AWRNYSEWater SupplyUS GAAP · USD

American States Water Company

American States Water Co (AWR) operates regulated water and electric utilities in California and a contracted services business that runs water and wastewater systems on U.S. military bases. Its main regulated utility, Golden State Water Company (GSWC), purchases, produces, distributes and sells water across 11 California counties and also provides wastewater collection and treatment in certain areas under California Public Utilities Commission (CPUC) regulation. Its electric utility, Bear Valley Electric Service (BVES), distributes electricity in mountain communities in San Bernardino County, also under CPUC regulation. Through American States Utility Services (ASUS) and subsidiaries, AWR performs long-term operations, maintenance, and construction work for water and wastewater systems under U.S. government contracts.

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Revenue658m USD
+10.5 %y/y
Operating profit (EBIT)203m USD
+10.2 %y/y
EBIT margin30.9%
−0.1 ppy/y
Net income130m USD
+9.4 %y/y
Free cash flow-7.1m USD
+78.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0200400600800m USD2020: 488 m USD2020: EBIT 130 m USD20202021: 499 m USD2021: EBIT 141 m USD20212022: 492 m USD2022: EBIT 127 m USD20222023: 596 m USD2023: EBIT 197 m USD20232024: 595 m USD2024: EBIT 184 m USD20242025: 658 m USD2025: EBIT 203 m USD2025658203
RevenueOperating profit (EBIT)
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Business

Share of revenue
Regulated water utility (GSWC)70 %

Retail water production/purchase, distribution and billing across 11 California counties under CPUC-set rates.

Contracted services (ASUS)20 %

Operations, maintenance and construction services for water/wastewater systems at U.S. military bases under long-term contracts and task orders.

Regulated electric utility (BVES)10 %

Electric distribution service to San Bernardino County mountain communities under CPUC regulation.

Customers

In the regulated utility segments, AWR primarily serves residential and commercial customers within its California water and electric service territories, with these two classes representing about 90% of total water and electric revenues. Customer demand is seasonal, and water volumes are sensitive to conservation behavior and drought-related restrictions, which can reduce usage even when customer counts rise. In contracted services, the U.S. government is the primary customer, with ASUS subsidiaries operating water and wastewater systems at specific military installations under 50-year contracts (and one 15-year task order at Joint Base Cape Cod). ASUS also performs incremental construction work via contract modifications and through arrangements with third-party prime contractors supporting U.S. government projects.

California residential water customers (GSWC)

Buy regulated retail water service; usage and bills are influenced by conservation rules and weather-driven demand.

California commercial/industrial water customers (GSWC)

Buy regulated water service for business operations; reliability and permitted rate recovery drive service economics.

California electric distribution customers (BVES)

Households and businesses in San Bernardino County mountain communities buying regulated electric distribution service.

U.S. government / military installations (ASUS)

Procure long-term O&M and project work for base water and wastewater systems; contract modifications and task orders drive incremental work.

Strategy

AWR’s strategy is anchored in executing regulated utility operations while managing water supply reliability and infrastructure needs under CPUC oversight. In water, the company emphasizes maintaining adequate, high-quality supplies through diversified sourcing (groundwater production and purchased/imported water), monitoring, contingency planning, and conservation programs. It also manages exposure to drought and imported water constraints (including Colorado River system developments) by monitoring policy and operational changes that could affect availability and costs. On sustainability, AWR has set a target to reduce greenhouse gas emissions by 60% by 2035 from a 2020 baseline, focusing on energy efficiency, increased purchases of green energy, and fleet electrification where feasible.

Water supply resilience and contingency planningLong term

Drought, imported water constraints, and contamination risks can disrupt service and raise costs.

Execute and extend contracted services work with the U.S. governmentMedium term

ASUS earnings and cash flows depend on long-term base contracts, modifications, and task orders.

GHG emissions reduction programLong term

Energy use in pumping and electric distribution drives emissions and cost; progress may depend on technology availability.

