American States Water Company Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
👉 Clear answers to your questions
Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $3.39b | Revenue (TTM) = $697.48m
Market Cap = $3.39b | Estimated Revenue = $719.91m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $4.27b | Revenue (TTM) = $697.48m
Enterprise Value = $4.27b | Forward Revenue = $719.91m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🧮 Calculation
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
American States Water Company Stock Analysis
Analyst Opinions
11 Analysts have issued a American States Water Company forecast:
Analyst Opinions
11 Analysts have issued a American States Water Company forecast:
American States Water Company Events
Upcoming Event
Past Events
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AUG
6
Q2 2026 Earnings Call
3 months ago
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MAY
7
Q1 2026 Earnings Call
6 months ago
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FEB
19
Q4 2025 Earnings Call
8 months ago
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NOV
6
Q3 2025 Earnings Call
12 months ago
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American States Water Company — Q2 2026 Earnings Call
1. Management Discussion
Welcome to the American States Water Company conference call discussing the company's second quarter 2026 results. The call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 p.m. Eastern Time and run through August 13 on the company's website, www.aswater.com. The slides that the company will be referring to are also available on the website.
Presenting today from American States Water Company are Bob Sprowls, President and Chief Executive Officer; and Eva Tang, Senior Vice President of Finance and Chief Financial Officer.
As a reminder, certain matters discussed during this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and listeners are cautioned not to place undue reliance upon them.
Forward-looking statements are subject to estimates and assumptions and known and unknown risks, uncertainties and other factors. Listeners should review the description of the company's risks and uncertainties that could affect the forward-looking statements in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission.
Statements made on this conference call speak only as of the date of this call, and except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statements. In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles in the United States and constitute non-GAAP financial measures.
These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP. For more details, please refer to the press release.
At this time, I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company.
Thank you, Bailey. Welcome, everyone, and thank you for joining us today. I'll begin with a discussion of the quarter. Eva will discuss some financial details, and then I'll wrap it up with updates on regulatory activity, ASUS and dividends, and then we will take your questions.
We are pleased to report an excellent quarter with financial results that reflected strong execution across our business. The company's performance highlights our effective management and the constructive regulatory framework in which we operate.
Our reported earnings per share for the second quarter was $1.09 compared to $0.87 for the same quarter in 2025, an increase of $0.22 or 25.3%. All 3 of our operating business segments performed well and reported year-over-year increases resulting from new customer rates implemented in 2026 at our regulated utilities to cover our infrastructure investments and an increase in construction activities at our Contracted Services segment.
In particular, the earnings growth was largely driven by the Water segment's strong second quarter performance that was led by new customer rate increases effective January 1, 2026. A 4% increase in water consumption and a lower reliance on purchased water further supported the quarter's solid performance compared to the same quarter in 2025.
However, it is uncertain whether these favorable conditions experienced in the second quarter will continue through the remainder of 2026 or if their positive earnings impact will reverse as we will discuss later. I'm also pleased to report that last week, our Board approved a significant dividend increase of 8.2%, resulting in an annualized dividend rate of $2.18 per share.
This reflects our Board's confidence in the company's ability to achieve long-term sustainable earnings growth. We believe a growing dividend allows the company to attract capital for investments in its infrastructure that enables us to provide safe and reliable services to our customers and return value to our shareholders.
American States Water has paid dividends every year since 1931, increasing the dividends received by shareholders each calendar year now for 72 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result.
We continue to seek opportunities to expand our regulated water operations. In July, Golden State Water Company and the Public Advocates Office at the California Public Utilities Commission, or Cal Advocates, filed a joint settlement to approve the acquisition of an existing water system that serves almost 900 customer connections located in the city of Norwalk in Los Angeles County.
Our regulated utilities are on pace to invest $185 million to $220 million in infrastructure investments this year as we continue to invest in our water, wastewater and electric utility systems for the long-term benefit of our customers.
We filed a new electric general rate case in January for customer rates covering 2027 through 2030 and a new water general rate case in July, covering rates for 2028 through 2030. We successfully completed our at-the-market equity offering program in June, reaching the maximum aggregate offering capacity of $200 million in gross proceeds raised since the program was first established in February 2024.
We have no plans to issue additional equity through at least the end of 2029 to support our current operations. Lastly, we were once again recognized on TIME's list of Best Companies in 2026 and we're 1 of only 2 investor-owned water utilities on the list. This recognition reflects the company's disciplined execution of its strategic growth plans, strong financial performance, commitment to our workforce and robust environmental, social responsibility and governance practices.
With that, I will turn the call over to Eva to discuss earnings and liquidity.
Thank you, Bob, and hello, everyone. Let me start on Slide 7. As Bob mentioned, we delivered excellent financial results this quarter. Our consolidated earnings were $1.09 per share compared to $0.87 per share for the second quarter of 2025. Our water utility, Golden State Water, reported earnings of $0.91 per share compared to $0.73 per share for the second quarter of last year.
The $0.18 per share increase was largely due to new water rates for 2026, including additional revenues associated with approved advice letter capital project in late 2025 and higher gains generated on investments for a retirement plan, partially offset by an increase in water supply costs, interest expense net of interest income and the effective income tax rate.
Lastly, there was a decrease in earnings of $0.02 per share due to the dilutive effect from the share issuances under the parent company's at-the-market offering program. Our Electric segment's reported earnings were $0.04 per share for the quarter as compared to $0.03 per share for the same quarter last year.
The $0.01 per share increase is primarily related to rate increases, partially offset by higher overall operating and interest expenses. Earnings from ASUS were $0.16 per share for the quarter compared to $0.13 per share for the same quarter last year, an increase of $0.03 per share, largely due to higher construction activities, an increase in management fee revenues from the resolution of various economic price adjustments and lower interest expenses, partially offset by an increase in operating expenses.
This slide shows that consolidated revenue for the second quarter increased by $18.2 million compared to the same quarter of 2025. Revenues increased by $11.4 million in the Water segment and $700,000 in the Electric segment, driven largely by the new 2026 rates and additional revenues generated from advice letter projects approved in 2025.
Revenues from ASUS increased $6.2 million, primarily due to higher construction activities and management fee revenues. Turning to Slide 9. Looking at supply costs first. The increase in supply costs primarily related to our water utility segment.
Due to an overall increase in per unit water supply cost covers in rates and an increase in the production of water resulting from higher customer consumption, partially offset by the favorable impact of an actual water supply source mix that included less purchased water during the quarter compared to the same period last year due to wells being brought back online in certain customer service areas.
The remaining consolidated operating expenses increased by $4.6 million compared to 2025, largely due to higher ASUS construction expenses from an increase in construction activity and an overall increase in operating expenses.
Interest expense net of interest income also increased largely from capitalization of debt costs related to certain advice letter projects approved by the CPUC in the latest water GRC effective January 1, 2025, which was recorded in 2025 with no similar items this year and reduced interest income from a decrease in regulatory asset balances for both regulated utilities.
Lastly, other income increased during the quarter due to higher gains generated from investment to fund a retirement plan. Slide 10 shows the EPS bridge comparing reported EPS for the second quarter of 2026 against last year's second quarter.
Consolidated earnings for the 6 months ended June 2026 were $1.86 per share compared to $1.57 per share for the same period in 2025, an increase of $0.29 per share. As Bob mentioned, all 3 of our operating business unit segments performed very well and reported year-over-year increases.
Turning to liquidity on this slide. Net cash provided by operating activities were $116.6 million for year-to-date 2026 as compared to $109.6 million for the same period last year. The increase is largely related to new rates implemented at our regulated utilities as well as various approved surcharges and additional revenues from approved advice letter projects.
In addition, the increase also results from PFAS litigation proceeds received during the year. For investing activities, our regulated utility invested $91.7 million on company-funded capital projects during the first half of the year, and we expect company-funded capital expenditures to total between $185 million to $200 million for the full year 2026.
For financing activities, American States Water under at-the-market offering program raised proceeds of $39.9 million during the first half of the year, net of issuance costs and legal costs. As Bob mentioned earlier, we have completed the equity offering program and do not expect to issue additional equity through at least the end of 2029.
