Third quarter 2026
Filed Nov 4, 2026Third-quarter GAAP diluted EPS held at $1.06 per share, while adjusted diluted EPS increased $0.05 per share as CPUC-approved rate increases supported utility earnings.
Third-quarter reported GAAP diluted EPS was unchanged at $1.06 per share, but adjusted diluted EPS rose to $1.06 per share from $1.01 per share. Water and electric revenue increased, while contracted-services earnings declined and investment results created a $0.05 per share unfavorable period-over-period variance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026: Water operating revenuesGAAP | $139.9M | – | An increase in water operating revenues of $7.6 million |
| Three months ended September 30, 2026: Electric operating revenuesGAAP | $14.88M | – | An increase of $1.6 million in electric revenues |
| Three months ended September 30, 2026: Contracted services operating revenuesGAAP | $37.73M | – | – |
| Three months ended September 30, 2026: Total operating revenuesGAAP | $192.5M | – | – |
| Three months ended September 30, 2026: Water purchasedGAAP | 25.92M | – | – |
| Three months ended September 30, 2026: Power purchased for pumpingGAAP | 5.24M | – | – |
| Three months ended September 30, 2026: Groundwater production assessmentGAAP | 8.74M | – | – |
| Three months ended September 30, 2026: Power purchased for resaleGAAP | 4.05M | – | – |
| Three months ended September 30, 2026: Supply cost balancing accountsGAAP | −1.35M | – | – |
| Three months ended September 30, 2026: Other operation expenseGAAP | 12.58M | – | – |
| Three months ended September 30, 2026: Administrative and general expenseGAAP | 25.48M | – | – |
| Three months ended September 30, 2026: Depreciation and amortizationGAAP | 13.17M | – | – |
| Three months ended September 30, 2026: Maintenance expenseGAAP | 5.83M | – | – |
| Three months ended September 30, 2026: Property and other taxesGAAP | 8.19M | – | – |
| Three months ended September 30, 2026: ASUS construction expenseGAAP | 17.39M | – | – |
| Three months ended September 30, 2026: Total operating expensesGAAP | $125.2M | – | – |
| Three months ended September 30, 2026: Operating incomeGAAP | $67.29M | – | – |
| Three months ended September 30, 2026: Interest expenseGAAP | −11.87M | – | – |
| Three months ended September 30, 2026: Interest incomeGAAP | 782K | – | – |
| Three months ended September 30, 2026: Other, netGAAP | 839K | – | – |
| Three months ended September 30, 2026: Total other income and (expenses), netGAAP | −10.24M | – | – |
| Three months ended September 30, 2026: Income before income tax expenseGAAP | 57.05M | – | – |
| Three months ended September 30, 2026: Income tax expenseGAAP | 14.77M | – | – |
| Three months ended September 30, 2026: Net incomeGAAP | $42.28M | – | – |
| Three months ended September 30, 2026: Basic earnings per Common ShareGAAP | $ 1.06 | – | consistent with those reported during the same period in 2025 |
| Three months ended September 30, 2026: Fully diluted earnings per Common ShareGAAP | $ 1.06 | – | consistent with those reported during the same period in 2025 |
| Three months ended September 30, 2026: Adjusted consolidated diluted earnings per sharenon-GAAP | $1.06 per share | – | an increase of $0.05 per share in adjusted earnings |
| Nine months ended September 30, 2026: Total operating revenuesGAAP | $543.0M | – | – |
| Nine months ended September 30, 2026: Total operating expensesGAAP | $360.4M | – | – |
| Nine months ended September 30, 2026: Operating incomeGAAP | $182.6M | – | – |
| Nine months ended September 30, 2026: Net incomeGAAP | $115.5M | – | – |
| Nine months ended September 30, 2026: Fully diluted earnings per Common ShareGAAP | $ 2.92 | – | an increase of $0.29 per share or 11.0% |
| Nine months ended September 30, 2026: Adjusted consolidated diluted earnings per sharenon-GAAP | $2.86 per share | – | an increase of $0.32 per share in adjusted earnings, or 12.6% |
| September 30, 2026: Net Property, Plant and EquipmentGAAP | $2.42B | – | – |
| September 30, 2026: Other Property and InvestmentsGAAP | 61.47M | – | – |
| September 30, 2026: Current AssetsGAAP | 215.2M | – | – |
| September 30, 2026: Other AssetsGAAP | 119.6M | – | – |
