At a glance
American States Water Company is worth $3.35B, about 25 times its fiscal 2025 earnings. Revenue grew 10.5% to $658.1M in fiscal 2025, with 19.8% kept as profit; over 5 years it has grown 6.2% a year. It pays a 2.43% dividend yield, raised every year for at least 9 years, and returned $310.9M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +15.0% over the past year with dividends reinvested and +0.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 28.5% in the 2020 crash (S&P 500: 33.7%) and 29.9% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
American States Water is a holding company with three segments: water, electric and contracted services. Its water utility, Golden State Water Company, buys, produces, delivers and sells water in 11 California counties and provides wastewater collection and treatment in some areas. Bear Valley Electric Service distributes electricity to mountain communities in San Bernardino County, including the Big Bear area.
Both utilities are regulated by the California Public Utilities Commission (CPUC), which sets the rates they may charge. Those rates are meant to cover costs and earn a return on money invested in pipes, plants and power lines. At December 31, 2025, they served 265,142 water customers and 24,915 electric customers. Residential and commercial customers provided about 90% of water and electric revenues in 2023 through 2025. Demand is seasonal: hot, dry weather lifts water use, and snowfall affects how much power Big Bear ski resorts use for snow-making.
The third business, American States Utility Services, operates, maintains and upgrades water and wastewater systems on U.S. military bases, including Fort Bliss, Fort Bragg, Eglin Air Force Base and Joint Base Andrews. Most of these bases are served under 50-year firm-fixed-price contracts, with prices set in advance and adjusted yearly. The U.S. government is its main customer. Total company revenue was $658.1 million in fiscal 2025, up 10.5%.
Price history
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AWR +15.0% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $181.3M, up 11.2% from a year earlier, and net income was $43.3M (+28.4%).
- For fiscal 2025, revenue was $658.1M (+10.5% year over year; +6.2% a year from FY2020 to FY2025) with a 19.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.2% good |
|---|---|
| Operating margin | 30.9% good |
| Free cash flow margin | -1.1% weak |
| Return on equity (FY2025) | 12.5% watch |
| Return on assets (FY2025) | 4.8% watch |
| Net cash (cash minus debt) | $-696.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $488.2M | $86.4M | $-8.3M |
| FY2021 | $498.9M | $94.3M | $-28.9M |
| FY2022 | $491.5M | $78.4M | $-48.4M |
| FY2023 | $595.7M | $124.9M | $-120.9M |
| FY2024 | $595.5M | $119.3M | $-33.2M |
| FY2025 | $658.1M | $130.4M | $-7.1M |
Valuation snapshot
| Market value | $3.35B |
|---|---|
| P/E ratio | 25.1 |
| Dividend yield | 2.43% |
Rank among 1514 US companies
Market value at each year end
American States Water’s market value went from $1.67B at the end of 2016 to $3.35B on Oct 28, 2026, about 2.0 times as much; since the end of 2025 it is up 19%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.35B | +19.3% |
| 2025 | $2.81B | -4.5% |
| 2024 | $2.94B | -1.2% |
| 2023 | $2.97B | -13.1% |
| 2022 | $3.42B | -10.5% |
| 2021 | $3.82B | +30.3% |
| 2020 | $2.93B | -8.1% |
| 2019 | $3.19B | +29.6% |
| 2018 | $2.46B | +16.0% |
| 2017 | $2.12B | +27.5% |
| 2016 | $1.67B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AWR price data to Oct 28, 2026 | +18.8% | +15.0% | +5.4% | +0.6% | +10.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +18.8% |
| 2025 | -4.3% |
| 2024 | -1.2% |
| 2023 | -11.5% |
| 2022 | -8.9% |
| 2021 | +32.3% |
| 2020 | -6.7% |
| 2019 | +31.2% |
| 2018 | +17.9% |
| 2017 | +29.8% |
| 2016 | +11.0% |
| 2015 | +13.9% |
| 2014 | +34.6% |
| 2013 | +23.1% |
| 2012 | +41.9% |
| 2011 | +4.5% |
| 2010 | +0.3% |
| 2009 | +10.5% |
| 2008 | -10.3% |
| 2007 | -1.3% |
| 2006 | +27.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 30.6% over that stretch · deepest drop along the way 37.8%, back to its old high 44.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 18.1% over that stretch · deepest drop along the way 28.5%, back to its old high 0.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.6% over that stretch · deepest drop along the way 29.9%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 4 open-market purchases ($70K) and 4 sales ($278K).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 15, 2026 | Paul J Rowley SVP OF OPERATIONS | sell | $99K |
| Aug 19, 2026 | Anne M Holloway Director | sell | $80K |
| May 20, 2026 | Anne M Holloway Director | sell | $50K |
| Sep 4, 2026 | Diana M Bonta Director | sell | $48K |
| May 19, 2026 | Anne M Holloway Director | buy | $40K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 17.2% | Jun 30, 2025 |
| Vanguard Portfolio Management | 9.07% | Jun 30, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
| Neuberger Berman Group LLC | 4.9% | Sep 30, 2026 |
ETFs with the most weight in AWR
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 4.28% |
| CGW Invesco S&P Global Water Index ETF | 2% |
| AQWA Global X Clean Water ETF | 1.72% |
| CSB VictoryShares US Small Cap High Dividend Volatility Wtd ETF | 1.67% |
| FIW First Trust Water ETF | 1.32% |
| SIXS ETC 6 Meridian Small Cap Equity ETF | 1.14% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 1.11% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 1.05% |
What could go wrong
- Less protection from swings in water use. From 2008 through 2024, Golden State Water's revenue was largely shielded from changes in customer water use. Regulators denied that full protection for 2025–2027, so wet weather or conservation may hit earnings harder.
