American States Water Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 1 new, 4 kept. The quarter’s numbers.

Key takeaways

Consolidated EPS rose to $0.76: Consolidated diluted EPS was $0.76 for the quarter ended March 31, 2026, against $0.70 a year earlier, an increase of $0.06 or 8.6%. Source
Rate increases drove utility earnings: Water and electric earnings rose on new CPUC-approved customer rates, and higher construction activity lifted contracted services earnings. Source
Water segment EPS rose $0.03: Water segment diluted EPS was $0.55 against $0.52, with net income of $21,683 thousand versus $19,906 thousand. Source
Water supply costs up $4.8 million: Water supply costs rose $4.8 million. Higher per-unit purchased water costs are covered in current rates, with no net earnings effect. Source
2026 capital plan unchanged: The prior release projected $185 to $225 million of investment in 2026; the current release states the company is on target for that range.
Second-quarter dividend set at $0.5040: The board approved a second-quarter dividend of $0.5040 per share on May 4, 2026, the same rate paid in the prior quarter. Source
Full-year contracted services contribution: The company expects the contracted services segment to contribute $0.63 to $0.67 per share for full-year 2026. Source

“Increased earnings per share at all operating business segments”
American States Water Co., press release

Guidance

Area	Period	Figure	Against last quarter
Capital investment Source	2026	$185 to $225 million	Kept
Contracted services earnings contribution Source	full year 2026	$0.63 to $0.67 per share	New
Regulated capital authorization Source	current general rate cases	approximately $650 million	Kept
Quarterly dividend per share Source	second quarter 2026	$0.5040	Kept
Dividend growth policy Source	long-term	CAGR of more than 7%	Kept

What changed from last quarter

New guidance: Contracted services contribution guidance of $0.63 to $0.67 per share for 2026 appears in this release; the prior release gave no such figure. Source
Guidance kept: The 2026 capital investment range of $185 to $225 million is unchanged from the prior release. Source
New: Electric revenue rose on fourth-year CPUC rate increases taking effect in 2026, a step not in the prior release. Source

Results and growth drivers

Consolidated EPS rose to $0.76: Consolidated diluted EPS was $0.76 for the quarter ended March 31, 2026, against $0.70 a year earlier, an increase of $0.06 or 8.6%. Source
Rate increases drove utility earnings: Water and electric earnings rose on new CPUC-approved customer rates, and higher construction activity lifted contracted services earnings. Source
Net income rose to $29,948 thousand: Net income was $29,948 thousand, compared with $26,844 thousand a year earlier. Source
Operating income up on higher revenue: Operating income was $51,371 thousand against $45,546 thousand, on total operating revenues of $169,191 thousand versus $148,013 thousand. Source

Segments and regions

Water segment EPS rose $0.03: Water segment diluted EPS was $0.55 against $0.52, with net income of $21,683 thousand versus $19,906 thousand. Source
Electric segment EPS rose $0.01: Electric segment diluted EPS was $0.08 against $0.07, with electric revenues of $18,657 thousand versus $15,002 thousand. Source
Contracted services EPS rose $0.02: Contracted services diluted EPS was $0.15 against $0.13, with segment revenues of $37,424 thousand versus $31,008 thousand. Source
Parent company loss held at $0.02: AWR (parent) reported a diluted loss of $0.02 in both periods; its net loss was $863 thousand against $812 thousand. Source

“An 8.6% increase (or $0.06 per share) in reported first quarter 2026 consolidated diluted EPS compared to first quarter of 2025”
American States Water Co., press release

Customers and demand

Water consumption matched adopted levels: Water consumption in the quarter matched the prior-year period and adopted levels. Source
Water service territory and connections: The water utility serves about 265,100 customer connections in more than 80 communities across Northern, Coastal and Southern California. Source
Electric connections in Big Bear Lake: The electric utility distributes power to about 24,900 customer connections in Big Bear Lake and surrounding areas in San Bernardino County. Source

Costs, margins and pricing

Water supply costs up $4.8 million: Water supply costs rose $4.8 million. Higher per-unit purchased water costs are covered in current rates, with no net earnings effect. Source
Offline wells raised purchased water: Some wells were temporarily offline, so the quarter's source mix included more purchased water than in the same period of 2025. Source
Operating expenses rose $2.4 million: Operating expenses excluding supply costs rose $2.4 million, mainly labor and employee benefits, operating costs, and property and non-income taxes. Source
Water interest expense rose $0.9 million: Interest expense net of interest income rose $0.9 million, largely from debt-cost capitalization in 2025 that did not recur, and lower regulatory interest income. Source

