Nov 4, 2026, 4:34 PM ETUtilities

American States Water Company — Third Quarter 2026 Earnings Summary

AWRAMERICAN STATES WATER CO

Financial Performance

Reported diluted earnings per share (EPS) for Q3 2026 were $1.06, consistent with Q3 2025; adjusted diluted EPS increased $0.05 to $1.06 from $1.01 in the prior year period.
Year-to-date (YTD) 2026 reported diluted EPS were $2.92, an 11.0% increase ($0.29) compared to $2.63 in YTD 2025; adjusted YTD diluted EPS increased 12.6% ($0.32) to $2.86 from $2.54.
Q3 2026 total operating revenues were $192.5 million, up from $182.7 million in Q3 2025.
YTD 2026 total operating revenues were $543.0 million, up from $493.8 million in YTD 2025.
Q3 2026 net income was $42.3 million compared to $41.2 million in Q3 2025.
YTD 2026 net income was $115.5 million compared to $101.7 million in YTD 2025.
Q3 2026 operating expenses were $125.2 million, up from $121.0 million in Q3 2025.
YTD 2026 operating expenses were $360.4 million, up from $335.6 million in YTD 2025.
Q3 2026 interest expense (net of interest income) was $11.1 million, compared to $10.6 million in Q3 2025.
YTD 2026 interest expense (net of interest income) was $33.5 million, compared to $31.3 million in YTD 2025.
Q3 2026 weighted average diluted shares were 39.8 million, up from 38.7 million in Q3 2025.
YTD 2026 weighted average diluted shares were 39.5 million, up from 38.6 million in YTD 2025.
Q3 2026 total assets were $2.81 billion, up from $2.72 billion as of December 31, 2025.
Q3 2026 total capitalization and liabilities were $2.81 billion, up from $2.72 billion as of December 31, 2025.

Regulated utilities are on target to invest $185 million to $220 million in capital infrastructure in 2026.
The contracted services business is expected to contribute $0.63 to $0.67 per share for the full year 2026.
The company has no plans to issue additional equity through at least the end of 2029 to support current operations.
The company's long-term dividend policy is to achieve a compound annual growth rate (CAGR) of more than 7%.

Water Segment: Q3 2026 diluted EPS was $0.85, down $0.01 from $0.86 in Q3 2025; adjusted EPS increased $0.04 to $0.85 from $0.81. YTD 2026 diluted EPS was $2.32, up $0.21 from $2.11. Water operating revenues increased $7.6 million in Q3 2026, driven by CPUC-authorized rate increases effective January 1, 2026, and a 1% increase in water consumption.
Electric Segment: Q3 2026 diluted EPS was $0.05, up $0.01 from $0.04 in Q3 2025. YTD 2026 diluted EPS was $0.18, up $0.04 from $0.14. Q3 2026 electric revenues increased $1.6 million due to CPUC-authorized fourth-year rate increases and additional revenues for advice letter capital projects.
Contracted Services Segment: Q3 2026 diluted EPS was $0.17, down $0.02 from $0.19 in Q3 2025. YTD 2026 diluted EPS was $0.47, up $0.02 from $0.45. The segment was awarded approximately $31 million in new construction projects YTD 2026, expected to be completed through 2029.
AWR (Parent): Q3 2026 diluted loss was $0.01, an improvement of $0.02 from a $0.03 loss in Q3 2025, driven by lower borrowing levels and interest rates. YTD 2026 diluted loss was $0.04, an improvement of $0.02 from a $0.06 loss.

The company serves over one million people in ten states, including approximately 265,600 water customer connections in California and 24,900 electric customer connections in San Bernardino County.
The contracted services subsidiary operates under 50-year privatization contracts with the U.S. government on twelve military bases in eight states and a 15-year contract on one military base in an additional state.
The company is subject to market volatility affecting retirement plan asset returns, which impacted reported earnings but was excluded from adjusted earnings.
Water segment earnings are impacted by consumption fluctuations due to climate change, conservation, and weather events (e.g., El Niño or La Niña).
Water segment earnings are also impacted by water supply mix changes due to unforeseen changes in groundwater quality and operating conditions.

Volatile market conditions caused an unfavorable period-over-period change in investment results, resulting in $17,000 losses on retirement plan investments in Q3 2026 compared to $2.5 million gains in Q3 2025.
Dilutive effects from the issuance of equity under the ATM offering program negatively impacted earnings by approximately $0.02 per share in Q3 2026 and $0.07 per share YTD 2026.
Changes in flowed-through income taxes unfavorably impacted the water segment's earnings in Q3 2026.
Higher overall operating and construction expenses negatively impacted the contracted services segment's earnings in Q3 2026.
Increased labor costs, employee benefits, water treatment/chemical costs, regulatory expenses, depreciation, maintenance, and property taxes increased operating expenses in the water segment.

Management noted that financial results were impacted by unfavorable investment results driven by volatile market conditions.
Reported and adjusted net earnings were positively impacted by the implementation of new customer rate increases approved by the California Public Utilities Commission (CPUC).
Management highlighted that the company has increased dividends every calendar year for 72 consecutive years, placing it in an exclusive group on the NYSE.
The company stated that adjusted earnings per share excludes gains and losses on investments held to fund retirement plans to facilitate comparisons of core operating performance.

On June 12, 2026, the company completed its at-the-market (ATM) offering program, raising a maximum aggregate capacity of $200 million in gross proceeds through the sale of 2,575,947 Common Shares. No further sales will be made under this program.
On October 26, 2026, the Board of Directors approved a fourth-quarter dividend of $0.5455 per share, an 8.2% increase from the previous quarter.
The quarterly dividend rate has grown at a CAGR of 8.4% over the last five years and achieved a 10-year CAGR of 8.7% through 2026.
The company transitioned to a modified revenue decoupling mechanism (M-WRAM) effective January 1, 2025, and an incremental water supply cost balancing account (ICBA) effective January 1, 2025, both of which impact future earnings volatility.
A conference call to discuss results was scheduled for November 5, 2026, at 2:00 p.m. Eastern Time.