Last month, Standard & Poor's affirmed the company's strong credit ratings of A for American States Water with a stable outlook and A+ for Golden State Water also with a stable outlook. These are some of the highest credit ratings in the U.S. investor-owned water utility industry.
With that, I'll turn the call back over to Bob.
Thank you, Eva. Turning now to updates on the regulatory front, starting with the latest water general rate case application that set new rates for the years 2025 through 2027. In December, Golden State Water received approval from the CPUC to implement its full second year and other rate increases, which were effective January 1 of this year.
This approval results in higher adopted operating revenues less water supply costs for the full year 2026 of $32 million compared to adopted operating revenues less water supply cost for 2025. Included in the 2026 increase is nearly $11 million related to advice letter capital projects.
The advice letter projects were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026. In comparison, the net change in adopted operating revenues less water supply costs in 2025 over 2024 adopted levels was $23 million.
As a reminder, due to the CPUC's required use of a modified revenue decoupling mechanism and an incremental water supply cost balancing account effective January 1, 2025, Golden State Water's earnings face future volatility from consumption fluctuations and water supply mix changes.
As I mentioned earlier, Golden State Water's second quarter earnings benefited from higher customer consumption of 4% and a favorable water supply source mix that included less purchased water than in the same period of 2025. This improvement in the supply mix was due in part to certain wells that have been temporarily offline during the first quarter, returning to service in the second quarter.
It remains uncertain whether these favorable conditions in the second quarter will continue through the remainder of 2026 or if their positive earnings impact will reverse. Customer consumption can fluctuate due to factors like climate change, conservation efforts and weather conditions.
For example, El Niño or La Niña weather events could significantly affect precipitation levels and outdoor water use. Additionally, water supply mix changes can occur due to unforeseen groundwater quality issues and changes in the operating conditions of groundwater basins and associated pumping facilities.
Any of these factors could have a direct impact on Golden State Water's future net earnings. Next, we review pending and future regulatory proceedings at the Water segment. On July 1, Golden State Water filed a general rate case application for all of its water regions and the general office.
This general rate case will determine new water rates for the years 2028 through 2030. Golden State Water requested capital budgets of approximately $1 billion for the 3-year rate cycle and among other things, requested to reinstate the regulatory mechanisms for full revenue decoupling and a full supply cost balancing account for water supply.
The decision in this rate case is scheduled for the fourth quarter of 2027. Also, as mentioned on prior earnings calls, the CPUC approved a request by Golden State Water and 3 other large investor-owned California water utilities to defer the cost of capital application by another year.
CPUC's approval postponed the filing date of the application by 1 year until May 1, 2027, with a corresponding effective date of January 1, 2028. The CPUC also approved the joint party's request to leave the current water cost of capital mechanism in place through the 1-year deferral period.
Golden State Water's current authorized rate of return on rate base is 7.93% based on its weighted average cost of capital, which includes a return on equity of 10.06% and a capital structure with 57% equity and 43% debt, which will continue in effect through December 31, 2027.
Furthermore, as I previously highlighted, on July 13, Golden State Water and Cal Advocates filed a joint motion seeking approval of the settlement agreement to acquire a water system in Norwalk, California. If the settlement agreement is approved by the CPUC, system will be incorporated into one of Golden State Water's existing ratemaking areas and will result in an increase to water revenues.
A proposed decision is expected in the fourth quarter of this year. Turning our attention to Slide 15. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2026, which increased from $980.4 million in 2021 to $1,673.2 million in 2026.
That represents a compound annual growth rate of 11.3% over the 5-year period. Golden State Water anticipates a robust and sustained growth in its rate base over the next few years. The annual increase in rate base reflects, among other factors, the net effect of capital investments less depreciation.
The higher increase in 2026 as compared to the increases in the prior years represents the effects of the advice letter projects completed prior to 2026 that were included in rate base effective January 1, 2026. Please see the first footnote at the bottom of the slide.
The affordability of our customer bills is always something that our company takes very seriously. We remain focused on balancing our need for continued investment in system reliability and resiliency with the impact on customer bills.
CPUC evaluates affordability using metrics such as the affordability ratio, which measures essential utility bills relative to household income, particularly for low-income customers. The majority of our water service areas perform well under the CPUC's affordability metrics.
For a very few smaller service areas where affordability challenges exist, we are either implementing or have proposed measures to address those concerns. Our electric customer bills and affordability metrics remain within a manageable range.
Now turning our attention to Bear Valley Electric, which continues to be a strong contributor to the company's results. The current general rate case set rates for 2023 through 2026. In January, Bear Valley Electric implemented new rates for 2026, which is the last year of its 4-year rate cycle.
There were also additional increases in revenues in 2025 and 2026 associated with $27.9 million of capital projects, including AFUDC approved for recovery through advice letters that were completed and placed in service.
In January of this year, Bear Valley Electric filed a general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, Bear Valley Electric requested capital budgets of approximately $133 million for the 4-year rate cycle and another approximately $17 million plus AFUDC for capital projects to be filed for revenue recovery through advice letters when the projects are completed.
A return on equity of 11.30%, and embedded cost of debt of 5.92%, capital structure of 60% equity and 40% debt and a return on rate base of 9.15%. Let's continue to ASUS, which contributed earnings of $0.16 per share for the quarter, which was $0.03 per share higher than last year. This was a result of an increase in construction activities, higher management fee revenues resulting from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels and lower average interest rates, partially offset by higher overall operating expenses.
ASUS is projected to contribute $0.63 to $0.67 per share this year. In addition, we remain confident that we can effectively compete for new military base contract awards in the future based on our expertise and strong reputation with the military.
I would like to turn our attention to dividends, which I touched on earlier. Last week, we announced an 8.2% increase in the third quarter dividend. This increase is consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term.
Our strong dividend history is something that the company is proud of and is a continued asset to our shareholders. This strong track record has allowed us to achieve an 8.4% compound annual growth rate in our quarterly dividend rate to shareholders over the last 5 years since the third quarter of 2021, and the company is on pace to achieve a 10-year compound annual growth rate of 8.7% in its calendar year dividend payments through 2026.
I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and we'll now turn the call over to the operator for questions.
[Operator Instructions] At this time, there are no questions. I would like to turn the conference back over to Bob Sprowls for closing remarks.
Thank you, Bailey. I just want to pass on my thanks to all of you for your participation today, and we look forward to speaking with you next quarter.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
American States Water Company — Q2 2026 Earnings Call
American States Water Company — Q1 2026 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by, and welcome to the American States Water Company conference call discussing the company's first quarter 2026 results. This call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 p.m. Eastern Time and run through May 14 on the company's website at www.aswater.com.
The slides that the company will be referring to are also available on the website. [Operator Instructions] This call will be limited to 1 hour. Presenting today from American States Water company are Mr. Bob Sprowls, President and Chief Executive Officer; and Ms. Eva Tang, Senior Vice President of Finance and Chief Financial Officer. As a reminder, certain matters discussed during the conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and listeners are cautioned not to place undue reliance upon them. Forward-looking statements are subject to estimates and assumptions and known to unknown risks, uncertainties and other factors. Listeners should review the description of the company's risks and uncertainties that could affect the forward-looking statements in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission.
Statements made on this conference call speak only as the date of this call and expect as required by law. The company does not undertake any obligation to publicly update or revise any forward-looking statements.
In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles, or GAAP, in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP.
For more details, please refer to the press release. At this time, I would like to turn the call over to Mr. Bob Sprowls, President and Chief Executive Officer of American States Water Company. Please go ahead, sir.
Thank you, Chuck. Welcome, everyone, and thank you for joining us today. I'll begin with a discussion of the quarter. Eva will discuss some financial details, and then I'll wrap it up with updates on regulatory activity, ASUS and dividends, and then we'll take your questions.
We started 2026 with strong financial results, and I'm pleased to report consolidated earnings per share for the quarter of $0.76 compared to $0.70 for the same quarter in 2025, an increase of 8.6%. All 3 of our operating business segments performed well and reported year-over-year increases.
Our regulated utilities are on pace to invest a combined $185 million to $225 million in infrastructure investments this year as we continue to invest in our water, wastewater and electric utility systems for the long-term benefit of our customers. We saw the benefits this quarter of step rate increases for both our water and electric utilities.