Capital investment and rate base

Authorized capital spending near $650 million: The regulated utilities are authorized to spend about $650 million in capital investments under their current general rate cases. Source
2026 capital plan unchanged: The prior release projected $185 to $225 million of investment in 2026; the current release states the company is on target for that range.
Advice letter projects now in rate base: Advice letter projects are now in adopted rate base and are part of the rate increases effective January 1, 2026. Source
Depreciation climbs with capital additions: Depreciation and amortization rose to $12,684 thousand from $11,582 thousand as capital additions were placed in service. Source

Cash and returns to shareholders

Second-quarter dividend set at $0.5040: The board approved a second-quarter dividend of $0.5040 per share on May 4, 2026, the same rate paid in the prior quarter. Source
Dividend growth policy above 7%: The stated policy is dividend growth above 7% over the long term; the quarterly dividend rate grew at an 8.5% CAGR over five years. Source
Dividend raised 71 straight years: Common dividends have been paid every year since 1931, and the dividend has risen each calendar year for 71 consecutive years. Source
ATM share sales through March: Through March 31, 2026 the company had sold 2,133,225 shares under its ATM program, with $34.3 million still available for sale. Source

Contracted services and strategy

Construction and fees drove segment: Contracted services earnings rose on more construction activity and management fee gains from resolved price adjustments. Source
Operating costs partly offset gains: Higher contracted services operating expenses, excluding construction expenses, partly offset the segment's gains. Source
Military base privatization contracts: The segment operates on twelve military bases under 50-year privatization contracts, plus one base under a 15-year contract. Source
Full-year contracted services contribution: The company expects the contracted services segment to contribute $0.63 to $0.67 per share for full-year 2026. Source

Coming up, as management said on 6 May 2026

Dividend payment on June 2: The $0.5040 second-quarter dividend is payable June 2, 2026 to holders of record at the close of business May 18, 2026. Source

Figures management reported

Figure	Reported
Rate increases Source	CPUC-authorized second-year water rate increases effective January 1, 2026; fourth-year electric rate increases in 2026
Capital plan Source	$185 to $225 million planned for 2026; approximately $650 million authorized

Risks management discussed

Demand: Revenue and earnings remain exposed to customer consumption swings after the move to a modified rate adjustment mechanism. Source
Operational: Changes in the water supply source mix against the adopted mix in the revenue requirement can move water earnings in either direction. Source
Financial: Investment losses on funds held for one retirement plan reduced other income; management says two-way pension balancing accounts mean no material earnings impact. Source
Financial: Equity issued under the ATM program dilutes EPS by about $0.01 per share this quarter. Source
Regulatory: Flowed-through tax items reduced water segment earnings compared with the prior-year quarter, and their size can move tax expense either way. Source

Earlier plans management reported on

On track: Management describes the 2026 capital investment plan as on target. Source
Not stated: The company states a policy of achieving dividend growth above 7% over the long term; no status is given. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

American States Water Company Announces

First Quarter 2026 Results

An 8.6% increase (or $0.06 per share) in reported first quarter 2026 consolidated diluted EPS compared to first quarter of 2025
Increased earnings per share at all operating business segments
AWR’s regulated utilities authorized to spend approximately $650 million in capital investments as approved in the utilities’ general rate cases
On target to invest $185 to $225 million in 2026
AWR’s contracted services business is expected to contribute $0.63 to $0.67 per share for the full 2026 year
AWR Named One of America's Most Trustworthy Companies by Newsweek
Ranked #1 in the Energy & Utilities Industry

San Dimas, California, May 6, 2026…. American States Water Company (NYSE:AWR) today reported basic and fully diluted earnings per share of $0.76 for the quarter ended March 31, 2026, as compared to basic and fully diluted earnings per share of $0.70 for the quarter ended March 31, 2025, an increase of $0.06 per share or 8.6%, primarily generated from higher earnings at the water and electric utility segments resulting from the implementation of new customer rate increases approved by the California Public Utilities Commission (CPUC), and higher construction activities that resulted in higher earnings at the contracted services segment.

First Quarter 2026 Results

The table below sets forth a comparison of the first quarter of 2026 diluted earnings per share contribution reported by business segment and for the parent company compared with amounts reported during the same period in 2025.

