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Company Overview - American States Water Company (NYSE: AWR) is a regulated utility operating in California, providing water and electricity services, as well as contracted water and wastewater services to military bases across the United States [1]. Financial Performance - The company offers a dividend yield of nearly 2.7%, which is noted as the highest among its peers [1]. Investment Strategy - The focus is on dividend growth investing with a long-term perspective, emphasizing the compounding benefits of sustainable dividend growth and capital appreciation potential [1].

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q2 2025 were $0.87, an increase from $0.85 in Q2 2024, reflecting a positive quarter overall [10] - Year-to-date EPS as of June 30 was $1.57, up $0.10 from $1.47 in the same period last year [14] - Consolidated revenues for Q2 increased by $7.7 million compared to Q2 2024 [11] Business Line Data and Key Metrics Changes - Water utility earnings increased to $0.73 per share from $0.67 per share, primarily due to new water rates effective January 1, 2025 [10] - Electric segment earnings rose to $0.03 per share from $0.01 per share, attributed to new electric rates [11] - ASUS earnings decreased to $0.13 per share from $0.19 per share, mainly due to lower construction activity [25] Market Data and Key Metrics Changes - Revenues for the water segment increased by $9.3 million due to new water rates [12] - Revenues for the electric segment rose by $4.2 million, also due to new rates [12] - Revenues from ASUS decreased by $5.8 million due to lower construction activities [12] Company Strategy and Development Direction - The company plans to invest $170 million to $210 million in infrastructure this year, reflecting a commitment to long-term growth [9] - The company is preparing to file its next electric rate case in early 2026 and a water rate case in July 2026 [18] - The company is supporting Senate Bill 473, which aims to make revenue decoupling mandatory for regulated water utilities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the decoupling legislation, highlighting strong arguments for its necessity [30] - The company anticipates robust growth in its rate base due to recent general rate case decisions [23] - Management remains confident in ASUS's ability to compete for new military-based contract awards despite recent declines in construction activity [25] Other Important Information - The board approved an 8.3% increase in the annualized dividend rate, reflecting confidence in sustainable earnings growth [7] - The company has paid dividends every year since 1931, with a 71-year consecutive increase [8] - Standard and Poor's affirmed a stable credit rating for the company, indicating strong financial health [17] Q&A Session Summary Question: Construction activity pacing towards the third quarter - Management expects to see more construction activity in the fourth quarter than in the third, but it remains dependent on permitting processes [28] Question: Confidence level regarding decoupling legislation - Management is cautiously optimistic about the decoupling legislation, noting strong arguments for its necessity and the benefits it could bring [30]

Core Insights - American States Water Company reported a consolidated earnings per share (EPS) of $0.87 for Q2 2025, an increase of $0.02 compared to Q2 2024 [2][26] - The company announced an 8.3% increase in the annualized dividend rate, marking 71 consecutive years of annual increases [4][10] Financial Performance - Water segment earnings per share for Golden State Water were $0.73 in Q2 2025, up $0.06 from Q2 2024, driven by new water rates and higher gains on retirement plan investments [3][26] - Electric segment earnings per share increased to $0.03 in Q2 2025, a $0.02 increase compared to Q2 2024 due to new rate approvals [3][27] - Consolidated revenues increased by $7.7 million in Q2 2025 compared to Q2 2024, with water revenues rising by $9.3 million and electric revenues increasing by $4.2 million [5][29] Capital Investments and Liquidity - The company expects capital infrastructure investments between $170 million and $210 million for the year [6][24] - Operating cash flow for the first six months of 2025 was $109.6 million, a $39.1 million increase over the same period in 2024 [7][32] - The borrowing capacity was expanded from $165 million to $195 million, with maturity extended to June 2029 [6][34] Regulatory Developments - The California Public Utilities Commission (CPUC) approved new water and electric rates for 2025 to 2027 and 2023 to 2026, respectively [20][35] - A modified rate adjustment mechanism (MRAM) was adopted, replacing the full decoupling mechanism, which may introduce future revenue volatility [36][37] - Senate Bill 473, if passed, could restore mandatory revenue decoupling for California water utilities [11][39] Growth and Future Outlook - Golden State Water's rate base grew from $752.2 million in 2018 to $1.3575 billion in 2024, representing a 10.3% compound annual growth rate [8][43] - The company completed the acquisition of water and wastewater system assets for a new community, expected to have approximately 1,300 customer connections [10][42] - ASUS is projected to contribute $0.59 to $0.63 per share in 2025, with expectations of recovery in the second half of the year as construction activity normalizes [9][47]

