American States Water Company (AWR) investor relations material

Executive summary

• Consolidated diluted EPS rose 25.3% to $1.09 in Q2 2026 and 18.5% to $1.86 year-to-date, driven by higher water segment earnings from CPUC-approved rate increases, increased water consumption, and contracted services activity.

• Operating revenues for Q2 2026 increased by $18.2 million year-over-year to $181.3 million, reflecting robust performance across all business segments.

• Board approved an 8.2% dividend increase, marking the 72nd consecutive year of annual dividend growth and resulting in an annualized dividend rate of $2.182 per share.

• Completed a $200 million at-the-market equity offering program in June 2026, with no further equity issuance planned through at least 2029.

• Recognized on TIME's list of Best Companies in 2026, highlighting strategic execution and ESG commitment.

Financial highlights

• Q2 2026 consolidated diluted EPS: $1.09; Q2 2025: $0.87; YTD 2026 diluted EPS: $1.86; YTD 2025: $1.57.

• Q2 2026 operating revenues: $181.3 million, up from $163.1 million year-over-year; net income for Q2 2026 was $43.3 million, up from $33.7 million.

• Water segment Q2 2026 EPS: $0.91, up from $0.73; Electric: $0.04, up from $0.03; Contracted Services: $0.16, up from $0.13.

• Operating income for Q2 2026 was $64.0 million, up 25.5% year-over-year; gross margin improved to 35.3%.

• Net cash from operating activities was $116.6 million year-to-date, up from $109.6 million year-over-year.

Outlook and guidance

• Regulated utilities are on track to invest $185–$220 million in 2026.

• Contracted services (ASUS) expected to contribute $0.63–$0.67 per share for full year 2026.

• No additional equity issuance planned through at least 2029.

• Dividend policy targets a compound annual growth rate of over 7% long-term, with a 10-year CAGR of 8.7% projected through 2026.

• Water and electric segments face future earnings volatility due to regulatory changes in revenue decoupling and supply cost mechanisms.