We filed a new electric general rate case in January covering 2027 through 2030 and are poised to file a new water general rate case in July covering 2028 through 2030. In addition, our cost of capital application was deferred for another year, which I'll discuss later.
Our Contracted Services segment performed much higher construction activity during the quarter, and we continue to have strong water utility, electric utility and contracted services businesses.
American States Water remains a leader with our strong earned return on equity and dividend histories, and we continue to deliver value and returns to our shareholders. Lastly, we were recently recognized on Newsweek's list of most trustworthy companies in America and ranked #1 in the energy and utilities industry.
It is an honor to be recognized based on the views of our key stakeholders made up of customers, employees and investors. With that, I'll turn the call over to Eva to discuss earnings and liquidity.
Thank you, Bob. Let me start with our first quarter results. Reported consolidated earnings were $0.76 per share as compared to $0.70 per share for the first quarter of 2025. For our water utility, Golden State Water, reported earnings were $0.55 per share compared to $0.52 per share for the first quarter of last year.
The $0.03 per share increase was largely due to new water rates for 2026, including additional revenues associated with advice letter capital project approved last year, partially offset by higher water supply costs, overall operating expenses, interest expense, net of interest income, other expense, net of other income and income taxes.
Lastly, there was a decrease in earnings of $0.01 per share due to the dilutive effect from share issued under the parent company's at-the-market offering program. Our Electric segment reported earnings were $0.08 per share for the quarter as compared to $0.07 per share for the same quarter last year.
The $0.01 per share increase is primarily related to rate increases, partially offset by higher overall operating and interest expenses. Earnings from ASUS were $0.15 per share for the quarter compared to $0.13 per share for the same quarter last year, an increase of $0.02 per share, largely due to higher construction activities and lower interest expenses, partially offset by an increase in operating expenses.
Slide 8 shows consolidated revenue for the first quarter. The revenue increased by $21.2 million when compared to the same quarter of 2025. Revenue for the Water segment increased by $11.1 million, largely due to new 2026 water rates.
Revenue for the Electric segment also increased by $3.7 million, mainly due to fourth year rate increases and additional revenues from approved advice letter projects in 2025. Revenues from ASUS increased $6.4 million, largely driven by higher construction activities during the quarter due to timing.
Turning to Slide 9. Supply costs increased by $5.1 million, mostly driven by higher overall per unit purchased water cost included in water rates in 2026 with no impact to net earnings and higher purchased water volume when compared to the same quarter last year.
Looking at the total operating expenses other than supply costs, consolidated expenses increased by $10.2 million compared to 2025. The increase was still too higher ASUS construction expenses resulting from an increase in construction activity and overall increase to operating expenses, some of which is due to timing.
In addition, there was an increase in interest expense, net of interest income, largely from the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest water generate case that was recorded in 2025 with no similar items in 2026 and reduced interest income from a decrease in regulatory asset balances for both regulated utilities, partially offset by a decrease in overall interest expense.
Slide 10 shows the earnings per share bridge, comparing reported earnings per share for the first quarter of 2026 against the same period for 2025. Turning to liquidity on this slide. Net cash provided by operating activity was $71.6 million for the first quarter of 2026 compared to $45.1 million for the same period in 2025.
The increase is largely related to the implementation of new rates at our regulated utilities from approved general rate case proceedings as well as various approved surcharges and additional base rate from advice letter filings.
In addition, the increase also resulted from billing and cash receipts for work at ASUS' military bases and timing of its vendor payments. For investing activities, our regulated utility invested $42.1 million on company-funded capital projects in the first quarter of this year. We project company-funded capital expenditure to reach $185 million to $225 million for the full year of 2026.
For financing activities, American State Water under its at-the-market offering program raised proceeds of $6.2 million during the quarter, net of issuance and legal costs, leaving a remaining balance of $34.3 million available for issuance under the program.
We do not expect to continue the ATM program once the remaining balance has been fully utilized. With that, I'll turn the call back to Bob.
Thank you, Eva. On the regulatory front, we are in the process of preparing our next water rate case expected to be filed by July 1. As a reminder, the California Public Utilities Commission, or CPUC, issued a final decision on January 30, 2025, on Golden State Water's prior general rate case, requiring the company to transition from a full revenue decoupling mechanism and a full supply cost balancing account for water supply, which were requested again in that general rate case application to a modified rate adjustment mechanism known as the Monterey-style Water Revenue Adjustment Mechanism, or MRAM, and an incremental cost balancing account for supply costs effective January 1, 2025.
As a result, the company may be subject to future volatility in revenues and earnings as a result of fluctuations in water consumption by its customers and changes in water supply source mix. Golden State Water'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.
Golden State Water's earnings for this first quarter were impacted by an actual water supply source mix that included more purchased water than in the same period of 2025 due in part to certain wells being temporarily offline in a few service areas.
In December of last year, Golden State Water received approval from the CPUC to implement its full second year rate increases, which were effective January 1 of this year. This approval results in higher adopted operating revenues less water supply cost for 2026 of approximately $32.0 million compared to 2025's adopted operating revenues less water supply cost.
Included in the 2026 increase is nearly $11 million related to advice letter capital projects. Under the approved settlement agreement that Golden State Water had with the Public Advocates Office at the CPUC on the general rate case.
Beginning in 2025, all of the advice letter projects were allowed to accrue in a memorandum account interest during the construction period at Golden State Water's adopted cost of debt until the assets are in service and the full rate of return that includes the debt and equity component and all applicable components of the revenue requirement for the projects from the period the assets are in service until the date of the filings for the step increases.
The assets from the advice letter projects and the related amounts in the memorandum account were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026. In comparison, the net change in adopted operating revenues less water supply cost in 2025 over 2024 adopted levels was $23 million.
Also, as mentioned on prior earnings calls, the CPUC approved a request by Golden State Water and the 3 other large investor-owned California water utilities to defer the cost of capital application by another year.
CPUC's approval postponed the filing date of the application by 1 year until May 1, 2027, with a corresponding effective date of January 1, 2028. CPUC also approved the joint party's request to leave the current water cost of capital mechanism in place through the 1-year deferral period. Golden State Water's current authorized rate of return on rate base is 7.93%, which includes a return on equity of 10.06% and a capital structure with 57% equity and 43% debt.
Based on its weighted average cost of capital, which will continue in effect through December 31, 2027. Turning our attention to Slide 14. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2026. which increased from $980.4 million in 2021 to $1.673.2 billion in 2026.
That represents a compound annual growth rate of 11.3% over the 5-year period using 2021 as the base year for the calculation. Golden State Water anticipates a robust and sustained growth in its rate base over the next few years.
The annual increase in rate base reflects, among other factors, the net effect of capital investments less depreciation. The water general rate case decision issued in early 2025 authorized the company to invest $573.1 million in capital infrastructure, which includes $17.7 million of advice letter projects for the 2025 through 2027 rate cycle.
In addition, the decision required Golden State Water to treat $58.2 million of capital projects as additional advice letter projects rather than including them in the base rates for 2025. Some of these projects had been under construction since 2023. As a result, you don't see a higher increase in rate base from 2024 to 2025 as these projects were not included in rate base in 2025.
However, as noted earlier, all advice letter projects were permitted to accrue either a full rate of return or interest expense in a memorandum account prior to the filing for recovery. As agreed to in settlement, Golden State Water completed these projects and filed them concurrently with the step increase filings in November 2025.
CPUC approved the filings in December. As a result, the project costs and accumulated memorandum account balances totaling $80 million have been added to the 2026 adopted rate base, generating an incremental revenue requirement of approximately $11 million beginning in 2026 and onwards.
Accordingly, you see a healthy increase in rate base in 2026. Now turning our attention to Bear Valley Electric, which continues to be a strong contributor to the company's results. The current general rate case set rates for 2023 through 2026.
In January, Bear Valley Electric implemented new rates for 2026, which is the last year of its 4-year rate cycle. There were also increases in base rates in 2025 to recover the revenue requirement associated with $23.8 million for capital projects approved for recovery through advice letters that were completed and placed in service, including allowance for funds used during construction or AFUDC.
In January of this year, Bear Valley Electric filed a general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, Bear Valley Electric requested capital budgets of approximately $133 million for the 4-year rate cycle and another approximately $17 million plus AFUDC for capital projects to be filed for revenue recovery through advice letter projects when the projects are completed.
