Why Is American States Water (AWR) Down 0.9% Since Last Earnings Report?

A month has gone by since the last earnings report for American States Water (AWR). Shares have lost about 0.9% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

American States Water Q4 Earnings & Revenues Increase Y/Y

American States Water Company 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%.

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.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, American States Water has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

American States Water has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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