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Financial Results Call Presentation Second Quarter 2026 American States Water Company August 6 , 2026 NYSE : AWR
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Today’s Presenters Robert J. Sprowls President & CEO Eva G. Tang SVP – Finance & CFO 2
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Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “forecast,” “possibility,” “may,” “should” and similar phrases and expressions, and variations or negatives of these words. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors, including those described in greater detail in the company’s filings with the Securities and Exchange Commission (“SEC”), particularly those described in the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are encouraged to review the company’s filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this presentation and except as required by law, the company does not undertake any obligation to publicly update or revise any forward-looking statement. 3
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Non-GAAP Financial Measures This conference call includes a discussion of certain measures that are not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States and constitute “non- GAAP financial measures” under SEC rules. These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP. The non-GAAP financial measures discussed in this conference call include a discussion of diluted earnings per share by business segment. These non-GAAP measures supplement our GAAP disclosures and should not be considered as alternatives to the GAAP measures. Furthermore, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other registrants. The company uses these non-GAAP measures in evaluating its operating results and believes these measures are useful internal benchmarks in evaluating the performance of its operating segments. The company reviews these measures regularly and compares them to historical periods and to the operating budget. The computations and reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in this presentation. 4
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Q2 2026 Highlights 6 Q2 Diluted EPS by Segment 7 Q2 Operating Revenues by Segment 8 Q2 Expenses (Excluding Income Taxes) 9 EPS Bridge Q2 2025 to Q2 2026 10 YTD Diluted EPS by Segment 11 Liquidity 12 Regulatory Activity 13 Contracted Services (ASUS) 18 Dividends 19 Non-GAAP Measures 21 Presentation Overview 5
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Q2 2026 Highlights 6 Recorded consolidated diluted earnings per share increased $0.22 per share, or 25.3% for the quarter when compared to the second quarter of 2025: Q2 2026: $1.09 per share Q2 2025: $0.87 per share YTD 2026: $1.86 per share YTD 2025: $1.57 per share An 8.2% increase in the quarterly cash dividend approved last week, which marks the 72nd consecutive calendar year of dividend increases Expansion of regulated water operations: joint settlement filed between GSWC and Cal Advocates to approve the acquisition of a water system that serves almost 900 customer connections located in Norwalk, California, a city in Los Angeles County Continued to deliver safe and reliable water, wastewater and electric services to customers during the quarter and on pace to invest a combined $185-$220 million in infrastructure investments at our regulated utilities Filed new general rate case applications for both regulated utilities Successfully completed the ATM equity offering program Recognition: named on the list of Time’s America’s Best Companies 2026
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Q2 Diluted EPS by Segment 7 Q2 2026 Q2 2025 Variance Water $ 0.91 $ 0.73 $ 0.18 Electric 0.04 0.03 0.01 Contracted Services 0.16 0.13 0.03 AWR (Parent) (0.01) (0.01) - Consolidated Diluted EPS as recorded (GAAP) $ 1.09 $ 0.87 $ 0.22 Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
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Q2 Operating Revenues by Segment (amounts in millions) Q2 2026 Q2 2025 Variance Water $131.1 $119.7 $11.4 Electric 13.6 12.9 0.7 Contracted Services 36.6 30.4 6.2 Total Operating Revenues $181.3 $163.1 $18.2 8 Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
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Q2 Expenses (Excluding income taxes) (amounts in millions) Q2 2026 Q2 2025 Variance Water and Electric Supply Costs $37.5 $36.9 $0.6 Other Operation 12.0 12.3 (0.3) Administrative and General 24.5 25.2 (0.7) Depreciation and Amortization 12.7 11.7 1.0 Maintenance 6.2 6.1 0.1 Property and Other Taxes 7.5 7.0 0.5 ASUS Construction 16.7 12.9 3.8 Total Operating Expenses $117.3 $112.1 $5.2 Interest Expense, net of Interest Income $11.3 $10.6 $0.7 Other Income, net of (Other Expense) $5.1 $3.6 $1.5 9 Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
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EPS Bridge Q2 2025 to Q2 2026 10 Electric Utility Contracted Services $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 $1.15 Increase in water revenues largely from 2026 rate increases Higher supply costs from higher overall per- unit purchased water costs and water volume from consumption Higher interest expense, net Higher other income from Rabbi Trust investments A higher effective income tax rate Dilutive impact from ATM program Higher electric earnings largely from 2026 rate increases Higher earnings from higher construction activity and lower interest expense Water Utility $1.09 Q2 2025 EPS Q2 2026 EPS ($0.01)$0.21 $0.87 ($0.02) $0.03 ($0.02) $0.01 $0.03 ($0.01)
