Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through earnings and sales projections [4] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks averaging a +23.93% annual return since 1988 [7] - There can be over 800 top-rated stocks at any time, making it essential to utilize Style Scores for selection [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: American States Water (AWR) - American States Water Company provides water, wastewater, and electricity services in the U.S. and holds a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - AWR is projected to have a year-over-year earnings growth of 4.7% for the current fiscal year, making it attractive for growth investors [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.04 to $3.32 per share, with an average earnings surprise of +3.6% [12]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - American States Water (AWR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable [3] - American States Water has a historical EPS growth rate of 7.3%, with a projected EPS growth of 4.7% this year, significantly outperforming the industry average of 1.2% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks [5] - American States Water has an S/TA ratio of 0.25, indicating it generates $0.25 in sales for every dollar in assets, compared to the industry average of 0.15 [6] Group 4: Sales Growth - The company is also well-positioned for sales growth, with expected sales growth of 5.6% this year, surpassing the industry average of 3.7% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [7] - American States Water has seen a 1.2% increase in current-year earnings estimates over the past month [7] Group 6: Overall Positioning - American States Water holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9]

Core Viewpoint - The current market is considered expensive, with the Shiller CAPE ratio at 39.6, indicating a potential correction or bear market is likely approaching [1][2] Market Context - Historical data shows that corrections of 10% are common, with the S&P 500 experiencing an average annual correction of at least 10% since 1950, and a 20% correction occurring every three to five years on average [2] Defensive Investment Strategy - Defensive sectors such as healthcare, consumer staples, and utilities are expected to perform well during market corrections and bear markets [3] - Dividend stocks are highlighted as favorable investments during sideways and bear markets due to their income generation [3] Selected Stocks for Mini Portfolio - A mini portfolio of eight stocks, all classified as Dividend Kings (companies that have increased dividends for 50 consecutive years), is recommended for market drawdowns [4] - These stocks are positioned in defensive sectors and offer dividend yields above the S&P 500 index yield of 1.25% [4] Individual Stock Highlights - **Coca-Cola (KO)**: Dividend yield of 2.9%, increased dividends for 63 years, current price around $70.61, market cap $303 billion [5][6] - **Procter & Gamble (PG)**: Dividend yield of 2.86%, increased dividends for 69 years, current price around $147 [7] - **Johnson & Johnson (JNJ)**: Dividend yield of 2.7%, increased dividends for 62 years, current price around $186.57, market cap $450 billion [8][9] - **American States Water (AWR)**: Dividend yield of 2.54%, increased dividends for 71 years, current price around $74.84, market cap $3 billion [10][11] - **Northwest Natural Holding (NWN)**: Highest yield at 4.21%, increased dividends for 70 years, current price around $47 [12] - **Genuine Parts (GPC)**: Dividend yield of 3.3%, increased dividends for 69 years, current price around $127 [13] - **Marzetti Co. (MZTI)**: Dividend yield of 2.21%, increased dividends for 62 years, current price around $172 [13] - **Becton, Dickinson (BDX)**: Dividend yield of 2.35%, increased dividends for 53 years, current price around $178 [14] Total Investment Overview - The total cost to purchase one share of each of these eight stocks is approximately $1,000, creating a defensive income-generating portfolio [15]

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - **American States Water Company (AWR)**: Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - **Entergy Corporation (ETR)**: Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]

