American States Water Q4 Earnings & Revenues Increase Y/Y

American States Water Company AWR reported fourth-quarter 2025 operating earnings per share (EPS) of 74 cents, up 32.1% from the year-ago quarter’s level of 56 cents.

AWR reported 2025 adjusted earnings of $3.37 per share compared with $3.04 in 2024, reflecting a year-over-year increase of 10.9%.

AWR’s Total Revenues

Operating revenues totaled $164.3 million, up 14.8% from the year-ago quarter’s level of $143.1 million.

AWR reported total revenues of $658.1 million in 2025 compared with $ 595.5 million in 2024, reflecting a year-over-year increase of 10.52%.

American States Water Company Price, Consensus and EPS Surprise

Highlights of AWR’s Q4 Release

Operating expenses totaled $119.2 million, up 14.2% from the year-ago quarter’s level of $104.4 million. This increase was due to higher water purchased, power purchased for resale, other operation expenses and higher ASUS construction expenses.

Operating income totaled $45 million, up 16.4% from $38.7 million recorded in the corresponding period of 2024.

Interest expenses amounted to $10.9 million, down 2.6% year over year. This was due to a decrease in average borrowing levels and interest rates.

Interest income totaled $1.01 million compared with $1.97 million in the year-ago quarter.

AWR’s Segmental Details

Earnings from the Water segment were 50 cents per share, down 3.85% from 52 cents a year ago. 

EPS from the Electric segment was 11 cents, down 15.4% from 13 cents a year ago. 

EPS from the Contracted Services segment was 16 cents, up 45.5% from 11 cents a year ago. The increase in earnings was due to additional construction activities, along with a decrease in interest expense and a rise in revenues from management fees following the resolution of economic price adjustments.

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

AWR’s Financial Update

As of Dec. 31, 2025, AWR’s cash and cash equivalents totaled $18.8 million compared with $26.7 million as of Dec. 31, 2024.

As of Dec. 31, 2025, long-term debt amounted to $782.7 million compared with $640.4 million as of Dec. 31, 2024.

Cash provided by operating activities of 2025 totaled $229.7 million compared with $198.7 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 $185-$225 million in 2026.

AWR’s Zacks Rank

American States Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Essential Utilities, Inc. WTRG is scheduled to report fourth-quarter results on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at 36 cents, which indicates a year-over-year fall of 46.27%.

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $588.86 million, which suggests a year-over-year decline of 2.57%.

California Water Service Group CWT is scheduled to report fourth-quarter results on Feb. 25. The Zacks Consensus Estimate for earnings is pegged at 36 cents, which indicates year-over-year growth of 9.09%.

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $232.04 million, which suggests a year-over-year increase of 4.43%.

Global Water Resources, Inc. GWRS is scheduled to report fourth-quarter results on March 5. The Zacks Consensus Estimate for earnings is pegged at 4 cents, flat year over year. 

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $13.90 million, which suggests a year-over-year increase of 4.91%.

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

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