August 7, 2025 NYSE: AWR Financial Results Call Presentation Second Quarter 2025 Today's Presenters Robert J. Sprowls President & CEO Eva G. Tang SVP – Finance & CFO 2 Forward-Looking Statement This presentation 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," "expect," "intend," "may," "should" and similar phrases and expressions, and variations or neg ...

Core Insights - American States Water Company (AWR) reported second-quarter 2025 operating earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents by 5.4% and up from 85 cents in the same quarter last year [1][9] AWR's Total Revenues - Total operating revenues reached $163.1 million, falling short of the Zacks Consensus Estimate of $169 million by 3.5%, but increased by 5% from $155.3 million in the prior-year period [2][9] Highlights of AWR's Q2 Release - Operating expenses were $112.1 million, an increase of 8.2% from $103.6 million in the year-ago quarter, driven by higher water purchases, administrative costs, depreciation, and maintenance expenses [3] - Operating income was $51 million, down 1.3% from $51.7 million in the corresponding period of 2024 [3] Interest and Income - Interest expenses totaled $12.1 million, a decrease of 7.6% year over year, while interest income was $1.5 million compared to $2.1 million in the previous year [4] AWR's Segmental Details - Water segment earnings were 73 cents per share, up 9% from 67 cents a year ago, attributed to new rate increases authorized by the CPUC effective January 1, 2025 [5] - Electric segment EPS was 3 cents, an increase of 2 cents from the year-ago quarter, due to revenue increases from new rates implemented in 2025 [6] - Contracted Services segment EPS was 13 cents, down from 19 cents in the year-ago quarter, while AWR (Parent) reported a loss of 1 cent per share compared to a loss of 2 cents previously [7] AWR's Financial Update - As of June 30, 2025, cash and cash equivalents were $20.2 million, down from $26.7 million as of December 31, 2024 [8] - Long-term debt increased to $789.5 million from $640.4 million as of December 31, 2024 [8] Cash Flow - Cash provided by operating activities in the first half of 2025 totaled $109.6 million, compared to $70.5 million in the same period last year [10]

Company Performance - American States Water (AWR) reported quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.92 per share, but showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of -5.43% [1] - The company posted revenues of $163.07 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.51%, compared to year-ago revenues of $155.33 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and has topped consensus revenue estimates three times [2] Stock Performance - American States Water shares have lost about 4% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.03 on $176 million in revenues, and for the current fiscal year, it is $3.29 on $646 million in revenues [7] - The outlook for the industry can significantly impact the stock's performance, with the Utility - Water Supply industry currently in the top 41% of Zacks industries [8]

Exhibit 99.1 Second Quarter 2025 Results The table below sets forth a comparison of the second quarter 2025 diluted earnings per share contribution recorded by business segment and for the parent company compared with amounts recorded during the same period in 2024. | | Diluted Earnings per Share | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Three Months Ended | | | | | | | | 6/30/2025 | | 6/30/2024 | | CHANGE | | | Water | $ | $ 0.73 | | 0.67 | $ | 0.06 | | Electric | | 0.03 | | 0.01 | | 0.02 ...