Financial Data and Key Metrics Changes - Recorded earnings per share (EPS) for Q3 2025 were $1.06, an increase of 11.6% compared to $0.95 in Q3 2024 [4][8] - Year-to-date EPS as of September 30 was $2.63, up $0.21 or 8.7% from $2.42 in the same period last year [5][12] - Consolidated revenue for Q3 increased by $21 million compared to Q3 2024 [10] Business Line Data and Key Metrics Changes - Water utility earnings were $0.86 per share, up from $0.84 per share last year, primarily due to new water rates effective January 1, 2025 [8] - Electric segment earnings increased to $0.04 per share from $0.02 per share, attributed to new electric rates [9] - Earnings from American States Utility Services (ASUS) rose to $0.19 per share from $0.11 per share, driven by higher construction activity [23] Market Data and Key Metrics Changes - The water utility's rate base grew from $980.4 million in 2021 to $1,455.8 million in 2025, reflecting a compound annual growth rate (CAGR) of 10.4% [19] - ASUS was awarded $28.7 million in new capital upgrade construction projects, expected to be completed through 2028 [24] Company Strategy and Development Direction - The company plans to invest $180-$210 million in infrastructure for the year, focusing on long-term benefits for customers [5] - The company is preparing for its next water rate case, expected to be filed by July 1, 2026, and is optimistic about future growth despite industry mergers [15][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in regulated utilities and ASUS [37] - The company noted potential volatility in revenues and earnings due to changes in water consumption and supply source mix [16] Other Important Information - The company raised its quarterly dividend by 8.3%, maintaining a compound annual growth rate of 8.5% over the last five years [24] - American States Water Company was recognized on TIME's America's Best Mid-Sized Companies 2025 list and Barron's 100 Most Sustainable Companies for 2025 [6][7] Q&A Session Summary Question: Inquiry about ASUS contract timing and EPS impact - Management indicated that while there is a good backlog for capital upgrades, the transition period for new contracts may affect EPS in 2026 [31][32] Question: Clarification on new customer connections and rate base translation - Management explained that new customer connections depend on home purchases and developer agreements, making it challenging to predict rate base impacts [33][35] Question: Thoughts on M&A in the industry - Management acknowledged the recent merger in the industry but stated it would not impact the company's strategic direction, emphasizing confidence in growth plans [37][38]

Financial Performance - Consolidated diluted earnings per share increased by $0.11, or 11.6%, for Q3 2025, reaching $1.06 per share compared to $0.95 per share in Q3 2024[12, 13] - Year-to-date diluted earnings per share increased by $0.21, reaching $2.63 per share in 2025 compared to $2.42 per share in 2024[12, 20] - Total operating revenues increased to $182.7 million in Q3 2025 from $161.7 million in Q3 2024, a variance of $21.0 million[14] Segment Performance - Water segment earnings were $0.86 per share in Q3 2025, up from $0.84 per share in Q3 2024[13] - Electric segment earnings increased to $0.04 per share in Q3 2025 from $0.02 per share in Q3 2024[13] - Contracted Services (ASUS) earnings rose to $0.19 per share in Q3 2025 from $0.11 per share in Q3 2024[13, 35] Regulatory and Capital Investment - Regulated utilities are on pace to invest between $180 million and $210 million for the year[12, 21] - GSWC is authorized to invest $573.1 million in capital infrastructure over the three-year capital cycle (2025-2027)[25, 29] - BVES is authorized to invest $75.6 million in capital infrastructure over the four-year rate cycle[31] Other Key Points - ASUS was awarded $28.7 million in new capital upgrade construction projects through year-to-date September 2025, to be completed through 2028[12, 35] - The Board of Directors approved a fourth-quarter cash dividend of $0.5040 per share, reflecting an 8.5% compound annual growth rate over the last 5 years[38, 37]

