American States Water Company (AWR) Q3 2024 earnings summary

Executive summary

• Q3 2024 diluted EPS rose to $0.95 from $0.85, driven by water rate increases, investment gains, and new contracts, while YTD EPS was $2.42, down from $2.82, but up on an adjusted basis excluding prior-year retroactive items.

• Net income for Q3 2024 was $35.8 million, up 13.5% year-over-year; nine-month net income was $90.8 million, down due to prior-year one-time items.

• Regulated utilities reached settlements authorizing nearly $650 million in capital investments over the rate cycles, pending regulatory approval.

• ASUS/contracted services segment projected to contribute $0.54–$0.57 per share in 2024, with a record $54 million in new capital upgrade awards.

• Dividend increased 8.3% to $0.4655 per share, marking the 70th consecutive year of annual increases.

Financial highlights

• Q3 2024 operating revenues were $161.8 million, up $10 million year-over-year, with water up $7.8 million and contracted services up $2.2 million.

• Q3 2024 net income was $35.8 million, up from $31.6 million in Q3 2023.

• Q3 2024 operating income increased 6.4% to $55.1 million; nine-month operating income was $145.8 million.

• Q3 2024 water segment EPS rose to $0.84 from $0.72; electric segment EPS declined to $0.02 from $0.04; contracted services EPS was $0.11, slightly down from $0.12.

• Cash flow from operations for the nine months was $134.2 million, up from $56.5 million, reflecting new rates and surcharges.

Outlook and guidance

• Contracted services/ASUS expected to contribute $0.54–$0.57 per share in 2024 and $0.59–$0.63 per share in 2025, supported by new contracts and $54 million in new awards.

• Company-funded capital expenditures for 2024 projected at $210–$230 million.

• Water and electric rate case settlements, if approved, will drive further revenue and capital investment growth, authorizing $573.1 million and $75.6 million, respectively.

• Dividend policy targets a CAGR of more than 7% over the long term.