Part I Financial Information [Item 1: Financial Statements](index=7&type=section&id=Item%201%3A%20Financial%20Statements) The report presents unaudited consolidated financial statements for AWR and its subsidiary GSWC for the quarter ended June 30, 2025 [American States Water Company Financial Statements](index=8&type=section&id=American%20States%20Water%20Company%20Financial%20Statements) This section details the consolidated balance sheets, income statements, and cash flow statements for AWR for periods ended June 30, 2025 AWR Consolidated Income Statement Highlights (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $163,066 | $155,328 | $311,079 | $290,579 | | **Operating Income** | $50,959 | $51,748 | $96,505 | $90,722 | | **Net Income** | $33,690 | $31,864 | $60,534 | $54,999 | | **Fully Diluted EPS** | $0.87 | $0.85 | $1.57 | $1.47 | AWR Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $2,610,534 | $2,500,209 | | Net Property, Plant & Equipment | $2,193,581 | $2,099,625 | | **Total Liabilities** | $1,638,015 | $1,580,158 | | Long-term Debt | $789,484 | $640,382 | | **Total Common Shareholders' Equity** | $972,519 | $920,051 | AWR Consolidated Cash Flow Highlights - YTD (in thousands) | Cash Flow Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $109,636 | $70,515 | | **Net Cash from Investing Activities** | ($118,334) | ($108,897) | | **Net Cash from Financing Activities** | $2,284 | $27,892 | | **Net Change in Cash** | ($6,414) | ($10,490) | [Golden State Water Company Financial Statements](index=14&type=section&id=Golden%20State%20Water%20Company%20Financial%20Statements) This section details the balance sheets, income statements, and cash flow statements for GSWC for periods ended June 30, 2025 GSWC Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $119,697 | $110,424 | $221,700 | $200,689 | | **Operating Income** | $42,557 | $40,565 | $77,353 | $69,732 | | **Net Income** | $28,140 | $25,195 | $48,046 | $42,989 | GSWC Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $2,230,570 | $2,131,981 | | Net Utility Plant | $1,994,354 | $1,911,369 | | **Total Liabilities** | $1,342,734 | $1,326,148 | | Long-term Debt | $704,879 | $605,547 | | **Total Common Shareholder's Equity** | $887,836 | $805,833 | [Notes to Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section explains accounting policies and details key financial items like acquisitions, financing, and legal settlements - In May 2025, GSWC completed the acquisition of a new water and wastewater system, recording an initial non-cash transaction of **$10.7 million** in utility plant assets[53](index=53&type=chunk) - AWR's At-The-Market (ATM) offering program raised net proceeds of **$25.8 million** in the first six months of 2025, with approximately **$82.9 million** remaining available for sale under the program as of June 30, 2025[60](index=60&type=chunk) - In May 2025, GSWC issued **$100.0 million** in new long-term debt and received a **$50.0 million** equity contribution from AWR to pay down its revolving credit facility[59](index=59&type=chunk)[62](index=62&type=chunk) - GSWC will receive approximately **$19 million** (net of fees) from a 3M Company class action settlement related to PFAS contamination, with an initial **$12.5 million** recognized as a receivable in Q2 2025[84](index=84&type=chunk)[85](index=85&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operational results, regulatory impacts, and capital resources [Overview and Regulatory Matters](index=38&type=section&id=Overview%20and%20Regulatory%20Matters) This section covers key performance factors and significant regulatory decisions impacting water and electric rates - GSWC's 2025-2027 General Rate Case (GRC) decision authorizes approximately **$573.1 million** in capital infrastructure investment over three years[136](index=136&type=chunk) - The GRC decision transitioned GSWC to a modified Monterey-style WRAM (M-WRAM), which will subject earnings to volatility from fluctuations in customer consumption and water supply costs[137](index=137&type=chunk)[139](index=139&type=chunk) - BVES's 2023-2026 GRC decision authorized approximately **$52.5 million** in capital infrastructure in base rates and an additional **$23.1 million** to be recovered through advice letters[141](index=141&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) This section analyzes financial performance by business segment for the three and six months ended June 30, 2025 Diluted EPS by Segment - Q2 | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Water | $0.73 | $0.67 | $0.06 | | Electric | $0.03 | $0.01 | $0.02 | | Contracted services | $0.13 | $0.19 | ($0.06) | | AWR (parent) | ($0.01) | ($0.02) | $0.01 | | **Consolidated** | **$0.87** | **$0.85** | **$0.02** | Diluted EPS by Segment - YTD | Segment | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Water | $1.25 | $1.15 | $0.10 | | Electric | $0.10 | $0.06 | $0.04 | | Contracted services | $0.26 | $0.32 | ($0.06) | | AWR (parent) | ($0.03) | ($0.06) | $0.03 | | **Consolidated** | **$1.57** | **$1.47** | **$0.10** | - Water segment earnings increased due to new CPUC-authorized rates and a favorable water supply mix[149](index=149&type=chunk) - Electric segment earnings increased due to new rates from its GRC decision supporting rate base growth and higher wildfire mitigation costs[150](index=150&type=chunk)[151](index=151&type=chunk) - Contracted services earnings decreased due to the timing of construction activities, though the full-year 2025 EPS contribution is still expected to be between **$0.59 and $0.63**[152](index=152&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's capital-intensive funding through internal cash flows and external financing activities - AWR's At-The-Market (ATM) offering program has raised a total of **$115.3 million** through June 30, 2025, with **$82.9 million** remaining available for sale[233](index=233&type=chunk) - On July 29, 2025, AWR's Board approved an **8.3% increase** in the quarterly dividend to $0.5040 per share, targeting a long-term dividend CAGR of more than 7%[241](index=241&type=chunk)[299](index=299&type=chunk) - For 2025, company-funded capital expenditures for the regulated utilities are projected to be between **$170 million and $210 million**[247](index=247&type=chunk) - Net cash from operating activities increased to **$109.6 million** for YTD 2025 from $70.5 million in YTD 2024, due to the timing of cash receipts and postponed tax payments[245](index=245&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risks since the 2024 Annual Report - The company confirms no material changes to its market risk disclosures regarding interest rates and commodity prices from its 2024 Form 10-K[288](index=288&type=chunk) [Item 4: Controls and Procedures](index=66&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were adequate and effective as of the end of the fiscal quarter[289](index=289&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected the company's internal control over financial reporting[291](index=291&type=chunk) Part II Other Information [Item 1: Legal Proceedings](index=68&type=section&id=Item%201%3A%20Legal%20Proceedings) This section details developments in legal matters, primarily focusing on PFAS contamination lawsuit settlements - GSWC will receive approximately **$19 million** (net of fees) from a PFAS class action settlement with 3M Company, with an initial **$12.5 million** funded in Q2 2025[293](index=293&type=chunk) - GSWC and an ASUS subsidiary are plaintiffs in approved class action settlements with Dupont, Tyco Fire Products, and BASF Corp related to PFAS, but settlement amounts are not yet determined[294](index=294&type=chunk) [Item 1A: Risk Factors](index=68&type=section&id=Item%201A%3A%20Risk%20Factors) The company reports no significant changes to risk factors from its 2024 Annual Report - There have been no significant changes to the risk factors disclosed in the 2024 Form 10-K[296](index=296&type=chunk) [Item 2: Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=68&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details AWR's common share repurchases during Q2 2025 for employee and dividend plans AWR Common Share Repurchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 5,946 | $79.41 | | May 2025 | 6,858 | $77.98 | | June 2025 | 3,655 | $78.66 | | **Total** | **16,459** | **$78.65** | [Item 5: Other Information](index=69&type=section&id=Item%205%3A%20Other%20Information) This section discloses other corporate actions, including a dividend increase and director trading plan updates - On July 29, 2025, AWR's Board of Directors approved an **8.3% increase** in the third quarter dividend to $0.5040 per share, payable on September 3, 2025[299](index=299&type=chunk)

