On this page of StockholderLetter.com we present the latest annual shareholder letter from AMERICAN STATES WATER CO — ticker symbol AWR. Reading current and past AWR letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
AMERICAN S TAT E S WAT E R C O M PA N Y and subsidiaries Headquartered in San Dimas, CA, the company serves over one million people in ten states. MASSACHUSETTS MARYLAND CALIFORNIA KANSAS VIRGINIA NORTH CAROLINA SOUTH CAROLINA NEW MEXICO TEXAS F LO R I DA Regulated Water and Electric Operations: Golden State Water Company (GSWC) and Bear Valley Electric Service, Inc. (BVES) Military bases served through American States Utility Services, Inc. (ASUS) contracted services business Detailed customer information on page 7. American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 265,100 customer connections located within more than 80 communities in Northern, Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity to approximately 24,900 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water distribution, wastewater collection, and treatment facilities located on 12 military bases throughout the country under 50-year privatization contracts with the U.S. government and one military base under a 15-year contract.
2025 FINANCIAL HIGHLIGHTS (in thousands, except per share amounts) 2025 2024 Variance % Change 595,459 $ 62,614 10.5% Income Statement Information Total Operating Revenues $ 658,073 Total Operating Expenses 454,798 410,976 43,822 10.7% Operating Income 203,275 184,483 18,792 10.2% 41,126 42,508 (1,382) -3.3% 130,442 119,268 11,174 9.4% Basic Earnings Per Common Share1 3.37 3.17 0.20 6.3% Fully Diluted Earnings per Common Share1 3.37 3.17 0.20 6.3% 0.148 8.3% Interest Charges (Net) Net Income Dividends Paid per Common Share 1.939 1.791 Average Number of Shares Outstanding 38,550 37,464 1,086 2.9% Average Number of Diluted Shares Outstanding 38,673 37,583 1,090 2.9% $ 2,715,092 $ 2,500,209 $ 214,883 8.6% Net Utility Plant 2,296,319 2,099,625 196,694 9.4% Common Shareholders Equity 1,045,581 920,051 125,530 13.6% 782,700 640,382 142,318 22.2% 1,828,281 1,560,433 267,848 17.2% 2.63 10.9% Balance Sheet Information Total Assets Long-Term Debt Total Capitalization Book Value per Common Share 1 26.75 24.12 Adjusted earnings per share for 2024 was $3.04, excluding the impact of a one-time tax bene t of $0.13 per share recorded during the fourth quarter of 2024 because of receiving a nal decision from the CPUC in the water general rate case. 2025 reported earnings per share increased $0.33, or 10.9%, compared to 2024 adjusted earnings per share. 2025 ANNUAL REPORT 1
DEAR SHAREHOLDERS, American States Water Company and its subsidiaries (AWR) continued to deliver safe and reliable service to over one million people in ten states a mission that drives the entire organization. We are pleased to share the highlights and progress for 2025. As we look ahead to a new year, we re ect on our 2025 accomplishments and continued progress in positioning the company for growth and stability. We achieved a 10.9% earnings per share (EPS) increase over the prior year on an adjusted basis, received two nal, positive general rate case (GRC) decisions, continued to signi cantly invest in our infrastructure, increased earnings at our contracted services business, expanded the regulated water operations, and grew the dividend once again. We also achieved a consolidated return on equity (ROE) of 13.3% despite a 15.9% increase in our average consolidated equity balance compared to 2024. Some of the increase in the consolidated equity balance was due to issuance of equity under the At-The-Market offering program. The achieved ROE compares very favorably to other water utilities. We increased our quarterly dividend by 8.3%. As a result, we have increased our calendar year dividend for the 71st consecutive year. Our dividend growth is consistent with our policy of achieving a compound annual dividend growth rate of more than 7% over the long term. FINANCIAL RESULTS KEY DEVELOPMENTS IN 2025 We are pleased to report strong nancial results for 2025 with reported earnings that were $0.20 per share higher compared to 2024, or $0.33 per share higher as adjusted, or 10.9%. Included in the company s reported earnings in 2024 was a tax bene t of $0.13 per share for Golden State Water Company (GSWC) following the nal decision in its GRC. Excluding this In January, the California Public Utilities Commission (CPUC) issued a nal decision in GSWC s GRC for 2025-2027. The decision authorizes new rates for these years, with rates retroactive to January 1, 2025. In addition, the decision authorizes the investment of approximately $573.1 million in capital infrastructure over the three-year capital cycle, including $17.7 million of advice letter capital investments. It also authorizes advice letter capital investments of $58.2 million already under construction at the beginning of 2023. Excluding revenues for advice letter capital projects, adopted operating revenues less water supply costs for 2025 increased by approximately $23 million when compared to 2024 s adopted levels. GSWC plans to le its next GRC in July 2026 to set rates for 2028-2030. GOLDEN STATE WATER COMPANY (GSWC) 77.4% $2.61 BEAR VALLEY ELECTRIC SERVICE, INC. (BVES) EARNINGS PER SHARE Total: $3.371 7.4% 1 Also includes the parent company results of -$0.09 per share and the effects of rounding. A M E R I C A N S TAT E S WAT E R C O M PA N Y $0.25 AMERICAN STATES UTILITY SERVICES, INC. (ASUS) 18.1% 2 item, adjusted earnings for 2024 were $3.04 per share as compared to $3.37 per share for 2025. The increase is largely generated from higher earnings at our regulated utilities due mostly to implementation of new rates, and higher earnings at American States Utility Services, Inc. (ASUS) from an increase in management fee revenue, higher construction activities, and lower interest expenses. $0.61 GSWC completed the advice letter projects discussed above and led them concurrently with the 2026 secondyear rate increase lings in November. In December, GSWC received approval from the CPUC for the full second-year rate increases, as well as additional revenues related to the advice letter projects, which were permitted to accrue either a full rate of return or interest expense in a memorandum account prior to the ling for recovery. These approvals resulted in higher adopted water revenues less water supply