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YTD Diluted EPS by Segment 11 YTD 2026 YTD 2025 Variance Water $ 1.47 $ 1.25 $ 0.22 Electric 0.12 0.10 0.02 Contracted Services 0.31 0.26 0.05 AWR (Parent) (0.03) (0.03) - Consolidated Diluted EPS as recorded (GAAP) $ 1.86 $ 1.57 $ 0.29 Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
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Liquidity Operating cash flows were $116.6 million for YTD 2026 compared to $109.6 million for YTD 2025 largely from: Implementation of authorized new rates at the regulated utilities Implementation of various surcharges at both regulated utilities Cash proceeds of approximately $4 million from PFAS contamination litigation, and Timing of cash receipts and disbursements related to other working capital items Regulated utilities invested $91.7 million on company-funded capital work YTD Capital expenditures for 2026 are expected to be $185-$220 million Financing Activities: ATM: AWR raised total proceeds of $39.9 million YTD net of issuance and legal costs incurred, and Completed the ATM offering program reaching the maximum aggregate offering capacity of $200 million Credit ratings: S&P: A and A+ credit ratings for AWR and GSWC, respectively, with stable outlook for both companies 12
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Regulatory Activity General Rate Case for Years 2025-2027 – On January 30, 2025, the CPUC issued a final decision in GSWC’s general rate case application for all its water regions and the general office, which determined new water rates for the years 2025-2027. The final decision in GSWC’s general rate case: Authorizes the investment of $573.1 million in capital infrastructure over the three-year capital cycle, including $17.7 million of advice letter capital investments for revenue recovery for second and third year attrition increases when projects are completed Authorizes advice letter capital investments of $58.2 million that began construction in 2023 for revenue recovery during the second- and third-year attrition increases when projects are completed 13 Regulated Utilities - Customer Service Areas The final decision also rejected a full sales and revenue decoupling mechanism and a full supply cost balancing account, and instead orders the transition to a modified rate adjustment mechanism for sales and revenues and an incremental cost balancing account for supply costs effective January 1, 2025 In December 2025, GSWC received approval from the CPUC to implement its full second-year rate increases, effective January 1, 2026, that will result in higher adopted operating revenues less water supply cost for 2026 of $32.0 million compared to 2025’s adopted operating revenues less water supply cost. Included in the 2026 increase is nearly $11 million related to advice letter capital projects. The assets from the advice letter projects and the related amounts in the memorandum account were added to the adopted rate base for inclusion in the revenue requirement effective January 1, 2026.
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Regulatory Activity (continued) - GSWC General Rate Case for Years 2028-2030 – On July 1, 2026, GSWC filed a general rate case application for all its water regions and the general office. This general rate case will determine new water rates for the years 2028 – 2030. Among other things, GSWC requested capital budgets of approximately $1 billion for the three-year rate cycle. GSWC also requested to reinstate the WRAM and MCBA regulatory mechanisms. A decision in the water general rate case is scheduled for the fourth quarter of 2027, with new rates to become effective January 1, 2028. 2026 Cost of Capital Application – In November 2025, the CPUC approved a request by GSWC and three other investor-owned California water utilities to defer the cost of capital application by another year. The CPUC’s approval postponed the filing date by one year until May 1, 2027, with a corresponding effective date of January 1, 2028. The CPUC also approved the joint parties’ request to leave the current Water Cost of Capital Mechanism in place through the one-year deferral period. GSWC’s current authorized rate of return on rate base is 7.93%, based on its weighted cost of capital, which will continue in effect through December 31, 2027. Expansion of GSWC’s Water Operations – On July 13, 2026, GSWC and Cal Advocates filed a joint motion seeking approval of the settlement agreement to acquire a water system in Norwalk. A CPUC proposed decision is expected in Q4 2026. 14
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Regulatory Activity (continued) – GSWC Adopted Average Water Rate Base $980.4 $1,161.5** $1,259.5** $1,357.5** $1,456.2* $1,673.2* 2021 2022 2023 2024 2025 2026 (in millions) CAGR 11.3% * The CPUC rate case decision covering rates for 2025-2027 authorizes GSWC to invest $573.1 million in capital infrastru cture over a three-year capital cycle, including $17.7 million of advice letter projects. The decision also requires $58.2 million of capital investments that began construction in 2023, to be recovered through advice letters rather than included in 2025 base rates. All advice letter projects along with the rate of r eturn or interest expense accrued prior to the filing were approved in late 2025, resulting in an increase of $80 million of rate base in 2026. ** Based on the decision in the general rate case covering 2022-2024. * 15
