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AWR Gains From Investment & Rising Demand as Customer Base Expands
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Key Takeaways
AWR gains from regulated utilities, new approved rates and demand from an expanding customer base.
AWR plans $185-$225M capex in 2026 to strengthen regulated utilities and ensure reliable service.
AWR expects to add 3,800 customers in five years and pursue a Norwalk water system asset acquisition.
American States Water (AWR - Free Report) continues to benefit from a regulated structure, strong demand from an expanding customer base, strategic capital investment and a diversified business model that provides a clear path for revenue and earnings growth.
Long-term (three to five years) earnings growth of the company is projected at 5.65%.
AWR’s Tailwinds
American States Water benefits from a stable utility customer base and continues to expand its electricity and water customers at a steady pace. Growth is supported by newly authorized electric and water rates that boost revenues and earnings from regulated utilities. It is supported by long-term military utility contracts and new project awards.
New approved rates support ongoing infrastructure investments, ensuring safe, clean and reliable water and wastewater services for customers. The company plans capital expenditure of $185-$225 million in its regulated utilities during 2026 to strengthen its operations.
AWR continues to expand its operation with several water and wastewater systems. Through these initiatives, the company expects to add 3,800 customers in the upcoming five years. The company plans to acquire water system assets from the city of Norwalk in Los Angeles County. It has been making strategic investments to upgrade and expand assets.
American States Water is utilizing lower debts than its industry peers to run its operation. Its strong times interest earned ratio indicates that the company will be able to meet its interest obligations without any difficulties.
AWR’s Headwinds
American States Water remains focused on the single state of California, which can adversely affect the company’s financial performance. Companies concentrated in a single state are heavily influenced by conditions within the state, including political and regulatory developments, water supply availability, labor and utility cost trends, and broader economic conditions.
Price Performance of AWR
In the past three months, American States Water shares have gained 0.7% compared with the industry’s 8.3% growth.
Image Source: Zacks Investment Research
AWR’s Zacks Rank & Other Stocks to Consider
American States Water currently carries a Zacks Rank #2 (Buy).
CWCO, WTRG and IDA's dividend yields are 1.63%,3.34% and 2.50%, respectively.
The Zacks Consensus Estimate for Consolidated Water, Essential Utilities and IDACORP 2026 earnings is pegged at $1.57, $2.25 and $6.42 per share, suggesting year-over-year growth of 25.60%, 2.27% and 8.81%, respectively.
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AWR Gains From Investment & Rising Demand as Customer Base Expands
Key Takeaways
American States Water (AWR - Free Report) continues to benefit from a regulated structure, strong demand from an expanding customer base, strategic capital investment and a diversified business model that provides a clear path for revenue and earnings growth.
Long-term (three to five years) earnings growth of the company is projected at 5.65%.
AWR’s Tailwinds
American States Water benefits from a stable utility customer base and continues to expand its electricity and water customers at a steady pace. Growth is supported by newly authorized electric and water rates that boost revenues and earnings from regulated utilities. It is supported by long-term military utility contracts and new project awards.
New approved rates support ongoing infrastructure investments, ensuring safe, clean and reliable water and wastewater services for customers. The company plans capital expenditure of $185-$225 million in its regulated utilities during 2026 to strengthen its operations.
AWR continues to expand its operation with several water and wastewater systems. Through these initiatives, the company expects to add 3,800 customers in the upcoming five years. The company plans to acquire water system assets from the city of Norwalk in Los Angeles County. It has been making strategic investments to upgrade and expand assets.
American States Water is utilizing lower debts than its industry peers to run its operation. Its strong times interest earned ratio indicates that the company will be able to meet its interest obligations without any difficulties.
AWR’s Headwinds
American States Water remains focused on the single state of California, which can adversely affect the company’s financial performance. Companies concentrated in a single state are heavily influenced by conditions within the state, including political and regulatory developments, water supply availability, labor and utility cost trends, and broader economic conditions.
Price Performance of AWR
In the past three months, American States Water shares have gained 0.7% compared with the industry’s 8.3% growth.
Image Source: Zacks Investment Research
AWR’s Zacks Rank & Other Stocks to Consider
American States Water currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the same sector include Consolidated Water (CWCO - Free Report) , Essential Utilities (WTRG - Free Report) and IDACORP (IDA - Free Report) . All the stocks carry a Zacks Rank #2 eacg, at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CWCO, WTRG and IDA's dividend yields are 1.63%,3.34% and 2.50%, respectively.
The Zacks Consensus Estimate for Consolidated Water, Essential Utilities and IDACORP 2026 earnings is pegged at $1.57, $2.25 and $6.42 per share, suggesting year-over-year growth of 25.60%, 2.27% and 8.81%, respectively.