With a keen eye on growth and increasing our footprint, we ve continued to expand our regulated water utility operations in three areas of California. R E G U L AT E D U T I L I T I E S $8,573 $9,340 $9,997 Investment per customer connection 2023 2024 2025 costs for 2026 of approximately $32 million compared to 2025 s adopted levels, effective January 1, 2026. GSWC must meet an earnings test in each of its rate-making areas before implementing the second- and third-year rate increases, which it successfully achieved for its new rates in 2026. GSWC, along with three other investor-owned California water utilities, requested a further extension of the deadline to le their cost of capital applications. In November, the CPUC approved the request, deferring the ling date by one year to May 1, 2027, with a corresponding effective date of January 1, 2028. The CPUC also approved the joint parties request to leave the current Water Cost of Capital Mechanism in place through the one-year deferral period. With the deferral, GSWC will retain its authorized ROE of 10.06% and a 57% equity ratio through the end of 2027. In January, the CPUC issued a nal decision in Bear Valley Electric Service, Inc. s (BVES s) GRC. The decision sets new electric rates for 2023-2026, retroactive to January 1, 2023, and, among other items, authorizes BVES to invest $75.6 million in capital infrastructure over the four-year rate cycle, including at least $23.1 million plus Allowance for Funds Used During Construction (AFUDC) to be led for revenue recovery through advice letters when the projects are completed. Rate increases for 2025-2026 are not subject to an earnings test and advice letter projects generate additional annual operating revenues when they are completed, placed in service and led for recovery. In January 2026, BVES led a GRC application that will determine new electric rates for the years 2027-2030. Among other things, BVES requested capital budgets of approximately $133 million for the four-year rate cycle, and another approximately $17 million, plus AFUDC, for capital projects to be led for revenue recovery through advice letters when the projects are completed. In San Juan Oaks, a new planned community in the state s central coast region, GSWC and the developer completed an agreement to build out, own, and operate the water and wastewater system assets serving 1,300 customer connections. Full build out is expected by 2034 barring any future delays. The CPUC issued a nal decision in GSWC s GRC application for its new Sutter Pointe service area in northern California, which establishes initial water service rates for the years 2026-2028. The water system will serve this new planned community of up to 3,800 customer connections during the next ve years, and 17,500 dwelling units at full buildout over the longer term (20+ years). More recently in January 2026, GSWC led an application with the CPUC to acquire the water system assets from Norwalk, a city in Los Angeles County. The application requested the new service area be incorporated into one of GSWC s existing ratemaking areas. The city's service area serves almost 900 customer connections. We invested $210.9 million in infrastructure at our regulated utilities, re ecting our continued strong ability to execute our capital plan. For GSWC, the adopted average water rate base from 2021-2026 increased from $980.4 million to $1.673 billion. That represents a compound annual growth rate (CAGR) of 11.3% over the ve-year period using 2021 as the base year for the calculation. BVES s adopted average electric rate base has grown from $47.2 million in 2018 to $153.3 million in 2025, re ecting a seven-year CAGR of 18.3%. Our regulated utilities anticipate robust and sustained growth in their rate base over the next few years. ASUS contributed EPS of $0.61 in 2025, a 10.9% increase over 2024 s contribution, and was awarded $29.4 million in new capital upgrade projects for military contracts expected to be completed through 2028. Our record of maintaining strong credit ratings continued this year. We have an A credit rating from S&P on AWR and A+ for GSWC, with stable outlooks on both ratings. These are some of the highest credit ratings in the U.S. investor-owned water utility industry. We were honored to receive two recognitions. The rst was TIME s America s Best Mid-Size Companies 2025. Companies are ranked by Revenue Growth, Employee Satisfaction, and Sustainability Transparency, and we were one of only two investor-owned water utilities on the list. Secondly, we are the only water utility included in Barron s 100 Most Sustainable Companies for 2025. Companies were 2025 ANNUAL REPORT 3
 • shareholder letter icon 4/3/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 AWR Stockholder Letter
 • stockholder letter icon 4/5/2024 AWR Stockholder Letter
 • stockholder letter icon 4/4/2025 AWR Stockholder Letter
 • stockholder letter icon More "Water Utilities" Category Stockholder Letters
 • Benford's Law Stocks icon AWR Benford's Law Stock Score = 94


