Start here if you're new
what it is
AWR sells water and electricity, then adds steady service revenue from running water systems on U.S. military bases.
how it gets paid
Last year Amer. States Water made $658M in revenue. water utility was the main engine at $467.2M, or 71% of sales.
why it's growing
Revenue grew 10.5% last year. Quarterly EPS history shows 2025 finishing at $0.67 in the base forecast and $3.30 for the year.
what just happened
AWR reported Q4 EPS of $0.74, topping the $0.67 estimate by 10.45%.
At a glance
A balance sheet — strong enough to weather a downturn
80/100 earnings predictability — you can trust these numbers
22.3x trailing p/e — priced about right
2.7% dividend yield — cash in your pocket every quarter
8.0% return on capital — nothing to write home about
xvary composite: 77/100 — average
What they do
AWR sells water and electricity, then adds steady service revenue from running water systems on U.S. military bases.
If your home is connected to Golden State Water's pipes, you are not switching providers after lunch. AWR serves 264,557 water customers in 10 California counties and 24,857 electric customers in Big Bear. Regulated utility → the state sets allowed returns → so what: pricing is steadier than most businesses, which helps explain its 95/100 price-stability score.
How they make money
$658M
annual revenue · their business grew +10.5% last year
water utility
$467.2M
+9.0%
contracted services
$144.8M
+16.0%
electric utility
$32.9M
+4.0%
wastewater and other
$13.2M
+3.0%
The products that matter
water, electric, and contract utility services
regulated utility operations
$658M revenue
the page gives you $658M at the company level, not a clean segment split. that is a clue: the regulated utility remains the center of gravity, while the military-base contracts are the incremental upside lever.
core
Key numbers
30.9%
operating margin
Operating margin → what is left after running the business → so what: this utility keeps about $0.31 of every revenue dollar before interest and taxes.
$790M
long-term debt
Debt equals 21% of capital, which is manageable for a regulated utility but still exposes you to higher interest costs.
2.7%
dividend yield
You are getting paid to wait, but the income stream is only attractive if regulators keep allowing returns that support payout growth.
22.3x
trailing p/e
P/E → price divided by earnings → so what: you are paying a premium price for a business expected to grow earnings about 7.0% a year.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $790M (21% of capital)
- return on equity 13% — $0.13 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in AWR 3 years ago → it's now worth $8,490.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
AWR reported Q4 EPS of $0.74, topping the $0.67 estimate by 10.45%.
Quarterly EPS history shows 2025 finishing at $0.67 in the base forecast and $3.30 for the year, versus $3.17 in 2024. EDGAR also shows latest-quarter revenue of $494M, up 170% vs. prior year.
$494M
revenue
$0.74
eps
10.45%
surprise
the number that mattered
The 10.45% EPS beat matters because this stock trades on steadiness, and even small beats help defend a premium multiple.
-
american states water probably finished 2025 with a decent showing.
-
the water company’s fourth-quarter share earnings probably came in at approximately $0.67.the vs. prior year comparison is not as negative as it appears, however, because 2024’s figure was aided by an unusual income gain.
-
this year will likely show similar bottom-line growth.
-
in the second year of higher rates being in effect due to the previous rate case, american states’ core golden state water subsidiary should enable the company’s earnings per share to rise $0.15, or 4% to 5%.
-
the nonutility business (more below) could make our estimate conservative.
source: company earnings report, 2026
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What could go wrong
the #1 risk is an unfavorable cpuc rate-case reset.
med
rate relief comes in below the current plan
AWR is not winning customers with marketing. it grows when regulators let it earn more on the assets it already runs. if the next decision lands below expectations, the move from $3.30 EPS to the $3.45 estimate gets harder immediately.
the $17M step from $658M revenue to the $675M estimate is small enough that weaker rate treatment can eat a lot of it.
med
california drought and conservation orders
this company sells water in a state that regularly asks people to use less of it. even with regulated recovery mechanisms, mandatory conservation can pressure volumes and muddy the path of quarterly revenue.
when your latest quarter is $183M of revenue, volume pressure does not need to be dramatic to show up in the numbers.
med
the safety premium can still compress
22.3x trailing earnings is a full price for a company expected to grow EPS from $3.30 to $3.45. if investors stop treating AWR like a scarce defensive asset, the business can perform fine while the stock does very little.
the last three years already showed the pattern: safe business, weak relative return, $5,430 behind the index on a $10,000 starting stake.
med
the non-regulated upside may be smaller than the narrative
the military-base contracts are the interesting piece because they sit outside the normal utility box. but this page does not show segment revenue for that business, which is another way of saying the data here does not prove it can carry the stock if regulated growth slows.
if the core stays a 4–5% grower and the side business stays small, you are left owning an expensive safe stock rather than a compounding surprise.
if allowed returns slip, the path from $3.30 EPS to $3.45 gets narrow fast. this is a $658M revenue business with 22.3x earnings and a safety premium already baked in.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
the next cpuc rate decision
this is the main event. if the approved path supports the current $3.45 EPS expectation, the stock keeps its defensive script. if not, the valuation has less to lean on.
risk
california water-use restrictions
drought headlines matter here because conservation orders can pressure usage volumes even when the franchise itself is protected.
trend
whether 22.3x earnings keeps holding
AWR does not need business trouble for the stock to stall. if investors rotate away from expensive defensives, the multiple can do the damage by itself.
metric
the $675M revenue and $3.45 eps path
those are the numbers the market is leaning on for 2026. miss them, and this starts looking less like stable compounding and more like expensive stability.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a near-term catalyst.
risk profile
safest 5%
stability score 1 — safer than 95% of all stocks. regulated revenue is the safety blanket.
chart momentum
average
technical score 3 — the chart has been mostly flat for three years. welcome to defensive utility ownership.
earnings predictability
80 / 100
management usually lands close to the expected range. fewer surprises, less drama.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 177 buyers vs. 148 sellers in 3q2025. total institutional holdings: 31.3M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$63
$101
$74
current price
$82
target midpoint · +11% from current · 3-5yr high: $130 (+75% · 17% ann'l return)
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