American States Water Co Reports Mixed Q4 Results, Shares Show Modest Gains
AMERICAN STATES WATER CO (NYSE:AWR) announced its financial results for the fourth quarter and full year ended December 31, 2025. The regulated utility holding company delivered earnings that narrowly surpassed analyst expectations, though it fell short on the top line. The market's initial reaction has been cautiously positive, with the stock showing modest gains over the past week.
Earnings and Revenue Versus Estimates
The company's fourth-quarter performance presented a mixed picture when held against Wall Street forecasts. On the bottom line, AWR reported adjusted diluted earnings per share (EPS) of $0.74. This figure edged out the consensus analyst estimate of $0.7272. However, quarterly revenue told a different story.
- Reported Q4 2025 Revenue: $164.3 million
- Analyst Estimate for Q4 2025 Revenue: $170.5 million
- Variance: Missed by approximately $6.2 million, or 3.6%.
For the full year 2025, the company reported consolidated diluted EPS of $3.37, an increase from $3.17 in 2024. On an adjusted basis, which excludes a one-time tax benefit from the prior year, full-year EPS grew 10.9% to $3.37 from an adjusted $3.04 in 2024.
Market Reaction and Price Action
Following the earnings release, AWR's stock has experienced a slight uptick. The share price has increased approximately 2.3% over the past week. This positive movement, albeit modest, suggests investors may be focusing on the earnings beat and the underlying operational growth rather than the revenue miss. The stock's performance over the past month remains slightly negative, down about 2%, indicating some pre-earnings caution or broader market pressures.
Key Highlights from the Quarterly Report
The earnings press release detailed performance across AWR's three business segments, with growth driven primarily by new rates at its regulated utilities and increased activity in its contracted services division.
- Water Segment: Adjusted diluted EPS increased by $0.11 year-over-year to $0.50 for the quarter. The growth was fueled by new customer rates authorized by the California Public Utilities Commission (CPUC), effective January 2025, though the segment now faces increased earnings volatility due to changes in its rate adjustment and water supply cost balancing mechanisms.
- Electric Segment: Adjusted diluted EPS rose by $0.04 to $0.11, driven by new rate increases and the recovery of costs related to capital projects and a solar and battery initiative.
- Contracted Services Segment: This segment saw a $0.05 per share increase, reaching $0.16, largely due to higher management fee revenues and increased construction activities.
The company also highlighted its longstanding commitment to shareholder dividends. The Board approved a first-quarter 2026 dividend of $0.5040 per share, marking 71 consecutive years of annual dividend increases. AWR noted its long-term policy is to achieve a compound annual growth rate in the dividend of more than 7%.
Looking Ahead
While the press release did not provide specific quantitative financial guidance for 2026, it emphasized continued earnings growth from implemented rate increases and contracted services activities. Analysts currently estimate the company will deliver EPS of $0.7272 on revenue of $153.5 million for the first quarter of 2026. For the full year 2026, the current consensus estimates project EPS of $3.51 and revenue of $692.3 million.
For a detailed breakdown of historical earnings and future analyst estimates for AMERICAN STATES WATER CO, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