AWR Shareholder/Stockholder Letter Transcript:

2025
ANNUAL
REPORT

AMERICAN
S TAT E S WAT E R
C O M PA N Y
and subsidiaries
Headquartered
in San Dimas, CA, the
company serves over
one million people in
ten states.
MASSACHUSETTS
MARYLAND
CALIFORNIA
KANSAS
VIRGINIA
NORTH CAROLINA
SOUTH
CAROLINA
NEW MEXICO
TEXAS
F LO R I DA
Regulated Water and
Electric Operations:
Golden State Water
Company (GSWC) and
Bear Valley Electric
Service, Inc. (BVES)
Military bases
served through
American States
Utility Services, Inc.
(ASUS) contracted
services business
Detailed customer information on page 7.
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility
Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides
water service to approximately 265,100 customer connections located within more than 80 communities in Northern, Coastal and Southern
California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity to approximately 24,900
customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California. Through its contracted services
subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for
water distribution, wastewater collection, and treatment facilities located on 12 military bases throughout the country under 50-year privatization
contracts with the U.S. government and one military base under a 15-year contract.

2025 FINANCIAL
HIGHLIGHTS
(in thousands, except per share amounts)
2025
2024
Variance
% Change
595,459
$ 62,614
10.5%
Income Statement Information
Total Operating Revenues
$ 658,073
Total Operating Expenses
454,798
410,976
43,822
10.7%
Operating Income
203,275
184,483
18,792
10.2%
41,126
42,508
(1,382)
-3.3%
130,442
119,268
11,174
9.4%
Basic Earnings Per Common Share1
3.37
3.17
0.20
6.3%
Fully Diluted Earnings per Common Share1
3.37
3.17
0.20
6.3%
0.148
8.3%
Interest Charges (Net)
Net Income
Dividends Paid per Common Share

1.939


1.791

Average Number of Shares Outstanding
38,550
37,464
1,086
2.9%
Average Number of Diluted Shares Outstanding
38,673
37,583
1,090
2.9%
$ 2,715,092
$ 2,500,209
$ 214,883
8.6%
Net Utility Plant
2,296,319
2,099,625
196,694
9.4%
Common Shareholders    Equity
1,045,581
920,051
125,530
13.6%
782,700
640,382
142,318
22.2%
1,828,281
1,560,433
267,848
17.2%
2.63
10.9%
Balance Sheet Information
Total Assets
Long-Term Debt
Total Capitalization
Book Value per Common Share
1

