American States Water pany(US:AWR)2025-11-05 21:31Financial 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]