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AWR Q2 Earnings Top Estimates on Water Rate Increases, Revenues Up Y/Y
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Key Takeaways
American States Water Q2 EPS rose 25.3% to $1.09 as revenues climbed 11.2% to $181.29 million.
AWR water revenues rose 9.5%, driven by 2026 rate increases, capital projects and higher consumption.
AWR raised its quarterly dividend 8.2% and sees 2026 regulated utility capex of $185-$220 million.
American States Water Company (AWR - Free Report) reported second-quarter 2026 earnings of $1.09 per share, up 25.3% year over year and beating the Zacks Consensus Estimate of 93 cents by 17.2%. Higher earnings at the water utility, driven largely by CPUC-approved rate increases, supported the gain.
Total Revenues
Operating revenues rose 11.2% to $181.29 million from $163.07 million. Water consumption increased about 4%, while contracted services revenues advanced 20.3%, adding to the quarter’s growth.
Water segment revenues increased 9.5% year over year to $131.05 million. The increase mainly reflected second-year customer rate increases effective Jan. 1, 2026, additional revenues tied to approved capital projects and higher water consumption. Lower billed surcharges partly offset these gains.
Contracted Services revenues rose 20.3% to $36.61 million, while Electric segment revenues increased 5.4% to $13.63 million. The Electric revenues were $13.6 million, up 5.4% year over year, and the surge reflects authorized 2026 rate increases and additional recovery on completed capital projects, partly offset by lower billed surcharges.
American States Water Company Price, Consensus and EPS Surprise
Operating expenses increased 4.6% to $117.32 million. ASUS construction expense climbed 29.9% to $16.75 million, while depreciation and amortization rose 9.1% to $12.75 million. Administrative and general expenses declined 2.8% to $24.52 million.
Operating income increased 25.5% to $63.97 million. Interest expense was $12.17 million, up 0.5%, while other income, net, increased 41.8% to $5.07 million. Net income rose 28.4% to $43.27 million.
American States Water Strengthens Cash Flow
Cash provided by operating activities totaled $116.6 million in the first six months of 2026, compared with $109.6 million a year earlier. The improvement reflected new regulated utility rates, various surcharges, about $4 million of proceeds from PFAS contamination litigation and working-capital timing.
The regulated utilities invested $91.7 million in company-funded capital work year to date. American States Water expects regulated utility capital expenditures of $185-$220 million in 2026. Cash and cash equivalents stood at $21.66 million at June 30, up from $18.82 million at year-end 2025.
AWR's Rate Cases Set the Regulatory Backdrop
Golden State Water filed its 2028-2030 general rate case on July 1, seeking nearly $1 billion of capital budgets for the three-year cycle. It also requested reinstatement of the WRAM and MCBA regulatory mechanisms. A decision is scheduled for the fourth quarter of 2027, with new rates targeted for Jan. 1, 2028.
Bear Valley Electric filed its 2027-2030 rate case in January. The application seeks about $133 million of capital budgets, plus roughly $17 million, along with allowance for funds used during construction, for projects to be recovered through advice letters. It also requests an 11.30% return on equity.
American States Water Boosts Shareholder Returns
The board approved an 8.2% increase in the third-quarter dividend to 54.55 cents per share from 50.40 cents. This increase marks the 72nd consecutive calendar year in which AWR has raised annual dividends to its shareholders.
AWR also completed its at-the-market equity offering program in June after reaching the $200 million maximum aggregate offering capacity. The company said no further shares will be sold under that program and it has no plans to issue additional equity through at least the end of 2029 to support current operations.
AWR’s Guidance
American States Water’s capital expenditures for 2026 are expected to be $185-$220 million.
Contracted Services (“ASUS”) is projected to contribute 63-67 cents per share in 2026.
American Water Works Company Inc. (AWK - Free Report) reported second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter.
Revenues of $1.36 billion surpassed the Zacks Consensus Estimate of $1.28 billion by 6.2% and rose 6.2% year over year. The company added nearly 52,000 customer connections through acquisitions in the first half.
California Water Service Group (CWT - Free Report) reported second-quarter 2026 earnings of 93 cents per share, up 31% year over year. The figure beat the Zacks Consensus Estimate of 79 cents per share by 17.72%.
Quarterly revenues rose 16.5% to $308.6 million and surpassed the Zacks Consensus Estimate of $277 million by 11.41%. Results benefited from regulatory catch-up revenues, rate changes and higher customer consumption, while infrastructure investment reached a record $147 million.
Essential Utilities Inc. (WTRG - Free Report) reported second-quarter 2026 adjusted earnings of 38 cents per share, in line with the Zacks Consensus Estimate and reflecting no surprise.
Quarterly revenues of $530.9 million rose 3.1% year over year and beat the consensus estimate of $502 million by 5.76%. Regulatory recoveries and purchased gas costs supported the top line, while regulated water revenues advanced 7.6%.