26.75

24.12

Adjusted earnings per share for 2024 was $3.04, excluding the impact of a one-time tax bene   t of $0.13 per share recorded during the fourth quarter of 2024 because of receiving a    nal decision
from the CPUC in the water general rate case. 2025 reported earnings per share increased $0.33, or 10.9%, compared to 2024 adjusted earnings per share.
2025 ANNUAL REPORT
1

DEAR SHAREHOLDERS,
American States Water Company and its
subsidiaries (AWR) continued to deliver
safe and reliable service to over one
million people in ten states   a mission
that drives the entire organization. We
are pleased to share the highlights and
progress for 2025.
As we look ahead to a new year, we re   ect on our 2025
accomplishments and continued progress in positioning the
company for growth and stability. We achieved a 10.9% earnings
per share (EPS) increase over the prior year on an adjusted
basis, received two    nal, positive general rate case (GRC)
decisions, continued to signi   cantly invest in our infrastructure,
increased earnings at our contracted services business,
expanded the regulated water operations, and grew the
dividend once again.
We also achieved a consolidated return on equity (ROE) of
13.3% despite a 15.9% increase in our average consolidated
equity balance compared to 2024. Some of the increase in
the consolidated equity balance was due to issuance of equity
under the At-The-Market offering program. The achieved ROE
compares very favorably to other water utilities. We increased
our quarterly dividend by 8.3%. As a result, we have increased
our calendar year dividend for the 71st consecutive year. Our
dividend growth is consistent with our policy of achieving a
compound annual dividend growth rate of more than 7% over
the long term.
FINANCIAL RESULTS
KEY DEVELOPMENTS IN 2025
We are pleased to report strong    nancial results for 2025 with
reported earnings that were $0.20 per share higher compared
to 2024, or $0.33 per share higher as adjusted, or 10.9%.
Included in the company   s reported earnings in 2024 was a tax
bene   t of $0.13 per share for Golden State Water Company
(GSWC) following the    nal decision in its GRC. Excluding this
    In January, the California Public Utilities Commission (CPUC)
issued a    nal decision in GSWC   s GRC for 2025-2027. The
decision authorizes new rates for these years, with rates
retroactive to January 1, 2025. In addition, the decision
authorizes the investment of approximately $573.1 million
in capital infrastructure over the three-year capital cycle,
including $17.7 million of advice letter capital investments.
It also authorizes advice letter capital investments of $58.2
million already under construction at the beginning of
2023. Excluding revenues for advice letter capital projects,
adopted operating revenues less water supply costs for 2025
increased by approximately $23 million when compared to
2024   s adopted levels. GSWC plans to    le its next GRC in July
2026 to set rates for 2028-2030.
GOLDEN STATE WATER
COMPANY (GSWC)
77.4%
$2.61
BEAR VALLEY ELECTRIC
SERVICE, INC. (BVES)
EARNINGS
PER SHARE
Total: $3.371
7.4%
1
Also includes the parent company results of
-$0.09 per share and the effects of rounding.
A M E R I C A N S TAT E S WAT E R C O M PA N Y
$0.25
AMERICAN STATES
UTILITY SERVICES,
INC. (ASUS)
18.1%
2
item, adjusted earnings for 2024 were $3.04 per share as
compared to $3.37 per share for 2025. The increase is largely
generated from higher earnings at our regulated utilities due
mostly to implementation of new rates, and higher earnings at
American States Utility Services, Inc. (ASUS) from an increase
in management fee revenue, higher construction activities, and
lower interest expenses.
$0.61
    GSWC completed the advice letter projects discussed
above and    led them concurrently with the 2026 secondyear rate increase    lings in November. In December, GSWC
received approval from the CPUC for the full second-year
rate increases, as well as additional revenues related to the
advice letter projects, which were permitted to accrue either
a full rate of return or interest expense in a memorandum
account prior to the    ling for recovery. These approvals
resulted in higher adopted water revenues less water supply

