Track market-moving stories before they get noisy

American States Water (AWR) reported earnings 30 days ago. What's next for the stock?

Bank of New York Mellon Corp acquired a new stake in American States Water Company (NYSE:AWR – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 342,941 shares of the utilities provider’s stock, valued at approximately $28,337,000. Bank of New York Mellon Corp owned about 0.88% of American States Water at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in AWR. State of Wyoming purchased a new stake in American States Water in the second quarter valued at $26,000. IFP Advisors Inc lifted its holdings in shares of American States Water by 113.6% in the 4th quarter. IFP Advisors Inc now owns 549 shares of the utilities provider’s stock valued at $40,000 after buying an additional 292 shares during the period. Plato Investment Management Ltd purchased a new stake in shares of American States Water in the fourth quarter worth about $45,000. Motiv8 Investments LLC acquired a new stake in American States Water during the fourth quarter worth about $45,000. Finally, EverSource Wealth Advisors LLC raised its position in American States Water by 337.0% during the second quarter. EverSource Wealth Advisors LLC now owns 721 shares of the utilities provider’s stock valued at $55,000 after acquiring an additional 556 shares in the last quarter. Institutional investors and hedge funds own 75.24% of the company’s stock.

Analysts Set New Price Targets AWR has been the subject of a number of analyst reports. Freedom Capital raised American States Water to a “hold” rating in a report on Monday, June 29th. Weiss Ratings raised shares of American States Water from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Finally, Zacks Research lowered shares of American States Water from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

Check Out Our Latest Stock Analysis on American States Water Insider Buying and Selling In other American States Water news, Director Anne M. Holloway sold 900 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $88.86, for a total transaction of $79,974.00. Following the completion of the transaction, the director directly owned 38,518 shares in the company, valued at approximately $3,422,709.48. This represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.90% of the company’s stock.

American States Water Stock Performance Shares of AWR stock opened at $89.87 on Friday. The company has a market capitalization of $3.56 billion, a P/E ratio of 24.62, a P/E/G ratio of 3.40 and a beta of 0.57. The business’s 50 day moving average is $85.98 and its two-hundred day moving average is $79.45. The company has a current ratio of 0.98, a quick ratio of 0.90 and a debt-to-equity ratio of 0.75. American States Water Company has a 12-month low of $69.45 and a 12-month high of $91.72.

American States Water (NYSE:AWR – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The utilities provider reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.16. The business had revenue of $181.29 million during the quarter, compared to analysts’ expectations of $171.72 million. American States Water had a return on equity of 13.50% and a net margin of 20.52%.The business’s revenue was up 11.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.87 earnings per share. Analysts expect that American States Water Company will post 3.68 EPS for the current fiscal year.

American States Water Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Monday, August 17th will be issued a $0.5455 dividend. This represents a $2.18 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, August 17th. This is a boost from American States Water’s previous quarterly dividend of $0.50. American States Water’s payout ratio is presently 59.73%.

(Free Report)

American States Water Company (NYSE: AWR), founded in 1929 and headquartered in San Dimas, California, is a publicly traded utility holding company. The company operates primarily through two regulated segments—water and electric utilities—and provides non-regulated water system services. Over its history, American States Water has expanded its footprint through strategic acquisitions and organic growth, positioning itself as a reliable provider of essential services in its core territories.

Within its regulated water utility segment, American States Water serves more than 250,000 residential, commercial and industrial customers across 35 communities in six counties of California.

See Also Five stocks we like better than American States Water From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week

Receive News & Ratings for American States Water Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American States Water and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways AWR raised its quarterly dividend 8.2% to 54.55 cents, marking 72 straight years of annual increases.
Operating cash flow rose to $116.6 million in first-half 2026 from $109.6 million a year earlier.
Regulated growth, infrastructure investments and stronger earnings support AWR's dividend capacity.

American States Water Company (AWR - Free Report) continues to reward shareholders through regular dividend payments and consistent annual dividend increases. Its long-standing dividend record reflects the strength of its regulated utility operations, resilient cash-flow generation and commitment to delivering sustainable shareholder returns.

In July 2026, the company’s board approved an 8.2% increase in the quarterly dividend, raising it to 54.55 cents per share from 50.40 cents, resulting in an annualized dividend of $2.18 per share. This marked the company’s 72nd consecutive year of annual dividend growth. AWR’s dividend policy targets a long-term CAGR of more than 7%, while its quarterly dividend has witnessed an 8.4% CAGR over the past five years.

Current dividend payments do not guarantee that future payouts will grow at the same pace. However, the company’s financial performance and long-term strategy can provide insight into its ability to sustain shareholder-friendly initiatives.

American States Water benefits from a growing customer base and favorable rate increases, while its contracted services business gains from higher construction activity. Strategic investments in infrastructure upgrades and replacements enhance system reliability and support long-term growth. Stronger earnings performance further strengthens the company’s financial capacity to support shareholder distributions.

Operating cash flow increased to $116.6 million in the first half of 2026 from $109.6 million a year earlier. The stronger cash generation provides additional internal resources to support dividend payments and ongoing business needs.

Overall, AWR’s strong cash generation, regulated growth opportunities and consistent dividend policy are expected to support continued dividend growth over the long term.

Water Utilities’ Long History of Dividend PaymentsWater utilities have a long history of providing shareholders with regular and steadily increasing dividends. Their essential services and regulated operations can provide relatively stable cash flows, supporting long-term dividend payments and making them attractive to income-focused investors.

