American States Water Holds Third-Quarter Earnings at $1.06 a Share

The Tip Desk · November 11, 2026 · 4 min read

Adjusted diluted earnings were $1.06 a share after excluding a $0.05 swing in retirement-plan investment results, and the board set a fourth-quarter dividend of $0.5455 a share.

American States Water Company (AWR) reported basic and fully diluted earnings of $1.06 a share for the quarter ended September 30, 2026, matching the $1.06 a share recorded a year earlier.

The parent of Golden State Water Company, Bear Valley Electric Service and American States Utility Services said results were affected by an unfavorable period-over-period change in investment results on assets held to fund one of its retirement plans. Losses of $17,000, or $0.00 a share, were recognized in the third quarter of 2026, compared with gains of $2.5 million, or $0.05 a share, in the same period of 2025.

Beginning in the third quarter of 2026, the company excluded those retirement-plan investment gains and losses from adjusted earnings per share, saying the amounts fluctuate with financial markets and are not indicative of core operating performance. In prior 2026 quarters it had not presented adjusted earnings because the per-share impact was not material. On that adjusted basis, diluted earnings were $1.06 a share versus $1.01 a share a year earlier.

Sequentially, consolidated diluted earnings were $1.06 a share after $1.09 a share in the second quarter of 2026, when reported earnings had risen 25.3% from $0.87 a share a year earlier.

Water-segment diluted earnings were $0.85 a share, down $0.01 from $0.86 a year earlier. Excluding investment results, adjusted water earnings were $0.85 a share versus $0.81 a share. Water operating revenues were $139.9 million, up $7.6 million from $132.3 million a year earlier. The company said the increase was largely from CPUC-authorized second-year rate increases effective January 1, 2026, additional recoveries for capital projects in advice-letter filings, per-unit water-supply cost pass-throughs with no net earnings impact, and about 1% higher water consumption. Those revenue gains were partly offset by a $1.9 million decrease in billed surcharges, which the company said has no net earnings impact.

Water supply costs rose $0.2 million. Operating expenses excluding supply costs increased $1.8 million, which the company attributed to labor, treatment and chemical costs, conservation spending, regulatory filings, depreciation on new capital, maintenance and property taxes. Interest expense net of interest income rose $1.3 million. Diluted earnings were also reduced by about $0.02 a share from equity issued under the company’s at-the-market program.

Electric-segment diluted earnings were $0.05 a share, up $0.01 from $0.04 a year earlier, on $1.6 million higher electric revenues from CPUC fourth-year rate increases and advice-letter recoveries, partly offset by higher supply costs. Electric operating revenues were $14.9 million versus $13.3 million.

Contracted-services diluted earnings were $0.17 a share, down $0.02 from $0.19 a year earlier, primarily from higher operating and construction expenses, partly offset by higher recognized revenues. Contracted-services operating revenues were $37.7 million versus $37.1 million. The company said the contracted services business is expected to contribute $0.63 to $0.67 a share for full-year 2026. Year to date, it has been awarded about $31 million of additional new-construction projects expected to be completed through 2029.

AWR (parent) diluted loss narrowed to $0.01 a share from $0.03 a year earlier, largely from lower credit-facility interest expense after ATM proceeds. Total operating revenues were $192.5 million versus $182.7 million; operating income was $67.3 million versus $61.7 million. Net income was $42.3 million versus $41.2 million, on 39.78 million weighted-average diluted shares versus 38.70 million.

On June 12, 2026, AWR completed its ATM program at the $200 million cap, selling 2,575,947 shares. No shares were sold in the third quarter. The company said it has no plans to issue additional equity through at least the end of 2029. Regulated utilities remained on target to invest $185 million to $220 million in capital infrastructure in 2026.

The board approved a fourth-quarter dividend of $0.5455 a share, an 8.2% increase in the quarterly dividend during 2026. The company said the quarterly dividend rate has grown at an 8.4% compound annual rate over the last five years.