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American States Water Q2 Earnings Miss Estimates, Sales Up Y/Y

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Key Takeaways

  • AWR reported Q2 EPS of 87 cents, missing estimates but up from 85 cents a year ago.
  • Revenues rose 5% to $163.1M but missed the $169M consensus estimate.
  • New CPUC-approved rate hikes boosted Water and Electric segment earnings in Q2.

American States Water Company (AWR - Free Report) reported second-quarter 2025 operating earnings per share (EPS) of 87 cents, which missed the Zacks Consensus Estimate of 92 cents by 5.4%. In the year-ago quarter, the company reported EPS of 85 cents.

AWR’s Total Revenues

Operating revenues totaled $163.1 million, which missed the Zacks Consensus Estimate of $169 million by 3.5%. However, the top line increased 5% from $155.3 million reported in the prior-year period.

 

Highlights of AWR’s Q2 Release

Operating expenses totaled $112.1 million, up 8.2% from the year-ago quarter’s level of $103.6 million. This was due to higher water purchased, increased administrative and general costs, higher depreciation and amortization and maintenance expenses. 

Operating income totaled $51 million, down 1.3% from $51.7 million recorded in the corresponding period of 2024.

Interest expenses amounted to $12.1 million, down 7.6% year over year. Interest income totaled $1.5 million compared with $2.1 million in the year-ago quarter.

AWR’s Segmental Details

Earnings from the Water segment were 73 cents per share, up 9% from 67 cents a year ago. An increase in water operating revenues of $9.3 million was largely a result of the CPUC-authorized new rate increases effective Jan. 1, 2025. GSWC transitioned from a full revenue decoupling mechanism to a modified rate adjustment mechanism effective Jan. 1, 2025. 

EPS from the Electric segment was 3 cents, up 2 cents from the year-ago quarter’s level. This increase largely resulting from an increase in revenues from new rates implemented in 2025 as a result of receiving a final decision from the CPUC in connection with BVES’s general rate case proceeding that set new rates for 2023-2026 (retroactive to January 1, 2023), as compared to 2022 rates used to record revenue during the same period of 2024.

EPS from the Contracted Services segment was 13 cents compared with 19 cents in the year-ago quarter. 

AWR (Parent) posted a loss of a cent per share compared with a loss of 2 cents in the year-ago quarter.

AWR’s Financial Update

As of June 30, 2025, AWR’s cash and cash equivalents totaled $20.2 million compared with $26.7 million as of Dec. 31, 2024.

As of June 30, 2025, long-term debt amounted to $789.5 million compared with $640.4 million as of Dec. 31, 2024.

Cash provided by operating activities in the first six months of 2025 totaled $109.6 million compared with $70.5 million in the year-ago period.

AWR’s Zacks Rank

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

Recent Releases

American Water Works Company (AWK - Free Report) posted second-quarter 2025 operating earnings of $1.48 per share, which lagged the Zacks Consensus Estimate of $1.49 by 0.7%.

AWK’s long-term (three-to-five years) earnings growth rate is 7.4%. The Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 6.1%.

California Water Service Group (CWT - Free Report) recorded second-quarter 2025 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 46 cents by 54.3%.

CWT’s long-term earnings growth rate is 8.78%. The Zacks Consensus Estimate for 2025 EPS suggests a year-over-year decline of 27.7%.

Essential Utilities Inc. (WTRG - Free Report) delivered second-quarter 2025 operating earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 29 cents by 31%.

WTRG’s long-term earnings growth rate is 5.18%. The Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 6.6%.

 

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