AWR earnings analysis
What we found in AWR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AWR reported solid Q1 results with revenues increasing by 14.3% to $169.2 million, driven by rate hikes across segments. Gross margin improved to 75.0%, while diluted EPS rose 8.6% year-over-year to $0.76. Management highlighted strong performance in the water and electric segments amid ongoing regulatory adjustments, although there are potential risks from geopolitical and climate conditions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue increased 14.3% year-over-year to $169.2 million, up from $148.0 million.
- Improved EPS
- Diluted EPS rose 8.6% to $0.76, compared to $0.70 in the same period last year.
- Water Segment Recovery
- Water revenue increased by $11.1 million (10.9%) to $113.1 million due to rate increases.
- Electric Segment Growth
- Electric segment revenue rose 24.4% to $18.7 million, benefiting from rate hikes.
- Favorable Operating Margins
- Gross margin improved to 75.0% from 67.2% while operating margin expanded to 30.4%.
- Positive Cash Flow Trends
- Operating cash flow increased to $71.6 million from $45.1 million year-over-year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Geopolitical Risks
- Ongoing military operations abroad could indirectly affect costs and operations.
- Weather Patterns Disruptions
- Unpredictable drought conditions may impact water supply and operational stability.
- Regulatory Challenges
- Transition from full revenue decoupling to M-WRAM introduces volatility impacts.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.76
- Gross margin
- 75.0%
- Operating margin
- 30.4%
- Segment
- Water: $113.1M
- Segment
- Electric: $18.7M
- Segment
- Contracted Services: $37.4M
What they said about what is next.
Management expects continued growth in segments but acknowledges potential volatility from regulatory and environmental factors.
The filing reads better than the one before it.
What came before.
- 10-K · February 18, 2026
- American States Water (AWR) reports annual results for the period ending December 31, 2025 showing revenue growth year-over-year and modest EPS improvement, but material margin and cash-flow volatility across quarters.…
- 10-Q · August 6, 2024
- Q2 2024 results: consolidated revenue of $155.33M (down $2.07M YoY, up vs Q1), EPS $0.85 (down $0.19 YoY, up vs Q1) and operating income of $51.75M. Contracted services was the main growth engine while water and…
- 10-K · February 21, 2024
- AWR positions itself as a regulated utility (water and electric) plus a contracted services business that operates long-term, fixed-price military-base water/wastewater contracts. The company emphasizes capital…
- 10-K · March 1, 2023
- AWR’s 2022 Form 10-K describes a regulated utility business (water and electric) plus contracted military utility services, emphasizing long-term regulated cash flows, infrastructure investment and climate/renewables…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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