- Wildfire risk in its electric territory. Bear Valley Electric serves a high wildfire risk area. The company may be held strictly liable, meaning responsible even without negligence, for property damage its equipment causes, and insurance may fall short.
- Military contracts can end or pay late. The U.S. government can end base contracts early for its convenience. The company has faced delays in price adjustments and payment, and fixed-price bids can lose money if costs exceed estimates.
- California regulators set its prices. Its utilities can charge only rates that the California Public Utilities Commission approves. Rate cases, the formal requests to raise prices, can be delayed or reduced, squeezing cash flow and earnings.
- All utility customers are in California. Its water and electric utilities serve only California, exposing results to the state's droughts, natural disasters, politics, costs and economy. Its utility assets can also be taken by condemnation, a forced government purchase.
- Heavy spending relies on outside money. Cash from operations fell short of capital spending in every year from 2020 to 2025, so the company leans on borrowing and outside funding. Total debt was $717.7 million as of June 30, 2026.
Recent events
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Executive or board change
- Executive or board change
- Major agreement signed
- Quarterly results released
- Executive or board change
- Other company announcement
- Quarterly results released
For income and retirement investors
The dividend has risen for at least nine straight years through fiscal 2025, and the true streak may be longer. Dividends per share grew from $1.28 in 2020 to $1.94 in 2025, about 8.7% a year, and paid out 57.2% of 2025 earnings. Free cash flow (cash left after capital spending) was negative every year from 2020 to 2025, so free cash flow did not cover the dividend. There were no share buybacks from 2021 to 2025, and the share count rose 7.3% from October 2021 to August 2026. The yield was 2.43% as of October 28, 2026.
The stock has fallen hard in downturns. Its share price dropped 37.8% from October 2007 to October 2008 and took about 44 months after the low to recover. It fell 28.5% in the early-2020 COVID crash and 29.9% in the first half of 2022. As of October 28, 2026, it had not regained its January 2022 high. Single stocks carry more risk than diversified funds.
Questions investors ask
How does American States Water make money?
It runs regulated water and electric utilities in California and provides water and wastewater services on U.S. military bases. Golden State Water sells water in 11 California counties, and Bear Valley Electric Service distributes power to mountain communities in San Bernardino County. Their rates are set by the California Public Utilities Commission. Together they had 290,057 customers at December 31, 2025, and residential and commercial customers provided about 90% of utility revenue. Total company revenue was $658.1 million in fiscal 2025.
Does American States Water raise its dividend every year?
Yes. It has raised its dividend for at least nine consecutive years through fiscal 2025, and the true streak may be longer. Dividends per share rose from $1.28 in fiscal 2020 to about $1.94 in fiscal 2025, an average gain of 8.7% a year. The 2025 dividend equaled 57.2% of earnings. Free cash flow, the cash left after capital spending, was negative in each year from 2020 to 2025, so it did not cover the dividend. The yield was 2.43% as of October 28, 2026.
What does American States Water do on military bases?
It runs, maintains and upgrades water and wastewater systems for the U.S. military through its American States Utility Services subsidiaries. Most bases are served under 50-year firm-fixed-price contracts, meaning prices are set in advance and adjusted each year. Joint Base Cape Cod is served under a 15-year task order. Bases include Fort Bliss in Texas and New Mexico, Fort Bragg in North Carolina and Eglin Air Force Base in Florida. The government can end contracts early for its convenience, and the company has faced delays in price adjustments and payment.
How has AWR stock performed over the long term?
It depends on the period. As of October 28, 2026, the share price was up 166% over 10 years, about 10.3% a year, but only 3% over five years, about 0.6% a year. It fell in each calendar year from 2022 through 2025, then gained 18.8% in 2026 through October 28. Its deepest decline in about 21 years of price history was 37.8%, during the 2008 financial crisis.
Why could American States Water's earnings become more volatile?
Because California regulators removed a cushion that kept water revenue steady. From 2008 through 2024, Golden State Water used mechanisms that separated revenue from how much water customers used and tracked changes in supply costs. In its general rate case, the formal process for setting prices for 2025 through 2027, the CPUC denied both. It approved a more limited Monterey-style mechanism, an incremental supply cost account and a sales reconciliation mechanism instead. The company says revenue and earnings may swing more with water use and supply costs.