California Water Service Group (CWT - Free Report) has consistently rewarded shareholders through regular dividends, increasing its annual dividend for 59 consecutive years. Its quarterly dividend stands at 33.50 cents, implying an annualized dividend of $1.34 per share.

Middlesex Water Company (MSEX - Free Report) has rewarded shareholders with consistent dividend payments for more than 100 years. The company’s board has approved a quarterly dividend of 36 cents per share, translating to an annualized dividend of $1.44 per share.

The Zacks Rundown on AWRAWR’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 9.20% and 3.26%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalAWR's debt-to-capital ratio currently stands at 44.79%, lower than the water supply industry’s 54.63%.

Image Source: Zacks Investment Research

AWR’s Stock Price PerformanceIn the past three months, American States Water’s shares have risen 17.3% compared with the industry’s 2.4% growth.

Image Source: Zacks Investment Research

AWR’s Zacks Rank

Dividend Aristocrats or Dividend Kings: Which Is Best for You?American States Water NYSE: AWR reported second-quarter 2026 earnings of $1.09 per share, up from $0.87 per share a year earlier, as its water, electric and contracted services businesses each posted year-over-year gains.

President and Chief Executive Officer Bob Sprowls said the results reflected “strong execution across our business” and cited new customer rates at the regulated utilities as well as higher construction activity at the company’s contracted services segment. The company also announced an 8.2% increase in its quarterly dividend, bringing its annualized dividend rate to $2.182 per share.

Get American States Water alerts:

Water segment leads earnings growth 3 Dividend Kings Poised to Outperform the MarketGolden State Water, the company’s water utility, generated second-quarter earnings of $0.91 per share, compared with $0.73 per share in the prior-year period. Chief Financial Officer Eva Tang said the $0.18-per-share increase was driven largely by water rates implemented for 2026, including revenue from capital projects approved through advice letters in late 2025.

Other contributors included higher gains on investments supporting a retirement plan. These benefits were partly offset by higher water supply costs, interest expense net of interest income, and a higher effective income tax rate. Tang also said share issuances under the parent company’s at-the-market equity offering program reduced earnings by $0.02 per share.

What Are Utility Stocks? An Overview of the Utilities SectorWater segment revenue increased by $11.4 million from the second quarter of 2025, while electric segment revenue rose by $700,000. The gains were largely tied to new 2026 rates and revenue associated with approved advice letter projects.

Sprowls said Golden State Water benefited during the quarter from a 4% increase in customer water consumption and a more favorable supply mix, including less reliance on purchased water. Certain wells that had been temporarily offline during the first quarter returned to service during the second quarter.

However, he cautioned that those favorable trends may not persist for the rest of 2026. Golden State Water’s current regulatory framework includes a modified revenue decoupling mechanism and an incremental water supply cost balancing account, which Sprowls said expose earnings to volatility from consumption changes and shifts in water supply mix.

“It remains uncertain whether these favorable conditions in the second quarter will continue through the remainder of 2026 or if their positive earnings impact will reverse,” Sprowls said. He noted that weather, conservation, precipitation patterns, groundwater quality and pumping conditions can affect consumption and supply costs.

Rate cases and capital investment plans Golden State Water received approval in December to implement its full second-year rate increases effective Jan. 1, 2026. The approval increased adopted operating revenue less water supply costs by $32 million for 2026 compared with 2025, including nearly $11 million related to advice letter capital projects.

On July 1, Golden State Water filed a general rate case application covering 2028 through 2030. The utility requested capital budgets of approximately $1 billion for the three-year period and asked the California Public Utilities Commission to reinstate full revenue decoupling and a full water supply cost balancing account. A decision is scheduled for the fourth quarter of 2027.

The company’s current authorized return on rate base is 7.93%, based on a 10.06% return on equity and a capital structure of 57% equity and 43% debt. That authorization will remain in effect through Dec. 31, 2027, following the CPUC’s approval to delay the next water cost-of-capital filing until May 2027.

Golden State Water and the CPUC’s Public Advocates Office also filed a joint settlement in July seeking approval to acquire an existing water system in Norwalk, California, serving nearly 900 customer connections. If approved, the system would be added to an existing rate-making area. A proposed decision is expected in the fourth quarter.

The company expects its regulated utilities to invest $185 million to $220 million in infrastructure during 2026. Tang said company-funded capital expenditures are expected to total between $185 million and $200 million for the year, after $91.7 million was invested during the first half.

Electric and contracted services results Bear Valley Electric earned $0.04 per share in the second quarter, compared with $0.03 per share a year earlier. Tang attributed the increase primarily to rate increases, partly offset by higher operating and interest expenses.

Bear Valley Electric implemented new 2026 rates in January, the final year of its current four-year rate cycle. The utility filed a new general rate case in January for rates covering 2027 through 2030, requesting approximately $133 million in capital budgets during the period and roughly $17 million plus allowance for funds used during construction for additional projects to be recovered through advice letters.

American States Utility Services, or ASUS, contributed $0.16 per share, up from $0.13 per share in the second quarter of 2025. The increase reflected higher construction activity, increased management fee revenue tied to the resolution of economic price adjustments, and lower interest expense. ASUS expects to contribute between $0.63 and $0.67 per share for full-year 2026.

Liquidity, equity offering and dividend increase Net cash provided by operating activities totaled $116.6 million in the first half of 2026, compared with $109.6 million in the prior-year period. Tang said the increase resulted from new utility rates, approved surcharges, advice letter project revenue and PFAS litigation proceeds received during the year.

