net income (loss) by business segment and for the parent company to AWR’s consolidated fully diluted earnings per share for the three and nine months ended September 30, 2025 and 2024.
Water
Electric
Contracted Services
AWR (Parent)
Consolidated (GAAP)
In 000's except per share amounts
Q3 2025
Q3 2024
Q3 2025
Q3 2024
Q3 2025
Q3 2024
Q3 2025
Q3 2024
Q3 2025
Q3 2024
Net income (loss)
$
33,298
$
31,566
$
1,717
$
582
$
7,260
$
4,321
$
(1,108
)
$
(635
)
$
41,167
$
35,834
Weighted Average Number of Diluted Shares
38,702
37,683
38,702
37,683
38,702
37,683
38,702
37,683
38,702
37,683
Diluted earnings (loss) per share
$
0.86
$
0.84
$
0.04
$
0.02
$
0.19
$
0.11
$
(0.03
)
$
(0.02
)
$
1.06
$
0.95
Water
Electric
Contracted Services
AWR (Parent)
Consolidated (GAAP)
In 000's except per share amounts
YTD 2025
YTD 2024
YTD 2025
YTD 2024
YTD 2025
YTD 2024
YTD 2025
YTD 2024
YTD 2025
YTD 2024
Net income (loss)
$
81,344
$
74,555
$
5,519
$
2,666
$
17,258
$
16,346
$
(2,420
)
$
(2,734
)
$
101,701
$
90,833
Weighted Average Number of Diluted Shares
38,569
37,409
38,569
37,409
38,569
37,409
38,569
37,409
38,569
37,409
Diluted earnings (loss) per share
$
2.11
$
1.99
$
0.14
$
0.07
$
0.45
$
0.44
$
(0.06
)
$
(0.07
)
$
2.63
$
2.42
Note: Certain amounts in the tables above may not foot or crossfoot due to rounding.