Core Viewpoint - American States Water Company (AWR) is benefiting from strategic investments in infrastructure and a growing customer base, but its heavy reliance on California for earnings poses challenges [1][5]. Group 1: Positive Factors - AWR's subsidiary, American States Utility Services (ASUS), has successfully begun operating water and wastewater systems at two new military bases, enhancing revenue stability through long-term defense contracts [2]. - ASUS is projected to contribute between 59-63 cents per share to AWR's total earnings for the full year 2025, indicating strong future earnings potential [3]. - The company has approved rate cases for regulated utilities, which will facilitate revenue and earnings growth, with capital expenditures expected to reach $573.1 million from 2025 to 2027 [4]. Group 2: Challenges - AWR's financial performance is significantly tied to California, particularly Southern California, making it vulnerable to various risks including political conditions, water supply issues, and natural disasters [5]. - There is an ongoing risk of groundwater contamination, which may lead to additional costs for AWR in the future [6]. Group 3: Stock Performance - Over the past six months, AWR's stock has increased by 1.7%, while the industry has seen a growth of 13.7% [7]. Group 4: Comparisons with Peers - Other companies in the sector, such as American Water Works (AWK), Essential Utilities (WTRG), and CenterPoint Energy (CNP), have better rankings and growth rates, with AWK showing a long-term earnings growth rate of 7.4% [9][10].