| September 30, 2026: Total AssetsGAAP | $2.81B | – | – |
| September 30, 2026: CapitalizationGAAP | $1.86B | – | – |
| September 30, 2026: Current LiabilitiesGAAP | 244.2M | – | – |
| September 30, 2026: Other CreditsGAAP | 709.7M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| WaterCPUC-authorized second-year rate increases effective January 1, 2026, additional capital-project revenues, higher per-unit water supply cost recovery, and an increase in water consumption of approximately 1%; partially offset by a decrease of $1.9 million in billed surcharges. | $139.9M | – | An increase in water operating revenues of $7.6 million |
| ElectricCPUC-authorized fourth-year rate increases in 2026 and additional revenues approved largely after the second quarter of 2025 for certain advice letter capital projects. | $14.88M | – | An increase of $1.6 million in electric revenues |
| Contracted servicesTotal revenues recognized increased, but diluted earnings decreased $0.02 per share primarily because of higher overall operating and construction expenses. | $37.73M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 outlook
- NoteAWR’s regulated utilities are on target to invest $185 to $220 million in capital infrastructure in 2026.
- NoteThe contracted services business is expected to contribute $0.63 to $0.67 per share for full year 2026.
- NoteAWR’s current policy is to achieve a CAGR in the dividend of more than 7% over the long-term.
Capital returns
- On October 26, 2026, AWR’s Board of Directors approved a fourth quarter dividend of $0.5455 per share on AWR’s Common Shares.
- Dividends on the Common Shares will be paid on December 2, 2026 to shareholders of record at the close of business on November 16, 2026.
- Dividends paid per Common Share were $ 0.5455 for the three months ended September 30, 2026, compared with $ 0.5040 for the same period in 2025.
- AWR reached the maximum aggregate offering capacity of $200 million in gross proceeds raised through its ATM offering program in June 2026, resulting in total sales of 2,575,947 Common Shares.
- No Common Shares were sold under the ATM program during the third quarter of 2026.
- AWR has no plans to issue additional equity through, at least, the end of 2029 to support its current operations.
What drove it
- Reported and adjusted net earnings benefited from new customer rate increases approved by the CPUC at the regulated utilities.
- The third-quarter change in retirement-plan investment results was unfavorable by $0.05 per share, with losses of $17,000 in 2026 compared with gains of $2.5 million in 2025.
- Year-to-date water and electric utility earnings increased from higher earnings associated with CPUC-approved rate increases.
- Year-to-date contracted-services earnings increased with construction activities.
- YTD 2026, the contracted services business was awarded approximately $31 million in additional new construction projects expected to be completed through 2029.
Concerns
- Water-segment reported diluted EPS decreased $0.01 per share to $0.85 per share, including the $0.05 per share unfavorable investment-results variance.
- Contracted-services diluted earnings decreased $0.02 per share to $0.17 per share in the third quarter, primarily due to higher overall operating and construction expenses.
- The ATM offering program had approximately $0.02 per share of dilutive effects on water earnings in the third quarter and approximately $0.07 per share on consolidated diluted earnings year to date.
- Water earnings are affected by consumption fluctuations following the transition to the M-WRAM effective January 1, 2025, and by water supply mix changes following the ICBA transition effective January 1, 2025.
- Changes in certain flowed-through income taxes unfavorably affected water and electric segment earnings.
What to watch
- Execution against the $185 to $220 million 2026 regulated-utilities capital infrastructure investment target.
- Full-year contracted-services contribution against the expected $0.63 to $0.67 per share range.
- Completion of approximately $31 million in additional contracted-services construction projects awarded year to date through 2029.
