American States Water Company has reported robust financial results for both the fourth quarter and the full year of 2025, highlighting record adjusted earnings, rising revenues, and its 71st consecutive annual dividend increase. Management attributed the performance to favorable regulatory decisions, enhanced infrastructure investments, and strong contributions from its contracted services segment.
For the three months ended December 31, 2025, American States Water saw its consolidated EPS reach $0.74, significantly higher than $0.56 adjusted EPS posted for the same period last year. This improvement was boosted by new customer rates, strong construction activities, and higher management fees in the utility services segment.
Segment Overview:
- Water Utilities: Achieved $0.50 per share, with expanded revenues offsetting increased operating and supply costs.
- Electric Segment: Delivered $0.11 per share, up from last year’s adjusted result thanks to rate increases and project approvals.
- Contracted Services (ASUS): Contributed $0.16 per share, reflecting robust growth in project work and improved margins.
The company reported net income of $130.4 million, up from $119.3 million in 2024, on total revenues of $658.1 million. Investments continued strong, with $210.9 million spent in regulated utility infrastructure.
Further key metrics for 2025 include:
- Positive regulatory outcomes allowing for increased rates effective 2026
- Authorized $650 million in capital investments over the coming years
- Projected company-funded capital expenditures of $185–$225 million for 2026
American States Water made significant strides expanding its footprint and preparing for future growth:
- San Juan Oaks (Central Coast, CA): Acquired new assets, expected to eventually serve 1,300 homes
- Sutter Point (Northern CA): Secured initial rate approvals, with long-term plans for up to 17,500 new connections
- Norwalk Acquisition: Announced intent to serve nearly 900 new customers pending regulatory approval
The company’s regulated segments benefited from constructive decisions by the California Public Utilities Commission (CPUC), including modified revenue adjustment mechanisms effective in 2025 and significant operating revenue boosts set for 2026.
Net cash provided by operations rose to $229.7 million for the year. The company’s history of shareholder returns remains remarkable, with dividends growing at an 8.5% compound annual rate over the last five years. The latest hike will bring first quarter 2026 payouts to $0.5040 per share.
Looking forward, American States Water expects continued earnings strength from both regulated utility and contracted services businesses. The company’s commitment to infrastructure investment and disciplined rate case management positions it well for sustained growth in service areas and returns for shareholders.