American States Water Company Shines in Q4 2024 with Record-Breaking Investments and Dividend Hike
American States Water Company (ASW) wrapped up its fourth quarter and full-year 2024 performance with impressive results, highlighting the company's commitment to investing in its water and electric infrastructure, as well as its contracted services business. During a recent conference call discussing the Q4 and FY 2024 results, ASW President and Chief Executive Officer Bob Sprowls and Senior Vice President of Finance and Chief Financial Officer Eva Tang provided insight into the company's achievements.
The California Public Utilities Commission (CPUC) issued final decisions last month for both ASW's water and electric utility subsidiaries. Both decisions represent constructive regulatory outcomes that enable the company to continue investing in its water and electric infrastructure for safe and reliable services to its customers for generations to come, according to Sprowls.
On a financial front, ASW finished 2024 with strong results. The company reported earnings per share (EPS) of $0.32 higher than adjusted 2023 EPS, which excludes favorable variances related to the receipt of final decisions in the water general rate case and cost of capital proceedings in June 2023. This increase was primarily driven by rate increases in both the water and electric utilities, as well as the commencement of water and wastewater operations at two new military bases and successful economic price adjustments in its contracted services business.
Additionally, ASW's water utilities segment recorded a tax benefit following the final decision in its general rate case. These increases were partially offset by higher operating expenses and interest costs, as well as the dilutive effects from the issuance of equity under ASW's at-the-market offering program, which decreased consolidated earnings by approximately $0.04 per share.
The company invested a record-breaking $235.5 million in infrastructure at its regulated utilities, reflecting its strong ability to execute its capital plans. Meanwhile, its contracted services business, ASUS, secured $56.5 million in new capital upgrade awards with projects scheduled for completion through 2027, also a record high.
ASW achieved a return on equity of 14.1% for the year and increased its dividend to shareholders by 8.3%, marking seven consecutive years of annual dividend increases. This impressive performance demonstrates the company's commitment to delivering value to its customers and shareholders alike."
