American States Water Q3 Earnings Beat Estimates, Revenues Up Y/Y

American States Water Company AWR reported third-quarter 2025 operating earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of $1.01 by 4.95%. In the year-ago quarter, the company reported EPS of 95 cents.

AWR’s Total Revenues

Operating revenues totaled $182.72 million, which beats the Zacks Consensus Estimate of $178 million by 2.65%. The top line increased 12.9% from $161.78 million reported in the prior-year period.

Highlights of AWR’s Q3 Release

Operating expenses totaled $121 million, up 13.4% from the year-ago quarter’s level of $106.7 million. This was due to higher water purchased, power purchased for resale, increased administrative and general costs, maintenance expenses, and higher ASUS construction expenses.

Operating income totaled $61.7 million, up 11.9% from $55.1 million recorded in the corresponding period of 2024.

Interest expenses amounted to $11.7 million, down 13.4% year over year. This was due to a decrease in average borrowing levels and interest rates, partially offset by a decrease in interest income earned on regulatory assets.

Interest income totaled $1.1 million compared with $1.7 million in the year-ago quarter.

AWR’s regulated water utility received CPUC approval to provide water services to another new planned community, which is expected to serve up to 3,800 customer connections over the next five years and, over the longer term (20+ years), allow for the construction of 17,500 total dwelling units at full buildout.

AWR’s Segmental Details

Earnings from the Water segment were 86 cents per share, up 2.38% from 84 cents a year ago. An increase in water operating revenues of $8.3 million was largely a result of the CPUC-authorized new interest rate increases effective Jan. 1, 2025. GSWC transitioned from a full revenue decoupling mechanism to a modified rate adjustment mechanism, effective Jan. 1, 2025. 

EPS from the Electric segment was 4 cents, up 2 cents from the year-ago quarter’s level. The increase primarily reflects higher revenues from new rates implemented in 2025, following the CPUC’s final decision on BVES’s general rate case proceeding, which established rates for 2023–2026 (retroactive to Jan. 1, 2023), compared with the 2022 rates used to record revenue during the same period in 2024.

EPS from the Contracted Services segment was 19 cents, up 8 cents from the year-ago quarter’s level.

AWR (Parent) reported a loss of 3 cents, wider than the year-ago quarter’s loss of 2 cents. This increase in loss was largely due to a rise in interest expenses from higher borrowing levels under AWR’s credit facility.

AWR’s Financial Update

As of Sept. 30, 2025, AWR’s cash and cash equivalents totaled $26.1 million compared with $26.7 million as of Dec. 31, 2024.

As of Sept. 30, 2025, long-term debt amounted to $790.3 million compared with $640.4 million as of Dec. 31, 2024.

Cash provided by operating activities in the first nine months of 2025 totaled $202.1 million compared with $134.2 million in the year-ago period.

AWR’s Guidance

AWR’s regulated utilities are authorized to spend nearly $650 million in capital investments as approved in the utilities’ general rate cases, targeting to invest $180 to $210 million in 2025.

AWR’s contracted services business is expected to contribute 59 cents to 63 cents per share for the whole year.

AWR’s Zacks Rank

American States Water currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

American Water Works Company AWK posted third-quarter 2025 operating earnings of $1.94 per share, which surpassed the Zacks Consensus Estimate of $1.90 by 2.11%.

AWK’s long-term (three-to-five years) earnings growth rate is 7.39%. The Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 6.31%.

Essential Utilities Inc. WTRG reported third-quarter 2025 operating earnings of 33 cents per share, which beat the Zacks Consensus Estimate of 27 cents by 22.22%.

WTRG’s long-term earnings growth rate is 6.0%. The Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 6.6%.

California Water Service Group CWT recorded third-quarter 2025 adjusted earnings of $1.03 per share, which missed the Zacks Consensus Estimate of $1.20 per share by 14.17%.

CWT’s long-term earnings growth rate is 8.78%. The Zacks Consensus Estimate for 2025 EPS suggests a year-over-year decline of 27.38%.


 

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This article originally published on Zacks Investment Research (zacks.com).

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