The company completed its at-the-market equity offering program in June, raising the program’s maximum aggregate capacity of $200 million in gross proceeds since it was established in February 2024. During the first half, the company raised $39.9 million net of issuance and legal costs. Sprowls said American States Water does not plan to issue additional equity through at least the end of 2029 to support current operations.

Standard & Poor’s affirmed the company’s A credit rating and Golden State Water’s A+ rating, both with stable outlooks.

The company’s dividend increase marks its 72nd consecutive year of raising dividends paid to shareholders. American States Water has paid dividends every year since 1931, according to Sprowls.

About American States Water (NYSE:AWR)American States Water Company NYSE: AWR, founded in 1929 and headquartered in San Dimas, California, is a publicly traded utility holding company. The company operates primarily through two regulated segments—water and electric utilities—and provides non-regulated water system services. Over its history, American States Water has expanded its footprint through strategic acquisitions and organic growth, positioning itself as a reliable provider of essential services in its core territories.

Within its regulated water utility segment, American States Water serves more than 250,000 residential, commercial and industrial customers across 35 communities in six counties of California.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in American States Water Right Now?Before you consider American States Water, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and American States Water wasn't on the list.

While American States Water currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

American States Water Company (AWR) Q2 2026 Earnings Call Prepared Remarks Transcript

SAN DIMAS, Calif.--(BUSINESS WIRE)--American States Water Company (NYSE:AWR) today reported basic and fully diluted earnings per share of $1.10 and $1.09, respectively, for the quarter ended June 30, 2026, as compared to basic and fully diluted earnings per share of $0.87 for the quarter ended June 30, 2025, an increase of $0.22 per fully diluted share or 25.3%, primarily generated from higher earnings at the water utility segment resulting largely from, among other factors, the implementation of new customer rate increases approved by the California Public Utilities Commission (CPUC) as discussed in more detail below. In addition, there was an increase in construction activities that resulted in higher earnings at the contracted services segment.

On June 12, 2026, AWR successfully completed its at-the-market (ATM) offering program, which was originally established on February 27, 2024. AWR reached the maximum aggregate offering capacity of $200 million in gross proceeds raised that resulted in the total sale of 2,575,947 Common Shares through this ATM offering program. No further sales of Common Shares will be made under this program, and AWR has no plans to issue additional equity through, at least, the end of 2029 to support its current operations.

Second Quarter 2026 Results

The table below sets forth a comparison of the second quarter of 2026 diluted earnings per share contribution reported by business segment and for the parent company compared with amounts reported during the same period in 2025.

Diluted Earnings per Share

Three Months Ended

6/30/2026

6/30/2025

CHANGE

Water

$

0.91

$

0.73

$

0.18

Electric

0.04

0.03

0.01

Contracted services

0.16

0.13

0.03

AWR (parent)

(0.01

)

(0.01

)

—

Consolidated diluted earnings per share, as reported (GAAP)

$

1.09

$

0.87

$

0.22

  Note: Certain amounts in the table above may not foot or crossfoot due to rounding.

Water Segment:

For the three months ended June 30, 2026, reported diluted earnings from AWR's water utility segment, Golden State Water Company (GSWC), were $0.91 per share, as compared to $0.73 per share for the same period in 2025, an increase of $0.18 per share, or 24.7%. This growth stems largely from CPUC-approved rate increases effective January 1, 2026, which boosted 2026 full-year adopted operating revenues less water supply costs by $32.0 million over 2025 adopted amounts, including $11.0 million for capital projects approved through advice letter filings. To a lesser extent, 2026 second-quarter earnings also benefited from a 4% increase in water consumption and a lower reliance on purchased water included in the water supply source mix compared to 2025 second-quarter. Due to the CPUC’s approval of a modified revenue decoupling mechanism and an incremental water supply cost balancing account effective January 1, 2025, GSWC’s earnings face future volatility from consumption fluctuations and water supply mix changes.

It is uncertain whether the second quarter’s trend of higher customer demand and a favorable water supply source mix will continue throughout the remainder of 2026, or if their positive earnings effects will reverse. Consumption changes depend on factors like climate change, conservation, and weather conditions. For example, El Niño or La Niña weather events could cause fluctuating precipitation that shifts outdoor water use. Additionally, water supply mix changes can occur due to unforeseen changes in groundwater quality and operating conditions of groundwater basins and associated pumping facilities. Any of these factors could directly impact GSWC’s future net earnings.

The following discussion analyzes the primary variances in the water segment’s earnings between the two periods.

