American States Water Company Reports Fourth Quarter and Full Year 2025 Results; Approves First Quarter 2026 Dividend
American States Water Company (NYSE: AWR) today reported its financial results for the fourth quarter and full year ended December 31, 2025, reflecting solid performance across its regulated utility and contracted services businesses. The company also announced that its Board of Directors has approved a quarterly dividend for the first quarter of 2026.
Fourth Quarter 2025 Results
For the fourth quarter of 2025, American States Water Company reported consolidated diluted earnings per share of $0.74, compared to $0.75 for the same period in 2024, representing a decrease of $0.01 per share. This decline reflects certain one-time items included in the prior year period, as well as operational and rate-related factors across the company’s business segments.
The results for the fourth quarter of 2025 were impacted by previously reported final decisions in the water and electric general rate cases. These decisions were already reflected in the 2024 fourth-quarter results and had the effect of inflating 2024 earnings relative to 2025. Adjusted for these one-time items, consolidated non-GAAP diluted earnings per share increased from $0.56 in the fourth quarter of 2024 to $0.74 in 2025, representing an adjusted increase of $0.18 per share, primarily due to the implementation of new customer rates at the regulated utilities and higher earnings from the contracted services segment.
A detailed breakdown of diluted earnings per share by business segment is as follows:
| Segment | Q4 2025 EPS | Q4 2024 EPS | Change |
|---|---|---|---|
| Water | $0.50 | $0.52 | $(0.02)$ |
| Electric | $0.11 | $0.13 | $(0.02)$ |
| Contracted Services | $0.16 | $0.11 | $0.05$ |
| HOUR (Parent) | $(0.03)$ | $(0.02)$ | $(0.01)$ |
| Consolidated EPS (GAAP) | $0.74 | $0.75 | $(0.01)$ |
| Impact of one-time water tax benefit (2024) | — | $(0.13)$ | $0.13$ |
| Impact of retroactive electric rates (2024) | — | $(0.06)$ | $0.06$ |
| Consolidated EPS (Adjusted, Non-GAAP) | $0.74 | $0.56 | $0.18 |
The adjusted earnings per share for the water and electric segments, excluding the prior-year one-time items, show notable improvement. Water segment adjusted EPS increased $0.11 per share from $0.39 in Q4 2024 to $0.50 in Q4 2025, while electric segment adjusted EPS increased $0.04 per share, from $0.07 in Q4 2024 to $0.11 in Q4 2025.
Water Segment Performance
The water utility segment, led by Golden State Water Company (GSWC), reported diluted earnings per share of $0.50 for Q4 2025, a slight decrease of $0.02 per share compared to $0.52 per share in Q4 2024. The 2024 results included a one-time tax benefit of $0.13 per share resulting from the California Public Utilities Commission (CPUC) final decision in the water general rate case. Excluding this tax benefit, adjusted earnings for the water segment increased by $0.11 per share.
Key factors driving the water segment’s results in Q4 2025 include:
- Revenue Increases: GSWC’s operating revenues rose by approximately $17.4 million due to new CPUC-authorized rate increases effective January 1, 2025, under the recently approved general rate case. The company transitioned from a full revenue decoupling mechanism to a modified rate adjustment mechanism, which may expose revenues and earnings to greater volatility depending on customer consumption patterns.
- Water Supply Costs: Total water supply costs increased by $10.2 million, reflecting higher per-unit purchased water costs, purchased power for pumping, groundwater production assessments, and changes in water supply cost balancing accounts. With the shift from a full cost balancing account to an incremental cost balancing account, future earnings will be influenced by variations in water supply costs.
- Operating Expenses: Non-supply operating expenses increased by $2.6 million, largely due to higher labor costs, administrative and general expenses, insurance costs, and depreciation and amortization. These increases were partially offset by reductions in chemical and water treatment costs, maintenance expenses, and property taxes resulting from favorable adjustments in assessed property values.
- Other Income and Taxes: Other income increased by $0.7 million due to higher gains on investments held to fund company retirement plans. In addition, the effective income tax rate decreased due to changes in flowed-through income taxes and permanent tax items, positively impacting the water segment’s EPS.