A requested return on equity of 11.3% and embedded cost of debt of 5.92%, capital structure of 60% equity and 40% debt and a requested return on rate base of 9.15%. Let's continue to ASUS, which contributed earnings of $0.15 per share for the quarter, which was $0.02 per share higher than last year.
This was a result of an increase in construction activities, higher management fee revenues resulting from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels and lower average interest rates, partially offset by higher overall operating expenses.
ASUS is projected to contribute $0.63 to $0.67 per share for this year. In addition, we remain confident that we can effectively compete for new military base contract awards in the future based on our strong reputation with the military and our expertise.
I would like to turn our attention to dividends. Our quarterly dividend rate has grown at a compound annual growth rate or CAGR of 8.5% over the last 5 years. We continue to exceed our policy goal of achieving a compound annual growth rate in the dividend of more than 7% over the long term.
I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and we'll now turn the call over to the operator for questions.
[Operator Instructions] as there are no questions, this concludes our question-and-answer session. I would like to turn the conference back over to Mr. Bob Sprowls for any closing remarks.
Thank you, Chuck. Thank you all for your participation today, and we look forward to speaking with you next quarter. Thank you.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
American States Water Company — Q1 2026 Earnings Call
American States Water Company — Q4 2025 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by. Welcome to the American States Water Company conference call discussing the company's fourth quarter and full year 2025 results. The call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 p.m. Eastern Time and run through February 26 on the company's website, www.aswater.com.
The slides that the company will be referring to are also available on the website. [Operator Instructions] This call will be limited to an hour. Presenting today from American States Water Company are Bob Sprowls, President and Chief Executive Officer; and Eva Tang, Senior Vice President of Finance and Chief Financial Officer.
As a reminder, certain matters discussed during this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements and listeners are cautioned not to place undue reliance upon them. Forward-looking statements are subject to estimates and assumptions and known and unknown risks, uncertainties and other factors. Listeners should review the description of the company's risks and uncertainties that could affect the forward-looking statements in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission.
Securities made on this conference call speak only as of the date of this call and expect as required by law. The company does not undertake any obligation to publicly update or revise any forward-looking statement. In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles or GAAP in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP. For more details, please refer to the press release.
At this time, I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company. Please go ahead, sir.
Thank you, Chloe. Welcome, everyone, and thank you for joining us today. I'll begin with a discussion of the year. Eva will then discuss some financial details for both the fourth quarter and the year and then I'll wrap it up with updates on regulatory activity, ASUS and dividends, and then we'll take your questions.
2025 was a very productive and positive year for the company. January, the company's water utility Golden State Water Company received the final decision from the California Public Utilities Commission, or CPUC, on its general rate case setting rates for 2025 through 2027. Our electric subsidiary also received its final decision in January of 2025 for new rates covering the period 2023 through 2026. Both decisions represent constructive regulatory outcomes and position us to continue investing in our utility infrastructure for safe and reliable services for generations to come.
In addition, our contracted services business, American States Utility Services, or ASUS, contributed a significant increase in earnings for the year. As a result, I'm pleased to announce we delivered strong financial results for 2025 with reported earnings that were $0.20 per share higher compared to 2024 or $0.33 per share higher as adjusted. Included in the company's reported earnings in 2024 was a tax benefit of $0.13 per share for Golden State Water following the final decision in its general rate case. Excluding this item, adjusted earnings for 2024 were $3.04 per share as compared to $3.37 per share for 2025.
In 2025, we invested $210.9 million in infrastructure at our regulated utilities reflecting our continued strong ability to execute our capital plan. In addition, we continue to seek opportunities to expand our regulated water operations. During the year, Golden State Water completed a transaction with a developer to own and operate the water and wastewater systems assets, serving a new plan community to be built out over time which is expected to have approximately 1,300 customer connections, generating 2 revenue streams for delivering water and wastewater services to this community for many years to come.
In addition, during the fourth quarter, we received CPUC approval to provide water services at another new planned community that will be built out over time with the first development expected to serve up to 3,800 customer connections during the next 5 years. And over the long term, 20-plus years allows for the construction of 17,500 total dwelling units at full build-out.
Also, Golden State Water has signed an agreement with the city of Norwalk in Los Angeles County, to acquire its water system assets, serving about 900 residential customers. In January 2026, Golden State Water filed an application with the CPUC to expand its existing Region 2 ratemaking area and include the $5.25 million purchase price in rate base.
ASUS continues to enter into U.S. government awarded contract modifications for new construction projects and was awarded $29.4 million in new capital upgrade construction projects during 2025. These newly awarded projects are expected to be completed through 2028. In 2025, we increased our quarterly cash dividend by 8.3%. This is our 71st consecutive year of annual dividend increases. And we remain proud of our dividend history and continued growth.
With that, I will turn the call over to Eva to discuss earnings and liquidity.
Thank you, Bob. Hello, everyone. Let me start with our fourth quarter results. Adjusted earnings for AWR consolidated increased $0.18 per share over the prior year when excluding the impact of a onetime tax benefit recorded in the fourth quarter of 2024, resulting from the water general rate case decision and the retroactive rates related to 2023 and the first 9 months of 2024 recorded in the fourth quarter of 2024 as a result of receiving the final CPUC decision on the electric general rate case.
Reported consolidated earnings were $0.74 per share as compared to $0.75 per share for the fourth quarter of 2024 or $0.56 per share as adjusted for that quarter. For our water utility Golden State Water reported earnings were $0.50 per share for the quarter as compared to $0.52 per share in 2014 or $0.39 per share as adjusted. Included in 2024 reported earnings was the previously mentioned $0.13 per share tax benefit recorded in the fourth quarter as a result of the final CPUC decision on the water GRC.
Excluding this item, the $0.11 per share increase as adjusted was largely due to new water rates for 2025, higher gains generated on investments held to fund a retirement plan, lower interest expense and a lower effective income tax rate from changes in certain flow-through income tax items, partially offset by higher operating expenses. Lastly, there was a decrease in earnings of $0.01 per share due to the dilutive effect from share issuance under the parent company's ad market offering program.
Our Electric segment reported earnings were $0.11 per share for the quarter as compared to $0.13 per share for 2024, a $0.02 per share decrease or a $0.04 per share increase as adjusted. As previously noted, included in 2024, reported electric earnings is the impact of retroactive rates related to the full year of 2023 and the first 9 months of 2024 of $0.06 per share recorded in the fourth quarter of 2024 as a result of receiving the final CPUC decision on the electric GRC. Excluding these items, the $0.04 per share increase primarily related to third year rate increases, partially offset by higher overall operating and interest expenses.
Earnings from ASUS were $0.16 per share for the quarter compared to $0.11 per share for the same quarter last year, an increase of $0.05 per share. Bob will discuss the details later in the call. Lastly, losses from our parent company were $0.03 per share for the quarter as compared to losses of $0.02 per share for the same quarter in 2024, largely due to an increase in interest expense resulting from higher borrowing levels from AWR's credit facility partially offset by lower average interest rates.
Consolidated revenue for the quarter increased by $21.2 million when compared to 2024. Revenues for the water segment increased $17.4 million, largely due to new 2025 water rates. Revenue for the Electric segment decreased by $5.7 million Included in the revenues for the quarter of 2024 were $9.2 million of retroactive rate as a result of receiving the final decision as mentioned earlier. Excluding these items, the increase in revenues was partially due to third year rate increases. Revenue from U.S. increased $9.5 million primarily due to higher construction activities during the quarter due to timing.
Turning to Slide 10. Supply costs increased by $10.7 million mostly due to higher overall per unit purchase broader cost included in customer rates in 2025. Looking at total operating expenses other than supply costs, Consolidated expenses increased by $4.2 million compared to 2024. This increase is partially offset by the impact of the electric generated decision which authorized higher operating expenses for vegetation management and other wildfire mitigation efforts that were retroactive to January 1, 2023, and recorded in the fourth quarter of 2024.
These costs were partially -- were previously excluded from customer rates and not expensed prior to receiving the approved general rate case decision as they were being tracked in memorandum accounts. They are now included in adopted electric revenues. In addition, the increase was due to higher ASUS construction expenses and higher overall operating expenses.