An increase in water operating revenues of $11.4 million was largely a result of (i) the CPUC-authorized second-year rate increases effective January 1, 2026, (ii) additional revenues for the recovery of capital projects approved in various advice letter filings effective January 1, 2026, (iii) additional revenues for increases in the per-unit water supply costs incurred, which, as noted below, result in no net impact to earnings, and (iv) an increase in water consumption of approximately 4% favorably impacting net earnings when compared to the same period in 2025. These increases were partially offset by a decrease of $1.6 million in billed surcharges. CPUC-approved surcharges are billed to customers to recover previously incurred costs. Changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings. An increase in water supply costs of $0.7 million, which consist of purchased water, purchased power for pumping, groundwater production assessments and changes in the water supply cost balancing accounts. The increase in water supply costs compared to the same period in 2025 was largely because of (i) an overall increase in per-unit water supply costs that are covered in current rates, as noted above, resulting in no net impact to earnings, and (ii) an increase in the production of water resulting from higher customer consumption. These increases were partially offset by the impact of an actual water supply source mix that included less purchased water during the second quarter of 2026 as compared to the same period in 2025 due primarily to wells being brought back online in certain customer service areas. An overall increase in operating expenses of $0.2 million (excluding supply costs) due largely to increases in (i) overall labor costs, (ii) depreciation and amortization expenses, which are impacted by increasing capital additions placed in service and are reflected and recovered in customer rates, and (iii) property and other non-income taxes; partially offset by a decrease in surcharges of $1.6 million. As noted above, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings. An overall increase in interest expense (net of interest income) of $0.9 million resulting largely from (i) the impact of capitalizing debt costs related to certain advice letter projects approved by the CPUC in the latest general rate case effective January 1, 2025 that was recorded in 2025 with no similar item in 2026, and (ii) a decrease in interest income earned on regulatory assets due to decreasing regulatory balances as GSWC recovers the amounts through surcharges. The advice letter projects discussed are now included in adopted rate base and are part of the rate increases effective January 1, 2026. An overall increase in other income (net of other expense) of $2.0 million due largely to gains totaling $4.3 million generated on investments held to fund one of the company’s retirement plans during the three months ended June 30, 2026, as compared to gains on investments of $2.7 million recorded during the same period in 2025 due to financial market conditions, and a decrease in the non-service cost components related to GSWC’s benefit plans resulting from changes in actuarial assumptions. However, as a result of GSWC’s two-way pension balancing accounts authorized by the CPUC, changes in total net periodic benefits costs related to the pension plan have no material impact to earnings. Changes in certain flowed-through income taxes and permanent items included in GSWC’s income tax expense for the three months ended June 30, 2026 as compared to the same period in 2025 unfavorably impacted the water segment’s earnings. As a regulated utility, GSWC treats certain temporary differences as being flowed-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction rate making. Changes in the magnitude of flowed-through items either increase or decrease tax expense, thereby affecting diluted earnings per share. A decrease in earnings of approximately $0.02 per share due to the dilutive effects from the issuance of equity under AWR’s ATM offering program as previously discussed. Electric Segment:

Diluted earnings from the electric utility segment increased $0.01 per share for the second quarter of 2026 as compared to the same period in 2025 largely resulting from an increase of $0.7 million in electric revenues due to the CPUC-authorized fourth-year rate increases in 2026 and additional revenues approved largely after the second quarter of 2025 to recover the cost plus an allowance for funds used during construction of certain advice letter capital projects. This increase was partially offset by a decrease in billed surcharges of $0.4 million. As previously discussed, changes in billed surcharge revenues are offset by equal changes in operating expenses, resulting in no net impact to earnings.

The net increase in electric revenues discussed above was partially offset by an overall increase in operating expenses and interest expense (net of interest and other income), partially offset by a decrease in surcharges as discussed above.

Contracted Services Segment:

Diluted earnings from the contracted services segment increased $0.03 per share for the second quarter of 2026 when compared to the same period in 2025 largely resulting from (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) a decrease in interest expense (net of interest income) due to lower average borrowing levels and average interest rates. These favorable variances were partially offset by an increase in overall operating expenses (excluding construction expenses). The contracted services segment is expected to contribute $0.63 to $0.67 per share for the full year of 2026.

Year-to-Date (“YTD”) 2026 Results

YTD 2026 consolidated diluted earnings per share were $1.86 compared to YTD 2025 of $1.57 per share, an increase of $0.29 per share or 18.5%, largely from new rates implemented at AWR's regulated utilities and higher earnings at the contracted services segment from an increase in construction activities The table below sets forth a comparison of the diluted earnings per share contribution by business segment and for the parent company as recorded during the year-to-date June 30, 2026 and 2025.

Diluted Earnings per Share

Six Months Ended

6/30/2026

6/30/2025

CHANGE

Water

$

1.47

$

1.25

$

0.22

Electric

0.12

0.10

0.02

Contracted services

0.31

0.26

0.05

AWR (parent)

(0.03

)

(0.03

)

—

Consolidated diluted earnings per share, as recorded (GAAP)

$

1.86

$

1.57

$

0.29

  Note: Certain amounts in the table above may not foot or crossfoot due to rounding.

For the six months ended June 30, 2026, AWR’s recorded consolidated diluted earnings were $1.86 per share, as compared to $1.57 per share recorded for the same period in 2025, an increase of $0.29 per share or 18.5%, primarily generated from higher earnings at the water utility segment resulting from, among other factors, the implementation of new customer rate increases approved by the CPUC as previously discussed. In addition, there was an increase in construction activities that resulted in higher earnings at the contracted services segment. AWR’s consolidated diluted earnings for the six months ended June 30, 2026 were negatively impacted by approximately $0.04 per share due to the continued dilutive effects from the issuance of equity under AWR’s ATM offering program. AWR successfully completed the ATM offering program, reaching the maximum aggregate offering capacity of $200 million in gross proceeds raised, and no further sales of Common Shares will be made under this program.

For more details on the YTD results, please refer to the company’s Form 10-Q filed with the Securities and Exchange Commission.