Geography

AWR’s regulated water and electric operations are concentrated in California, creating a strong linkage to California regulatory outcomes, water supply conditions, and climate-related events such as drought and wildfires. GSWC serves water customers across 11 counties in California, while BVES serves several mountain communities in San Bernardino County. The contracted services segment is geographically diversified across multiple U.S. states because ASUS subsidiaries operate systems at military bases in locations including Texas/New Mexico, Virginia, Maryland, the Carolinas, Florida, Kansas, and Massachusetts. This mix means the utility segments carry concentrated California exposure, while contracted services adds federal-customer exposure spread across the U.S.

Risks

AWR’s regulated utility earnings depend on CPUC decisions on allowed rates, cost recovery timing, and approval of mechanisms that can mitigate or amplify volatility from consumption and supply-cost swings. The company is highly exposed to California-specific risks, including drought, wildfires, storms, and other natural disasters that can disrupt operations, increase costs, and affect water availability and customer demand. Water quality and environmental compliance requirements can drive rising capital and operating costs, and delays in permits or franchise arrangements can slow projects and recovery in rates. In contracted services, customer concentration is high because the U.S. government is the primary customer; changes in contract modifications, task orders, or compliance requirements (including cybersecurity rules for contractors) can affect revenue and profitability.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Water supply and climate variability risk (drought, wildfires, disasters)1Regulatory rate-setting and recovery timing risk (CPUC)2Cybersecurity and terrorism targeting critical infrastructure3Demand/consumption decline from conservation and mandated restrictions4U.S. government customer concentration and contract modification variability5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Water supply and climate variability risk (drought, wildfires, disasters)Impact: HighLikelihood: High

    Drought, weather pattern changes, wildfires, and restrictions on water sources can reduce availability, increase costs, and disrupt service.

    Exposure: California water operations and imported water dependencies

  2. Regulatory rate-setting and recovery timing risk (CPUC)Impact: HighLikelihood: Medium

    Utility revenues depend on rates/charges permitted by the CPUC; adverse decisions can delay recovery, require refunds, or create impairment charges.

    ExposureCalifornia regulated water and electric utilities (GSWCBVES)
  3. Cybersecurity and terrorism targeting critical infrastructureImpact: HighLikelihood: Low

    Physical or cyber attacks could disrupt service and expose the company to losses; government-contractor cybersecurity rules can create penalties or debarment risk.

    Exposure: Utility operations and ASUS government contracting

  4. Demand/consumption decline from conservation and mandated restrictionsImpact: MediumLikelihood: Medium

    Water revenues are volume-based and regulated rates may not fully offset declining usage; conservation can cause short-term and permanent demand reductions.

    Exposure: GSWC water utility

  5. U.S. government customer concentration and contract modification variabilityImpact: MediumLikelihood: Medium

    ASUS contracted services rely on the U.S. government; future levels of modifications, task orders, and construction work may not continue at current levels.

    Exposure: ASUS contracted services segment

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Accounting

Judgemental items
Regulatory accounting (regulatory assets and liabilities)

CPUC-authorized mechanisms allow deferral and later recovery/refund of certain costs, affecting revenue recognition timing and period earnings.

Impact: Can smooth or shift earnings and cash flows across periods depending on approvals and true-ups.

Supply cost balancing mechanisms (e.g., MCBA replacement / ICBA-type tracking)

Purchased water and power cost variances versus authorized levels may be recorded for later recovery/refund, but newer mechanisms may exclude supply source mix impacts.

Impact: Changes volatility exposure from water supply source mix and per-unit cost variances.

Revenue composition and timing in contracted services

Contracted services revenue includes management fees and construction revenues; project timing and modifications/task orders affect recognition patterns.

Impact: Quarterly revenue and margins can fluctuate with construction activity and contract changes.

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Last updated: 24/09/2026