- Effects of CPUC-authorized rate increases, water consumption, water supply mix, and retirement-plan investment results on earnings.
- The fourth-quarter dividend payment of $0.5455 per share scheduled for December 2, 2026.
Balance sheet and cash flow
- Total Assets were $2,814,521 (in thousands) at September 30, 2026, compared with $2,715,092 (in thousands) at December 31, 2025.
- Net Property, Plant and Equipment were $2,418,267 (in thousands) at September 30, 2026, compared with $2,296,319 (in thousands) at December 31, 2025.
- Capitalization was $1,860,668 (in thousands) at September 30, 2026, compared with $1,828,281 (in thousands) at December 31, 2025.
- Current Liabilities were 244,188 (in thousands) at September 30, 2026, compared with 174,612 (in thousands) at December 31, 2025.
Analysis
American States Water reported third-quarter GAAP basic and fully diluted EPS of $1.06, unchanged from the same period in 2025. Net income was $ 42,284 (in thousands), compared with $ 41,167 (in thousands), while operating income was $ 67,294 (in thousands), compared with $ 61,733 (in thousands). Adjusted consolidated diluted earnings per share were $1.06 per share compared with $1.01 per share, an increase of $0.05 per share. The difference in reported comparability was the retirement-plan investment result: losses of $17,000 in 2026 compared with gains of $2.5 million in 2025 created a $0.05 per share unfavorable period-over-period variance.
The regulated utilities drove the operating performance. Water operating revenues were $ 139,916 (in thousands), compared with $ 132,323 (in thousands), with the company citing CPUC-authorized second-year rate increases, capital-project revenue recovery, higher water supply cost recovery, and water consumption that increased approximately 1%. Electric operating revenues were $ 14,885 (in thousands), compared with $ 13,332 (in thousands), supported by fourth-year CPUC rate increases and advice letter capital-project revenue. Water diluted earnings nevertheless declined to $0.85 per share from $0.86 per share because of the investment-result variance, while electric diluted earnings increased to $0.05 per share from $0.04 per share.
Cost and financing items moderated the revenue gains. Total operating expenses were $ 125,241 (in thousands), compared with $ 120,983 (in thousands), including higher depreciation and amortization, other operation expense, maintenance, property and other taxes, and ASUS construction expense. Interest expense was (11,866) (in thousands), compared with (11,711) (in thousands). Contracted-services revenue was $ 37,734 (in thousands), compared with $ 37,061 (in thousands), but segment diluted earnings declined to $0.17 per share from $0.19 per share because higher operating and construction expenses more than offset higher revenue.
For the nine months ended September 30, 2026, fully diluted EPS increased to $2.92 from $2.63, an increase of $0.29 per share or 11.0%. Adjusted diluted EPS were $2.86 per share compared with $2.54 per share, an increase of $0.32 per share or 12.6%. The company identified higher water and electric utility earnings from CPUC-approved rate increases and greater contracted-services construction activities as the primary contributors. The ATM program remained an earnings offset, with approximately $0.07 per share of year-to-date dilutive effects, though the company completed the program in June 2026 and stated that it has no plans to issue additional equity through at least the end of 2029.
Capital allocation remains centered on infrastructure, contracted-services project execution, and dividend growth. Regulated utilities are on target to invest $185 to $220 million in 2026, while contracted services is expected to contribute $0.63 to $0.67 per share for the full year. The Board approved a fourth-quarter dividend of $0.5455 per share. Net Property, Plant and Equipment increased to $2,418,267 (in thousands) at September 30, 2026 from $2,296,319 (in thousands) at December 31, 2025, consistent with the company’s ongoing capital investment program.
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not separately reported.
- Debt balances were not separately reported.
- A full-year 2026 total revenue outlook was not reported.
- A full-year 2026 gross margin outlook was not reported.
- A full-year 2026 operating expense outlook was not reported.
- A full-year 2026 tax-rate outlook was not reported.
- Prior-quarter comparisons for reported income-statement metrics were not reported.
- No prior outlook section was provided, so no comparison with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.