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Jun 30
American States Water Q2 2025 Earnings Report
American States Water Company reported an increase in consolidated diluted earnings per share for the second quarter of 2025, driven by higher earnings in its water and electric utility segments, partially offset by a decrease in its contracted services business.
Key Takeaways
American States Water Company delivered a solid second quarter in 2025, with consolidated diluted earnings per share rising to $0.87 from $0.85 in the prior year. This growth was primarily fueled by new rate increases in the regulated water and electric utilities, which supported capital investments and covered higher operating costs. The contracted services segment experienced a decline due to project timing, though it is still expected to contribute positively for the full year. The company also announced its 71st consecutive annual dividend increase, reinforcing its commitment to shareholder returns.
Consolidated diluted earnings per share increased to $0.87 in Q2 2025 from $0.85 in Q2 2024.
Water and electric utility segments saw increased earnings due to new CPUC-authorized rates and capital investment growth.
Contracted services segment earnings decreased due to lower construction activity, primarily related to project timing.
The company approved an 8.3% increase in its quarterly dividend, marking the 71st consecutive year of dividend increases.
American States Water
American States Water
American States Water Revenue by Segment
Revenue by Segment
Water Revenue
CapyFin.comElectric Revenue
CapyFin.comContracted Services Revenue
CapyFin.com Forward Guidance
American States Water Company anticipates continued positive contributions from its regulated utilities due to new rates and ongoing capital investments. While the contracted services segment faced timing challenges in Q2, it is expected to meet its full-year earnings contribution target. The company remains committed to its long-term dividend growth policy.
Positive Outlook
- Contracted services business is still expected to contribute $0.59 to $0.63 per share for the full 2025 year.
- On target to spend $170 million to $210 million in capital investments in 2025.
- New rates for water and electric utilities are expected to continue supporting growth in capital investments and covering operating costs.
- The company's current policy is to achieve a CAGR in the dividend of more than 7% over the long-term.
- Strong credit ratings of “A” for AWR and “A+” for its regulated water utility affirmed by Standard & Poor’s with a stable outlook.
Challenges Ahead
- GSWC’s revenues and earnings may be subject to future volatility due to significant fluctuations in customer consumption compared to adopted levels, as a result of transitioning to a modified rate adjustment mechanism.
- Without a full cost balancing account for water supply, GSWC’s earnings will be subject to future volatility as a result of favorable and unfavorable changes in the water supply source mix compared to the adopted mix.
- The favorable water supply source mix experienced during the second quarter may or may not continue during the remainder of the 2025 year.
- Construction activities in the contracted services segment were negatively impacted by timing of when the work is performed, which could recur.
- Future phases of the new planned community asset acquisition are anticipated to occur by 2034, subject to potential delays.