Dividends

On July 28, 2026, AWR’s Board of Directors approved an 8.2% increase in the third quarter dividend of $0.5455 per share from $0.5040 per share on AWR’s Common Shares. Dividends on the Common Shares will be paid on September 2, 2026 to shareholders of record at the close of business on August 17, 2026. AWR has paid common dividends every year since 1931, and has increased the dividends received by shareholders each calendar year for 72 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result. AWR has grown its quarterly dividend rate at a compound annual growth rate (CAGR) of 8.4% over the last five years since the third quarter of 2021, and is on pace to achieve a 10-year CAGR of 8.7% in its calendar year dividend payments through 2026. AWR’s current policy is to achieve a CAGR in the dividend of more than 7% over the long-term.

Non-GAAP Financial Measures

This press release includes a discussion on AWR’s operations in terms of diluted earnings per share by business segment and AWR (parent), which is each business segment’s earnings divided by the company’s weighted average number of diluted common shares. This measure by business segment is derived from consolidated financial information but is not presented in our financial statements that are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. This item constitutes a “non-GAAP financial measure” under SEC rules, which supplements our GAAP disclosures but should not be considered as an alternative to the respective GAAP measure. Furthermore, this non-GAAP financial measure may not be comparable to similarly titled non-GAAP financial measures of other registrants.

The company uses earnings per share by business segment and AWR (parent), a non-GAAP measure, as an important measure in evaluating its operating results and believes it provides investors with clarity surrounding the performance of its business segments and the parent company. The company reviews this measurement regularly and compares it to historical periods and to the operating budget. The company has provided the computations and reconciliations of diluted earnings per share from the measure of net income (loss) by business segment and for the parent company to AWR’s consolidated fully diluted earnings per share in this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “forecast,” “expect,” “intend,” “may,” “can,” “will,” “likely,” “possibility,” “should,” “could,” “plan,” and similar phrases and expressions, and variations or negatives of these words. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors, including those described in greater detail in the company’s filings with the SEC, particularly those described in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are encouraged to review the company’s filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this press release and except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statement.

Conference Call

Robert Sprowls, president and chief executive officer, and Eva Tang, senior vice president and chief financial officer, will host a conference call to discuss these results at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) on Thursday, August 6. There will be a question and answer session as part of the call. Interested parties can listen to the live conference call and view accompanying slides on the internet at www.aswater.com. The call will be archived on the website and available for replay beginning August 6, 2026 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) through August 13, 2026.

About American States Water Company

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 265,200 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 twelve military bases throughout the country under 50-year privatization contracts with the U.S. government in 8 states and one military base under a 15-year contract in 1 additional state.

American States Water Company

Consolidated

Comparative Condensed Balance Sheets (Unaudited)

(in thousands)

June 30, 2026

December 31, 2025

Assets

Net Property, Plant and Equipment

$

2,367,219

$

2,296,319

Other Property and Investments

61,612

58,664

Current Assets

226,494

231,074

Other Assets

119,635

129,035

Total Assets

$

2,774,960

$

2,715,092

Capitalization and Liabilities

Capitalization

$

1,839,215

$

1,828,281

Current Liabilities

231,106

174,612

Other Credits

704,639

712,199

Total Capitalization and Liabilities

$

2,774,960

$

2,715,092

Condensed Statements of Income (Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(in thousands, except per share amounts)

2026

2025

2026

2025

Operating Revenues

Water

$

131,050

$

119,697

$

244,160

$

221,700

Electric

13,626

12,928

32,283

27,930

Contracted services

36,614

30,441

74,038

61,449

Total operating revenues

181,290

163,066

350,481

311,079

Operating Expenses

Water purchased

23,543

23,911

44,903

40,219

Power purchased for pumping

3,699

3,554

6,996

6,703

Groundwater production assessment

7,270

6,125

12,797

11,804

Power purchased for resale

2,766

3,466

7,558

9,534

Supply cost balancing accounts

247

(136

)

(71

)

(1,852

)

Other operation

12,034

12,310

23,302

22,800

Administrative and general

24,521

25,222

52,675

52,097

Depreciation and amortization

12,747

11,681

25,431

23,263

Maintenance

6,201

6,129

11,901

10,276

Property and other taxes

7,544

6,955

15,567

13,907

ASUS construction

16,747

12,890

34,080

25,823

Total operating expenses

117,319

112,107

235,139

214,574

Operating income

63,971

50,959

115,342

96,505

Other Income and Expenses

Interest expense

(12,174

)

(12,108

)

(24,281

)

(24,190

)

Interest income

886

1,498

1,862

3,511

Other, net

5,070

3,576

4,650

3,405

Total other income and (expenses), net

(6,218

)

(7,034

)

(17,769

)

(17,274

)

Income Before Income Tax Expense

57,753

43,925

97,573

79,231

Income tax expense

14,479

10,235

24,351

18,697

Net Income

$

43,274

$

33,690

$

73,222

$

60,534

Weighted average shares outstanding

39,341

38,509

39,227

38,382

Basic earnings per Common Share

$

1.10

$

0.87

$

1.86

$

1.57

Weighted average diluted shares

39,478

38,642

39,346

38,500

Fully diluted earnings per Common Share

$

1.09

$

0.87

$

1.86

$

1.57

Dividends paid per Common Share

$

0.5040

$

0.4655

$

1.0080

$

0.9310

Computation and Reconciliation of Non-GAAP Financial Measure (Unaudited)

Below are the computation and reconciliation of diluted earnings per share from the measure of net income (loss) by business segment and AWR (parent) to AWR’s consolidated fully diluted earnings per share for the three and six months ended June 30, 2026 and 2025.

