Loading...
•
Sep 30
American States Water Q3 2025 Earnings Report
American States Water Company announced an 11.6% increase in consolidated diluted EPS for the third quarter of 2025, driven by higher earnings across all operating segments.
Key Takeaways
American States Water Company reported strong third-quarter 2025 results with consolidated diluted earnings per share increasing by $0.11 to $1.06, up 11.6% from the prior year. This growth was primarily fueled by increased construction activities in the contracted services segment and the implementation of new customer rates in both the water and electric utility segments. The company also highlighted significant capital investment authorizations and continued its long-standing dividend growth.
Consolidated diluted EPS increased by 11.6% to $1.06 in Q3 2025, up from $0.95 in Q3 2024.
All operating business segments, including water, electric, and contracted services, reported increased earnings per share.
AWR's regulated utilities are authorized to spend nearly $650 million in capital investments, with $180 to $210 million targeted for 2025.
The company increased its quarterly dividend by 8.3% in 2025, marking 71 consecutive years 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 strong performance, with its contracted services segment expected to contribute significantly to full-year earnings. The company is also on track with its capital investment plans and is expanding its water operations into new communities, securing future growth.
Positive Outlook
- Contracted services business is expected to contribute $0.59 to $0.63 per share for the full 2025 year.
- On target to invest $180 to $210 million in capital investments in 2025.
- AWR’s regulated water utility received CPUC approval to provide water services to a new planned community, with the first development serving up to 3,800 customer connections over the next five years.
- The new planned community allows for the construction of 17,500 total dwelling units at full buildout over the longer term (20+ years).
- AWR's current policy is to achieve a CAGR in the dividend of more than 7% over the long-term.
Challenges Ahead
- GSWC’s revenues and earnings may be subject to future volatility from significant fluctuations in customer consumption compared to adopted levels due to the transition to a modified rate adjustment mechanism.
- GSWC’s earnings will be subject to future volatility from favorable and unfavorable changes in the water supply source mix compared to the adopted mix due to transitioning from a full to an incremental cost balancing account for water supply.
- Dilutive effects from the issuance of equity under AWR’s at-the-market (ATM) offering program negatively impacted Q3 2025 earnings by approximately $0.02 per share.
- Dilutive effects from the issuance of equity under AWR’s ATM offering program negatively impacted YTD 2025 earnings by approximately $0.08 per share.
- Increased interest expense from higher borrowing levels under AWR’s credit facility contributed to increased diluted losses from AWR (parent) in Q3 2025.