There was also an increase in interest spend net of interest income, primarily due to reduced interest income from a decrease in regulatory asset balances, partially offset by lower interest expense. Lastly, there was an increase in other income, net of other expense due largely to higher gains generated on investments held to fund a retirement plan during the quarter as compared to the same period in 2024 due to financial market conditions.
Slide 11 shows the EPS bridge comparing reported EPS for the fourth quarter of 2025 with the same period in 2024. This slide reflects our full year earnings per share by segment as reported and adjusted. Consolidated earnings for the full year of 2025, as reported were $3.37 per share as compared to $3.17 per share for 2024. Included in the results in 2024 was $0.13 per share related to the impact of a onetime tax benefit recorded in 2024 related to our water segment.
Excluding this item from 2024's earnings, reported earnings for 2025 was $3.37 per share as compared to adjusted earnings of $3.04 per share for 2024. That is an increase of $0.33 per share or 10.9%. The increase is largely generated from higher earnings at our regulated utilities due mostly to implementation of new rates and higher earnings at ASUS from increased management fee revenue, higher construction activities and lower interest expenses.
Turning to liquidity. Net cash provided by operating activity was $229.7 million for 2025 as compared to $198.7 million for 2024 with increase largely related to the implementation of new rates at our regulated utilities from approved general rate cases as well as various approved surcharges for additional base rates from advice letter filings. In addition, the increase also resulted from settlement proceeds received related to PFAS contamination litigation as plaintiffs in class action lawsuit, billing and cash receipts for construction work at military bases at ASUS and the timing of vendor payments.
For investing activities, our regulated utility invested $210.9 million on company-funded capital projects in 2025, and we project company funded capital expenditures to reach $185 million to $225 million this year. For financing activities, American States Water under its at-the-market offering program raised proceeds of $67 million during the year net of issuance costs and legal fees, leaving a remaining balance of $40.7 million available for issuance under the program. We do not expect to continue the ATM program whilst the remaining balance has been fully utilized.
With that, I'll turn the call back to Bob.
Thank you, Eva. On the regulatory front, as previously mentioned, in January of 2025, the CPUC issued a final decision in connection with the recent water general rate case that covers rates for 2025 through 2027. We have discussed the details of this rate case decision in our prior earnings releases and calls. We have begun preparation for our next water rate case expected to be filed by July 1, 2026.
As a reminder, the final decision ordered Golden State Water to transition from a full decoupling mechanism and a full supply cost balancing account, which were requested again in the general rate case application to a modified rate adjustment mechanism known as the Monterey-Style Water Revenue Adjustment Mechanism or MRAM and an incremental cost balancing account for supply cost effective January 1, 2025. Without the continuation of a full revenue decoupling mechanism and a full cost balancing account for water supply, the company may be subject to future volatility in revenues and earnings as a result of fluctuations in water consumption by its customers and changes in water supply source mix.
Golden State Water's 2025 earnings were favorably impacted by an actual water supply source mix that included less purchased water than what was authorized in the general rate case and included in the revenue requirement which was partially offset by the negative impact from a nearly 4% decrease in water consumption compared to amounts adopted in the final general rate case. As a result, the combined impact from the changes in water supply source mix compared to adopted levels and fluctuations in consumption did not have a material impact on Golden State Water's 2025 earnings.
In December of 2025, Golden State Water received approval from the CPUC to implement its full second year rate increases, which were effective January 1, 2026. This approval results in higher adopted operating revenues, less water supply cost for 2026 of approximately $32 million compared to 2025 adopted operating revenues less water supply costs.
Included in the 2026 increase is nearly $11 million related to advice letter capital projects. Under the approved settlement agreement, beginning in 2025, all of the advice letter projects were allowed to accrue in a memorandum account interest during the construction period at Golden State Water's adopted cost of debt until the assets are in service and the full rate of return that includes a debt and equity component and all applicable components of the revenue requirement for the projects on the period, the assets are in service until the date of the attrition filings. The assets from the advice letter projects and the related amounts in the memorandum account were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026.
In November 2025, the CPUC approved a request by Golden State Water and 3 other investor-owned California water utilities to defer the cost of capital application by another year. CPUC's approval postponed the filing date of the application by 1 year until May 1, 2027 with a corresponding effective date of January 1, 2028. CPUC also approved the joint party's request to leave the current water cost of capital mechanism in place through the 1-year deferral period. Golden State Water's current authorized rate of return on rate base is 7.93%. Based on its weighted cost of capital, which will continue in effect through December 31, 2027.
In August 2023, Golden State Water entered into an agreement to purchase from a developer of water and wastewater system assets in a development located in California Central Coast region. This is a new planned community, which will serve up to approximately 1,300 customers at full build-out which is anticipated to occur by 2034 under the current construction schedule, borrowing any future delays. This development will be handled under the incremental acquisition approach where Golden State Water will take ownership of the incremental water and wastewater distribution assets in phases as they are completed and ready to accommodate new connections.
In December 2024, the CPUC approved a final decision granting Golden State Water's certificates of public convenience and necessity that established rates for water and sewer services, including the company's recovery of the purchase price of the incremental assets through future customer rates in this new San Juan Oaks service area. In May 2025, after receiving CPUC approval and finalizing other closing procedures, the parties completed the closing of the transaction which included the initial installation and conveyance of backbone, water and wastewater system assets of $10.7 million by the developer.
In the future, Golden State Water will take ownership of the incremental water and wastewater system assets in phases as they are completed and ready to accommodate new connections. In addition, Golden State Water and the Public Advocates Office of the CPUC filed a joint motion with the PUC in March of last year, to adopt the settlement agreement to authorize initial rates for water service in the new Sutter Pointe service area.
In October of last year, the CPUC approved a settlement agreement in its entirety. The approval establishes initial water service rates for 2026 through 2028 and authorizes various balancing and memorandum accounts for the area. This new planned community in Northern California will be built out over time with the first development expected to serve up to 3,800 customer connections during the next 5 years. And over the long term, 2-plus years allows for the construction of 17,500 total dwelling units at full build-out as part of the overall plan that was approved by the respective counting.
This development will also be handled under the incremental acquisition approach where Golden State Water will take ownership of the incremental water distribution assets in phases as they are completed and ready to accommodate new connections.
Lastly, in January of this year, Golden State Water filed an application with the CPUC to acquire the water system assets from Norwalk, a city located within Los Angeles County. The application requested the expansion of its certificate of public convenience and necessity to incorporate the new service area into one of Golden State Water's existing rate-making areas and to include the $5.25 million purchase price in rate base. The acquisition is forecasted to increase revenues by approximately $1 million if approved as filed. City's service area serves almost 900 primary residential customers.
Turning our attention to Slide 17. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2026 which increased from $980.4 million in 2021 to $1.673.2 billion in 2026. That represents a compound annual growth rate of 11.3% over the 5-year period using 2021 as the base year for the calculation. Golden State Water anticipates a robust and sustained growth in its rate base over the next few years.
The annual increases in rate base reflect, among other factors, the net effect of capital investments less depreciation. The water general rate case decision issued in early 2025, authorized the company to invest $573.1 million in capital infrastructure, which includes $17.7 million of advice layer projects.
In addition, the decision required Golden State Water to treat $58.2 million of capital projects as additional advice letter projects rather than including them in base rates for 2025. Some of these projects began construction in 2023. As a result, you don't see a higher increase in rate base from 2024 to 2025, and as these projects were not included in rate base in 2025. However, as noted earlier, all advice letter projects were permitted to accrue either a full rate of return or interest expense in a memorandum account prior to the filing for recovery as agreed to in settlement, Golden State Water completed these projects and filed them concurrently with the step increase filings in November 2025.
CPUC approved the filings in December. As a result, project cost and accumulated memorandum account balance since totaling $80 million were added to the 2026 adopted rate base generating an incremental revenue requirement of approximately $11 million beginning in 2026 and forward. Accordingly, you see a healthy increase in rate base from 2025 to 2026.
Turning our attention to Bear Valley Electric. As previously noted, in January of 2025, CPUC issued a final decision on the electric general rate case that sets rates for 2023 through 2026. Like the water utility rate case, we have discussed the details of the electric rate case in our prior earnings releases and calls. This past April, Bear Valley Electric also implemented new base rates to recover the revenue requirement associated with $11.6 million of capital projects approved for recovery through advice letters.