Water

Electric

Contracted Services

AWR (Parent)

Consolidated (GAAP)

In 000's except per share amounts

Q2 2026

Q2 2025

Q2 2026

Q2 2025

Q2 2026

Q2 2025

Q2 2026

Q2 2025

Q2 2026

Q2 2025

Net income (loss)

$

36,101

$

28,140

$

1,492

$

1,176

$

6,186

$

4,874

$

(505

)

$

(500

)

$

43,274

$

33,690

Weighted Average Number of Diluted Shares

39,478

38,642

39,478

38,642

39,478

38,642

39,478

38,642

39,478

38,642

Diluted earnings (loss) per share

$

0.91

$

0.73

$

0.04

$

0.03

$

0.16

$

0.13

$

(0.01

)

$

(0.01

)

$

1.09

$

0.87

Water

Electric

Contracted Services

AWR (Parent)

Consolidated (GAAP)

In 000's except per share amounts

YTD 2026

YTD 2025

YTD 2026

YTD 2025

YTD 2026

YTD 2025

YTD 2026

YTD 2025

YTD 2026

YTD 2025

Net income (loss)

$

57,784

$

48,046

$

4,805

$

3,802

$

12,001

$

9,998

$

(1,368

)

$

(1,312

)

$

73,222

$

60,534

Weighted Average Number of Diluted Shares

39,346

38,500

39,346

38,500

39,346

38,500

39,346

38,500

39,346

38,500

Diluted earnings (loss) per share

$

1.47

$

1.25

$

0.12

$

0.10

$

0.31

$

0.26

$

(0.03

)

$

(0.03

)

$

1.86

$

1.57

Note: Certain amounts in the tables above may not foot or crossfoot due to rounding.

For Immediate ReleaseChicago, IL – August 4, 2026 – Today, Zacks Equity Research Essential Utilities (WTRG - Free Report) , American States Water Co. (AWR - Free Report) and California Water Service Group (CWT - Free Report) .

 Industry: Water Utility

Link: https://www.zacks.com/commentary/2966669/4-stocks-to-watch-as-the-water-supply-industry-faces-headwinds

The companies under the Zacks Utility - Water Supply industry operate continuously to deliver a steady supply of clean, potable water and dependable sewer services to millions across the United States. These services are vital for maintaining public health and hygiene. Traditionally, water demand tends to dip during the winter months, as colder weather limits outdoor usage. In the spring, demand remains moderate, influenced by milder temperatures and a gradual increase in outdoor activities.

The aging of pipelines is concerning, but water utilities continue with their upgrade and maintenance projects to minimize disruptions in operations. American Water Works Company, with its widespread operations, provides services to domestic customers and military bases and offers an excellent opportunity to stay invested in the water utility space. Other water utilities worth adding to your portfolio are Essential Utilities, American States Water Co.  and California Water Service Group.

About the Utility-Water Supply IndustryThe Zacks Utility-Water Supply industry consists of companies that provide drinking water and wastewater services to residential, commercial, industrial and military customers. These utilities operate an extensive network of nearly 2.2 million miles of aging pipelines. To ensure reliable service and expand their reach, they continually replace old infrastructure and invest in new pipeline systems. They also own and operate water treatment facilities, storage tanks and desalination plants to meet demand. Although the industry remains highly fragmented, ongoing improvements in water-use efficiency across households and industries are promoting more sustainable consumption. Given the capital-intensive nature of the business, water utilities are also likely to benefit from lower interest rates, which reduce financing costs and support continued infrastructure investments.

3 Developments Redefining the Water Supply IndustryAging Infrastructure Requires Huge Investments: The U.S. water and wastewater infrastructure is deteriorating, with water main breaks occurring every two minutes, according to the American Society of Civil Engineers (“ASCE”). The Environmental Protection Agency estimates that $1.25 trillion in investments will be needed over the next 20 years to maintain and expand water services. The Bipartisan Infrastructure Law has committed $50 billion toward improving these systems, especially in underserved communities. ASCE currently rates U.S. drinking water infrastructure at C- and wastewater systems at D+, underscoring the urgent need for upgrades. The regulated water utilities are making investments to upgrade and maintain infrastructure.

Fragmented Water Industry: The U.S. water industry remains highly fragmented, with more than 50,000 community water systems and 14,000 wastewater treatment systems. Small water and wastewater systems serve limited customer bases, restricting their ability to achieve economies of scale, access operational expertise and attract investment. Their weaker bargaining power results in higher costs for equipment, chemicals and services, while costly repairs, infrastructure upgrades and regulatory requirements further strain financial resources. As operations become more complex, many small systems may struggle to maintain service quality, financial stability and long-term reliability. Unless there is rapid consolidation, it will lead to frequent failure of aging water mains and disrupt operations.

Regulatory Pressure & Operational Challenges: The U.S. water supply industry is grappling with increasing regulatory and operational headwinds that are pressuring overall growth. Tightening environmental policies and stricter water quality requirements are driving up compliance expenses, compelling utilities to invest heavily in infrastructure modernization and advanced treatment systems. At the same time, aging water networks, escalating repair and maintenance costs, and exposure to severe weather conditions are intensifying operational difficulties. Rising labor and energy expenses are also weighing on margins, challenging utilities’ ability to ensure dependable service while maintaining financial health.

Zacks Industry Rank Indicates Bleak ProspectsThe Zacks Utility Water Supply industry is an 8-stock group within the broader Zacks Utilities sector. The industry currently carries a Zacks Industry Rank #211, which places it in the bottom 14% of more than 246 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish prospects for the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth. The 2026 earnings estimate has gone down 39.7% in the past two months.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation. 