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AWR Q2 Earnings Top Estimates on Water Rate Increases, Revenues Up Y/Y
Key Takeaways
American States Water Company (AWR - Free Report) reported second-quarter 2026 earnings of $1.09 per share, up 25.3% year over year and beating the Zacks Consensus Estimate of 93 cents by 17.2%. Higher earnings at the water utility, driven largely by CPUC-approved rate increases, supported the gain.
Total Revenues
Operating revenues rose 11.2% to $181.29 million from $163.07 million. Water consumption increased about 4%, while contracted services revenues advanced 20.3%, adding to the quarter’s growth.
Water segment revenues increased 9.5% year over year to $131.05 million. The increase mainly reflected second-year customer rate increases effective Jan. 1, 2026, additional revenues tied to approved capital projects and higher water consumption. Lower billed surcharges partly offset these gains.
Contracted Services revenues rose 20.3% to $36.61 million, while Electric segment revenues increased 5.4% to $13.63 million. The Electric revenues were $13.6 million, up 5.4% year over year, and the surge reflects authorized 2026 rate increases and additional recovery on completed capital projects, partly offset by lower billed surcharges.
American States Water Company Price, Consensus and EPS Surprise
American States Water Company price-consensus-eps-surprise-chart | American States Water Company Quote
AWR's Operational Highlights
Operating expenses increased 4.6% to $117.32 million. ASUS construction expense climbed 29.9% to $16.75 million, while depreciation and amortization rose 9.1% to $12.75 million. Administrative and general expenses declined 2.8% to $24.52 million.
Operating income increased 25.5% to $63.97 million. Interest expense was $12.17 million, up 0.5%, while other income, net, increased 41.8% to $5.07 million. Net income rose 28.4% to $43.27 million.
American States Water Strengthens Cash Flow
Cash provided by operating activities totaled $116.6 million in the first six months of 2026, compared with $109.6 million a year earlier. The improvement reflected new regulated utility rates, various surcharges, about $4 million of proceeds from PFAS contamination litigation and working-capital timing.
The regulated utilities invested $91.7 million in company-funded capital work year to date. American States Water expects regulated utility capital expenditures of $185-$220 million in 2026. Cash and cash equivalents stood at $21.66 million at June 30, up from $18.82 million at year-end 2025.
AWR's Rate Cases Set the Regulatory Backdrop
Golden State Water filed its 2028-2030 general rate case on July 1, seeking nearly $1 billion of capital budgets for the three-year cycle. It also requested reinstatement of the WRAM and MCBA regulatory mechanisms. A decision is scheduled for the fourth quarter of 2027, with new rates targeted for Jan. 1, 2028.
Bear Valley Electric filed its 2027-2030 rate case in January. The application seeks about $133 million of capital budgets, plus roughly $17 million, along with allowance for funds used during construction, for projects to be recovered through advice letters. It also requests an 11.30% return on equity.
American States Water Boosts Shareholder Returns
The board approved an 8.2% increase in the third-quarter dividend to 54.55 cents per share from 50.40 cents. This increase marks the 72nd consecutive calendar year in which AWR has raised annual dividends to its shareholders.
AWR also completed its at-the-market equity offering program in June after reaching the $200 million maximum aggregate offering capacity. The company said no further shares will be sold under that program and it has no plans to issue additional equity through at least the end of 2029 to support current operations.
AWR’s Guidance
American States Water’s capital expenditures for 2026 are expected to be $185-$220 million.
Contracted Services (“ASUS”) is projected to contribute 63-67 cents per share in 2026.
AWR’s Zacks Rank
American States Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Recent Releases
American Water Works Company Inc. (AWK - Free Report) reported second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter.
Revenues of $1.36 billion surpassed the Zacks Consensus Estimate of $1.28 billion by 6.2% and rose 6.2% year over year. The company added nearly 52,000 customer connections through acquisitions in the first half.
California Water Service Group (CWT - Free Report) reported second-quarter 2026 earnings of 93 cents per share, up 31% year over year. The figure beat the Zacks Consensus Estimate of 79 cents per share by 17.72%.
Quarterly revenues rose 16.5% to $308.6 million and surpassed the Zacks Consensus Estimate of $277 million by 11.41%. Results benefited from regulatory catch-up revenues, rate changes and higher customer consumption, while infrastructure investment reached a record $147 million.
Essential Utilities Inc. (WTRG - Free Report) reported second-quarter 2026 adjusted earnings of 38 cents per share, in line with the Zacks Consensus Estimate and reflecting no surprise.
Quarterly revenues of $530.9 million rose 3.1% year over year and beat the consensus estimate of $502 million by 5.76%. Regulatory recoveries and purchased gas costs supported the top line, while regulated water revenues advanced 7.6%.