American States Water Q2 Earnings Call Highlights

Second-quarter earnings rose to $1.09 per share from $0.87 a year earlier, with growth across the water, electric and contracted-services businesses. The company also raised its quarterly dividend by 8.2% to an annualized $2.182 per share. Golden State Water led results, benefiting from new 2026 rates, a 4% increase in customer consumption and lower reliance on purchased water. Management cautioned that weather, conservation and supply conditions could reverse these gains later in 2026. American States Water plans $185 million to $220 million of regulated-utility infrastructure investment in 2026, while ASUS expects to contribute $0.63 to $0.67 per share for the full year. The company completed its equity offering program and said it does not expect to issue additional equity through at least 2029.

American States Water NYSE: AWR reported second-quarter 2026 earnings of $1.09 per share, up from $0.87 per share a year earlier, as its water, electric and contracted services businesses each posted year-over-year gains. President and Chief Executive Officer Bob Sprowls said the results reflected “strong execution across our business” and cited new customer rates at the regulated utilities as well as higher construction activity at the company’s contracted services segment. The company also announced an 8.2% increase in its quarterly dividend, bringing its annualized dividend rate to $2.182 per share.

Golden State Water, the company’s water utility, generated second-quarter earnings of $0.91 per share, compared with $0.73 per share in the prior-year period. Chief Financial Officer Eva Tang said the $0.18-per-share increase was driven largely by water rates implemented for 2026, including revenue from capital projects approved through advice letters in late 2025. Other contributors included higher gains on investments supporting a retirement plan. These benefits were partly offset by higher water supply costs, interest expense net of interest income, and a higher effective income tax rate. Tang also said share issuances under the parent company’s at-the-market equity offering program reduced earnings by $0.02 per share.

Water segment revenue increased by $11.4 million from the second quarter of 2025, while electric segment revenue rose by $700,000. The gains were largely tied to new 2026 rates and revenue associated with approved advice letter projects. Sprowls said Golden State Water benefited during the quarter from a 4% increase in customer water consumption and a more favorable supply mix, including less reliance on purchased water. Certain wells that had been temporarily offline during the first quarter returned to service during the second quarter. However, he cautioned that those favorable trends may not persist for the rest of 2026. Golden State Water’s current regulatory framework includes a modified revenue decoupling mechanism and an incremental water supply cost balancing account, which Sprowls said expose earnings to volatility from consumption changes and shifts in water supply mix. “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,” Sprowls said. He noted that weather, conservation, precipitation patterns, groundwater quality and pumping conditions can affect consumption and supply costs.