Water Supply Industry Lags the Sector and the S&P 500The Zacks Utility Water Supply industry has underperformed the Zacks S&P 500 composite and its sector in the past 12 months. The industry has gained 7.3% compared with the Utility sector’s rally of 8.2%. The Zacks S&P 500 composite has advanced 21.1% in the same time frame.

Industry Trading at a Premium to the Sector & the S&P 500On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), which is a commonly used multiple for valuing water utility stocks, the industry is currently trading at 22.78X compared with the S&P 500’s 18.52X and the sector’s 15.36X.

Over the past five years, the water supply industry has traded as high as 41.59X, as low as 12.52X and at the median of 24.72X.  

Water Utility Industry Stocks to Watch NowDespite challenges in the water and wastewater industry, investors can watch the following stocks from the water space.

American Water Works Company: Camden, NJ-based American Water, along with its subsidiaries, provides water and wastewater services to millions of Americans. The company continues to expand operations through acquisitions and organic means. American Water Works plans to invest $3.7 billion in 2026 to strengthen and expand its existing infrastructure. AWK aims to invest $29 billion during the 2026-2030 period.

The Zacks Consensus Estimate for 2026 and 2027 earnings per share has moved up 7.98% and 8.35% year over year, respectively. The long-term (three to five years) earnings growth of the company is currently pegged at 8.13%. The current dividend yield of the company is 2.67%. The company currently has a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Essential Utilities: The Bryn Mawr, PA-based company, along with its subsidiaries, provides water, wastewater and natural gas services to customers. WTRG aims to invest $1.7 billion in 2026 to rehabilitate and strengthen its water and natural gas pipeline systems. It is able to reduce regulatory lag and facilitate growth through strategic acquisitions. The company recently entered into a merger agreement with American Water Works, which is expected to close in first-quarter 2027, subject to necessary approvals.

The Zacks Consensus Estimate for 2026 and 2027 earnings per share has moved up 0.45% and 9.62% year over year, respectively. The current dividend yield of the company is 3.44%. The company currently has a Zacks Rank #3.

American States Water Company: San Dimas, CA-based American States Water, along with its subsidiaries, provides water, wastewater and electric services to customers. AWR provides long-term water and wastewater services to military bases and continues to pursue new long-term contracts from more military bases. The company aims to invest in the range of $185-$225 million in 2026 to upgrade its infrastructure. It is expected that the company will continue to make fresh investments to upgrade and expand operations.

The Zacks Consensus Estimate for 2026 and 2027 earnings per share has moved up 10.09% and 2.93% year over year, respectively. The company’s long-term earnings growth rate is 6.93%. The current dividend yield is 2.35%. AWR currently has a Zacks Rank #3.

California Water Service Group: The San Jose, CA-based company, along with its subsidiaries, provides water utility and other related services to customers in the United States. The company continues to expand operations through acquisitions and plans to invest nearly $2 billion in the 2026-2028 period to further strengthen its infrastructure, repair and upgrade aging assets.

The Zacks Consensus Estimate for 2026 and 2027 earnings per share has moved up 19.07% and 7.03% year over year, respectively. The long-term earnings growth is currently pegged at 10.62%. The current dividend yield of the company is 2.67%. The company currently has a Zacks Rank #3.

Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SAN DIMAS, Calif.--(BUSINESS WIRE)--On July 28, 2026, the Board of Directors of American States Water Company (NYSE:AWR) approved an increase in the company's third quarter cash dividend to $0.5455 per share from $0.5040 per share on the common shares of the company. The annualized dividend rate after this increase is $2.182 per share, which represents an 8.2% increase from the current annualized dividend rate of $2.016 per share. This action marks the 361st consecutive dividend payment by the.

SAN DIMAS, Calif.--(BUSINESS WIRE)--American States Water Company (NYSE:AWR) announced today that the company intends to release its second quarter ended June 30, 2026 financial results after the market closes on Wednesday, August 5, 2026. Robert Sprowls, president and chief executive officer, and Eva Tang, senior vice president-finance and chief financial officer, will host a conference call to discuss these results at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) on Thursday, August 6. The.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in San Dimas, American States Water (AWR - Free Report) is a Utilities stock that has seen a price change of 15.7% so far this year. Currently paying a dividend of $0.50 per share, the company has a dividend yield of 2.4%. In comparison, the Utility - Water Supply industry's yield is 2.56%, while the S&P 500's yield is 1.36%.

Looking at dividend growth, the company's current annualized dividend of $2.02 is up 4.2% from last year. Over the last 5 years, American States Water has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.23%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American States Water's current payout ratio is 59%, meaning it paid out 59% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, AWR expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.71 per share, with earnings expected to increase 10.09% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, AWR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS) and American States Water (AWR). But which of these two stocks offers value investors a better bang for their buck right now?

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© AvailableLight / iStock via Getty Images

The utility sector sell-off narrative pivots on a “cost of capital lag,” with critics warning that rising expenses will outpace rate adjustments and squeeze payouts. American States Water (NYSE:AWR), a CPUC-regulated California water monopoly that also runs 50-year contract service agreements on military bases, has quietly defied that thesis. Shares are up 15.46% YTD versus 9.66% for the XLU. The headline question for income investors: is the dividend actually bulletproof?