    With a keen eye on growth and increasing our footprint, we   ve
continued to expand our regulated water utility operations in
three areas of California.
R E G U L AT E D U T I L I T I E S
$8,573
$9,340
$9,997
Investment per customer connection
2023
2024
2025
costs for 2026 of approximately $32 million compared to
2025   s adopted levels, effective January 1, 2026. GSWC must
meet an earnings test in each of its rate-making areas before
implementing the second- and third-year rate increases,
which it successfully achieved for its new rates in 2026.
    GSWC, along with three other investor-owned California
water utilities, requested a further extension of the deadline
to    le their cost of capital applications. In November, the
CPUC approved the request, deferring the    ling date by one
year to May 1, 2027, with a corresponding effective date of
January 1, 2028. The CPUC also approved the joint parties   
request to leave the current Water Cost of Capital Mechanism
in place through the one-year deferral period. With the
deferral, GSWC will retain its authorized ROE of 10.06% and a
57% equity ratio through the end of 2027.
    In January, the CPUC issued a    nal decision in Bear Valley
Electric Service, Inc.   s (BVES   s) GRC. The decision sets new
electric rates for 2023-2026, retroactive to January 1, 2023,
and, among other items, authorizes BVES to invest $75.6
million in capital infrastructure over the four-year rate cycle,
including at least $23.1 million plus Allowance for Funds Used
During Construction (AFUDC) to be    led for revenue recovery
through advice letters when the projects are completed.
Rate increases for 2025-2026 are not subject to an earnings
test and advice letter projects generate additional annual
operating revenues when they are completed, placed in
service and    led for recovery.
In January 2026, BVES    led a GRC application that will
determine new electric rates for the years 2027-2030.
Among other things, BVES requested capital budgets of
approximately $133 million for the four-year rate cycle, and
another approximately $17 million, plus AFUDC, for capital
projects to be    led for revenue recovery through advice
letters when the projects are completed.
In San Juan Oaks, a new planned community in the
state   s central coast region, GSWC and the developer
completed an agreement to build out, own, and operate
the water and wastewater system assets serving 1,300
customer connections. Full build out is expected by
2034 barring any future delays.
The CPUC issued a    nal decision in GSWC   s GRC
application for its new Sutter Pointe service area in
northern California, which establishes initial water service
rates for the years 2026-2028. The water system will serve
this new planned community of up to 3,800 customer
connections during the next    ve years, and 17,500 dwelling
units at full buildout over the longer term (20+ years).
More recently in January 2026, GSWC    led an
application with the CPUC to acquire the water system
assets from Norwalk, a city in Los Angeles County.
The application requested the new service area be
incorporated into one of GSWC   s existing ratemaking
areas. The city's service area serves almost 900
customer connections.
    We invested $210.9 million in infrastructure at our regulated
utilities, re   ecting our continued strong ability to execute our
capital plan. For GSWC, the adopted average water rate base
from 2021-2026 increased from $980.4 million to $1.673
billion. That represents a compound annual growth rate
(CAGR) of 11.3% over the    ve-year period using 2021 as the
base year for the calculation. BVES   s adopted average electric
rate base has grown from $47.2 million in 2018 to $153.3
million in 2025, re   ecting a seven-year CAGR of 18.3%. Our
regulated utilities anticipate robust and sustained growth in
their rate base over the next few years.
    ASUS contributed EPS of $0.61 in 2025, a 10.9% increase over
2024   s contribution, and was awarded $29.4 million in new
capital upgrade projects for military contracts expected to be
completed through 2028.
    Our record of maintaining strong credit ratings continued this
year. We have an A credit rating from S&P on AWR and A+ for
GSWC, with stable outlooks on both ratings. These are some
of the highest credit ratings in the U.S. investor-owned water
utility industry.
    We were honored to receive two recognitions. The    rst
was TIME   s America   s Best Mid-Size Companies 2025.
Companies are ranked by Revenue Growth, Employee
Satisfaction, and Sustainability Transparency, and we were
one of only two investor-owned water utilities on the list.
Secondly, we are the only water utility included in Barron   s
100 Most Sustainable Companies for 2025. Companies were
2025 ANNUAL REPORT
3


shareholder letter icon 4/3/2026 Letter Continued (Full PDF)
 

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