American States Water 2025 Q2 Earnings Net Income Surges 5.7%

American States Water (AWR) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company slightly beat expectations with revenue growth and improved net income, maintaining its long-term profitability trend and reaffirming strategic capital investments. AWR’s earnings reflect stable utility performance and cautious optimism for future infrastructure development.

Revenue
Total revenue for AWR increased by 5.0% year-over-year to $163.07 million in 2025 Q2, reflecting strong performance in its regulated utility segments. The water utility segment remained the primary revenue driver, contributing $119.70 million, up from the previous year. The electric utility segment added $12.93 million, while the contracted services segment brought in $30.44 million. The AWR Parent segment recorded $0 in revenue, and consolidated revenue for the company stood at $163.07 million.

Earnings/Net Income
American States Water's earnings per share (EPS) rose 2.4% to $0.87 in 2025 Q2 from $0.85 in 2024 Q2. The company’s net income also increased by 5.7% to $33.69 million in 2025 Q2, compared to $31.86 million in the prior year. This marks 19 consecutive years of profitability, underscoring the company’s stable business performance and disciplined operations. The sustained earnings growth highlights the company’s ability to maintain profitability amid evolving market conditions. These results represent a positive earnings trend.

Price Action
Following the earnings release, the stock price of AWR declined slightly by 0.20% in the latest trading day. However, it posted a modest 1.17% gain during the most recent full trading week. Over the past month, the stock has declined by 2.75% month-to-date, indicating mixed short-term investor sentiment.

Post Earnings Price Action Review
The strategy of purchasing AWR following an earnings beat and holding for 30 days yielded a 3.22% return, which underperformed the benchmark return of 84.77%. The strategy exhibited minimal drawdown, a Sharpe ratio of 0.03, and a volatility of 22.13%. The underperformance suggests that market expectations and broader macroeconomic factors may have played a more significant role in stock price movement than the earnings event itself.

Guidance
AWR expects its contracted services segment to contribute between $0.59 and $0.63 per share to full-year 2025 diluted earnings, despite a dip in Q2 construction activity. The regulated utilities segment remains on track to spend between $170 million and $210 million in 2025 on capital investments, supporting infrastructure development and growth. The company maintains a stable outlook with no explicit guidance beyond these expectations.

Additional News
On July 29, 2025, AWR announced an 8.3% increase in its third-quarter dividend to $0.5040 per share from $0.4655 per share, which will be paid on September 3, 2025. This marks the 71st consecutive year that AWR has increased its dividend, highlighting the company’s strong commitment to shareholder returns. AWR’s regulated utilities also received CPUC approval for nearly $650 million in capital investments in early 2025, with $170–$210 million expected to be spent in 2025. Additionally, the company’s regulated water utility completed a transaction with a developer to build, own, and operate water and wastewater system assets for a new 1,300-connection community. This will generate two revenue streams and reinforce the company’s growth prospects. In July, Standard & Poor’s affirmed AWR’s strong credit ratings, rating the company “A” with a stable outlook and its regulated water utility “A+” with a stable outlook, affirming confidence in the company’s financial health.