American States Water Company (AWR) investor relations material

Executive summary

• Consolidated diluted EPS rose to $0.87 in Q2 2025 from $0.85 in Q2 2024, driven by higher water and electric segment earnings, partially offset by lower contracted services earnings and equity dilution.

• Year-to-date diluted EPS reached $1.57, up $0.10 from last year, reflecting strong regulated utility performance and higher investment gains.

• An 8.3% dividend increase was approved, raising the annualized rate to $2.16 per share and marking 71 consecutive years of increases.

• Completed acquisition of water and wastewater assets for a new planned community with 1,300 connections.

• Infrastructure investments for regulated utilities are projected at $170–$210 million for 2025.

Financial highlights

• Q2 2025 operating revenues increased to $163.1 million from $155.3 million in Q2 2024; net income was $33.7 million, up from $31.9 million.

• Water segment revenue increased by $9.3 million year-over-year; electric by $4.2 million; contracted services declined by $5.8 million.

• Q2 2025 operating expenses rose to $112.1 million from $103.6 million, mainly due to higher water supply and labor costs.

• Net cash from operating activities for the first half was $109.6 million, up from $70.5 million last year.

• Q2 2025 gross margin was approximately 31%.

Outlook and guidance

• Contracted services/ASUS expected to contribute $0.59–$0.63 per share for full year 2025, with construction activity expected to pick up in H2.

• 2025 capital expenditures expected between $170–$210 million.

• Management remains confident in achieving long-term sustainable earnings growth and robust rate base expansion.