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Regulatory Activity (continued) - BVES General Rate Case for Years 2023-2026 – In January 2025, the CPUC adopted a final decision in BVES’s GRC proceeding that set the new electric rates retroactive to January 1, 2023 and approves the settlement agreement reached between BVES, Cal Advocates and another intervenor in its entirety. The decision settles and adopts the revenue requirements for 2023- 2026. In January, BVES implemented rates for 2026, the last year of its four-year rate cycle. The final decision in BVES’s general rate case: Authorizes BVES to invest $75.6 million in capital infrastructure in base rates over the four-year rate cycle including at least $23.1 million (plus AFUDC) through advice letters as projects are completed; Adopts a cost of capital that increases BVES’s adopted return on equity to 10.0%, lowers the cost of debt to 5.51%, and maintains the capital structure of 57% equity and 43% debt; and Approves for recovery requested capital expenditures and other incremental operating costs previously incurred in connection with its wildfire mitigation plans that were not included in customer rates. In 2026, BVES received a $3.3 million increase in adopted operating revenues for the fourth- year rate increase In 2026 and 2025, BVES received additional revenue increases associated with $27.9 million of GRC-authorized advice letter projects (including AFUDC) that were completed and placed in service. These projects were approved at actual costs and are expected to generate approximately $4 million in additional annual operating revenues. 16
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Regulatory Activity (continued) - BVES General Rate Case for Years 2027–2030 – On January 30, 2026, BVES filed a general rate case application that will determine new electric rates for the years 2027 through 2030. Among other things, BVES requested: i. capital budgets of approximately $133 million for the four-year rate cycle, and another approximately $17 million, plus AFUDC, for capital projects to be filed for revenue recovery through advice letters when the projects are completed and ii. a return on equity of 11.30%, an embedded cost of debt of 5.92%, a capital structure for BVES of 60% equity and 40% debt, and a return on rate base of 9.15% 17
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Contracted Services (ASUS) Earnings for Q2 2026 were $0.16 per share compared to $0.13 per share for Q2 2025. The increase was largely resulting from (i) an increase in construction activities, (ii) an increase in management fee revenues resulting from the resolution of various economic price adjustments, and (iii) lower interest expense; partially offset by higher overall operating expenses. YTD 2026 earnings were $0.31 per share as compared to $0.26 per share for the same period in 2025. ASUS is projected to contribute $0.63 - $0.67 per share in 2026. We are confident that we can effectively compete for new military base contract awards in the future, based on our strong history and expertise. The completion of filings for economic price adjustments, requests for equitable adjustment, asset transfers and contract modifications awarded for new projects provide ASUS with additional revenues and dollar margin. 18 Serving Those Who Serve®
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Dividends Board of Directors approved an 8.2% increase in the 2026 third quarter cash dividend from $0.5040 to $0.5455 per share Dividend policy: CAGR of more than 7% over the long term continues to be met and exceeded Dividends paid every year since 1931 Increased dividend every calendar year for 72 consecutive years 19 Quarterly Dividend Growth* CAGR 8.4%(Per share) $0.3650 $0.5455 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 $0.55 2021 2022 2023 2024 2025 2026 *Increases to quarterly dividends have been announced in the third quarter of each year
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Questions and Answers
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Computations and Reconciliations of Non-GAAP Financial Measures Below are the computations and reconciliations of diluted earnings per share from the measure of net income (loss) by business segment and for the parent company to AWR’s consolidated diluted earnings per share for the three and six months ended June 30, 2026 and 2025: 21 Water Electric Contracted Services AWR (Parent) Consolidated (GAAP) In 000's except per share amounts Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Net income (loss) $ 36,101 $ 28,140 $ 1,492 $ 1,176 $ 6,186 $ 4,874 $ (505) $ (500) $ 43,274 $ 33,690 Weighted Average Number of Diluted Shares 39,478 38,642 39,478 38,642 39,478 38,642 39,478 38,642 39,478 38,642 Diluted earnings (loss) per share $ 0.91 $ 0.73 $ 0.04 $ 0.03 $ 0.16 $ 0.13 $ (0.01) $ (0.01) $ 1.09 $ 0.87 Water Electric Contracted Services AWR (Parent) Consolidated (GAAP) In 000's except per share amounts YTD 2026 YTD 2025 YTD 2026 YTD 2025 YTD 2026 YTD 2025 YTD 2026 YTD 2025 YTD 2026 YTD 2025 Net income (loss) $ 57,784 $ 48,046 $ 4,805 $ 3,802 $ 12,001 $ 9,998 $ (1,368) $ (1,312) $ 73,222 $ 60,534 Weighted Average Number of Diluted Shares 39,346 38,500 39,346 38,500 39,346 38,500 39,346 38,500 39,346 38,500 Diluted earnings (loss) per share $ 1.47 $ 1.25 $ 0.12 $ 0.10 $ 0.31 $ 0.26 $ (0.03) $ (0.03) $ 1.86 $ 1.57 Note: Certain amounts in the tables above may not foot or crossfoot due to rounding.