Core Insights - American States Water Company (AWR) reported third-quarter 2025 operating earnings per share (EPS) of $1.06, exceeding the Zacks Consensus Estimate of $1.01 by 4.95%, and up from 95 cents in the same quarter last year [1][10] AWR's Total Revenues - Total operating revenues reached $182.72 million, surpassing the Zacks Consensus Estimate of $178 million by 2.65%, and reflecting a 12.9% increase from $161.78 million in the prior-year period [2][10] Highlights of AWR's Q3 Release - Operating expenses totaled $121 million, a 13.4% increase from $106.7 million in the year-ago quarter, driven by higher costs in water purchases, power purchases for resale, administrative expenses, maintenance, and ASUS construction [3] - Operating income was $61.7 million, up 11.9% from $55.1 million in the corresponding period of 2024 [3][10] Interest Expenses and Income - Interest expenses amounted to $11.7 million, down 13.4% year over year due to decreased average borrowing levels and interest rates, despite a decline in interest income from regulatory assets [4] - Interest income totaled $1.1 million compared to $1.7 million in the year-ago quarter [4] Regulatory Approvals and Growth - AWR's regulated water utility received CPUC approval to provide water services to a new planned community, expected to serve up to 3,800 customer connections over the next five years, with potential for 17,500 total dwelling units at full buildout over 20+ years [5] Segmental Details - Earnings from the Water segment were 86 cents per share, up 2.38% from 84 cents a year ago, attributed to new CPUC-authorized rate increases effective January 1, 2025 [6] - EPS from the Electric segment was 4 cents, an increase of 2 cents from the previous year, driven by higher revenues from new rates implemented in 2025 [7] - EPS from the Contracted Services segment was 19 cents, up 8 cents from the year-ago quarter [7] Financial Update - As of September 30, 2025, cash and cash equivalents totaled $26.1 million, down from $26.7 million as of December 31, 2024 [11] - Long-term debt amounted to $790.3 million compared to $640.4 million as of December 31, 2024 [11] - Cash provided by operating activities in the first nine months of 2025 totaled $202.1 million, up from $134.2 million in the year-ago period [11] Guidance - AWR's regulated utilities are authorized to spend nearly $650 million in capital investments, targeting to invest $180 to $210 million in 2025 [12] - The contracted services business is expected to contribute 59 cents to 63 cents per share for the whole year [12] Zacks Rank - American States Water currently holds a Zacks Rank 2 (Buy) [13]

分组1 - American States Water (AWR) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and up from $0.95 per share a year ago, representing an earnings surprise of +4.95% [1] - The company posted revenues of $182.72 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.65%, compared to year-ago revenues of $161.78 million [2] - The stock has underperformed the market, losing about 4% since the beginning of the year, while the S&P 500 gained 15.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.70 on $156 million in revenues, and for the current fiscal year, it is $3.30 on $646 million in revenues [7] - The Utility - Water Supply industry is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - American States Water has a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6]

Exhibit 99.1 American States Water Company Announces Third Quarter 2025 Results San Dimas, California, November 5, 2025…. American States Water Company (NYSE:AWR) today reported basic and fully diluted earnings per share of $1.06 for the quarter ended September 30, 2025, as compared to basic and fully diluted earnings per share of $0.95 for the quarter ended September 30, 2024, an increase of $0.11 per share, primarily generated from higher construction activities that resulted in higher earnings at the con ...