On January 30, 2026, Bear Valley Electric filed a general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, Bear Valley Electric requested capital budgets of approximately $133 million for the 4-year rate cycle and another approximately $17 million plus allowance for funds used during construction or AFUDC for capital projects to be filed for revenue recovery through advice letters when the projects are completed. A return on equity of 11.3% and embedded cost of debt of 5.92%, a capital structure of 60% equity and 40% debt and a return on rate base of 9.15%.
Lastly, in December 2025, we received a final decision approving a settlement agreement between Bear Valley Electric and the Public Advocates Office of the CPUC authorizing construction of the solar and battery storage projects totaling $28 million plus AFUDC. Solar generation project will help Bear Valley Electric beat approximately 18% of its renewables portfolio standard requirement. These facilities will also help enable Bear Valley Electric to better control its energy and energy-related costs through self-supply from a local generation resource and also provide energy shifting capabilities and additional capacity during emergencies in peak load conditions. Costs associated with the projects are recoverable in customer rates at the time the projects are completed and in service.
Let's continue to ASUS, which contributed earnings of $0.61 per share in 2025 and as compared to $0.55 per share for 2024, an 11% increase. The increase was a result of higher management fee revenue resulting from the commencement of operations at the joint base Cape Cod and Naval Air Station Patuxent River new bases for a full year in 2025 and resolution of various economic price adjustments, an increase in construction activities and lower interest expense from lower borrowing levels partially offset by higher overall operating expenses and lower earnings due to the dilutive effects of shares issued under AWR's at the market offering program.
ASUS was awarded $29.4 million in new capital upgrade construction projects to be completed through 2028. As we look ahead to 2026, we project that ASUS will contribute $0.63 to $0.67 per share. We remain confident that we can effectively compete for new military-based contract awards.
I'd like to turn our attention to dividends. In the third quarter of 2025, we raised our dividend by 8.3% and our quarterly dividend rate has grown at a compound annual growth rate or CAGR of 8.5%. Over the last 5 years since the first quarter of 2021, these increases are consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term. Our unrivaled dividend history since 1931 is something the company is proud of and will continue to be an asset to our shareholders.
I'd like to conclude our prepared remarks by thanking you for your interest in American States Water, and we'll now turn the call over to the operator for questions.
[Operator Instructions] At this time, there is no one in our queue. So this concludes our question-and-answer session. I'd like to turn the conference back over to Bob Sprowls for any closing remarks.
Thank you, Chloe. I just want to wrap up today by thanking you all for your participation, and we look forward to speaking with you next quarter.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
American States Water Company — Q4 2025 Earnings Call
American States Water Company — Q3 2025 Earnings Call
1. Management Discussion
Ladies and gentlemen, thank you for standing by. Welcome to the American States Water Company conference call discussing the company's third quarter 2025 results. The call is being recorded. If you would like to listen to the replay of this call, it will begin this afternoon at 5:00 p.m. Eastern Time and run through November 13 on the company's website, www.aswater.com. The slides that the company will be referring to are also available on the website. [Operator Instructions] This call will be limited to an hour. Presenting today from American States Water Company are Bob Sprowls, President and Chief Executive Officer; and Eva Tang, Senior Vice President of Finance and Chief Financial Officer.
As a reminder, certain matters discussed during this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and listeners are cautioned not to place undue reliance upon them. Forward-looking statements are subject to estimates and assumptions and known and unknown risks uncertainties and other factors. Listeners should review the description of the company's risks and uncertainties that could affect the forward-looking statements in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission.
Statements made on this conference call speak only as of the date of this call, and except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statements. In addition, this conference call will include a discussion of certain measures that are not prepared in accordance with generally accepted accounting principles or GAAP in the United States and constitute non-GAAP financial measures under SEC rules. These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP. For more details, please refer to the press release.
At this time, I will turn the call over to Bob Sprowls, President and Chief Executive Officer of American States Water Company. Please proceed.
Thank you, Bailey. Welcome, everyone, and thank you for joining us today. I'll begin with brief highlights to our quarter, Eva will discuss some financial details, and then I'll wrap it up with updates on regulatory activity, ASUS, dividends and then we'll take your questions.
I'm pleased to report that recorded earnings per share for the third quarter were $0.11 per share higher compared to the third quarter of last year, an increase of 11.6%. Favorable variance is attributable to the receipt of final decisions from the California Public Utilities Commission or CPUC in January 2025 for our regulated water and electric utilities general rate cases which authorized new water rates for 2025 to 2027 and authorized new electric rates for 2023 to 2026 and higher earnings for our contracted services business, American States Utility Services, or ASUS, of $0.08 per share, due mostly to increases in construction activities during the quarter.
For the year-to-date September 30, earnings were $2.63 per share, $0.21 per share higher than last year or 8.7%. We continue to invest in our water and electric utility systems for the long-term benefit of our customers. Our regulated utilities are on pace to invest a combined $180 million to $210 million in infrastructure investments this year. In addition, our water utility recently received CPUC approval to provide water services at another new planned community that will be built out over time with the first development expected to serve up to 3,800 customer connections during the next 5 years. And over the longer term, 20-plus years, allows for the construction of 17,500 total dwelling units at full build-out.
ASUS continues to enter into U.S. government awarded contract modifications for new construction projects and was awarded $28.7 million in new capital upgrade construction projects during the 9 months ended September 30 of this year. These newly awarded projects are expected to be completed through 2028.
I'd also like to mention that we are pleased to be recognized on Times America's Best Midsize Companies 2025 list and are 1 of only 2 investor-owned water utilities on the list. Companies are ranked by revenue growth, employee satisfaction and sustainability transparency. In addition, American States Water Company is the only water utility included in Barron's 100 Most Sustainable Companies for 2025.
Companies were scored across 230 environmental, social and governance performance indicators from workplace diversity to greenhouse gas emissions. We believe these recognitions reflect our strategic growth plans, commitment to our workforce and focus on our initiatives and disclosures in the sustainability areas and these will remain priorities for the company.
With that, I will turn the call over to Eva to discuss earnings and liquidity.
Thank you, Bob. Hello, everyone. Let me start with our third quarter results. Recorded consolidated earnings were $1.06 per share for the quarter as compared to $0.95 per share for the third quarter of 2024. For our water utility Golden State Water reported earnings were $0.86 per share as compared to $0.84 per share last year. The $0.02 per share increase in 2025 was largely due to new 2025 water rates as a result of receiving a final decision in Golden State Water's general rate case proceeding.
Higher gain generated on investments held to fund a retirement plan and lower interest expense, partially offset by higher operating expenses and a higher effective income tax rate. Lastly, there was a decrease in earnings of $0.02 per share due to the dilutive effect from the insurance of equities under AWR ad market offering program.
Our Electric segment earnings were $0.04 per share for the quarter as compared to $0.02 per share for the same quarter last year, a $0.02 per share increase primarily due to receiving the final CPUC decision on the electric general rate case with the new 2025 electric rates as compared to 2022 rate used to record revenues during the third quarter of last year.
Earnings from ASUS were $0.19 per share for the quarter compared to $0.11 per share for the same quarter last year. That is an increase of $0.08 per share, which Bob will discuss further later. Lastly, losses from our parent company were $0.03 per share for the quarter when compared to losses of $0.02 per share for the same quarter last year, due largely to an increase in interest expense resulting from higher borrowing levels from AWR's credit facility.
Consolidated revenue for the third quarter increased by $21 million when compared to the same quarter of 2024. Revenues for the water segment increased by $8.3 million, largely as a result of receiving the final decision in Golden State Water's general rate case with new rates effective January 1, 2025.
Revenues for Electric segment increased by $4.3 million, mainly due to new 2025 electric rates as compared to 2022 rates used to record revenue during the same quarter of 2024. Revenues from ASUS increased $8.4 million, primarily due to higher construction activity during the quarter due to timing.