	Diluted Earnings per Share
	Three Months Ended
	3/31/2026	3/31/2025	CHANGE
Water	$0.55	$0.52	$0.03
Electric	0.08	0.07	0.01
Contracted services	0.15	0.13	0.02
AWR (parent)	(0.02)	(0.02)	-
Consolidated diluted earnings per share, as reported (GAAP)	$0.76	$0.70	$0.06

Water Segment:

For the three months ended March 31, 2026, reported diluted earnings from AWR's water utility segment, Golden State Water Company (GSWC), were $0.55 per share, as compared to $0.52 per share for the same period in 2025, an increase of $0.03 per share. The discussion below presents the major variances in earnings for the two periods.

An increase in water operating revenues of $11.1 million was largely as a result of the CPUC-authorized second-year rate increases and additional revenues for capital projects approved in advice letter filings,

both of which were effective January 1, 2026. Water consumption for the three months ended March 31, 2026 was consistent with the same period in 2025 and adopted levels. However, as a result of transitioning from a full revenue decoupling mechanism to a modified rate adjustment mechanism effective January 1, 2025, GSWC’s revenues and earnings will continue to be subject to future volatility from significant fluctuations in customer consumption.

An increase in water supply costs of $4.8 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. The increase in water supply costs compared to the same period in 2025 is largely because of (i) an overall increase in the per-unit purchased water costs that are covered in current rates resulting in no impact to net earnings, and (ii) an increase in purchased water volume compared to the same period in 2025 resulting from certain wells being temporarily offline in a few customer service areas. As a result, GSWC’s earnings for the three months ended March 31, 2026 were impacted by an actual water supply source mix that included more purchased water than in the same period of 2025. Due to transitioning from a full cost balancing account for water supply to an incremental cost balancing account effective January 1, 2025, GSWC’s earnings have been and will be subject to future volatility from favorable and unfavorable changes in the water supply source mix compared to the adopted mix incorporated in the revenue requirement.
An overall increase in operating expenses of $2.4 million (excluding supply costs) due primarily to increases in (i) overall labor costs and other employee-related benefits, (ii) overall operation-related costs including lab fees for water quality testing and conservation spending, (iii) depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (iv) property and other non-income taxes.
An overall increase in interest expense (net of interest income) of $0.9 million resulting largely from (i) the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest general rate case effective January 1, 2025 that was reported in 2025 with no similar item in 2026, and (ii) a decrease in interest income earned on regulatory assets due to decreasing regulatory balances as GSWC recovers the amounts through surcharges; partially offset by decreases in overall borrowing levels and average interest rates. The advice letter projects discussed are now included in adopted rate base and are part of the rate increases effective January 1, 2026.
An overall increase in other expense (net of other income) of $0.2 million due largely to losses totaling $1.3 million generated on investments held to fund one of the company’s retirement plans during the three months ended March 31, 2026, as compared to losses on investments of $0.6 million reported during the same period in 2025 due to financial market conditions; partially offset by a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings.
Changes in certain flowed-through income taxes and permanent items included in GSWC’s income tax expense for the three months ended March 31, 2026 as compared to the same period in 2025 unfavorably impacted the water segment’s earnings. As a regulated utility, GSWC treats certain temporary differences as being flowed-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction rate making. Changes in the magnitude of flowed-through items either increase or decrease tax expense, thereby affecting diluted earnings per share.
A decrease in earnings of approximately $0.01 per share due to the dilutive effects from the issuance of equity under AWR’s at-the-market (ATM) offering program beginning in February 2024. Under the ATM offering program, AWR may offer and sell its Common Shares, with an aggregate gross offering price of up to $200 million, from time to time at its sole discretion, with $34.3 million currently remaining available for sale. Through March 31, 2026, AWR has sold 2,133,225 Common Shares through this ATM offering program.

Electric Segment:

Diluted earnings from the electric utility segment increased $0.01 per share for the three months ended March 31, 2026 as compared to the same period in 2025 largely resulting from an increase of $3.7 million in electric revenues due to the CPUC-authorized fourth-year rate increases in 2026 and additional revenues approved after the first quarter of 2025 to recover the cost plus an allowance for funds used during construction (AFUDC) of certain advice letter capital projects, partially offset by an increase in electric supply costs of $0.3 million, which combined is an increase of approximately $3.4 million compared to the same period in 2025.

