American States Water Q4 adjusted EPS rises

Overview

• Water utility's Q4 adjusted EPS rose $0.18 per share, driven by new customer rates

• Company's contracted services awarded $29.4 mln in new projects for completion by 2028

• Company spent $210.9 mln in capital expenditures in 2025

Outlook

• Company plans to invest $185 mln to $225 mln in capital expenditures in 2026

• American States Water aims for long-term dividend growth rate of over 7%

Result Drivers

• WATER SEGMENT - Increase in operating revenues due to CPUC-authorized rate increases effective January 1, 2025

• ELECTRIC SEGMENT - Third-year rate increases and additional revenues from capital project recoveries boosted earnings

• CONTRACTED SERVICES - Higher management fee revenues and increased construction activities drove earnings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the water & related utilities peer group is "buy."

• Wall Street's median 12-month price target for American States Water Co is $72.00, about 3.8% below its February 17 closing price of $74.88

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBwn1Zy7a

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