- ATM Offering Impact: Diluted earnings were reduced by approximately $0.01 per share due to the issuance of additional equity under AWR’s At-the-Market (ATM) offering program. The program allows the company to sell common shares up to $200 million at its discretion, with $40.7 million remaining available as of December 31, 2025.
Electric Segment Performance
Bear Valley Electric Service, Inc. (BVES), the electric utility segment, reported diluted earnings of $0.11 per share for Q4 2025, down $0.02 per share from $0.13 per share in Q4 2024. The prior-year results included $0.06 per share from retroactive rate adjustments covering the full year of 2023 and a portion of 2024.
Excluding the retroactive rate impact, adjusted earnings increased by $0.04 per share, reflecting several positive developments:
- Rate Increases: The CPUC authorized third-year rate increases effective January 1, 2025, contributing to higher revenues.
- Capital Project Recoveries: Additional revenues were recognized through advice letters seeking recovery of certain capital projects, including a CPUC decision in December 2025 related to BVES’s solar and battery projects.
- Tax Benefits: Adjustments in flowed-through income taxes lowered effective tax expense, improving net earnings.
These improvements were partially offset by higher operating and interest expenses.
Contracted Services Segment
The contracted services segment reported diluted earnings of $0.16 per share, up $0.05 from $0.11 per share in Q4 2024. The increase was primarily driven by higher management fee revenues due to economic price adjustments, increased construction activities, and lower interest expenses resulting from reduced borrowing costs.
Parent Company (HOUR)
Diluted losses from AWR parent (HOUR) increased slightly from $(0.02)$ per share in Q4 2024 to $(0.03)$ per share in Q4 2025. The increase was largely attributable to higher interest expense under the company’s credit facility, partially offset by lower average interest rates.
Full-Year 2025 Results
For the full year 2025, AWR reported consolidated diluted earnings per share of $3.37, up $0.20 from $3.17 in 2024, representing a 6.3% increase. Excluding the one-time $0.13 per share tax benefit in 2024, adjusted earnings increased 10.9% to $3.37 per share, driven by higher rates at regulated utilities and improved performance at the contracted services segment.
Segment-level performance for the full year 2025 is summarized below:
| Segment | 2025 EPS | 2024 EPS | Change |
|---|---|---|---|
| Water | $2.61 | $2.51 | $0.10 |
| Electric | $0.25 | $0.21 | $0.04 |
| Contracted Services | $0.61 | $0.55 | $0.06 |
| HOUR (Parent) | $(0.09)$ | $(0.10)$ | $0.01$ |
| Consolidated EPS (GAAP) | $3.37 | $3.17 | $0.20 |
| Adjustment for one-time tax benefit | — | $(0.13)$ | $0.13$ |
| Consolidated EPS (Adjusted, Non-GAAP) | $3.37 | $3.04 | $0.33 |
All operating segments contributed to the increase in full-year earnings, reflecting both regulatory rate approvals and growth in contracted services. Adjusted EPS growth was partially offset by the dilution from additional shares issued under the ATM program, totaling approximately $0.10 per share.
Dividend Announcement
On February 10, 2026, AWR’s Board of Directors approved a first-quarter dividend of $0.5040 per share, payable on March 5, 2026, to shareholders of record as of February 23, 2026. American States Water Company has a long-standing record of paying dividends, having distributed common dividends every year since 1931. The company has increased its dividend payments for 71 consecutive years, placing it among a select group of New York Stock Exchange-listed companies.
Over the past five years, AWR has achieved a compound annual growth rate (CAGR) of 8.5% in its quarterly dividend rate, and a 10-year CAGR of 8.3% in its annual dividend payments. The company maintains a long-term policy to achieve dividend growth of more than 7% annually.
Non-GAAP Measures
American States Water Company provides adjusted earnings per share for its business segments and consolidated results as supplemental information to GAAP measures. The adjustments exclude items such as one-time tax benefits or retroactive rate impacts to facilitate meaningful period-over-period comparisons. Management regularly reviews these measures to evaluate performance and operational efficiency.
About American States Water Company
American States Water Company, through its subsidiaries, provides water, electric, and contracted services across California. Its operations are primarily regulated, offering essential services to communities while adhering to rate structures established by regulatory agencies such as the CPUC. AWR’s longstanding commitment to customers, shareholders, and employees underpins its growth and consistent financial performance.