The net increase discussed above was partially offset by (i) an overall increase in operating expenses of $2.3 million, mostly from operation and maintenance-related activities, and (ii) an increase in interest expense (net of interest and other income) of $0.5 million compared to the same period in 2025 due to a decrease in AFUDC related to certain advice letter projects approved by the CPUC in the latest general rate case that was reported in 2025 with no similar level of AFUDC reported in 2026, lower interest income earned on regulatory assets, and an increase in interest expense from higher average borrowing levels. The advice letter projects discussed are now included in adopted rate base and are part of the increase in 2026 revenues.

Contracted Services Segment:

Diluted earnings from the contracted services segment increased $0.02 per share for the first quarter of 2026 when compared to the same period in 2025 largely resulting from (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) a decrease in interest expense (net of interest income) due to lower average borrowing levels and average interest rates. These favorable variances were partially offset by an increase in overall operating expenses (excluding construction expenses). The contracted services segment is expected to contribute $0.63 to $0.67 per share for the full year of 2026.

Dividends

On May 4, 2026, AWR’s Board of Directors approved a second quarter dividend of $0.5040 per share on AWR’s Common Shares. Dividends on the Common Shares will be paid on June 2, 2026 to shareholders of record at the close of business on May 18, 2026. 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 second quarter of 2021, 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 and AWR (parent), 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 and AWR (parent), a non-GAAP measure, as an important measure in evaluating its operating results and believes it provides investors with clarity surrounding the performance of its business segments and the parent company. 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

Forward-looking statements notice

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, May 7. 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 May 7, 2026 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) through May 14, 2026.

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 265,100 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 24,900 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.

	Comparative Condensed Balance Sheets (Unaudited)
American States Water Company
Consolidated
(in thousands)	March 31, 2026		December 31, 2025
Assets
Net Property, Plant and Equipment		$2,329,693		$2,296,319
Other Property and Investments	57,257		58,664
Current Assets	221,356		231,074
Other Assets	125,834		129,035
Total Assets		$2,734,140		$2,715,092
Capitalization and Liabilities
Capitalization		$1,846,584		$1,828,281
Current Liabilities	181,597		174,612
Other Credits	705,959		712,199
Total Capitalization and Liabilities		$2,734,140		$2,715,092

	Condensed Statements of Income (Unaudited)
	Three Months Ended March 31,
(in thousands, except per share amounts)		2026		2025
Operating Revenues
Water	$113,110		$102,003
Electric	18,657		15,002
Contracted services	37,424		31,008
Total operating revenues	169,191		148,013
Operating Expenses
Water purchased	21,360		16,308
Power purchased for pumping	3,297		3,149
Groundwater production assessment	5,527		5,679
Power purchased for resale	4,792		6,068
Supply cost balancing accounts	(318)		(1,716)
Other operation	11,268		10,490
Administrative and general	28,154		26,875
Depreciation and amortization	12,684		11,582
Maintenance	5,700		4,147
Property and other taxes	8,023		6,952
ASUS construction	17,333		12,933
Total operating expenses	117,820		102,467
Operating income	51,371		45,546
Other Income and Expenses
Interest expense	(12,107)		(12,082)
Interest income	976		2,013
Other, net	(420)		(171)
Total other income and (expenses), net	(11,551)		(10,240)
Income Before Income Tax Expense	39,820		35,306
Income tax expense	9,872		8,462
Net Income	$29,948		$26,844
Weighted average shares outstanding	39,111		38,253
Basic earnings per Common Share	$0.76		$0.70
Weighted average diluted shares	39,210		38,354
Fully diluted earnings per Common Share	$0.76		$0.70
Dividends paid per Common Share	$0.5040		$0.4655

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 AWR (parent) to AWR’s consolidated fully diluted earnings per share for the three months ended March 31, 2026 and 2025.

	Water		Electric		Contracted Services		AWR (Parent)		Consolidated (GAAP)
In 000's except per share amounts	Q1 2026	Q1 2025	Q1 2026	Q1 2025	Q1 2026	Q1 2025	Q1 2026	Q1 2025	Q1 2026	Q1 2025
Net income (loss)	$21,683	$19,906	$3,313	$2,626	$5,815	$5,124	$(863)	$(812)	$29,948	$26,844
Weighted Average Number of Diluted Shares	39,210	38,354	39,210	38,354	39,210	38,354	39,210	38,354	39,210	38,354
Diluted earnings (loss) per share	$0.55	$0.52	$0.08	$0.07	$0.15	$0.13	$(0.02)	$(0.02)	$0.76	$0.70

Contacts
Eva G. Tang · Senior Vice President-Finance, Chief Financial Officer, · Corporate Secretary and Treasurer · Telephone: (909) 394-3600, ext. 707