Financial Performance - Total operating revenues for the three months ended September 30, 2025, increased to $182.716 million, up from $161.782 million in the same period of 2024, representing a growth of 12.0%[30] - Net income for the nine months ended September 30, 2025, was $101.701 million, compared to $90.833 million for the same period in 2024, reflecting an increase of 12.6%[30] - Operating income for the three months ended September 30, 2025, was $61.733 million, up from $55.068 million in the same period of 2024, a rise of 12.1%[30] - The company reported a basic earnings per share of $1.06 for the three months ended September 30, 2025, compared to $0.95 for the same period in 2024, reflecting an increase of 11.6%[30] - Net income for the nine months ended September 30, 2025, was $81,344,000, compared to $74,555,000 in 2024, reflecting an increase of 9.4%[43] - For the nine months ended September 30, 2025, operating revenues reached $493,795,000, up from $433,000,000 in the previous year, marking an increase of approximately 14%[127] - AWR's net income for the three months ended September 30, 2025, was $41.167 million, compared to $35.834 million for the same period in 2024, reflecting a 6.1% increase[91] - AWR's consolidated diluted earnings per share increased to $1.06 for Q3 2025, up from $0.95 in Q3 2024, primarily due to higher construction activities and new customer rates[149] Assets and Equity - The company's total assets as of September 30, 2025, amounted to $2.655 billion, an increase from $2.500 billion as of December 31, 2024, indicating a growth of 6.2%[28] - Common shareholders' equity rose to $1.009 billion as of September 30, 2025, compared to $920.051 million at the end of 2024, marking an increase of 9.7%[27] - Total consolidated assets as of September 30, 2025, amounted to $2,655,273,000, with total net property, plant, and equipment at $2,240,869,000[131] Liabilities and Debt - Long-term debt increased to $790.261 million as of September 30, 2025, from $640.382 million at the end of 2024, representing a rise of 23.4%[27] - Long-term debt increased to $705,639,000 in 2025 from $605,547,000 in 2024, marking a rise of 16.5%[41] - AWR's long-term debt increased to $794.3 million as of September 30, 2025, up from $643.9 million as of December 31, 2024, representing a 23.4% increase[107] - GSWC's long-term debt rose to $709.3 million as of September 30, 2025, compared to $608.9 million as of December 31, 2024, marking a 16.5% increase[108] Cash Flow and Dividends - The company paid dividends of $0.5040 per common share for the three months ended September 30, 2025, compared to $0.4655 in the same period of 2024, an increase of 8.3%[30] - The company paid dividends totaling $55.1 million during the nine months ended September 30, 2025, compared to $49.4 million in 2024, reflecting an increase of approximately 11.5%[36] - Cash flows from operating activities provided $156,004,000, up from $106,125,000 in the same period last year, reflecting a 47.0% increase[50] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $227,251,000, up from $208,154,000 in 2024, indicating an increase of 9.2%[43] - Total operating expenses increased by $28.986 million (9.5%) to $335.6 million, with significant increases in water purchased costs by $12.2 million (21.8%) and maintenance costs by $5.3 million (50.4%)[198] - Administrative and general expenses increased to $77.5 million in 2025, up 6.1% from $73.0 million in 2024, with significant increases in electric services costs[215] Revenue Segmentation - For the three months ended September 30, 2025, total water revenues were $132.3 million, a 6.0% increase from $124.0 million in the same period of 2024[70] - Electric revenues for the three months ended September 30, 2025, reached $13.3 million, up 47.5% from $9.0 million in the prior year[70] - Contracted services revenues from contracts with customers for the three months ended September 30, 2025, totaled $37.1 million, a 29.2% increase compared to $28.7 million in 2024[70] - Water revenues increased by $29.3 million (9.0%) to $354.0 million, primarily due to CPUC-approved rate increases effective January 1, 2025, and a 5.7% increase in billed water consumption[200] Regulatory and Compliance - GSWC's new M-WRAM and ICBA regulatory mechanisms became effective January 1, 2025, impacting revenue recognition and cost recovery[140] - The CPUC's final decision on GSWC's general rate case set new rates for 2025-2027, with a cumulative balance of $2.6 million under-collection recorded as a regulatory asset[79] - GSWC expects to receive approximately $19 million from 3M Company related to PFAS contamination litigation, with $12.5 million recognized as a receivable in Q2 2025[83] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $173.1 million, slightly down from $173.5 million in the same period of 2024[36] - GSWC is authorized to invest approximately $573.1 million in capital infrastructure over the three-year capital cycle from 2025 to 2027[139] - BVES is authorized to invest approximately $52.5 million in capital infrastructure over the four-year rate cycle from 2023 to 2026, with an additional $23.1 million to be filed for revenue recovery[143] Other Financial Metrics - Interest expense decreased to $27,145,000 for the nine months ended September 30, 2025, from $28,970,000 in 2024, a reduction of 6.3%[43] - The overall actual percentage of purchased water for the three months ended September 30, 2025, was 44.2%, up from 43.2% in the same period of 2024[175] - The water supply cost balancing account showed a $0.7 million over-collection in 2025, down from a $2.1 million over-collection in 2024[210]