Turning to Slide 9. Supply costs increased by $4 million, mostly due to higher overall per-unit purchased water cost included in customer rates in 2025. Looking at total operating expenses other than supply costs. Consolidated expenses increased by $10.3 million compared to 2024. This increase includes the impact of the Electric general rate case decision issued in January which authorized higher operating expenses, primarily for vegetation management and other wildfire mitigation efforts.
These costs were previously excluded from customer rates and are not expensed -- were not expensed in the third quarter of last year, as they were being tracked in memorandum accounts. They are now included in adopted Electric revenue. In addition, the increase was due to higher ASUS construction expenses and higher overall operating expenses. These higher expenses were partially offset by lower interest expense, net of interest income, primarily due to decreases in interest rates and overall borrowing levels partially offset by reduced interest income from a decrease in regulatory asset balances.
Lastly, there was an increase in other income net of other expense due largely to higher gains generated on investments held to fund a retirement plan during the quarter as compared to the same period in 2024 due to financial market conditions.
Slide 10 shows the EPS bridge comparing reported EPS for the third quarter of 2025 against the same period for 2024. Moving on to Slide 11. Consolidated earnings for the 9 months ended September were $2.63 per share compared to $2.42 per share for the same period in 2024, an increase of $0.21 per share. The increase is largely generated from higher earnings at our regulated utilities.
Turning to liquidity on Slide 12. Net cash provided by operating activities was $202 million for the year-to-date September compared to $134.2 million for the same period last year, with the increase largely related to the implementation of new rates at our regulated utility funds approved to generate proceedings as well as various approved surcharges or additional base rate from advice letter filings. In addition, the increase also resulted from differences in timing of income tax payments, billing and cash receipts for construction work at military basis at ASUS and the timing of its vendor payments.
For investing activities, our regulated utility invested $151.8 million on company-funded capital projects in the first 9 months of this year and we project to be on target to reach $180 million to $210 million for this year. For financing activities, American States Water under its ad market offering program raised the proceeds of $40.2 million during the 9 months ended September 30, net of issuing cost and legal costs, leaving a remaining balance of $68 million available for issuance under the program.
In July, Standard & Poor's Global Ratings affirmed a credit rating of A stable for American States Water and A+ stable rating for Golden State Water. These are some of the highest credit rating in the U.S. investor-owned water utility industry.
With that, I'll turn the call back to Bob.
Thank you, Eva. On the regulatory front, as previously mentioned, in January of this year, the CPUC issued a final decision in connection with the recent water general rate case that covers rates for 2025 through 2027. We have discussed the details of this rate case decision in our prior earnings releases and calls. We have begun preparation for our next water rate case expected to be filed by July 1, 2026.
As a reminder, the final decision ordered Golden State Water to transition from a full decoupling mechanism and a full supply cost balancing account, which were requested again in the general rate case application to a modified rate adjustment mechanism known as the Monterey-Style Water Revenue Adjustment Mechanism, or MRAM and an incremental cost balancing account for supply cost effective January 1, 2025.
Without the continuation of a full revenue decoupling mechanism and a full cost balancing account for water supply, the company may be subject to future volatility in revenues and earnings as a result of fluctuations in water consumption by its customers and changes in water supply source mix. Final decision adopted the company's MRAM rate design proposal, which authorizes Golden State Water to increase the revenue requirement in the fixed services charges to between 45% and 48% of the revenue requirement depending on the rate making area, representing approximately 65% and of the water utilities fixed cost in aggregate.
It also approved Golden State Water's sales forecast and its request for the continuation of a sales reconciliation mechanism, which would allow the company to adjust its sales forecast throughout the general rate cycle to address significant fluctuations in consumption.
In August 2023, Golden State Water entered into an agreement which was subject to CPUC approval to purchase from a developer, the water and wastewater system assets in a development located in California's Central Coast region. This is a new planned community, which will serve up to approximately 1,300 customer connections at full build-out, which is anticipated to occur by 2034 under the current construction schedule, barring any future delays.
On December 5, 2024, the CPUC approved a final decision granting Golden State Water's certificate of public convenience and necessity that establish rates for water and sewer services, including the company's recovery of the purchase price through future customer rates in this new San Juan Oaks and service area.
After receiving CPUC approval and finalizing other closing procedures, in May of this year, the parties completed the closing of the transaction, which included the initial installation and conveyance of water and wastewater system assets of $10.7 million by the developer a noncash transaction to Golden State Water recorded during the second quarter of 2025. That resulted in an increase in the company's utility plant with corresponding increases in advances and contributions in aid of construction.
In the future, Golden State Water will take ownership of the incremental water and wastewater system assets in phases as they are completed and ready to accommodate new connections. In addition, Golden State Water and the Public Advocates Office of the CPUC filed a joint motion with the CPUC in March to adopt a settlement agreement to authorize initial rates for water service in the new Sutter Pointe service area.
Last week, the CPUC approved the settlement agreement in its entirety. The approval establishes initial water service rates for 2026 through 2028 and authorizes various balancing and memorandum accounts for this area. This new planned community in Northern California will be built out over time with the first development expected to serve up to 3,800 customer connections during the next 5 years. And over the longer term, 20-plus years allows for the construction of 17,500 total dwelling units at full build-out, as part of the overall plan approved by the respective counting.
Turning our attention to Slide 15. We present the growth in Golden State Water's adopted average water rate base from 2021 through 2025 which increased from $980.4 million in 2021 to $1,455.8 million in 2025. That represents a compound annual growth rate of 10.4% over the 4-year period using 2021 as the base share for the calculation.
Golden State Water anticipates a robust and sustained growth in its rate base over the next few years as a result of receiving its recent general rate case decision that not only authorizes it to invest $573.1 million in capital infrastructure. But in addition to that, capital investments of certain projects through advice their filings upon completion that will contribute to a further growth in rate base in the second and third year of this cycle.
Turning our attention to Bear Valley Electric. As previously noted, in January of this year, the CPUC issued a final decision on the electric general rate case that set rates for 2023 through 2026. Like the water utility rate case, we have discussed the details of the electric rate case in our prior earnings releases and calls. We are working to file our next electric rate case in the first quarter of 2026.
This past April, Bear Valley Electric also implemented new base rates to recover the revenue requirement associated with $11.6 million of capital projects approved for recovery through advice layers.
In July, Bear Valley Electric and the Public Advocates Office of the CPUC filed a joint motion with the CPUC to adopt the settlement agreement resolving all issues in Bear Valley electric application to construct solar energy generation and battery storage facilities. The solar energy generation project will help Bear Valley Electric meet approximately 18% of its renewables portfolio standard requirement.
These facilities will also help enable Bear Valley Electric to better control its energy and energy-related costs through self-supply from a local generation resource and also provide energy shifting capabilities and additional capacity during emergencies and peak load conditions.
Among other things, the settlement agreement authorizes the construction of the facilities for a total combined cost of $28 million plus allowance for funds used during construction. Settlement agreement is pending approval by the CPUC to the proposed decision expected by the first quarter of 2026. If approved, the costs associated with the projects would be recoverable in customer rates at the time the projects are completed and in service.
Let's continue to ASUS, which contributed earnings of $0.19 per share in the third quarter of 2025 as compared to $0.11 per share for 2024. The increase was a result of higher construction activity due to the timing of when the work was performed. Management fee revenues resulting from the resolution of various economic price adjustments and lower interest expense from lower borrowing levels partially offset by higher overall operating expenses.
During the quarter, ASUS made substantial progress on its construction activities with year-to-date earnings of $0.45 per share as compared to $0.44 per share for the same period of 2024. We continue to project ASUS to contribute $0.59 to $0.63 per share this year, representing an increase of 7.3% to 14.5% year-over-year. ASUS was awarded $28.7 million in new capital upgrade construction projects through the year-to-date September of this year to be completed through 2028.
As we look ahead to 2026, we project that ASUS will contribute $0.63 to $0.67 per share. In addition, we remain confident that we can effectively compete for new military-based contract awards.
I would like to turn our attention to dividends. In the third quarter, we raised our dividend by 8.3% and our quarterly dividend rate has grown at a compound annual growth rate or CAGR of 8.5% over the last 5 years. These increases are consistent with our policy to achieve a compound annual growth rate in the dividend of more than 7% over the long term. Our unrivaled dividend history since 1931 is something that the company is proud of and will continue to be an asset to our shareholders.
