AWR · American States Water Company

American States Water Company delivered an 8.6% increase in Q1 2026 consolidated diluted EPS to $0.76 from $0.70 year-over-year, with contributions from all operating segments. The water segment, led by Golden State Water Company, saw EPS rise $0.03 to $0.55, primarily from $11.1 million higher operating revenues due to CPUC-approved second-year rate increases effective January 1, 2026, and advice letter capital project revenues. This was partially offset by $4.8 million higher supply costs from increased purchased water volumes amid temporary well outages, higher operating expenses including labor and depreciation, and elevated interest expense. The shift to a modified rate adjustment mechanism and incremental cost balancing account introduces earnings volatility tied to customer consumption and supply mix deviations. Electric segment EPS grew $0.01 to $0.08, driven by $3.7 million revenue increase from fourth-year rate hikes and AFUDC recovery on capital projects, net of higher operating expenses and interest costs as projects moved into rate base. Contracted services EPS improved $0.02 to $0.15 on elevated construction activity, resolved economic price adjustments boosting management fees, and lower interest expense, despite higher operating costs; management guides $0.63-$0.67 per share for full-year 2026. Parent company costs remained stable at -$0.02 EPS. Regulated utilities are on track for $185-$225 million 2026 capex within $650 million general rate case authorizations. The board approved a Q2 dividend of $0.5040 per share, payable June 2, underscoring 71 years of annual increases and a long-term CAGR target over 7%. These results reflect effective rate case execution and operational momentum amid regulatory transitions.