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AWR · American States Water Co

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$88.97 +0.24 (+0.27%) At close · Aug 14
Market Cap
$3.53B
Shares
39.64M
All earnings calls

Earnings call · FY2026 Q1

American States Water Co Q1 FY2026 Earnings Call

American States Water Co Q1 FY2026 Earnings Call

Concluded May 7, 2026 Audio replay
May 7, 2026 24:00 4 turns
Period
FY2026 Q1
Runtime
24:00
Sources
4 artifacts

Executive readout · one minute

What matters this quarter

American States Water Company reported Q1 2026 consolidated diluted EPS of $0.76, up 8.6% from $0.70 in Q1 2025, with year-over-year EPS growth across its water, electric, and contracted services segments driven by new CPUC-approved rates and higher ASUS construction activity.

Regulatory activity and general rate cases 32 Rate base growth and capital investment 15 ASUS contracted services performance 13 Bear Valley Electric rate case 8 EPS growth and consolidated results 7 ATM offering program and financing 4

Management tone

Confident

Net tone +65 · low hedging

Grounding quotes
  • “We started 2026 with strong financial results, and I am 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%.”
  • “American States Water Company remains a leader with our strong earned return on equity and dividend histories, and we continue to deliver value and returns to our shareholders.”
  • “Golden State Water anticipates robust and sustained growth in its rate base over the next few years.”
  • “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.”

Forward guidance

3 guided metrics

Management's latest ranges and targets are included below.

Research coverage

4 live sources

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Revenue $169.19M +14.3% YoY
Diluted EPS $0.76 +8.6% YoY
Net income $29.95M +11.6% YoY

Research materials

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Key takeaways

What improved, and what deserves a closer read.

Constructive signals

  • Q1 2026 consolidated EPS of $0.76 vs. $0.70 in Q1 2025, an 8.6% increase ($0.06/share)
  • All three operating segments reported year-over-year EPS gains: Water $0.55 vs. $0.52, Electric $0.08 vs. $0.07, Contracted Services $0.15 vs. $0.13
  • Operating cash flow rose to $71.6 million in Q1 2026 from $45.1 million in Q1 2025
  • Golden State Water adopted rate base grew from $980.4 million in 2021 to approximately $1.67 billion in 2026, an 11.3% CAGR
  • Bear Valley Electric filed a new general rate case for 2027–2030 requesting a $133 million capital budget, 11.3% ROE, and 9.15% return on rate base
  • ASUS guided to $0.63–$0.67 EPS contribution for full-year 2026; quarterly dividend has grown at an 8.5% CAGR over the last five years, exceeding the 7%+ policy goal

Risks & pressure points

  • Water segment results were partially offset by higher water supply costs, operating expenses, interest expense, and income taxes, plus a $0.01/share dilution from ATM share issuances
  • Transition to the modified Monterey-style water revenue adjustment mechanism (MRAM) and incremental cost balancing account exposes revenues and earnings to future volatility from consumption and supply mix fluctuations
  • Consolidated operating expenses (excluding supply costs) rose $10.2 million year-over-year, partly from higher ASUS construction expenses
  • Supply costs increased $5.1 million, largely from higher per-unit purchased water costs and higher purchased water volume due to certain wells being temporarily offline
  • Cost of capital application deferred by another year to 05/01/2027; current authorized ROE of 10.06% and return on rate base of 7.93% remain in place through 12/31/2027
  • Q1 electric segment earnings increase of only $0.01/share was partially offset by higher operating and interest expenses

Key moments

Jump directly to management's words in the synchronized transcript.

“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.” Speaker 1, CEO
“We do not expect to continue the ATM program once the remaining balance has been fully utilized.” Speaker 2, CFO

Forward guidance

From the 8-K filed May 6, 2026.

Metric Guided
Capital investments
2026
$185M – $225M
Contracted services segment diluted earnings per share
full year of 2026
$0.63 – $0.67

Guidance from the call

Stated verbally and extracted from the transcript.

Metric Guided
Company-funded capital expenditures
full year of 2026
$185M – $225M

Quarter detail

How the reported period landed and where the business moved.

Capital returned

Dividend / share
$0.50
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