I'd like to conclude our prepared remarks by thanking you for your interest in American States Water. And we'll now turn the call over to the operator for questions.
[Operator Instructions] Our first question comes from Ian Rapp with Bank of America.
2. Question Answer
Congrats on the good quarter. I'm just curious on ASUS, obviously, a good quarter and a good contract announcement there. If I look at the incremental contract, I'm just curious if you could provide a little color on the timing and when we might see that further into EPS over the -- I think you said '25 to '28 period. I'm just looking at the ASUS guidance for '26, and it looks like year-over-year a little bit down relative to the last 3 years. So just curious if that's just contracts rolling off or what the earnings power looks like going forward there?
Yes. I mean it's a pretty good step up, I think, in the earnings from $0.59 to $0.63 to the $0.63 to $0.67. It's -- but would just talk a little bit about the new capital upgrades. Those have been an important part of our overall performance and getting almost $29 million of new capital upgrades a pretty good year for us. Additionally, last year, we had a fairly significant amount of new capital upgrades relative to our history in the neighborhood of $55 million. So between those 2, we've got a pretty good backlog to do new capital upgrade work in '26 and beyond. We also have the renewal and replacement work that we're doing.
So it's, I would say, a pretty good year, recognizing we don't -- we're not adding any new bases in that number. It's -- I think, as you know, Ian, there's a transition period we typically have to go through once we were awarded a contract. And so the expectation is we likely won't have a new contract to deal with in 2026 just because of that transition period and where we think the government might be on privatizations.
Okay. Got it. Yes, that makes a lot of sense. And then just on the new announcements or, I guess, the new approvals on the new customer connection growth, it looks like some robust activity around the new development projects. I'm just curious like if you look at these numbers, should we think about translating that -- those new customer connections to rate base based on looking at your Golden State rate base relative to your customer base or as a rule of thumb? Or should we think about it more just on the capital that you've applied for? Just any color as to how we should think about the rate base translation would be helpful.
Yes. I guess the one difficult thing with those new customers is it is a function of people wanting to buy homes and a developer signing them up to buy homes. And so looking at the potential there. It is under this incremental acquisition approach. So as phases are done, the company will buy the infrastructure. I think the way to think about it maybe is the distribution infrastructure for these houses.
And that's a pretty favorable activity for both the company and the developer because typically, the developer would have had to advance those facilities to the company to be then paid back over 4 years. So we will be acquiring new systems there. And I'm not exactly sure what to tell you about how you bake that into your rate base forecast because I do think the figuring out when those customers are going to be added is a challenge.
Right. Okay. That's helpful color. And with that growth, maybe just one more if I could squeeze it in. Obviously, the big thematic these days is corporate M&A. As you look out at your growth profile, do you feel like gaining scale in California or other places would be beneficial? Or I'm really just curious to hear your thoughts on how you're thinking about M&A as investor attention kind of shifts toward it.
Yes. I mean we were a bit surprised by the announcement of the merger between American Water and Essential Utilities, which I think that's what you're sort of asking about. However, we don't really think that merger will impact our company's strategic direction going forward. We are optimistic about the future of our company. The rate bases at both of our regulated utilities continue to grow at strong rates of growth, and our ASUS business also continues to grow at a good pace.
We noted in our presentation materials, the 10.4% 4-yea CAGR on our rate base for 2025 -- sorry, 2022 to 2025 at Golden State Water in our presentation and Bear Valley Electric's rate base has been growing at a faster rate than that. And then, of course, we will see additional customer growth, we believe, through the 2 new developments that we've mentioned, San Juan Oaks and Sutter Pointe over time.
So I think generally, we're happy with our growth plan. That's not to say if a good deal came along. We wouldn't try to buy some systems that are in places where we believe the regulatory framework is neutral to positive. Does that answer your question?
Yes, that's super helpful. And that all makes a lot of sense. I appreciate you guys walking me through and congrats again on the quarter and I'll echo your confidence on the growth rate. It looks promising.
Our next question comes from Angie Storozynski with Seaport
Okay. So you added your rate base projection for 2025 on Slide 15. It is actually a little bit lower than I would have implied it from just the pace of CapEx less depreciation. I mean, Eva is there any reason why again, just assuming that you're spending about, I don't know, $190 million, right, and around $30 million something of the depreciation that would have implied a slightly higher rate base for '25 versus '24, no?
So Angie, we talk about -- we have tons of advice letter yet to be filed toward end of this year in the rate case decision, we will authorize about $76 million of advice letter that we can file by end of this year to get new rates effective 1/1 next year. So we are preparing the documentation and close the job and to get the final number in Q4. So we anticipate that should be approved for rate effect is 1/1 of next year. So after 2025, those actual advice letter project amount will be added to the rate base. So that's maybe something...
And that $573 million, that number, does that include the advise letters? No...
Does not including the advice letter that was started to do prior to the rate case cycle. So there are $58 million I would think advice letter coming from the prior rate case that were allowed to added to rate starting next year. So in total, $573 million, I believe, including $17 million of new advice letter project, but we have another $58 million project that come in from the prior rate case. So both of which can be added to our rate base starting next year.
Yes. I mean -- and again, I don't want to nickel and dime you here, but it's just that, that would imply this $573 million number, right, that I'm spending about, again, assuming that it's ratable, $190 million a year, right, if I divide it just by 3 simple math and then subtract $30 million or say $35 million, that would still suggest that, that rate base should have grown by about $150-something million versus the $100 million that is shown of a growth between '24 and '25. So is it deferred taxes, again, just like simplistically.
Our actual spending is about that amount. I was just talking about the adopted rate base.
We are spending a little ahead of the rate cycle because we do have an earnings test in California that we have to meet. And you are predisposed to try to spend early because it's a 13-month average. So that may be contributing a little bit. I don't know, Eva, what do you...
Yes, I think that will definitely contribute. And we want to make sure we can finish advice letter project so we can file this year. So we've been spending the $76 million that authorized us to file .
And that wouldn't count towards the right base? Because my point is that the rate base is lower than it would have been implied from the approved CapEx minus depreciation.
Yes, it will count as the actual rate base. It's just not -- currently not in the revenue requirement based on the adopted rate base. We'll have a new rate next year to cover what we spent so far. Does that makes sense?
Yes. Okay. And even though you have gone through the GRC for the water business, you will not show the projected rate base for '26 and '27?
We will show that next time for sure, because we want to make sure we have the exact number of what we can file by end of this year for those advice letter even though we are also right $76 million, not sure that's exactly the number will be in the adopted rate base. So we're very conservative. We like to have a pretty certain number before announce [indiscernible]. So definitely, we'll announce that next quarter earnings.
Okay. Okay. I've been asking. So I'm just repeating the question. Okay. I have...
Yes, I can probably share with you the [indiscernible] number for next year, but I don't have the information right now. But it's public information, so I can shoot you an e-mail, Angie.
This concludes our question-and-answer session. I would like to turn the conference back over to Bob Sprowls for any closing remarks.
Thank you, Bailey. Just want to wrap up by thanking you all for your participation today, letting you know that we look forward to speaking with you next quarter and then wishing all of you a happy holiday season. Thank you very much.
The conference has now concluded. You may disconnect.
American States Water Company — Q3 2025 Earnings Call
Financial data from American States Water Company
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 697 697 |
13%
13%
100%
|
|
| - Direct Costs | 133 133 |
18%
18%
19%
|
|
| Gross Profit | 564 564 |
12%
12%
81%
|
|
| - Selling and Administrative Expenses | 103 103 |
1%
1%
15%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 272 272 |
15%
15%
39%
|
|
| - Depreciation and Amortization | 50 50 |
10%
10%
7%
|
|
| EBIT (Operating Income) EBIT | 222 222 |
17%
17%
32%
|
|
| Net Profit | 143 143 |
15%
15%
20%
|
|
In millions USD.
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American States Water Company Stock News
Company Profile
American States Water Co. operates as a holding company, which engages in the purchase, production, distribution, and sale of water. It operates through the following segments: Water, Electric, and Contracted Services. The company was founded on December 1, 1929 and is headquartered in San Dimas, CA.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Sprowls |
| Employees | 900 |
| Founded | 1929 |
| Website | www.aswater.com |