Dividend Snapshot Metric Value Annual Dividend $2.016 per share Dividend Yield 2.57% Consecutive Years of Increases 71 years Most Recent Increase 8.3% (July 2025) Dividend King Status Yes Payout Ratios Leave Real Room to Breathe Against FY 2025 diluted EPS of $3.37, the $2.016 annualized payout consumes roughly 59.8% of profits. That sits comfortably inside the healthy zone for a regulated utility.

Metric TTM Value Assessment Earnings Payout Ratio 59.8% Healthy Operating Cash Flow (Q1 26) $71.6M Strong, up from $45.1M FCF Payout Ratio Not disclosed Capex heavy Free cash flow is typically negative here given $185M to $225M of 2026 capex, which is normal for rate-base utilities. The dividend is funded from operating cash flow and rate-recovered capital.

A Balance Sheet Built for Rate Cycles Metric Value Assessment Debt-to-Equity 0.87 Moderate EBITDA (TTM) $263M Stable Rate Base $1.67B (11.3% 5-yr CAGR) Compounding Critically, AWR completed a $200 million ATM equity offering by June 2026 with no further issuance planned through 2029, removing the dilution overhang that had pressured the stock.

71 Years of Increases, Still Accelerating Year Annual Dividend 2026 $2.016 2025 $1.862 2024 $1.720 2023 $1.590 2022 $1.460 The 5-year dividend CAGR of 8.5% blows past the stated 7%+ long-term target.

Management’s Tone Is Confident On the Q1 2026 call, CEO Robert Sprowls said AWR “remains a leader with our strong earned return on equity and dividend histories, and we continue to deliver value and returns to our shareholders.” Nine directors backed that up by buying shares at $75.92 on May 19, 2026 in a coordinated purchase event.

Verdict: This Dividend Is Rock Solid Dividend Safety Rating: Very Safe. A sub-60% earnings payout, a compounding rate base, a 71-year streak, and a closed dilution chapter form a fortress for income. For investors who value predictability over yield, AWR screens well as a retirement-income holding. The main risks to monitor are a hostile CPUC posture on the 2028 to 2030 rate cycle or a spike in wildfire liabilities at Bear Valley Electric. For now, this is the sanctuary the headline promised.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in San Dimas, American States Water (AWR - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 9.04%. The water and electric utility is currently shelling out a dividend of $0.50 per share, with a dividend yield of 2.55%. This compares to the Utility - Water Supply industry's yield of 2.81% and the S&P 500's yield of 1.44%.

Looking at dividend growth, the company's current annualized dividend of $2.02 is up 4.2% from last year. Over the last 5 years, American States Water has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.23%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American States Water's current payout ratio is 59%, meaning it paid out 59% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, AWR expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.71 per share, with earnings expected to increase 10.09% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AWR is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is American States Water (AWR - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.

American States Water is a member of the Utilities sector. This group includes 110 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. American States Water is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AWR's full-year earnings has moved 3.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AWR has returned about 6.4% since the start of the calendar year. In comparison, Utilities companies have returned an average of 5.3%. This means that American States Water is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is Sabesp (SBS - Free Report) . The stock has returned 10.1% year-to-date.

In Sabesp's case, the consensus EPS estimate for the current year increased 234.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, American States Water belongs to the Utility - Water Supply industry, a group that includes 11 individual stocks and currently sits at #175 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so AWR is performing better in this area. Sabesp is also part of the same industry.

American States Water and Sabesp could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.

Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS - Free Report) and American States Water (AWR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Sabesp and American States Water are both sporting a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SBS currently has a forward P/E ratio of 5.66, while AWR has a forward P/E of 20.98. We also note that SBS has a PEG ratio of 1.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AWR currently has a PEG ratio of 3.03.

Another notable valuation metric for SBS is its P/B ratio of 2.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AWR has a P/B of 2.87.

Based on these metrics and many more, SBS holds a Value grade of B, while AWR has a Value grade of D.

Both SBS and AWR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SBS is the superior value option right now.

American States Water (AWR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

SAN DIMAS, Calif.--(BUSINESS WIRE)--On May 4, 2026 the Board of Directors of American States Water Company (NYSE:AWR) approved a quarterly dividend of $0.5040 per share on the Common Shares of the company. This action marks the 360th consecutive dividend payment by the company. American States Water Company has paid dividends to shareholders every year since 1931, increasing the dividends received by shareholders each calendar year for 71 consecutive years, which places it in an exclusive group.

SAN DIMAS, Calif.--(BUSINESS WIRE)--American States Water Company (NYSE:AWR) today reported basic and fully diluted earnings per share of $0.76 for the quarter ended March 31, 2026, as compared to basic and fully diluted earnings per share of $0.70 for the quarter ended March 31, 2025, an increase of $0.06 per share or 8.6%, primarily generated from higher earnings at the water and electric utility segments resulting from the implementation of new customer rate increases approved by the Califor.

American States Water Company (AWR) Q1 2026 Earnings Call Prepared Remarks Transcript

Water utilities like SBS, AWR, AWK and CWT are supported by strategic capital investment plans and strong customer bases, positioning them to outperform peers despite persistent challenges facing the water industry.

Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS) and American States Water (AWR). But which of these two stocks presents investors with the better value opportunity right now?

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does American States Water (AWR) have what it takes?

Here is how American States Water (AWR) and Koninklijke KPN NV (KKPNF) have performed compared to their sector so far this year.

American States Water (AWR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does American States Water (AWR) have what it takes?