American States Water Q1 2025 Earnings Report
Key Takeaways
American States Water Company's first quarter 2025 results showed a 13% increase in consolidated diluted earnings per share to $0.70, up from $0.62 in the prior year, largely benefiting from new rates at the water and electric utility segments. The company also highlighted significant authorized capital investments and consistent performance in its contracted services segment, despite some operational shifts and market impacts on retirement plan investments.
Diluted EPS increased by 13% to $0.70, up from $0.62 in Q1 2024.
New rates at regulated water and electric utilities were the primary driver of earnings growth.
CPUC authorized nearly $650 million in capital investments for regulated utilities.
Contracted services segment maintained consistent earnings contribution compared to the prior year.
American States Water
American States Water
American States Water Revenue by Segment
Forward Guidance
The company provided guidance for its contracted services segment for the full year 2025 and reiterated its long-term dividend growth policy. It also highlighted significant authorized capital investments.
Positive Outlook
- Contracted services business expected to contribute $0.59 to $0.63 per share for the full 2025 year.
- CPUC decisions authorized nearly $650 million in capital investments for regulated utilities.
- Long-term policy to achieve a CAGR in the dividend of more than 7%.
- Paid common dividends every year since 1931.
- Increased dividends each calendar year for 70 consecutive years.
Challenges Ahead
- Earnings may be subject to future volatility due to fluctuations in water consumption and supply source mix under the new M-WRAM and ICBA mechanisms.
- Losses on investments held for a retirement plan negatively impacted Q1 2025 results compared to gains in Q1 2024.
- Dilutive effects from the ATM offering program negatively impacted Q1 2025 EPS.
- Construction activities in the contracted services segment were negatively impacted by unfavorable weather in Q1 2025.