Earnings per Share/Capital Stock

3 Months Ended

Mar. 31, 2025

In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares, and that have been issued under AWR’s stock incentive plans for employees and the non-employee directors stock plans. In applying the “two-class” method, undistributed earnings are allocated to both Common Shares and participating securities.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate basic EPS:


Basic:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2025		2024
Net income	$	26,844	$	23,135
Less: impact from participating securities	81		56
Total income available to common shareholders	$	26,763	$	23,079


Weighted average Common Shares outstanding, basic	38,253		37,030

Basic earnings per Common Share	$	0.70	$	0.62

Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with restricted stock units granted under AWR’s stock incentive plans for employees and directors, and net income. There were no stock options outstanding as of March 31, 2025 and 2024 under these plans.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate diluted EPS:


Diluted:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2025		2024
Common shareholders earnings, basic	$	26,763	$	23,079
Undistributed earnings for dilutive restricted stock units	27		17
Total common shareholders earnings, diluted	$	26,790	$	23,096

Weighted average Common Shares outstanding, basic	38,253		37,030
Stock-based compensation (1)	101		77
Weighted average Common Shares outstanding, diluted	38,354		37,107

Diluted earnings per Common Share	$	0.70	$	0.62

(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in calculating diluted EPS, 153,583 and 128,668 restricted stock units, including performance awards to officers of the Company at March 31, 2025 and 2024, respectively, were deemed to be outstanding and included in the calculation of diluted EPS.

During the three months ended March 31, 2025 and 2024, AWR sold 334,548 and 227,981 Common Shares, respectively, through its ATM offering program and raised proceeds of $25.8 million, net of $0.4 million in commissions paid and $16.2 million, net of $0.2 million in commissions paid, respectively (Note 1). During the three months ended March 31, 2025 and 2024, AWR also issued 23,014 and 20,290 Common Shares related to restricted stock units, respectively, pursuant to stock-based compensation plans.

During the three months ended March 31, 2025 and 2024, AWR paid $1.3 million and $1.1 million, respectively, to taxing authorities on employees’ behalf for shares withheld related to net share settlements. During the three months ended March 31, 2025 and 2024, GSWC paid $1.2 million and $1.0 million, respectively, to taxing authorities on employees’ behalf for shares withheld related to net share settlements. These payments are included in the stock-based compensation caption of the statements of equity.

During the three months ended March 31, 2025 and 2024, AWR paid quarterly dividends of approximately $17.8 million, or $0.4655 per share, and $15.9 million, or $0.4300 per share, respectively. During the three months ended March 31, 2025 and 2024, GSWC did not make dividend payments to AWR.